tv Power Lunch CNBC March 14, 2014 1:00pm-2:01pm EDT
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joey? >> people love hamburgers. jack. >> and pete? >> i like teva. i think it's going higher. >> doc? >> [ inaudible ] i think it's a steal. >> that does it for us. have a great weekend. can't wait until monday. "power lunch" starts now. "halftime" is over. "power lunch" and the second half of the trading day start right now. >> speak for yourself, scott. you remember the game. now the real life, real world scenario is upon us. we have no control over the events obviously unfolding over in ukraine, china, but both major stories having a big impact on your money today and moving forward. we will talk about the possibility of, yes, war. not just cold war, real war in eastern europe and the possibility of a sinking economy in the world's most populous country. new information bringing more experts to consider the
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possibility behind that mystery malaysia airlines flight 370. that it was not some sort of mechanical failure. clearly, nobody knows yet but phil lebeau is going to catch us up on the latest developments in about five minutes' time. why did that plane fly seemingly for as long as it did after losing contact with ground control? and a very bright future. see how this teenager just won a big prize from google and see how her idea is literally changing the world. she is an amazing young person. she is with us today live. first let's check in with sue with some news on new problems for general motors. >> absolutely, ty. as you know, it has not been a good week for general motors. right now, the stock is up 1.75% but investigators are opening waves of probes into whether the company's efforts to save money cost lives. despite today's uptick, the stock is down almost 10% this week. phil lebeau begins our coverage for us on general motors. phil, over to you.
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>> reporter: sue, more bad headlines for general motors and new allegations, this time coming from the center for automotive safety, which is a consumer watchdog group out of washington, d.c. in the latest letter complaint from the center for automotive safety, it says 303 deaths are linked to airbags not deploying, they studied two of the models involved in the latest recall from general motors. they say there were accidents where the airbags did not deploy leading to those deaths. they are calling for gm and the federal government to go further to investigate further and perhaps launch a recall on these defective airbags. the national highway traffic safety administration says three investigations, crash investigations, were done looking into these airbags. the results, inconclusive. earlier today we talked with clarence ditlow from the center for automotive safety. here's what he thinks should have been done in this case. >> if they had done that when this database was being built and the 2003, '04, '05 model
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years, they would have found an increasing incident of front seat occupant deaths where the airbag didn't deploy and no one asked the question why are the airbags not deploying. let's look at the individual crashes. if they had done that, we would have had a recall years ago and we wouldn't have the controversy we have today. >> reporter: general motors says as knowledgeable observers know, fatal analysis reporting system tracks raw data. without rigorous analysis it is pure speculation to attempt to draw any meaningful conclusions. shares of general motors moving slightly higher today but there's no doubt that it's been a rough month for general motors, in particular the last couple of weeks. what's interesting, when you look at this latest claim from the center for automotive safety, they are just looking at the raw numbers here and when you talk with gm and nhtsa, they all say the same thing which is compared with other models and look at the specifics behind these accidents, it's a far
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different story. >> phil lebeau, thank you very much. we will hear much more from phil throughout the hour. now to the crisis in ukraine. secretary of state john kerry and the russian foreign minister sergey lavrov meeting in london today. lavrov, pretty blunt, saying the u.s. and russia do not have a common vision on ukraine. secretary kerry saying the u.s. will not recognize a vote for crimea to secede and join russia. that vote is set now for sunday. michelle caruso-cabrera just asked ukraine's prime minister exclusively what he will do if crimea votes to leave his country. we will talk to her in just a moment. first, though, to steve sedgwick in kiev. steve? >> reporter: yeah, well, kerry was saying it is illegal, we will not recognize it, as you just said. lavrov for his part said we believe in the u.n.'s enshrined right of self-determination. what exactly is the vote that will be put to the crimean people on sunday. one, do you support crimea joining the russian federation
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as a federal subject is the first question. the second is do you support the restoration of the 1992 crimean constitution. the point here is that constitution was changed very quickly after it came into being so the point here is people are not being offered down in the crimea the status quo, i.e., remaining part of ukraine as it is at the moment. they are being offered a chance to join russia or indeed, become an independent state and that is where money people have big issues with this. the second issue i want to pick up on is the threat of military action on the border. of course, there is renewed artillery activity, paratrooper activity in russia on their side of the border and of course, the ukrainians are very worried about this. they put into action a 60,000 person national guard which seems woefully inept compared to russia's alarm. russia has no plans for military intervention in eastern ukraine is what lavrov just said. small solace there. and one more point. i spoke to the economy minister
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today. i said look, diplomacy on the surface, it looks like it is completely and utterly failed. lavrov and kerry have failed. the economy minister here said look, there are many facets to this, many bits of pressure that can be put on the russian government, many circles of interest. i think what he was referring to, of course, is the economic implications, the sanctions that could come in on monday as well. let's face it, russian assets have taken a bit of a hit over the last couple days. that kind of pressure could be very important on the kremlin. back to you. >> steve, to that point, money does talk. now to michelle, who spoke to ukraine's prime minister last night exclusively and you had this encounter at a restaurant in new york, basically. >> the heartland brewery and chop house on 46th street. he was having dinner there with ukrainian americans immediately after he addressed the national security council. we went to see him there. we wanted to know what everybody else wants to know. what happens on monday. we asked him very specifically his thoughts on what's going to happen, once we see the results of this referendum.
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>> it's already preordered and we can predict the outcome, but russia will stick to its international obligation. >> reporter: what does ukraine do on monday? >> on monday. >> reporter: after the results come out. >> preserve its territorial integrity. >> reporter: how? >> in all possible means. using all leverage. from the international community, from our international obligations, impressing on russia to stop this. >> reporter: would you use the military? >> he didn't answer the question. they're making motions as if they would use the military but woefully small compared to the russian military. remember the analyst we had on, from jane's, it would be no contest. >> thank you very much. appreciate it. to dominic chu for a market flash. >> check out shares of sirius xm
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holding, rising after liberty media pulled its bid to buy the rest of the company that it didn't already own. sirius announcing it's resuming its stock repurchase program and reaffirms its guidance. liberty media trading again to -- slightly to the upside. sue? >> thank you very much. joining me on the floor is bob pisani. there is an awful lot for people to consider on this friday trading session going into a key weekend for eastern europe. on the flipside of things, we had some very successful ipos. it's almost a tale of two markets today. >> we did. we are moving to the upside and the ukraine news did move the markets. the s&p 500, mr. lavrov, the foreign secretary for russia, did come out and say no plans to intervene in eastern ukraine. you see the rally just before noon. that's him. so the markets came off the lows on that news. it's been a very defensive week. if you look at what's been going on here, basically the only thing up is utilities. all the other sectors are basically flat or to the down side. you can see the more cyclical
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groups, those are the ones getting hooked the most. there has been a lot of talk about frothy momentum stocks, they need to come down. i'm not seeing it. yelp has not had a good week but this is not unusual moves when you have a little market volatility for some of the momentum names like tesla and lincoln to move 4% or 5%. i don't see them cracking yet. finally you mentioned ipos. castlight, this is all about a company helping companies control health care costs. we are talking price talk 13 to 15, priced at 16, opened at $37.50, and is trading right around there. the one -- >> for those who can't see it, it's a 137% gain on that stock. >> this company now has roughly north of $3 billion market cap, $13 million in revenues. no profits right now. >> that's the big debate. but it is the growth area for companies. thanks, phil. appreciate it. i just called you phil. but that's who we're going to next. right, ty? >> all right, sue. phil lebeau is back with us as
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this bizarre story involving the mystery of malaysia airlines flight 370 continues to perplex millions of people around the world. phil, new information this morning is starting to make some people question whether this could have been something more nefarious than a simple mechanical problem. it boils down basically to how long that airplane maintained airborne after its last signal. >> reporter: right. the general conclusion now is that this plane did not suffer a catastrophic event in the air, because if you look at the way that the communication systems, the bulk of the systems were turned off in terms of the transponder and the other ground radar system, they were both turned off, then the plane continued after turning in an almost v back towards malaysia. that's the latest indication from investigators. it was sending out what they are calling pings. it wasn't communicating with satellites but imagine that if you were driving a car that had xm sirius radio, even though you
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are not using it, there is a ping that is sent up to the slight l satellite letting them know it's there in case you do want to activate. as a result, they are concentrating their search more towards the indian ocean. as they move out and broaden the range, the idea here is they heard pings for up to five hours after last contact which is why you see this circle going as far out as close to india because this is where they believe the plane could be, within this area. this u.s. navy is now sending a carrier to the indian ocean to assist with the search for this plane. why a carrier? because they have the helicopters, it's a base they can use for going and flying over the areas that they want to search. by the way, the u.s. navy is not using sonar to search under water. it's just a case at this point they are making their flights and doing the searches, a total of 57 ships and 48 aircraft, 13 countries, involved in this
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search. still no clue as to what happened with flight 370. >> really one of the biggest mysteries we have had in really years and years. phil, stick around. "airline weekly" seth caplan is here. nobody really knows what happened. i'm not going to ask you but i do want to know your theories. i imagine just about everyone following this story has one or more. what is your best guess? >> if in fact, as is increasingly likely, the plane did stay in the air for awhile after it lost contact, the question first, could it have been an accident. you probably remember the golfer payne stewart died tragically after everybody on board a lear jet lost consciousness and the plane kept flying for four hours after that happened. there would be precedent for an accident like that but with these reports of the transponder, for example, seemingly being turned off on purpose, it looks ever more like foul play. then the question is, was it something like an incident that ironically happened just six
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days after the stewart crash way back in 1999, talking about egypt air flight 990 when one pilot seemingly locked the other out of the cockpit and brought the plane down, or something else broadly that we might call pilot sabotage, or could it have been piracy, a hijacking. certainly those reports of passengers being invited into the cockpit during flight, however unconfirmed and certainly unconnected to this directly, don't exactly inspire confidence that something like that could have been impossible. >> is there any argument, seth, or phil, for the case that this plane may have landed somewhere? or crashed over land? >> people are speculating certainly, at this point, we don't know. it's all best guesses. certainly reports of some people saying well, it could have happened, but the chances that things went so terribly wrong and yet a 777 like this somehow
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landed rather unscathed on a runway long enough for that to happen and gone completely undetected, rather remote chance, although again, hard to absolutely rule anything out at this time. >> phil? >> and i would agree with seth. the other thing to keep in mind, there are these theories floating around on the internet right now, maybe they landed this at a remote airstrip that nobody knows about. first of all, this is not like you're flying a piper cub, and you can put it down on a rural street somewhere. the level of sophistication and the number of people you would need in order to bring this into an airstrip somewhere, keep it hidden, give people no sense that this is there, is it a theory out there, yes. is it a possibility, yeah, i guess so. maybe there's a remote island that nobody's searched yet. but you are talking about a far more sophisticated plot because you are dealing with a 777. this is not some simple plane you can just take down to the caribbean. >> phil, seth, thank you very much. the mystery deepens. i'm sure we will be following it for days ahead.
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thanks very much. sue? we are going to talk making money when stocks drop. seema and dominic both working that today for us. >> that's right. i'm talking about the top prospects for the shorts. >> i'm talking about the pair trade. >> two stories and two strategies, two minutes away. 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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money" halftime report downplayed the investigation into its business practices by new york's top financial regulator, benjamin lawski. as a result, he says he raises hayman's capital stake in the country. sue, back over to you. >> thanks, dom. take a look at the ten-year yield right now. we have had a wide swing in this week's trading session. we went from 2.80 friday of last week to now 2.65 and change on the ten-year note. 2.651%. stocks erasing earlier losses, the dow, s&p and nasdaq all in the green modestly. the nasdaq on pace for its largest weekly loss over six months, down nearly 2% on the week. so do you buy the qs here? hugh, do i buy the triple qs right now? >> no, not yet. what i like to see is i like to
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see opportunity. usually that opportunity is signaled by the market getting to levels including the triple qs to getting to levels that i would call or characterize as undervalued and there's widespread pessimism. that's when the opportunities show up. we don't have that now. what we have is a market that's fairly valued and quite frankly, sentiment is just simply not at an emotional extreme. you drag your feet right now, wait for that opportunity to pop up. i think that opportunity's coming but it's not here right now. >> eric, what about you? so far, 2014 has played out pretty much as you talked about it late last year when we had you on. congratulations on that. hugh, the same for you. what do we do at this juncture, then? >> look, we like equities. i think it's about timing of entry points. if you look at equities, we like equities because we think the global economy is going to be solid this year, that earnings are going to be solid across the world, and we think that will power equities forward throughout the course of the remainder of this year.
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i don't like russian equities and if they stay in crimea which i think is what the market's expecting, what i'm expecting, i think that's going to be a negative event obviously for the russian market. it has been for the last two weeks. if there are sanctions placed in, i think it will get worse. >> hugh, what about the geopolitical concerns? do you try and shield yourself from that by perhaps buying a certain sector of stocks or putting in an options play or do you ride it out? >> i think you have to recognize there's geopolitical risk, that the geopolitical risk is not completely known right now. we have to wait and see how things work out in crimea and ukraine this weekend. we'll have to see what kind of sanctions are leveled on the russian economy and what are the implications for the european economy. all of that is going to play out in the markets, in my judgment, next week. i wouldn't be surprised to see the markets going down next week and get to levels which i suggested before which is we're undervalued and that sentiment
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becomes pessimistic. i think all of that may play out. the other thing i would mention, sue, is china is way overstated. it's not nearly as bad as people worry about. >> all right. thank you, gentlemen. have a great weekend. good to see you both again. ty? folks, how do you win when stocks are falling? there are several ways, including shorting and playing what's known as a pair trade. seema mody is on the short watch today. but we start with dominic and the pair trade. take me through it. >> all right. just because two companies do roughly the same kind of thing, it doesn't necessarily mean their stocks will move in the same direction. when these stocks diverge, you can possibly make money. google, yahoo! both internet companies. say you had the foresight to short yahoo! shares at the beginning of the year, use the money you got and bought shares of google. you would have a winner on both legs of that pair trade. yahoo! has dropped about call it 7% so a short trade is a winner there for you. the shares that you bought in google are up nearly 6% and
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analysts think that trade may still have legs. while analysts are about evenly split on the buy versus hold debate for yahoo! they slapped a $41.50 price target on it so there is a little bit of upside. four out of five analysts who cover google say buy. they say buy it outright. 80% of analysts, their target price is $13.28, 12% higher than current levels. google is still showing it has the ability to find new areas of growth and deploy capital to develop those ideas. yahoo! is still in the midst of their own turn-around story. the ceo looking to gain momentum on that front. let's not forget, here's the wild card. yahoo!'s stake in china's e-commerce giant alibaba, an attractive ipo if it does happen could give yahoo! the jump start it needs to reverse this performance gap. until then, google and the short -- long google and the short yahoo! trade could continue to be a winning trade in 2014. >> quick question. is there something intrinsic to the idea of a pair trade that the two companies in the pair have to be in the same rough
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industry? why couldn't i go long google and short pfizer? >> you could do that. if you have a compelling investment thesis for that. we just decided to pick the same industry because in some ways, it could be a hedge. they both operate in the same kind of industry, they both have divergent viewpoints but here's the thing. stock picking matters so you have to do your homework. you have to say why is google a better investment than yahoo! and really dig into why that is the case. that's the reason why at least for that pair trade, you have something that can work. remember, if they both go up or down together, you are at least hedged in some way, shape or form. >> thank you very much. now to the short side of the equation, 2013 a great year for the longs, a bad year if you were short. this year, investors who were betting big on going lower are in somewhat better shape. >> that's right. as of this morning, the five worst performing stocks this year are all among the most heavily shorted names on the s&p 500. cliff's natural, adt, staples, game stop and best buy. starting with best buy, investors have been hitting the
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sell button on this name due to disappointing earnings and rising online competition. morningstar doesn't expect competition from amazon and other mass merchants to ease in the periods to come while other analysts say hey, best buy still in the early innings of its turn-around strategy. staples also dealing with stiff competition from online retailers which was highlighted in its latest earnings report. that has resulted in shares falling double digits this year. as more gamers buy their games through xbox live and sony playstation, investors are questioning game stop's business and its ability to adapt to this trend. another short this year, adt corporation, electronic security player. experts say rising competition from cable and cellular players will be a headwind but william blair says that fear is overblown and that these new entrants are unlikely to have a long-lasting impact on earnings. we will end with cliff's natural resources, the most short stock on the s&p 500, down 30% this year. the main reason, slowing steel
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and coal demand. >> the number one short on the s&p 500. >> as of today. yep. >> that alone is a great trivia question. seema, thank you very much. sue? his wife founded a company with a new way to screen for genetic problems. google founder took the test and it may have led him to embark on an extramarital affair because he may think he only has another good ten years left to go. that's one of the big stories in the current issue of "vanity fair." the writer is with us next. plus phil lebeau is back. a new generation of american auto plants is on his agenda this time around. >> reporter: we are talking about sterling heights which is actually an old plant but is getting a new lease on life from chrysler. we will go live there in a few minutes as chrysler begins production of the new chrysler 200. can chrysler get into the game when it comes to selling cars people really want, not just trucks and suvs? that story when "power lunch" returns. [ girl ] my mom, she makes underwater fans
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delayed backache or muscle ache. to avoid long-term injury, seek immediate medical help for an erection lasting more than 4 hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial. welcome back to "power lunch." check out shares of hartford financial services. japan's nikkei news service reporting that hartford officials are visiting japan and agreeing to sell its japanese unit. final agreement is expected as early as april. that stock is up to session highs, about 1.5% after being in the red for much of the session. sue? >> thank you very much. it has been six months since an affair rocked the marriage of google's cofounder, sergei brin.
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how did that breakup and his much talked-about relationship with google glass employee resonate within the company and with investors, and what role, if any, did a genetic test through his wife's startup play in that affair? that's one of the key stories in the april issue of "vanity fair." here now, the contributing editor. nice to have you here. welcome. fascinating story on many different levels. first, we are talking about two people of enormous wealth in one of the biggest companies on the internet and yet, at the same time, there's a lot of vulnerability that i got through this story. take us through it. brin marries ann, she starts 23 and me, the genetic mapping company, for lack of a better word. >> a personal genetics company, the one the fda recently shut down part of their operations. it will tell you if you have a higher risk of something like breast cancer gene, alzheimer's
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or parkinson's which ended up being something that sergey in fact had, and his mother also has this mutation on one of his genes. >> he took it -- or his take on it was he might not have as much time as he thought in terms of the type of lifestyle that he wanted to live. he's very athletic, he's outdoors a lot, and he was worried that this might hinder his lifestyle. >> he and ann are kind of, you know, the adam and eve of, you know, 1.0 silicon valley. they are out there hiking, biking, surfing. this is a guy who has always been really athletic and wants to continue to be that way and parkinson's as we know can be very physically debilitating. so the two of them had perhaps thought of this being something that would shorten his ability to do that. >> do you think that it led to his straying from his marriage,
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that if he only had in his mind, anyway, a certain amount of good years left, again, his words, that that caused him to have this affair with the google employee and how did that resonate in the company? >> well, i mean, allegedly according to my sources, yes, this did have some effect on him, and i think that he -- i mean, there are men out there who have a hard time when they get a diagnosis like this. at the time, sergey has had and continues to have a really interesting role in google where larry page is taking the company to untold heights right now, really leading the ship and sergey is working on that part of google that is still so important, which is the leading edge innovation part, the kind of sci-fi part, the part that people need to know that this is a tech company that is not going to become another microsoft, that they have their hand as an
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investor at least in everything major that's coming down the pipeline that's connected to artificial intelligence. so he's got this really fascinating role. within the company, this allegedly made some waves with him and larry in terms of it not being totally what people would think. >> what people would think. it's a great read. thank you, vanessa. appreciate your coming by. you can read the complete story in the april issue of "vanity fair." back to the markets. the metals are coming to a close for the week. copper really having a tough week, down about 5% on the week today. the copper market, a little bit of a rebound, just under a 1% move. the gold market in the trading session is traded up about $5.90. platinum and palladium both to the negative side. all right. let's check interest rates with rick santelli out in chicago. ricky? >> hi, sue. hey, first of all, nobody out there on radio or tv, forget
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it's friday. the dynamics of the market can change with the weekend and all the geopolitical risk going on. having said that, look at a chart of ten year note yields. we are virtually unchanged after giving 2.60 another go. for the day, we are unchanged. for the week, we are down 15 basis points. for the year, we are down 40 basis points. look at a chart. yesterday, we could tell there were issues geopolitically because unlike many of the moves down in yield of late, yesterday's wasn't led by the weakness in equities, it was led by the treasury complex. actually the fixed income market in a lot of countries around the world for safety reasons. but as you look at this next chart, this is the dow on top of the tens. it's hard to tell who's leading who but they are definitely in lockstep. also remember, if you want to really know what's going on, look at the yield curve. this next chart goes back to july of last year. the fives, the tens are flattening, that usually means lower rates. we are down 30 basis points from where it started out the year in the last chart. 28 plus month highs. dollar index not having a very
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good run during the crisis or the recent spat of weak economic data. tyler, back to you. have a good weekend, buddy. >>, you, too. i really get your point. rick nailed it there. a lot can happen on a friday afternoon, the last two and a half hours of trading when we have so much percolating over the weekend. more winter weather is one of those items. we have the forecast that includes, yes, more snow for the east coast. the mets' home opener two weeks away. plus investors rolling the dice these days. we will talk risk with mr. liesman. steve? >> i'm focusing on four key areas of risk investors need to watch. we will do a threat assessment. it will be geopolitical, it will be domestic, it will also be meteorological. iwe don't back down. we only know one direction: up so we're up early. up late. thinking up game-changing ideas, like this: dozens of tax free zones across new york state.
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>> we will climb the wall of worry. let's start over here with the number one worry which i think is the crimea. the vote over the weekend pretty much a foregone conclusion. there is only one way they can really vote which is to join russia. the bigger story here is the western assessment next week and whether or not the russian troops end up coming over the border into eastern ukraine. it's not thought likely but that's a place where it becomes a real threat to markets here in the united states. china again, a two-pronged assessment here. if china's problems end up being an orderly economic weakness, not much effect on the united states, maybe 0.2 to half a point of gdp growth. what it takes away in growth it may give back in lower prices. if it ends up being a financial problem, contagion is a place where investors need to worry. oil prices are affected by these two things right here, china and crimea. what happens with western sanctions could have an impact on oil prices but china's economic weakness could end up putting a lid on those oil
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prices now running about $98. finally, my biggest threat, i will come over here, is that it's not weather. a lot of the economic weakness, that it's something else. we need to see later this month, perhaps, from the anecdotes we get from the real estate industry, then in the early april data, some sense of snapback. my biggest concern right now, rather than all of these things, is that what we have seen in the weakness of the data is whethwhetheeather. i still believe it is. but that changes the investment calculus in a way these things do not. >> those are really old oil -- >> they look like they could leak. >> have a good weekend. >> you, too. wait, i'm sorry. we're coming back at 2:00. >> we are? >> we are. with why not to worry. the other side of this story. >> okay. what, me worry? see you at 2:00 then. jeff and jim are in chicago.
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weigh in, folks, on the threat assessment that steve just laid out there, and how to play it. jim, you go first. >> i think that i would flip-flop it. i would say china is a bigger longer term worry. yesterday the market was reacting on ukraine. i do think ultimately a hard landing in china particularly as it relates to copper, there could be defaults in the works if people are collateralized using copper. there's plenty to worry about. i hope he's wrong about it not being the weather. i think, i know he said it probably is the weather and i agree. the first ism number, the one that beats the 18 sectors surveyed and 14 said they were heavily affected by weather so i think it will be the weather. that push-pull with the domestic story and china and ukraine will still go on but i'm negative stocks. >> jeff, your perspective? >> in my perspective, jimmy's right long term but steve is spot-on. the russian situation, that is what the global correlation and we are seeing in the markets, look at what happened to the
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nikkei, down 3.5% overnight. people are skittish. we close anywhere underneath the 50 day moving average, folks rethink their global exposure and you will see sellers come out. >> gentlemen, have a great weekend. let's go to dominic chu for a market flash. >> check out shares of cisco systems. in a regulatory filing, the company is investigating possible bribery in other countries. the stock is still down towards session lows. back over to you. >> dom, more snow, more snow, really? say it ain't so. but it is. those on the east coast and in the midwest, get ready. we have the forecast next. plus, jane and wine. what a great combination. >> reporter: i know, sue. i'm in napa. when you have billions of dollars of sales on the line,
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and their families is without equal. welcome back to "power lunch." check out shares of celgene, the stock sliding for the second day in a row on news it will have to begin defending patents for its cancer treatment earlier than analysts expected. the stock is down about 3.5% on that bit of news. still, two days in a row, down day for the stock. >> dom, thank you. in today's yahoo! finance question of the day, if you're invested in the markets, what's your biggest concern right now? 21% say unrest in ukraine. 22% say china fears. 6% say the impact of weather on the u.s. economy. but 52% say it's all cyclical so it really doesn't bother me. ty? winter still not over, not by a long shot. another winter storm is going to hit the midwest this weekend.
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boy, have they had it out there. then it comes to the east coast, where we whine about it all the time. comes here on monday. they are talking about more snow. weather channel's greg postel. >> there's a chance of some snow in the northeast on monday. let's have a look at new york's forecast. you see snow with a temperature of 29 degrees. much more like january than the middle of march. this storm is coming from the mid-south on sunday and it will bring considerable amount of weather with it. we've got snow here likely on the i-70 corridor with perhaps some freezing rain as well. that storm system really is going to be targeting the midatlantic because the jet stream will be carrying it right that direction. on monday, this is what we have in the forecast. snow all the way from d.c. to philly to new york. watch out, southern new england, too, for the chance of some snow. stay tuned for all the latest details. this is not a wimpy storm. back to you. >> great. thanks, greg. it will be over at some point. california has had some rain
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in the last month but as we know, with that terrible drought out there, it's not nearly enough. the golden state is drought-stricken. the situation is as bad as it's been in decades. jane wells is live in napa today showing us how it's impacting the vine, the grape, the wine and the economy. jane? >> reporter: well, sue, it is a huge deal and as one grape grower told me, it's never dull to talk about the weather here in napa. i'm in a cabernet vineyard and there's a whole bunch of expensive new tech and cheap old tech to try to stay on top of this water shortage. for example, they are spending a whole lot of money on precision irrigation like solar powered weather stations that can be placed anywhere on the vineyard and tell you how dry an area is. you can even monitor the movement of water inside individual vines. all sent to your smart device which will let you turn on and off irrigation without you having to be there. >> now that we can see online exactly what's going on, it enables us to hold off on the
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irrigation sometimes into mid, late july, and in a couple instances, we have discovered that we didn't need to irrigate entire vineyard blocks throughout the entire growing season. >> find me the center line. >> reporter: then there's the old tech, way old tech. mark uses divining rods which cross when there's ground water underneath and claims he has a 95% success rate. >> well, i charge $500 to show up and i have a little kicker, if they hit over 50 gallons a minute, i charge $10 a gallon a minute above that so unfortunately, most of what i'm doing is under 50 gallons a minute. >> reporter: there you go. next hour on "street signs" you have heard of wine in a box. how about wine in a keg? don't laugh. they're selling it, serving it, pebble beach. we'll have that story.
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>> can't wait for that one. you are in one of the most beautiful parts of the world. thanks so much. she has been called the next thomas edison and is only 16 years old. google's science fair winner, the 11th grade inventor of the body-powered flashlight. she's powering up "power lunch" for us. she will join us after a quick break.
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happening now, chrysler unveiling what it calls the largest and most technologically advanced factory in sterling heights, michigan, just north of detroit. phil lebeau is on the case for us. hi, phil. >> reporter: let's take you to sterling heights. a live picture, the ceo of chrysler is there marking the beginning of production of the new chrysler 200. this will be a new small sedan built at the sterling heights plant. this plant they have invested more than $1 billion into it. chrysler says it is the most sophisticated and most advanced plant and the chrysler 200, they have high hopes for because frankly, chrysler has struggled when it comes to cars. the bread and butter for this company has long been suvs. of course, the jeep line has
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done very well as well as trucks. last year, chrysler sales by the way, outpaced the industry by a wide margin thanks to the strength of the success of recent jeep models. they are hoping for the same thing now with the chrysler 200. again, production beginning at that plant. we will see how this car does as it starts to roll into dealerships later this spring. back to you. >> phil, thank you very much. could a 16-year-old canadian inventor be the next thomas edison? she recently took top honors and $25,000 in a google science fair contest for her flashlight powered by the heat of a person's hand. no batteries needed. she hopes her invention will help millions around the world who currently live without electricity or limited electricity. she joins us from victoria, british columbia. a pleasure to have you on "power lunch." congratulations. >> hi, thank you for having me. >> now, tell us how you came up with this idea. it had to do with a friend of yours who lives in the philippines, correct?
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>> yes. i'm half filipino, half polish so i have families in the philippines. i was talking with one of the friends i made there. she said she had failed at school solely because she didn't have electricity, no light to study with at night. i wanted to help her in some way. >> indeed you did. this is a sophisticated idea. it sounds as though you have always liked science and you are curious in nature but how long did it take you to really come up with the concept and put it to work? >> well, i had been participating in the local science fair since i was in grade six, and starting great seven, i had always been experimenting with the tiles which i use in my flashlight and harvesting alternative energy sources. it was kind of an ongoing process which led up to my last year's project, which was my
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hollow flashlight. >> it works with the heat of your hand. can you demonstrate it for us? >> yes. i will just give you a quick demo if we can dim the lights. so here is the flashlight. this is not the brightest model i have at the moment. i'm currently improving it at home. yeah. it just works off the heat of the human hand. it's pretty cool. >> so there's no batteries, which environmentally is much, much better, and also, it means that it can be used in parts of the world where maybe batteries are not all that accessible, correct? >> correct. yes. so the whole idea of my flashlight when i first started making them was to create a battery-free flashlight. because you know, batteries are quite expensive for people to keep on repurchasing and we don't dispose of them very well, as well. >> do you have a patent pending on this invention? >> yes. i have a provisional patent and
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i am filing the patent in a few days. >> have you heard from anyone who might want to invest? are you going to form a company, do you think, and if so, have you heard from any investors? >> so i'm working on forming a company called ann-works which will be hosting various inventions. we have had some limited company interest but i'm not currently partnered with anyone. however, i would love to work together with a company so i could put my flashlights on the market in the near future. >> well, i'm sure after this interview and the other interviews you have been doing, you will be hearing from some companies who want to partner, or you can stay independent and become a publicly held company eventually. have you ever thought of that? >> it's possible but none of my parents are in the business and i'm only 16 years old so it's all a very new thing for me. i would love if someone could help me out. >> you know what, somebody will
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because you are a wonderful person who has invented something that a lot of people around the world will be able to use, and you think big. as you should. best of luck, ann. >> thank you so much. >> ann is the google science fair winner and inventor of the hollow flashlight. thanks a million for joining us. ty, up to you. >> sergey brin on line two for ann. a lot of volatility in the markets today and all week, ups and downs, crossing the break-even line a half dozen times. we will take you through big movers after this break. new ne we don't back down. we only know one direction: up so we'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
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i just ah woke up today and i said i need something sportier. annnd done. ok maxwell, just need to ah contact your insurance company with the vin number. oh, i just did it. with my geico app. vin # is up to the loaded. ok well then jerry here will take you through all of the features then. why don't weeeeeeeeeeee go out to the car. ok, i'll just be outside... ok, yeah. his dad is my boss. yeah. vin scanning to add a car. just a tap away on the geico app.
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that's obama, boehner, biden and oh, yeah, peter king of new york getting together for a pre-st. patrick's day luncheon on capitol hill. this was just moments ago as they get together and maybe hoist a couple in honor of st. paddy's day. sue? >> good thing they're doing it today because if the snow is headed our way, they might not be able to do it on st. patrick's day. let's get you caught up on the dow. it's down about 12 points on the trading session. the s&p is down one point right now and the nasdaq is down about 3 3/4 points. everyone waiting to see what happens in ukraine and crimea. the market winners, game stop,
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up almost 5%. goodyear tire up almost 3%. delta airlines up 2.5% on the trading session. you're up to date. >> see you when you get back. have a good weekend, everybody. spring starts next week. that's all for "power lunch." >> have a great weekend. "street signs" begins right now. see you monday. russia, china and even germany, oh, my. the list of global worries is long but is that the perfect reason to buy? hello, everybody. we're working but it's not quite the weekend. we have good reasons not to be spooked by everything going o whether gm investors should be spooked by a scathing new report on the company. forget wall street. why san francisco is the new new york. >> okay. it's really easy to throw out all the negative stats, like the nasdaq is on pace for its largest weekly loss in 11 months. we get it. hor,
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