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tv   Street Signs  CNBC  April 17, 2014 2:00pm-3:01pm EDT

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selloff mode. the japanese yen has turned weaker. all of that setting us up for a bullish close out to a shortened trading week, tyler. >> thank you very much. jim, would you take us to "power lunch," please? >> that will do it for "power lunch." is that all i have to say? >> say "street signs" -- >> "street signs" is next on cnbc. >> see you tomorrow. no, we won't, it's good friday. that was fantastic. i can't follow that up, guys. that was awesome. >> no, you can't. that was amazing. >> hi, everybody. the numbers of the day are 25 and 515. cnbc is 25 years old, and in that time, the s&p 500 is up 515%. hi everybody. obviously a big day for us here as we celebrate a milestone. much more on that ahead including if today's stock market is even more difficult to understand than it was a quarter century ago, what it means for your money that vladimir putin apparently thinks it's 25 years
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ago. and what's the better investment for the next 25 years? is it stocks, melissa, or is it gold? hi, by the way. >> good question. hi, brian. hi, everybody. happy 25th anniversary, cnbc. it looks like we are sauntering into a three-day weekend. a couple interesting things to note. and that is the strength in technology despite the misses from ibm and google. of course, big cap names, we are seeing technology putting up a good performance for the session. also in the bond market, a very big move in bonds with the ten-year yields moving up the most we've seen in one month. dominic chu, seema mody both standing by. we start it off with dom. >> all right. so melissa, brian, what it comes down to is yes, stocks at session highs now. like you said, there has been a focus on certain sectors. let's start with industrials because ge doing pretty well today in today's session, given what is perceived as a very good earnings number here. although a slight sales miss. ge is helping other industrial stocks. you talk 3m, other names, even
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honeywell which maybe didn't have as strong a quarter as some analysts wanted them to have. at least made it to the upside now. also like you said, technology, yes, it's being weighed down, but here is a bright spot, and it's the semiconductors, specifically certain areas of the semiconductor market like in flash memory and whatnot. sandisk certainly higher on its earnings number, helping put a bid to other companies like taiwan semiconductor. you talk about other names in that space. that's the reason why you're seeing that move there. but overall, traders are telling me at least down here, you're getting the sense there isn't that much conviction to go out and buy the market. remember, there are still geopolitical concerns. so melissa, brian, very much of a day of at least quiet trading for now. we'll see what happens into the close. back to you. >> thanks so much, dom chu. we want to talk about the bond market. rick santelli is at the cme with more on that. rick. >> reporter: well, it was interesting, wasn't it? now let's put a couple of things in perspective. the first thing is we closed early. so the cash market just closed. an hour ago the futures closed.
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three-day weekend, and stocks have righted themselves. and i've thought all along that the best reason to hold treasuries for 2014 would be if you didn't want to hold stocks in 2014. geopolitical, i'm glad dom brought it up. because many were trying to put forth the notion that yields were lower and prices higher because of geopolitical issues. and maybe they are still to a certain extent, but i don't see that. that news is what changed. we're basically at two-week high closing yields pretty much across the curve from 5s to 30s. all right. rick santelli. rick, buddy, thank you very much. if we don't talk to you, rick, have a good easter and a good, long weekend. we'll see you again. thousand to seema mody at the nasdaq. technology trying to put on a little show headed into the weekend, trying. >> it is. and we're seeing strength in the semiconductor space, as dom was pointing out. biotech also staging a comeback. on top of that, we have two high-profile ipos here on the nasdaq. let's walk through both. first one is sabre. it was spun off from american airlines in 2000, taken private
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by tpg and silver lake partners in 2007. bankers cut the size of this ipo ahead of today's listing after what has been a volatile week for the markets. and a similar story for weibo. it priced at the low end of its range. smart strategy as both ipos trading higher on the day. there was what seemed to be a delay in the listing of weibo. sources of mine saying that's due to the underwriters taking their time. nasdaq on record said there were no issues on their end. so weibo, the twitter of china, joining the rank of others. now we'll have to wait for alibaba. melissa and brian? >> thank you very much, seema. so what is really going on with this market, right? we had a pretty spectacular january. we had a pretty lousy february. let's bring in contributor herb greenberg. art, you've been around the cnbc family for a long time as well. and lynisten, you can comment whether or not it's true or not,
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this market seems difficult, at least from my perspective, doing this a long time, to understand because there's so many ex-term factors out there right now. or is maybe that just recency bias and things have always been this complicated? >> well, sully, that's a great question. if you look at what we're going through right now, it is a major shift from a focus on fund mentals, a focus on earnings, on monetary policy to jumping from flare-up to flare-up on geopolitics, right? we've got the yew jaukraine and it's settled. i think we've always had this. it's just when we cycle through it and the market does things that are difficult to understand because it's caused by external factors. so i think as you look at the history of markets and say to yourself, what is it that stops a bull market? it's one of two things. the fed starts to tighten or there's an external shock to the system. maybe there's one in the geopolitics that's out there, but i don't think the former is out there. >> because i know herb's got a take on this, art. at the very end of the chain, a stock is supposed to be just one thing.
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the measure of future value of earnings. i'm buying a stock because i want to participate in the earnings on a small percentage of a company. that's it. with high-frequency trading, hedge funds, algorithms, external shocks, are stocks still what they should and used to be? >> is this for help or for me? >> that's for you. i know herb's got a perspective. >> i'm sorry, i thought he was going to art. >> it was supposed to art, but herb h go ahead and jump in. >> no, brian, it's a great question because the reality there is when you take a look at a company like ibm, which is down, interestingly enough, only 3% right now. yet they had what you could argue was just really a terrible corner. no revenue growth for several years. you have a situation where the quality -- you know, art was talking about fundamentals. and this is a case of people not just overlooking the quality of the earnings -- and this is about the market as a whole, not just ibm -- but also, when you take a look and you say what
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role do the algorithms, do the computers have in keeping that stock where it is from going lower? because they're earnings quality agnostic. >> wait, so herb, are you putting forth the notion that perhaps ibm should never have been bid up? i mean, i'm just curious. where did the computers come in, and where do the computers leave off in this instance? you're basically saying ibm should have sold off more because of the reduced share count and the favorable tax rate that helped it post an inline first quarter eps. >> look, there are two different ways of looking at this. jim cramer looks at it saying hey, this is the great buying opportunity because psychology will shift. i'm saying from an earnings quality perspective, it's actually getting worse. you even had analysts out today saying hey, they're playing games with their numbers. they've got to stop. this $20, 2005 non-gaap road map target they have, kind of silly. no one's really hanging on that anymore. i'm saying the stock you would have thought would have been down more today. >> i want to get to the actual trade as we go into the weekend,
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art. and you've got an interesting pair trade that you offer up. selling twitter which is already beaten up and being long emc. i'm just curious on the emc side of the equation, why emc? because it looks like the gain that we've seen in emc or the outperformance relative to twitter has been because of the performance of the mware. >> right. yeah, but if you back up -- and that's a very good point. they own 80%. if you look at the storage business and you just tack on a virtualization but you also have analytics and you've got security. emc's trading at a below s&p 500 multiple. all you need to do is see emc trade up to 15 times, and you get to a target price of $31, you're up 10%. at the same time, we know twitter is going to roll out a lot more monies. they've already said they're not going to sell on that unlock. you've got pressure on the twitter side. you've got emc -- you know, the theme here being very much let's sell new technology and buy old
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technology. i think this is an easy pair trade. >> i guess the question i was trying to get in my long-windedness and i didn't get there very well is that stocks are up 515% over 25 years in the s&p, even with the massive drop after the bubble and the financial crisis. do you foresee the similar type of returns over the next 25? are stocks still a good deal long term? >> yeah, sully, i think that's a great question. and i think the way you want to frame that question is to put next to that percentage move up in stocks, the percentage move up we've seen in earnings. and over that same period of time, earnings are up some 480, you know, 490%, you know, the very same move that you can talk about from the bottom in 2009, you know, up 170%. you know, from the bottom and earnings are up 168%. so if we're going to have them move, if we're going to do what you say and invest in stocks for their future growth, you want to follow the earnings path. you know, i think we've got incredible opportunity to outperform. i think it's going to be another long cycle of equity outperformance. certainly in the near term, you're going to outperform the bond market.
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>> all right, hogan, thank you very much, buddy. by the way, you barely changed a day. thanks, art. appreciate it. talk to you soon. >> thank you. herb greenberg, let's get your take on a story. stay with us. illinois, their attorney general now sniffing around herbalife, investigating the company. what is your take on this? >> my take is you know, you already have new york allegedly in there. there was a report in the "new york post" saying that snyderman was in there. you now have illinois. you know, the issue that people -- people who said that no one would ever investigate this company, they always forgot that there was this other side to the story and the other side to the story possibly was the attorney general. so you start looking at that. and you know, i've often compared this to for-profit education. and if you go back several years ago before for-profits really hit it, who was investigating? it was the a.g.s. >> all right, herb. hey, buddy, it was a pleasure. thank you very much. we'll see you again. have a good weekend. >> you, too, brian. up next, russia now says it has taken, quote, concrete steps to calm the situation in the ukraine. we're about to get a live report
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from geneva where talks with russia, the u.s. and ukraine have just wrapped up. >> but is this optimistic statement from russia even believable? and larry kudlow himself is here now to explain why putting together real sanctions against moscow is probably going to be a lot more difficult than it looks. that's all next when "street signs" returns. ♪ [ dog barks ] ♪ [ male announcer ] imagine the cars we drive...
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a lot of developments out of
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russia and ukraine. putin held a question and answer session earlier today in which he said there may -- may -- be a disruption of gas supply to europe but that they will wait another month to figure that out. and of course, talks in geneva about the crisis in ukraine. steve, what's the latest there? >> reporter: yeah, well, we've wrapped up and we've wrapped up very late, melissa. that's because there's been real progress. we came into these talks which were the first face-to-face talks between russia and ukraine since it first started. we've had really good diplomatic progress today. now it remains to be seen whether people with deliver, whether the ukrainians can deliver on constitutional promises. whether the russians can get their pro-russian separatist supporters out of those key government buildings. melissa, i think i may well have upset your secretary of state. i said, mr. kerry, sir, you haven't mentioned crimea. you've mentioned the eastern region and the south, but you haven't mentioned crimea.
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has the west given up on crimea? this is a part of his response. >> the fact is that we have made it crystal clear that there is a significant difference over crimea. we are not, quote, giving up. >> reporter: so i've also been speaking to the foreign minister of ukraine in the last couple of minutes as well. he's very concerned that despite this diplomatic progress which is great progress because they haven't spoken to the russians face to face before, and that is really important, but he's deeply concerned that the russians potentially won't stick to their side of the bargain. yes, we've had diplomatic progress today, brian and melissa, but there is a lot of work to be done on the ground. we are going to have ose monitors in there. that may help as well. back to you guys. >> steve, thank you very much. appreciate it. all right. so all of this talk, all of this negotiation, but will anything actually work to get vladimir putin to change his ways? pleased to welcome in senior contributor larry kudlow. larry, without europe -- forget
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europe. without germany -- >> right. >> -- can anything be done? are we completely powerless without angela merkel? >> basically. i just want to add london because that's where -- london's stock market is where these russian companies have raised lots of money, 400 or $500 billion with ipos. we haven't heard a pipsqueak out of david cameron or john osbourne. your point about germany, dead right. you can see it in "the financial times," big chemical companies. they don't want to do it. bp is crusading against sanctions. i don't think that's a fruitful avenue. >> which is weird because if you look back, there have been a number of large multinational oil companies that have been screwed over by russia. that have made investments and deals, and suddenly russia says oh, by the way, we're buying out your stake. ask shell and some of these other ones that were done. >> well, okay, but exxon mobil is operating in russia now, and they're well along. and also, back to bp.
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what are they on a quarter of resneft. american companies are telling our state department and so forth, they don't want a full-scale financial sanctions war either. whatever the president comes out with, i hear tomorrow, i'm going to be very skeptical. i have a kudlow plan. i have a kudlow plan. >> this is breaking, by the way, because larry has not revealed the kudlow plan, the solution in this region to anyone. >> including us. >> larry, what is it? >> easy. we should appraise, appreciate, raise the value of the dollar. by 15%, which will knock the price of oil -- >> how will we do that? >> -- down to $75 a barrel. first of all, the treasury and the federal reserve should jointly say they want a stronger currency. the dollar is down 35% from where it was ten years ago. talk about cnbc's 25th anniversary. that's says way too low. way too low. so we have king dollar. breesh it by 10% to 15%, and
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that will kill the price of oil, which is way too high anyway. what does putin fear the most? he loves it at $100 a barrel. he loves brent crude at $110. at $75 a barrel, russia goes bankrupt. okay? it's not a small thing. it's a big thing. anyway, we need a bigger king dollar to start with. >> okay. so let's say we get that. >> yep. >> vladimir putin needs petro dollars more -- more perhaps than any other country in the world. >> yep. i mean, john mccain's not wrong. it's a gas station. it's a gas station. >> gas station with a flag. >> that's all it is. mccain got it right. it's a gas station. but it requires higher prices to get revenues to finance all his military adventurism. he's going to go to moldova. we have to choke him off with a strong dollar that gets oil prices down. >> it's about 50% of russian
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national government revenue comes from petrochemicals, right? so it's around that. it's extremely important. so why are we even listening to vladimir putin sort of rattling the cage? it's like north korea saying we're going to do this and that. we know you also need stuff, right? russia is a stronger nation by far. i joanenjoyed my time there ver much, but why are we lisping to these idle threats, and why do you think europe is not responding? >> well, look, europe -- europe is europe. i mean, let's get serious here. europe is europe. and you're just not going to get these countries to step up. they're just not going to do it. right now the business is i'm not sure i blame them, the attitude over there -- and you hear this here, come on, with american companies -- that putin has positioned himself almost in a vulnerable way. there is nothing we can do. john kerry, he says we're still unhappy with the crimea, maybe so. but it's done. now the only issue is how much of ukraine is he going to take and whether he's going to go after the baltic.
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so our companies -- british companies, german companies are saying come on. why kill us for this quick-sought adventure? that's the deal. and we should have military exercises. where's nato? i want to see some military strength. we are supposed to be the umbrella that protects europe. >> you know nobody wants to get involved militarily, and you know that making the dollar stronger, even if the gas and oil companies don't want any -- you're basically going to piss him off any way. >> i don't care. >> you're hurting them as well. from the obama administration standpoint, there's no -- what is the impetus for this? >> the dollar -- i mean, this is a monetary issue. the dollar is way too cheap. that's point number one. has been for many years. point be in two. just say it. appreciate the dollar. and you'll see oil prices and commodity prices go down. especially oil prices, which is way too high. >> the kudlow kremlin plan broken right here on "street signs." that's why we love you.
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thank you. >> my pleasure. >> interesting plan. still ahead, what was the price of gold 25 years ago when cnbc launched, and where will it be when cnbc turns 50? we're going to talk gold when "street signs" comes back. mine was earned in korea in 1953. afghanistan, in 2009. orbiting the moon in 1971. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection. and because usaa's commitment to serve current
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in honor of cnbc's 25th anniversary, today's "hard money" segment is a trip down memory lane. let's take a look how commodities have done since the start of this fine network. gold, up 239%, melissa. king dollar. down 18%. hard to believe. but oil, by far and away the best performer of the major commodities, up 439%. who'd have thunk it? all right. let us sum up the last 25 years for gold, shall we? okay. the first 12 years, boring. lousy investment. did nothing. the next ten, great years for gold. epic run, made a lot of people wealthy. the last three, mostly painful. a drop from 1800 to $1200. but let's now try to spin it forward. 25 years from now, which will be a better investment? gold or stocks? joining us, rbc's george gero. obviously we're having fun. we're not looking out 25 years
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and predicting prices. we're having a little bit of fun ahead of the three-day weekend here. so if you had to pick gold to commodity, back the wheelbarrow up or gold mining stocks, pick one, which would it be? >> i'd pick gold and major common stocks, a combination. >> you did both! i asked you for one! >> no, not mining stocks, gold. >> fair enough. >> and those gold etfs which allow deliverable. for example, gld, it's the largest, 400-ounce gold contract in london allows delivery. iau, comex 100 allows delivery here in the u.s. in a tax-free state, delaware. all of that is important. >> george, i'm curious because you also mention a basket of common stocks. are we going to see the sort of run we saw mostly in gold in terms of not the first 12 years of the 25 years but the second half? because part of that was driven by banks diversifying. are we assuming that that is
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going to continue, or will they diversify further and perhaps not hold as much gold and hold other elements or other materials or assets? >> you know, that's going to depend an awful lot on what is going on in the world. i mean, look. mr. lavrov and mr. kerry came to agreement in geneva. that allowed gold to lose some of its fear premium today. it sold off a little bit, down about 8 bucks. however, mr. chamberlain, many years ago, waived his umbrella before world war ii and said there will be no war after seeing hitler. so, you know, you cannot predict with certainty geopolitical events. that's number one. there are enough geopolitical problems around the world. so we cannot predict them. however, gold has been a storer of value, liquid, portable and convertible into any currency at any time. and a storer of value. and stocks have been good major
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stocks, and the averages, the large caps, have been also a good inflation hedge for the long-term investor. >> george, great points. thanks for your time. have a great weekend. >> thank you. lululemon shares down more than 35%. 35% from 52. week highs. with increase in competition, how long can the yoga giant stay at the top downward-facing dog? >> nice pun. mattel, a surprising drop of barbie sales. are kids today too obsessed with electronics? do they not love barbie anymore? we'll talk about that and mattel coming up. ameriprise asked people a simple question: can you keep your lifestyle in retirement?
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this is going to be fun. time now for a special edition of "street talk" with the joyce of cnbc, jim birdsall. kick off the first stock. >> stock one, bank of america. upgraded at oppenheimer to outperform from perform. >> fantastic. why can't you do that? >> i can. >> yes, she can. that's fantastic. oppenheimer says to buy on earnings disappointment and that bank of america remains cheap.
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they add the costs are finite and manageable, by the way. >> they said it trades at 110 times tangible book value so that is cheap by historical measures. >> stock number two. alcoa. upgraded to sector perform from underperform at rbc capital. >> not a hugely bullish call, melissa, but part of the continued turn on alcoa. the stock's up 29% year to date. the performance has been stronger than anticipated. target price goes to 15 from $12. >> windtrust financial. upgraded to buy from neutral at d.a. davidson. >> i'm trying to still get over this fantastic, by the way. >> it's so great. you should speak like that. try. >> okay. >> new name to me. >> it's a new name to me. chicago. i'm terrible. chicago-based hinsdale lake forest banks among other, d.a. davidson increases their target on windtrust financial to $53 from wherever it is now. >> nice pop.
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1.5% on the day. >> boardwalk pipeline upgraded to overweight from underweight. that should be me. at jpmorgan. >> and it was. was also upgraded to neutral on monday. this stock needs help, by the way, down almost 50% in the last 12 months. >> rough going. >> you know, the yield, melissa, i don't know if you guys talked about it on "fast money," 5:00 p.m. eastern, by the way. >> thank you. that's nothing for a downturn of 48%. nothing. nothing. >> upgrading that, dwp. >> okay. today, under-radar name is cronos world wade. and shuntrust said it should sty under the radar. reduce. >> target is 13.50, well below the current price. probably never heard of the company. they make titanium dioxide. >> i love that stuff. >> tio2. >> you say it like you knew it. >> i do. it makes white paint whiter. >> that's accurate. that is true. >> yes.
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>> i'm ashamed. >> obviously. >> kronos. we also know what titanium oxide does. jim, that was fantastic. >> always good. >> can you come over and read me a bedtime story? >> that would be kind of weird. >> just say no to that, jim, trust me. >> all right, jim, thank you. from "street talk" to "talking numbers," and today we're talking barbie because shares of mattel are down 21% this year in part because of big weakness in barbie products. let's talk numbers with rich ross. on the fundamentals, steve cortez, founder of veracruz tjm. all right, steve, kids today just not playing with barbie. i guess it's not on the ipad. will things turn for mattel? >> brian, they will not. and you're exactly right. after decades of barbie being really the icon of feminine youth, all of a sudden barbie has gotten middle-aged and boring. these are stale properties, stale brands that mattel has. thomas the train, barbie.
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it is a digital world. if you were to put those toys on the floor in ex-to a tablet with games on it, almost every child now is going to play with the tablet. so in this space, i much prefer that you look to names like electronic arts or even disney, the creators of the next wave of kids' entertainment, not mattel. >> nobody ever talks about skipper anymore. remember skipper? >> oh, the male barbie. >> no, skipper was barbie's, like, less attractive friend. >> that's why they don't talk about her. >> ken was the male barbie. >> rich, technicals. >> melissa we've seen a lot of volatility in this name and clearly retailers have been the worst-performing sector. when we look at the track, you can see 2013. we put in that ominous triple top up around $48 a share. as we enter 2014, the weight of that triple top proves too much to bear. the stock sheds over 25% of its value through just the first six weeks of the year. we do get a relief rally along with the broader market. but that rally runs out of steam.
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where we get that resistance up around $40 from previous support. now, it's hard to defend in it the short term, of course, but if we zoom out, it gets a little more interesting if you do like the fundamentals story. when we zoom out, of course, you can see that topping pattern. you also see that resistance once again at the 40 level. but where it gets interesting is that multiyear trend line, that's a five-year trend line which is held as support. in addition, you have that 150-week moving average which has also head for the past five years. as long as you hold that trend line, you hold that support, the uptrend remains intact, and the stock could be an interesting buy on that 25% pullback. >> all right. interesting buy. if you like the fundamentals, steve cortez hates them, but guys, that's why we do it technically and fundamentally. thank you both very much, gentlemen. appreciate it. check out the online edition of "talking numbers," part of our partnership with yahoo! finance. real estate, south florida is bouncing back in a big way. but here's the question. you know what the question is? >> i don't know what it is. >> has it come too far, too
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fast? >> good yes. >> where have you heard that before? robert frank is going to be here with that. first, the new ceo of lululemon. now let's check in with michelle and bill. >> it's like "power lunch" days. stocks making a nice comeback this week, but we will hear from somebody who says there are three things investors should fear right now. also, netflix shares, they are down more than 20% since the beginning of march. are they cheap? we'll have a stock brawl about it. yahoo! giving its chief operating officer $15 million for 15 months of work. it just didn't work out. here's a nice severance payer. we'll hear from somebody who says ceo marissa mayer should pay for this expensive mistake. >> all that and more at the top of the hour. >> see you then.
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♪ [ banker ] sydney needed some financial guidance
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so she could take her dream to the next level. so we talked about her options. her valuable assets were staying. and selling her car wouldn't fly. we helped sydney manage her debt and prioritize her goals, so she could really turn up the volume on her dreams today...and tomorrow. so let's see what we can do about that... remodel. motorcycle. [ female announcer ] some questions take more than a bank. they take a banker. make a my financial priorities appointment today. because when people talk, great things happen. apparently i screwed something up. i've been called out. i said that skipper was barbie's friend. apparently skipper is barbie's younger sister. >> who knew? >> i still don't think that's
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correct. but i'm being yelled at in my ear. >> skipper did not look like barbie in any way, shape or form. >> i think skipper was a friend or cousin or something. if anybody knows the history of skipper, the little doll, let us know. >> write in. >> anyway, go ahead. let's talk lululemon. during the presentation, the company saying that distractions are now behind them. lulu shares down a little bit more than a percent at this hour. let's bring in retail analyst stacy widlish. it's the first but also we got a chance to see what the new product officer has in store. >> yeah. you know, today we got to hear from the whole new management team slate. it's a clean house here. and you know, we heard from the head -- the new product officer. and she talked a lot about the fact that obviously there's been huge distraction over the last year with the quality problems, with the pr problems. and now they can actually focus
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on the technical and the fashion and get it done. and also, it's at a very crucial time because think about all the competition that's coming into this market. >> so is this a turnaround story that you would want to buy into having heard the new management team, stacey? >> yes. i think, you know, obviously lulu has gone through a tough period. and again, now they have a management team that's focused, that doesn't have one foot out the door. and also, they're looking at the product and saying okay, we have the basic business, which is maturing in north america. so now we're going to add the fashion element into the business. that's what's going to drive the comp. and comp is what is going to drive this story. and finally, you have the international part of the story, which they're focusing very much on. they just opened a store in london, which was about 60% above expectations in the first few weeks. i was just in that store last week, and it's phenomenal. so, you know, international growth story and recovery story in north america. >> stacey, thank you. have a great weekend, stacey
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widlitz. here's a simple question. is miami the next monaco? robert frank is here now to explain why once again the crane is the state bird of south there are. >> i was there in miami yesterday. it really is. it's kind of far-fetched, but they both have soaring real estate prices. they both have a lot of super-rich residents and lots of good tax benefits. they usually go together. now, the average price for miami real estate was up 19% in the quarter from a year ago. the median price is now $244,000. that's the highest since 2008. but it's really the super rich that are transforming miami. prices for luxury homes, that's the top 10% of sales, they were up 34% in the quarter to $2.7 million. it's miami beach, those greatga islands, they've become magnets to the super reach. they like their privacy. let's check some out. this three-bedroom condo sold for $8.4 million. that's about $2,800 per square foot. now, this condo we're going to
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show you now is at the jade ocean. that sold for $7 million. it's a more affordable $1,000 per square foot. but if you're still looking, we have something for you. this modern waterfront mansion. it's 12,000 square feet. it's got a separate guest house. only $11.5 million. i say only because that's half the price per square foot that you get in monaco. a bargain for the super rich. >> you also say only because you're robert frank. >> yeah. >> right? you hang out -- >> $10 million -- $10 million i don't get out of bed for a house that's less than $10 million. >> but in terms of the lower -- the homes that people like we might actually look at -- >> normal people. >> exactly. >> barbie's on mar-a-lago. where would skipper live? >> is skipper single? there was no ken. >> i've gotten more responses on this than anything else i've ever said. >> this is important. the average condo prices, those are still also going way up in price. >> yes, but any indication of
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idiocy, again, because you remember the stories. >> yes. so here's the issue. >> making $30,000 a year, buying $800,000 condos with 3% down. is that happening again? >> the warning sign is rising inventories. and we are seeing that up 10% in the luxury sector in miami. so that could be a bubble. >> robert, thank you. robert frank. coming up, more mind-blowing stats about how much has changed since cnbc launched 25 years ago and not just the hairstyles. and we're going to reminisce with john harwood about his greatest moments including this unplanned incident with president obama. but first, let us take a trip down mandy memory lane. she's still on vacation. but we're going to take a look at some memorable moments right now from our cohost. >> this is the world's largest private yacht. ♪ >> ah! >> the body is a temple.
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the body is a temple. ♪ i think mr. softy is definitely one to watch. do you think this is the way that tv's going to go in the future? i'm just going to dip my toe in like this. you're going to have to hold me. thank you. ♪ we could talk quadrennially all day. relax. drink. drink. drink. >> way to end the show on a strong note, drury. >> sorry. d save you fifteen pert or more on car insurance. everybody knows that. well, did you know bad news doesn't always travel fast? (clears throat) hi mister tompkins. todd? you're fired. well, gotta run. geico. fifteen minutes could save you fifteen percent or more.
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mayo? corn dogs? you are so outta here! aah! [ female announcer ] the complete balanced nutrition of great-tasting ensure. 24 vitamins and minerals, antioxidants, and 9 grams of protein. [ bottle ] ensure®. nutrition in charge™.
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25 years ago things were very different. "major league," the hot movie. "alf" ruled the airwaves and if you wore jeans, they'd better be acid wash. since cnbc went live 25 years ago, the dow up 515, the nasdaq, up 873%. the best overall performers, this is very surprising. it's not some high-flying tech name. it's not oracle or microsoft, whatever. it's kansas city southern, up 51,000%. not a misprint. since cnbc went live. wow! emc second. and look at this. if we had a sound track, we'd have to include the following because these are the top songs of 1989. proving once again, melissa, that we have had terrible taste
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in the '80s and music. "i miss you much," "straight up," "every rose has its thorn," "it's my prerogative." and the number one song -- ♪ if you see me walking by and the tears are in my eyes ♪ >> how many kids in high school broke up to that song? >> brian, this is on your ipod. this is your playlist. >> excuse me, it's in my sony walkman, the yellow one, melissa. >> your walkman. it's on your mix tape, brian. remember mix tapes? let's get to john harwood. john's been appearing on cnbc since back in 2002, officially joined the team in 2006. and in that time, john, you've had a lot of memorable moments here. but we've pulled our two favorite clips. we'll get to them in just a minute. first we want to talk about changes in leadership and how washington has changed in the last 25 years. have you noticed more partisanship? less partisanship? >> first, i think that was very unkind to "miss you much." that is a very good song.
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extremely danceable, was then, still is today. >> you want to give us an example, john, of how danceable it is? >> reporter: just take my word for it. >> okay. >> reporter: so let's talk about the differences -- >> this is what you get from a duke grad, by the way. "miss you much." >> reporter: this is what you get -- yeah, right. >> sorry, john. >> but, look. let's talk about washington. distance between george h.w. bush's republican party and the republican party of the tea party era is very, very large. and the distance between the democratic party of tom foley and jim wright and the people who were in charge. democrats in that era, jim wright had left by that point, and nancy pelosi is also different. the two sides have sorted out. you don't have the conservative southern democrats that you still had. you don't have the liberal northern republicans that created more intermixing and more opportunities for bipartisanship, say between a republican president and a democratic. congress on deficit reduction which is with a george h.w. bush
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did during his term in office. so it's changed quite a bit in that way. >> all right, john. here is one of our favorite john harwood cnbc moments. you know it. it is from the cnbc gop debate back in 2011. let's watch. >> it's three agencies of government when i get there that are gone. commerce, education and -- what's the third one there. let's see. sflu can't name the third one? >> the third agency of government, i would do away with education, the -- >> commerce. >> -- commerce. and let's see. i can't. third one i can't. sorry. oops. >> john and melissa, we are not picking on the goef vernor. it was a tough moment for him obviously. how often -- does that still come up in conversation?
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>> first of all, i have to give a shout out to my buddy sandy who was in the control room telling me in my ear not to let the moment go because it was a very memorable moment. there's never been a bigger brain freeze in a presidential debate. but i got to tell you that governor perry has been incredibly gracious ever since that happened. in fact, sandy came with me to a washington dinner a few months later. i took him up to be introduced to governor perry and governor perry was making jokes about had it himself. he couldn't have been more gracious in how he handled it. >> well, who could also, by the way, john, forget this moment when the president which went viral? >> hey. get out of here. >> that's the most persistent fly i've ever seen. nice. >> now, where were we?
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>> karate kid. >> was mr. miyagi off screen? >> there is an excellent hip-hop remix of that on the web, too, guys, as well. that was memorable because we all tried, producers before the introduce, to chase that fly out of the east room of the white house but we couldn't get it out. and it was buzzing around his face and pretty impressive chops for the president to get that thing on one swipe. >> nice aim by the president. john harwood, what a great ride it's been. thank you so much. brian's only been here at cnbc for three years. >> but you and i have known each other for a long time. >> 15, probably. what a big three years it's been. take a look. ♪ you are the best thing >> i think i'm ready to humiliate myself. >> "street signs" live from the popular philadelphia shipyard. >> let's go get a cheesesteak. >> a respectable time is eight seconds. >> i look like a little tiny kid. >> you are a tiny tot.
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>> bye-bu buchlt buy buy. buy. buy. >> atlanta has consistently been atop the top five. >> i'm going to spin you out. thank you for watching "street signs." >> prance away, pony, prance away. ♪ you are the best thing >> do that again. >> a potential break-through could help many struggling couples get pregnant. the big business behind ivf coming up.
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this could be the biggest biotech story around the biggest family planning story of the year in one. a major break-through in fertility research sheds and enormous amount of light on why some couples may have difficulty conceiving a child. it also has big implications for the market of ivf. cnbc's biotech reporter meg terrell has been following the story.
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>> the business of having babies has a booming discovery. the key protein has been discovered that helps attach sperm to eggs. it is named after the roman god es of fertility and marriage. with a simple genetic screen researchers say they may be able to gauge ivf's potential for success based on the presence of the protein on egg cells. parents without the protein can avoid the heart break of going through ivf only to fail. ivf is more than $1.7 billion business in the u.s. according to the fertility company ova science and it is growing but it can be pricey at more than $12,000 per cycle and insurance doesn't always cover it. researchers say 20% of infertility cases have no found and maybe now this can explain why those couples have been unable to conceive. >> stay with us here, meg. we also want to bring in robert france who is our wealth reporter here. as a lot of families know, it this is a sensitive topic but it is also an expensive topic. >> it is a luxury good.
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>> unless it is pick up by insurance. >> there is some insurance but it is really rare. look, what you hope that medical discoveries also do is make things more affordable, not just create new products for rich people. the hope here is that by identifying these things, they can make it more affordable -- for some people you are talking about a down payment or a house or a car by the time you get through two or three cycles at $10,000, $12,000 each. >> it is more than that now. >> well, the average is $8,000 to $10,000. >> if you need a lot of medicines on top of the procedure. >> another reason it is so popular among the rich, rich are having kids later. this is a big deal, you hope that this it gets more affordable. >> it is fascinating because when an egg is actually fertilized it goes away. correct? >> yeah, that's true. >> it really seems like that is the key. how much could a test like this cost? could it be commercial? >> yeah, the potential is that if you're going in for an ivf twreemt an things aren't working or are you having infertility
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issues, get the simple screen, couple hundred dollars. then maybe the insurance would cover that. if you don't have this protein, you can get another procedure you might not have gone to right away first. >> okay, thank you. meg, welcome. you're on "fast money" 5:00 p.m. eastern. >> thanks for watching "street signs." "closing bell" starts right now. have a great easter, everybody. we'll see you right here next monday. no, this is not the throwback thursday edition of "power lunch." it is actually "closing bell." i'm bill griffeth here at the new york stock exchange. >> i'm michelle caruso-cabrera in today for kelly evans. yesterday we saw google and ibm miss on earnings and worried. what it might mean for the market today. it is not the sell-off so many feared. perhaps some stronger earnings this morning will help matters like general electric which is leading the dow today. higher by more than 2%. >> jobless claims a little

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