tv Street Signs CNBC February 27, 2014 2:00pm-3:01pm EST
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here. i mentioned 63% of ceos of these companies represented here are optimistic about their business and the case in the economy, the case for the economies right know globally. a big change from just a few months ago. >> sure is. >> and it is driven by janet yellen and the fed and interest rates staying low. sue? >> ty, see you soon. that's it for us. "street signs" begins, now. just what is apple waiting for? we're going into to try to figure 0 tut. when will apple finally wow us again? hi, everybody. i am brian. mandy drur around the big wall. >> hello, the big hello from the big wall. >> and so besides apple, also talking about this. what one retailer is doing that hasn't been done since lyndon johnson was president. are you thinking of investing in china? we have your buy dos and don'ts.
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get it? and the minor question of whether america will still be the world's leading super power in 25 years? what do you think? >> of course. because i'm going to see it from my green k5card and want to do . and moving from within 15% of the all-time closing high. yes, the all-time closing high going all the way back, remember the heady days of the year 2000 before things turned very pear shaped? up by half a percent and trading above record closing high, something it's done the past three sessions but failed to set a new record closing high. will today be the day? that, of course, is the question, brian. >> it is. nasdaq 5,000. remember those days? all right. meantime, jcpenney having its best day since this was the cover of the penney's catalog. yes, that was 1967.
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joining us here, retail dream team, cnbc contributor jan niven may have actually taken that forecast and our own courtney reagan whose mom may have been in that photograph. and infer when that was apropos. all right. jan, the way you work and for viewers and listeners who don't know this, the minute you leave the set you send obnoxious e-mails. last night saying, i will bet you dinner, even though you already won one, that jcpenney stock doubles from yesterday to sometime this year. within 2014, double from yesterday's close. you got a good -- i accepted the bet. you got a good head start today. do you think this is a real beginning of a meaningful turnaround? >> you do drive a hard bargain. 1ed about $10. >> $9.96. dude, give me four digits. >> today i got most of that back. did i think today was real? today was -- very strong response to the fact that they
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don't look like they're going to go broke. don't look like they need a capital raise and they do look like things are getting better. >> it's -- yes, okay, fine. it's like an amc hornet with three cylinders. it's running. the car's running. you get where you need to go theoretically. jcpenney is far from financial -- there are still questions about its solvency and liquidity. not to mention same-store sales growth of 3%. wow. >> i didn't say it wasn't risky, but now the risk looks much lower. because people were convinced, at least the shorts were, and today there's fewer of those than yesterday. >> percentage of the flow, about 43%. >> right. convinced they would either go broke or have to recapitalize the business somehow. now it doesn't look like it. the statements they made today, and courtney and i have both parched these at length, we're convinced they're saying they're going to have positive cash flow for 2014.
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that they will not have to dip into anything or do anything between now and year-end, other than for normal working capital needs. they may not achieve that, but that's what they've convinced the street of, and that's what we're waiting to see what happens. the other thing they said, mid single digits comps for the rest of the year. that's good enough, if they can achieve that. >> talking of the street, what is the analyst community saying about the jcpenney move today? a head fake? >> not at bad as it could have been. to prayer phrase, not that great either. brian, same-store sales, you said, up 2%. not awesome. better than we thought. margins were still under 30% which is a threshold that jan wanted to see. although if you do accounting, you can get back up to 30%. it's not great, but it's better, and the worries about whether it's going to be solvent have come down. i think that they sufficiently did that on the call. >> and your next trip out to a store? i know you do a lot of on the
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ground reporting as well. >> whenever i'm there -- honestly -- when i'm at or near an area that has a jcpenney i always go in and look. every store is different. the jcpenney in harold square is different than dayton, ohio. >> everyone going through walks through the bottom of the store. >> different than you see -- >> i want to see lines at the register in urbana, illinois. the great dayton, ohio, oakwood high. >> centerville -- >> elkwood high. >> never does a week go by i'm not in a penney's store someplace in america. not in all locations you mentioned, but most. the stores look a lot better. the product looks a lot better. there are a lot more people shopping in them. that's not enough to change the trajectory of the company necessarily, but given the comments we heard today, seems it is changing trajectory. looks like there will be positive comps going forward. i don't think they're just making this up. and i don't think they're going to have any real issues with
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liquidity. i didn't think they would anyway, have liquidity issues. the real issue, would people believe gross margins and sales could get better? i still think 37% gross margens are in the cards. >> on that note, thank you, jan and courtney. we'll make a date again soon. shares of apple, meantime, up about $8, but the company has been silent the last couple of months. that makes us suspicious. bringing in tim and president of strategies, a leading apple insid insider. radio silence. tim, what's going on? >> it's clear that apple is preparing something. tim cook, their ceo, has made comments about this. the bottom line is, though, apple never brings a product to market until it's completely ready. it's completely gone through the testing, and more importantly, it's got ecosystem and channels ready for it to go, because when they sell something, they expect to sell in the millions. so, you know, we know that apple
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is working on some exciting new things. we suspect they're working on an update to the tv, to apple tv as well as potentially a smartwatch and, of course, we have a yearly cycle for the iphone, which usually is in this late fall, early winter. so bottom line is, you kind of just have to kind of wait and see what apple's going to do, but you can bet they have something going on. >> tim what do you think it is? you talked about tv. we've talked a lot about the back channel stuff they may be doing with the network. what do you really believe they're going to roll out? >> i do believe that they have a serious focus on apple tv. i think it's gone from what steve used to call the hobby stage to -- >> because, tim, sorry to jump in. they do already have something called apple tv. i own one. i think mandy does, too. you probably do. the little 99 cent box where you can get the netflix app, hulu app and other stuff. >> sure. >> are you talking about a
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physical television? >> no. not necessarily. but we do believe that they are going to create a more powerful apple tv box that has a lot more services and more importantly, they do very different things with the user interface to make it much easier to access content. navigate through content, and then more importantly, connect it to your devices. >> will it be a game changer foretheir stock? an apple tv of the kind you've just described, tim? >> it could be. again, there are rumors they've been talking with some of the other companies to bring in extra content. that may be part of it. but i have to believe that what steve jobs told walter isakson, that they nailed this new concept in tv, that there is much more there, and it's not just this box as it stands today being upgraded and hardware and basic software. i think there's something big
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there. >> i said 99 cents. that would be a hot seller, tim. apple tvs, great. bad for margins. great for consumers. $99 still. a pleasure. don't be a stranger. want you back on "street signs." >> thank you very much. >> few people know about apple tim. and gig georgia factory for battery production. a feel-good american story. >> huge. a very big deal. what you're looking at here brian, is in the words of one gentleman i talked with whose job is to bring in these types of plants and facilities to different states, he called this the biggest deal that's out there right now in terms of corporate expansion. the gig georgia factory will cost between $3 billion and $4 billion cranking out lithium ion batteries that will fuel a half million vehicles. a big expansion when it comes to lithium ion batteries. morgan stanley estimates in
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terms of the ramp-up in production of tesla vehicles over the next 10 to 15 years. see the top line? we're talking about, in the eyes of morgan stanley, up to 1.2 million teslas produced every year by 2028. now, the gig georgia factory willeverate up to 6,500 jobs. it is a plum -- plum -- project. any one of four states to like to land. the finalists, texas, new mexico, nevada and arizona. each of them have their strengths and weaknesses. guy, the most interesting one here in this group, text. because they've already banned direct sales of automobiles, which hurts tesla sales. could that change if tesla agrees to put the project there? look at shares of tesla, i point out webbush the latest to ching its price target raising it to $2.95. back to you. >> phil lebeau, thank you. breaking news with scott cohen. over to you. >> a little follow-up, mandy. we told you earlier today about the attorney general eric holder hospitalized after feeling faint
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and short of breath. we understand he is resting at home according to a justice department spokesman. eric holder is 63 years old. he had fallen ill during a meeting with senior staff this morning. nbc's pete williams says that holder had been feeling under the weather for several days, and that this might be related to that, but eric holder is doing just fine at home. back to you. >> good news for the attorney general. scott, thank you. on deck, the buy dos and buy don'ts of chinese stocks. laying out the best bets for your money. plus, are you ready for today's mystery stock? >> i'm ready. >> are you sure? i didn't tell you who it is. >> i have no idea. >> there is your hint. that picture. >> that's -- >> gomer pyle, suggests the name of this company. >> still in the dark over here. later, why wear and tear on your tires could until a rough road ahead for the economy. plus, kicking off the weekend with an uncorking for coors. a little early, though. et, but they're gonna fall in love,
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welcome back, everybody to "street signs." the chinese yen, meaning the people's currency weakening against the dollar. that is grabs attention. why? sarah eisen is there reason to freak out and explain why a u.s. investors should care. >> well, investors are certainly caught off guard by this move in the chinese currency. if you pull up a chart. say over the last week or so,
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it's been surprising. that is the chinese currency the yuan weakened against the u.s. dollar. surprising. the past five years, chinese currency on a steady appreciation. gaining against the u.s. dollar. that's something the world wanted to see. not just washington politicians who have called on china to stop manipulating its currency, let its currency appreciate, just for the broader global economy to help with rebalancing. now that it's going the other way, everybody is wondering, including investors in the united states, why? why the change in policy right now? a few reasons to consider. one. perhaps a signal the chinese economy is actually weakening and china will weaken its currency to help sell more exports and protect its economy. another theory out there reported by the "wall street journal," that china is engineering this decline in its currency because it's preparing for a broader move toward a more
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open, free-floated currency. in other words, trying to introduce two-way bets in the currency, and that would be a big step, mandy, towards making it more international giving the dollar a run for its money on the international stage. >> the first kirns, siworldwide. a sign of the time. from currency to stocks, dom ch chu with the buy dos and don'ts. >> always approached u.s. listed company with a watchful, sometimes skeptical eye. as internet jits outperform the market here, some bigger names in chinese internet software and services have also been delivering eye-popping performance to start 2014. check this out. internet security up 30% just in 2014 alone. then there's nq mobile up 40%. this is the same nq mobile,
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mobile intervet company targeted by a short firm muddy waters. up big. and social networking-type up up nearly 50% and perhaps investors decided this reward is worth 134 of the risk that goes along with investing in chinese companies. helping power shares in today's trade putting a positive on the year but still underperforming other internet companies. then online real estate companies, this is down 6% and internet company, another one, up just about 1% to 2% this year. underperforming. they report after the bell today and the stock is up ahead of that report. and the reason why it's important. stay tuned to "fast money" at 5:00 p.m. melissa lee, an exclusive interview with the ceo victor ku. new insights he sees, brian, in the coming month are fos for hi
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company. and to potato chips and soda. scott wapner, the fight between peltz and pepsi. >> thanks. pepsi is throwing a blow. pepsico throwing a blow back at nelson peltz today in an official statement from the company. the highlights being, pepsico saying that management and the board are fully aligned with our strategy. that we engaged with trian and analyzed the proposals, that the focus now is on delivering results, not new and costly distractions, they say in a statement provided to me a moment ago, and that we are confident, pepsico said, in our ability to deliver long-term shareholder value. i should also say, i spoke with somebody from the company a short time ago. they told me the following. that pepsi is in constant communication with their investors base and has received strong support for their strategy. remember, it was peltz, i reported on earlier today, had been doing his own speaking with investors, and he said he was getting support from the big
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shareholders he had been speaking with. pepsico also telling me and pointing out its largest shareholder black rock and larry fick the ceo is on the reported, that he doesn't agree with peltz' plan does not support his plan. the company made it clear to me it is focusing on delivering results they say for sha shareholde shareholders. not a distraction harming other shareholde shareholders. pepsico, an official response to nelson peltz and the story we first reported earlier today. >> we love an interesting story here on cnbc. thank you, scott watchner. in 25 years from now, what does america need to do to keep its global dominance against china? as part of our cnbc 25-year series, a look at the state of the union. >> reporter: the 20th century, the american century. some say the 21st will belong to asia. with help from our neighbors, america will be still able to
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compete. the scene when president obama traveled earlier in the month to talk with mexican counter parts about trade. get used to that scene. the next quarter essentially will see increasing integration with our north america neighbors on economic issue, energy and manufacturing, as well as gee oh politics. all part of our the u.s. will adapt to the world's shifting, and once plomacy and military were focused, and the center of gravity, now washington is turning its attention again. this time it will be the rising cloud of asia, latin america, even africa to cope with that challenge, that's why those north american and mexican partnerships are important. forecasters say within two decades we will not longer have the world's largest economy. china will. now, we will remain larger by at least three times in terms of per capita national output, but the symbolic importance of that
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shift will challenge america's influence, and that might push the american public which is currently exhausted after long commitments in iraq and afghanistan, to regain their appetite for engagement with the rest of the world. >> the better things are at home and the more effective we are abroad, that will encourage american global leadership. but if there's problems at home and what we do abroad seems to be counterproductive or not worth it, then i think it will reinforce a turning inward. >> if you're betting on one of those two choice, turning inward or engaging with the world, bet on the latter, because if there's one thing this rising generation of americans has seen, it's that the world is getting smaller and global integration is a fact in culture, in economics and in cross-border movements everywhere, guys. >> basically, china took a bunch of jobs from mexico they had taken from us. now we're thinking mexico may take jobs back from china? >> mexico will help align -- >> with canada?
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>> right. mexico will help take some of the jobs back, provide us a source of low-cost labor while he add valuable on this side of the border. you already see that integration in terms of the amount of u.s. value added in things that mexico is already exporting. so this is a trend that's going to continue. >> can you imagine if the two countries merged? sandwiched between them. camexico, with good weather. >> hmm. >> could happen. and still ahead, the fda is making a supersized change to food labels today. is this a real fix, or just a giant waste of time and money? a big, old food fight ahead. and last call to guess the mystery chart. there's your chart. the other hint. one of best performing stocks in the s&p 500. we gave you the gomer pyle hint. formerly known at anglo-energy. who is it? that's coming up.
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today we failrly busy. tomorrow we're booked solid. we close on the house tomorrow. i want one of these opened up. because tomorow we go live... it's a day full of promise. and often, that day arrives by train. big day today? even bigger one tomorrow. when csx trains move forward, so does the rest of the economy. csx. how tomorrow moves. time to resee there mystery chart. the gomer pyle hint. have you haven't guessedx na
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nabor's industry. get it? one of these names that quietly killing it and nobody talking about it. we often and rightly so get accused of having an east coat bias, especially talking real estate, because we live here. today let's go to the heartland with a tulsa-based bank aerpd bring in steve bradshaw, president and ceo of a financial company. bank of oklahoma, bank of kansas and text and too many others to list. welcome. >> thank you. >> glad you're on. we focus on silicon valley and new york. how are things in oklahoma? commercial loans up. are you experiencing a boom we're not talking about enough here? >> i think that's exactly right. in the southwest, really for the last five years you've seen home prices be stable to increasing. you've seen job growth. especially in the home state of oklahoma and texas, the second largest state. that's attracted a lot of jobs and created opportunities in the
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mortgage business, which has been something we've been working to expand over the years but trickling over into other businesses as well. >> some of the big banks, jpmorgan, yesterday, bank of america, laying out of thousands, and all of these people saying, see? the housing market is doomed. >> for us, we've converted to a purchase market in our part of the world. you saw, since home prices weren't down, you saw people with more equity early on during the recession. they were able to refi earlier. we're past that boom today, about 70% of our production is purchase money. for us, we see new housing coming onboard, new people moving into the market, people trading up. we are expanding our mortgage. >> let me ask it a more blunt way. is housing still strong? >> it is strong. absolutely. we saw between oklahoma and texas, we saw housing prices over the last two years up 8%. and we're seeing new home starts set record levels over the last four years.
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for us, new inventory coming onboard. there wasn't much in the way of home starts prior to that and that translates. >> who's borrowing commercially? >> a hallmark of our bank, seeing it beyond that, health care, expanding rapidly in the southwest. see that in texas as well as oklahoma. we also see it in just our basic commercial and industrial businesses as well. people are -- loan demand increasing. >> steve bradshaw, safe trip home. see, we are not east coast biased. >> absolutely. >> oklahoma. >> appreciate that. >> that's kind of east coast, if you live in nevada. >> the exact middle of the world. thank you for having me on. >> salt of the earth. >> absolutely. still ahead, our next guest says, buy this name back in january, the problem is, since he said it, stock's down about 50%. he's got explaining to do, but he's here to do it. >> and know that calling the
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street, maybe sefveral? says a lot about where the economy is headed. we'll tell you why, when "street signs" returns. re up early. up late. thinking up game-changing ideas, like this: dozens of tax free zones across new york state. move here. expand here. or start a new business here... and pay no taxes for 10 years. with new jobs, new opportunities and a new tax free plan. there's only one way for your business to go. up. find out if your business can qualify at start-upny.com 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. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today.
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it is thursday "street talk" time. semiconductors, another stock we talk about a lot, a down grade to sector perform from outperform. down by nearly 6%. >> down big to 966. a firm much let confident, the company will win the mini business. stock trading lower 7% today. >> and godowngraded by 2%. >> faster adoption of ditchistal downloads, cited, tarpgt ed ta share. a heavily shorted game stock in the markets. >> and every time i'm there, there's always a line, and mutual city. >> meeting with management, s c believe estimates are low. boosted to $133. seeing $14 or more upsite. a big bill ackman play.
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heavily invested. watch the name. >> and workday upgraded to outperform from market perform. and lots of names we don't normally talk about. >> it's good. that's why we have "street signs." >> it's our thing. target increased by 78% to $150. folks, stock's at 115. 115 to 150. you do the math. and human capital software company, whatever that means, acquired identified, a company that offers predictive an letic human resource software. >> what? >> the computer will tell you who's going to quit, who's going to cause problems and who's going to send the crazy e-mails like i do. i can tell by looking at somebody. >> don't look at me when you say that, and retailer, conn's down 44%. preannounced erpings, it's the top pick of our next pick who discussed the stock here back in january. is he still a buyer of conn's?
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haven't done well since you were toutingen stock on the show. do you still buy it? >> i would. a tough year to date. had a nice run since we came in last december, maybe up about 40% but it's been a difficult year to date and basically just to refresh viewers what they do. basically a specialty retailer of mattresses, bedding, furniture and appliances. the difference is between them and sears and best buy, they extend credit. credit is what bid them in the month of december and january -- bit them. the million dollar questions, if you will, when i spoke to management, is this an execution issue or is your customer base sick and financially sick and can't pay back their bills essentially? partially both. it is execution. they are growing rapidly and had problems making phone calls and collecting the money, but also colder weather. 50% to 60% of their customers
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pay their bill in the store and had a hard time getting out and the utility costs that people decided instead of having lights turned off or heat turned off, i should say, they would just defer that payment on their tv. i think these are seasonal factors, and if you have a long-term outlook like i do, this is going to be a great opportunity to buy a very rapidly growing business when they get the credit problems under control. >> use the philosophy it's seldom you see stocks popular and cheap at the same time. when everyone hates a stock like they are now, this is a time to buy it? >> we buy companies that dominate a niche. impossible to rep pla kwhat they have and truly not popular now and therefore extremely cheap. ten times earnings, growing at 20% to 25%, buy it right here definitely. >> i guess -- how much of the conn story is, sandy, people moving into texas? if a million more move in and that out, you don't move with
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your mattress, probably, unless it's new. the things you'll buy once you get to your new home. is that part of your play? >> yeah. also a housing play, with whether it's appliances or mattress, bedding, things like that. yeah. that's part of the story. if you think about it, they ca e selling electronics, now mattresses and furniture, higher ticket and higher margin items. the same-store sales growth is phenomenal. >> bottom line. you're adding more, if you liked it, you must love it now? a correct summation of your view? >> perfect summation. exactly when we stand now. >> sandy, leave it will. thank you for talking to us. >> thank you. >> by the way, just mentioned workday. on with jim cramer tonight. >> you booked him that fast? that "mad money" team, should call it "fast money." wait. that's the show before. the boardroom battle continuing. now, ebay founder is firing the
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latest shot calling icahn attack on the board "false and misleading." board room drama aside, should you bid on the stock trading at ten-year highs? talk numbers. rich ross and also a guest for fundamentals. spot-on about everything the last couple of years. are you with him in ebay? >> he does have a point, that perhaps they should break up the company. but the problem is, valuations don't make sense. fundamentals will keep a lid on valuations as well as earnings. our sum of the parts estimate is around $62 a share, but from a 19 times pe multiple and growth rate of roughly 12%, we don't see much juice and upside for him here. we would be a hold at best at this inflexes point. >> any juice in the chalk then, rich? >> some of the parts might not be compelling, the charts, mandy, extremely compelling.
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not much better. a short-term chart and show you my first example here. in 2012, the stock on a phenomenal rise up over 100%. for much of 2013, we settle into this sideways countertrend, consolidation, but today, boom, we get the breakout from the range, which is incredibly compelling and if we can zoom out for a moment, i'll show you where it gets interesting with this ten-year chart. alluded to highs we're bumping up against. some see resistance. when i see is a big head and shoulders bottom formed over the last ten years. that should provide an outstanding base of support for the coming breakout. this stock market has significant up side. $59 now. buy it now. >> a big smiley face. like that. thank you very much. chad and rich ross. >> thank you. be sure to check out the online edition of "talking numbers" with yahoo! finance. and over to dominic chu. what are you watching?
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>> how about this smiley face? increasing dividend by 13.5% to 50 cents a share. the insurer's 32nd consecutive increase. stock up a percent in ta trade. chubb the name. one indicator that might telling you the markets are heading for a pothole, and plus, can you guess are what the best performing fast food stock is? a hint, it's not mcdonald's. surprising name, actually. we're going to have it coming up, along with australian music. >> i'm loving the music. later, food labels will soon be on fat shaming, with news that -- you know, a winning move. calorie counts. is it a big, fat waste of money? we'll debate that. first, what is ahead on the "closing bell"? go griffith. >> on the s&p 500 record watch. fourth day in a row. we'll see if we can do it today,
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finally. wells fargo, why he believes we could see the s&p hit 2,000 by the end of this year. one offy whoer numbers we're seeing, and hear from somebody who says effect what's happening on wall street. instint annalysis of earnings. a lot more. see you at the top. kelly evans and i will see you at the top of the hour on "closing bell." stay tuned. >> announcer: "talking numbers" sponsored by charles schwab trading services. tdd#: 1-888-648-6021 there are stocks on the move. tdd#: 1-888-648-6021 in here, streetsmart edge has tdd#: 1-888-648-6021 chart pattern recognition tdd#: 1-888-648-6021 which shows you which ones are bullish or bearish. tdd#: 1-888-648-6021 now, earn 300 commission-free online trades. tdd#: 1-888-648-6021 call 1-888-648-6021 tdd#: 1-888-648-6021 or go to schwab.com/trading to learn how.
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you've heard of the super bowl indicator, likely heard of the january indicator forestocks. may we present something that seems so crazy it just might actually not be crazy. it's the tire indicator. this heretofore unto known beast recognized by nick, chief market strategist at converge group. data from the government shown as the price of tires, for your car, goes down, stocks tend to go down, and as tire prices go up, stocks tend to go up. any connection may just be luck, but he says since demand for
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tires is relatively constant, it may not be a good sign for stocks that the price of tires has been going down. three months in a row. you know what hasn't been going down? that gt goodyear tire. stock soaring, dusoubled over t last year. >> herb, welcome back to the show. here with another red flag. seed for predatory lending but further than that. doesn't it. >> i pointed something out here. a lawsuit filed by the consumer financial protection bureau yesterday. and the company is just come out with a response. i point this out, this complaint never should have been filed and overwhelmingly focuses on issues unrelated to consumer finance and other things you would think the cfsb would be involved with. that's what the cppb would be involved with here. that's important.
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you can argue they're laying out a road map pointing out other things unrelated to lending. the state ags to look at and use and important for the entire company. industry. here's why, in the suit, richard con degree, he condry said, taking our first pub lech enforcement action against a for-profit college. effectively saying, this is the first. does that mean there will be a second, third and fourth? we'll find out. >> did you remind viewers this is the consumer financial protect bureau? >> attempted it and probably tripped over it. >> want to be sure. >> yes, i did. >> the last few years, a lot of new acronyms out there. >> i did say that. >> i did say it. >> and quickly, you mentioned the other day, came out with worse than expected results and of course are partly blaming the weather. >> right.
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red flag this in reality. now analyst after analyst after analyst is downgrading the stock. you wonder where were they months ago when you could see the writing on the wall? >> oh. or in the water, as it were. thank you very much for that. herb greenberg. up next, a mystery value meal. what is the single best performing fast food stock of the year? it's not mcdonald's. >> does he even care? >> body is a temple. here comes food police, talking about body being a temple. nutrition labels getting their first makeover in 20 years costing the food industry billions of dollar, but will it save all of us tens of billions of dollars in the long run? hmm? we'll chew on that. >> buying new, bigger pants? >> yes. one size fits all. [ female announcer ] who are we?
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what we know assessed fda, proposing to change nutrition fat labels. the first change in two decades. take a look. they want a bigger calorie count image in wa they call but instey how much most people are likely to eat. it could take years for us to actually see these new labels on store shelves. to weigh in on all of this, let's bring in mimi roth and the manager editor of "reason" magazine. mimi, i think i know what you're going to say. but i'm going it let you say it anyway. >> this is transparency. an informed consumer is a good thing. telling us about the calories, fat content, what a real serving size is, all good progress. can't believe it took two decades. yes, good things. >> you're happy about something? you're always screaming about something. >> that's terrible! it's so untrue. >> it's completely true. every time, you're like, this is outrageous. every child in america has a fat
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whatever. now you're happy about something. >> i think it's progress. it's progress. it doesn't say, hey, fat, you know what, don't buy it. it says calories. it says serving size. >> will it matter though? >> you know, i think it's great they're finally updating these labels, but the fact it took 20 years isn't a coincidence. the wheels of government grind slow. and this is, you know, a classic example where there are a lot of companies that would have innovated, that would have given more information, different kinds of information, presented it in ways that customers want. instead, they were stuck with this old, stupid federal label. >> that's so untrue. lots of companies put information on their labels. not the official nutrition label, but companies have been supplying information on their labels and they didn't have to wait on this one. this is just for that particular panel. so i don't think it's industry who's been so eager to be forthcoming about the chemicals and calories and sugar. >> but does anybody actually read the label anyway? >> there are a lot of studies that indicate people mostly
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don't. we see this with menu labeling, when you put calorie counts on a menu board. and the people who do want this information, the people who are seeking it out are looking at healthy products where, again, the companies probably would like to advertise that information and put it in other places already. >> katherine, if people aren't making good choices, that means we should withhold information from them as some kind of penalty? >> there's definitely no way in arguing that. this is a speech issue. >> you should know what you're eating and you should absolutely be aware of what you're eating. industry owes us transparency. we should know what we're putting in our bodies, what we're serving our children. the least they can do it give us that information. >> because we're cnbc, let's bring this back to dollars and cents. it will cost the industry $2 billion to change the labeling. >> they say it'll save ten times that. >> diabetes, birth defects, alzheimer's. it is true that not everybody
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immediately changes their health patterns, but they do change a little bit. any incremental change is big money and a big reduction in suffering. >> the idea that making the calorie count slightly larger on these labels is going to somehow magically save hundreds of billions of dollars is somehow absurd. >> i don't think this is magical thinking. it's about information. it's telling you the bottle of coke is one serving, not half a serving. >> there's other information out there people are disclosing voluntarily. to tweak the label a little is not a stride fward. >> you have to hold people accountable for their decisions. you can't do that if you don't give them the information. >> is there any positive for you in this, katherine? >> it's just to show once again that when you put the federal government in charge of something, it takes 20 years to make a small change that doesn't make things much better. we see that everywhere. >> we do agree -- at least i mostly agree with you on that fact. don't you think it's at least an acknowledgment there's an issue or is it just lip service? >> that issue is acknowledged everywhere.
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on cnbc. the fact that people are obese is not a shocker. we don't need the government to tell us more about that. again, no one is arguing to withhold information. this is about forcing package design. >> there are improvements on the way, so it is helping. i think the appeal so to the consumers. give them the information. hold them accountable. >> if the consumers want it, the companies will provide it. >> it's the government's job to give that information. now the consumers will have more information. >> it definitely has nothing to do with food safety or lying on packaging. it has everything to do with weird specific bureaucratic requirements. >> all right, guys. settle down. split a 28-ounce gatorade, which is 2 1/2 servings. >> okay. mimi, katherine, thank you. forget calories. we're going to booze for charity. i'd rather drink my calories. amd people a simple question: can you keep your lifestyle in retirement?
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♪ [ male announcer ] we don't just certify our pre-owned vehicles. we inspect, analyze, and recondition each one, until it's nothing short of a genuine certified pre-owned mercedes-benz for the next new owner. [ car alarm chirps ] hurry in to the mercedes-benz certified pre-owned sales event. visit today for exceptional offers. ♪ drinking for a good cause. that's something i think we can all get on board with. in fact, one hope wine donates half their profits to charity. we're here with the ceo. jake, thank you for coming in. giving half your profits to charity is a noble, wonderful thing to do. >> wonderful thing. >> how do you stay in business? >> well, we believe in substituting a huge marketing and advertising budget that's generally bloated in a lot of brands for a donation to causes. along with that, we quantify --
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>> or doing good work, getting noticed, and getting on national television programs such as this one. >> that's true. the earned media, if you will, is amazing when you do a good cause that somebody cares about. >> an you work directly with robert mondavi wines. >> that's correct. rob mondavi jr. is co-creator. all our wines come out of napa. multiple 90-plus ratings on them. >> when the second producer pitched this, i said, it's i think go to be crap wine. you know, it's going to be, like, from the ohio valley. no offense to ohio. but this is from napa. this is not some gimmick. this is good wine. >> that is correct. >> i'm not hoda kotb, but this doesn't taste bad. >> and who are the nonprofits? >> american forests. for every case, we're planting 12 trees. our pinot, we fund two pet adoptions with the aspca. cabernet goes towards autism. >> this is a fantastic idea.
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is this the first of its kind? >> it's the first of its kind where we do it year round, 365 days a year. we built it into every case. so -- >> and you're sold in whole foods. >> we're sold on amazon, actually. we have a handful of the best sellers on amazon. and then you can only find these reserve wines and kind of our high 90-point wines going on onehopewine.com. >> i want you to think like a capitalist, because you still have a capitalist here. do you find this does help you? do people say, you know what, your wines are good, but there's other good wine, but i chose one hope because of the work you do. >> oh, certainly. people first find out about us because of the cause that they care about. if you love pets, you're going to love our pinot for paws. >> it's a big financial decision in many respects. >> and they come back because the wine is great. it ends up more than making up for what it would cost to advertise and market because people like you are covering the
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story and our customers tell their friends. >> here's to one hope wines for charity. cheers. >> here's my question before we go. when you drink wine, are you supposed to hold your pinky out? >> yes, absolutely you are. >> you can do anything you want. >> this was "street signs," everybody. "closing bell" is next. see you at the bar. welcome to "the closing bell." i'm kelly evans here at the new york stock exchange. >> i'm bill griffith here at cnbc global headquarters. let's try this again. the s&p 500 is flirting with all-time high territory for a fourth day running. previous three days, fail. didn't happen. closed lower in the last hour. today we're up six points at 1851, about three points above the previous all-time high. we'll see if we can do it this time around. kelly evans. >> that's right. we'll see if there's
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