tv Power Lunch CNBC May 23, 2014 1:00pm-2:01pm EDT
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today. >> i'm going to switch and go nike. i think it's a summer trade's well. >> american rail. >> arii, i own it. it still has lights. >> avoid penny stocks at all costs. see you on the other side. "power lunch" begins right now. it's the interview of the week, and it was right here on cnbc this morning. russian president vladimir putin. >> what has motivated your actions through this crisis? >> or man in russia, making putin very uncomfortable. >> do you accept the legitimacy of the election that is going to take place on sunday in ukraine? >> translator: he's a different man to deal with. where did you get the guy? >> where did we get that guy? we got him from cnbc in europe, he is jeff cutmore. he will join us from russia, st. petersburg.
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he made headlines all over the world. you can tell he really challenged president putin. >> fascinating stuff. sue is in the house today, and we will take you to petersburg very shortly. but first another big day for stocks. let's look at the dow as we head into the long weekend. about a third of a period. the nasdaq up a half percent. 21-point gain there. s&p a third of a% at 1899, and the russell reversing some recent losses, up about nine points right now. >> you know how i love the transports. >> you are a transport kind of girl. >> i love the rails the yield is 2.534%. our list of stocks that are moving big today starts with hewlett-packard. pup 6.75. gamestop is up. tripadviser, discovery communications and garmin also having significant percentage
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gains in today's trading day. garmin up about 2.3. >> sue mentioned the russell and today's big gain there. dominic chu has more on the debate regarding the small caps. dom? >> they are such a hot topic, this idea that the small caps may be leading the market. again with the small-cap stocks, they are showing some outperformance, but we wanted to at least respond to some of these questions about whether or not there are still valuing in the russell. we ran a screen about where to find some stocks that may be worth taking a look at. first, you look at the russell still done 3.5%. we've seen a bit of that rollover. it's trying to find a bottom. this screen looks at a few different screens, first it has to have a market capital. so it's not microcap. it's got to have a price to earnings ratio below 22, the average of the index. it's also got to have a dividend yield above 1.3% for give you some payments, and it's got to be positive year to date. believe it or not, the 2,000
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stocks are down to less than 50. here are a few of the big names. check out avista. it trades at just 16 times earnings. it's positive year to date and it yields 4%. that's one value stock possibly in the russell. then there's american rail car. speaking of transports at all-time highs, i know you love those. this trades at 15 times earnings, a yield of about 2.5%. biotechwise, trades at 17 times earnings. sue, some interesting value, possible plays in small caps. back over to you. >> thank you, dom, we'll see you again in a couple minutes. seema mody is right in the thick of things. hi, seema. >> another strong day for tech, hewlett-packard leading the s&p tech index. other notable winners, many times seen as a defensive play. social media also a bright spot. facebook and groupon moving to the up side. analysts taking note of the
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outperformance of the shares of apple, up 16% over the past one month. interesting note from morgan stanl stanley, the annual it's saying the top 100 holders are significantly underweight and this in fact sets up well for further share price precious heading into the iphone 6 cycle and iwatch launch. a look at therapeutics, it received positive feedback for a new treatment. sharply higher better than the expected new homes sales data for april. same-store sales says increasing more than expected. ceo meg whitman saying she's seeing pockets of growth in some of hp's businesses.
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all right. ty, over to you. >> now to russia and the big newsmaking interview of the day, a global exclusive with the russian president vladimir putin. we were given extraordinary access to putin, and the timing critical. e. >> he was very unhappy about the way it started. he said he would be willing to accept the choice of the russian people. let's play you some of this interview with the russian president.
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>> translator: the responsibility is to be borne by our european and u.s. partners now they want us to clean up for the mess they created. this is the purpose of sanctions. >> the front-runner at the moments in voting i'm told is mr. poloshenko. he's toll cnbc he would happily engage is he a man you could do business with? >> where is the money? where is the money, you know? it's a business forum. let us be very specific. they owe us 3.5 billion give
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under the circumstances our money back. you know, that would create very good environment for further discussions. >> did president obama misunderstand the depth of feeling in russia about ukraine and the situation there, or was the relationship already breaking down over things like the snowden effect. >> translator: well, you know, with regard to mr. snowden, i said many times we do not have any direct relations to this problem. he turned up on our territory because of the nonprofession alternate access of the americans themselves who tried to cash im. you know how he used to work for special services. why did they scare the entire world? they were down the planes with presidents on board, and the plane with snowden on board, they could down anywhere, so he
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arrives in our transit zone, and then it turned out that nobody is going to accept him. that's the problem. if they didn't care anyone, he would flay to some other countries, and he would be sitting in d. but they scared everyone, and what are we to do in that situation? russia is not a country that is ready to extra died fighters for human rights. but in reality, our reaction -- well, thank you for this reaction on the part of the auditorium. mr. snowden considers that he's a champion of human rights. he built his life around it. he's a young man.
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i don't know how he's going to live further. i am not trying to joke. how is he going to live further? he is sitting in russia now, but he has chosen his fate himself. we gave him a refugee. he's not our agent. he didn't give us any secrets. >> you've said we're a room full of adults, so let's have an adult conversation. president obama has accused you, as you know, of untruths when it comes to supporting some of the separatist groups in the ukra e ukraine. >> translator: who is he to judge? who is he to judge, seriously? he wants to judge people. why didn't he get a job and work somewhere. i don't think he accuses me. it's his point of view and i have my point of view when it comes to certain things, you know.
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what -- what about what he said? >> president putin, you appear to now accept that the election will take place on sunday, at least this is what i read, but as i said at the beginning, i read an awful lot about what i think, but i don't hear from you necessarily directly. can i ask you, just to put this on the record for our audience here, do you accept the legitimacy of the election that is going to take pla is on sunday in ukraine? >> oh, come on, really. he's a difficult man to deal with. where did you get the guy? we all understand and we all see the difficulty in ukraine s we want to see this country emerge from this projected crisis, and we will have respect for the
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choice that the ukrainian people will make. we will watch very closely what will happen. >> translator: i would like to express our gratitude to the moderator. i don't know what your specialization is, what area you're a professional in. on the one hand, you're a very scary person. on the other hand, you are a person who has managed to create a very business-like atmosphere and very constructive atmosphere during our panel. thank you. so there you go. >> as far as i understand it, from my russian friends here in petersburg, that is a compliment from the russian president, but let's not be confused by the smiles and some of the levity in that exchange. there were a number of tough messages in there. i think they were directed at the white house, and they were directed at the ukrainance, and they were certainly directed as a number of different targets.
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very interesting conversation with the russian president. i'll send it back to you, tiely, thank you very much, geoff, a major newsmake interview. steve liesman lived in russia, speaks russian -- john, it would appeared to me there's virtual will no common ground between the white house and mr. putin about what's going on in ukraine right now, but things can be going on behind the scenes that we're not aware of. what is the white house's reaction to these comments? >> well, i think the white house reaction is the one that you just articulated, which is at the moment there is no common ground. these complaints, the tough messages that geoff referred to, and by the way i think geoff did a terrific job in that conversation, these are things that the white house is accustomed to hearing.
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they don't see much departure in these remarks, and i think the attitude of the white house is they're going to wait and see if and when the russian and vladimir putin behavior changes in response to sanctions or whether more sanctions get implemented. we're at a place right now where he's playing to his audience and the rest of the world as a different view, as putin said. >> his audience seemed to laugh it up, steve. >> i want to push back on john -- not john so much as the white house's take, which seems at odd at almost sever news agency out there which, tyler, saw some movement in putin's receipt ricks, that we -- >> respecting was the phrase. >> i think it's interesting in the following regard. he make come up with reasons not to respect it later, but certainly on practically the eve of the election, i think it was
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a significant comment. john, i don't know if you got the push-back with the white house on that at all, but are they not taking anything from putin's remarks regarding respecting the election results on sunday? >> you know, i think the impact of any words from vladimir putin at this point is sort of limited. you know, we've been through a series of situation where russian officials, puten himself or others will say we're pulling troops back, and then we have three days of analysis of satellite photos and surveillance photos saying well, they said they're doing that, but they're not moving troops back. so i think we'll see, after the referendum takes place, and i think there isn't a lot invested in his words beforehand. >> there are a series of actions that have been taken, as well as the idea that he ordered the troops back to bases the i know the white house policy here is deescalation. i think what may have been
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achieved at this point is nonescalation. it's not so much going down as it's not going up anymore. >> i agree with that. >> there's some sort of sense that maybe putin has realized between the sanctions and between the blowback from europe, and then he did this china thing that i don't know that anybody is taking all that seriously. >> the gas deal. >> they were always going to sell gas to china. >> i think to your point, john, what's interesting to me, is we will see, time will tell just how much he respects the process. >> and he uses the word "respects" and the idea of calling it a legitimate vote is a different thing. he said he would expect the results of the elections that happened in eastern ukraine, the kind of faux referendum. he used the same word. so we have to take his rhetoric a little advisedly. >> to two guys both scary and
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professional. did a terrific job with that interview. the industrials and the financials, how do you play it all? we're talking about that, coming up next. also another big topic a huge debate on "fast money" last night over defend stocks, should you buy them? are they a safer way to play the market? advice and answers on ways to make money, next on "power lunch." all stations come over to mission a for a final go. this is for real this time. step seven point two one two. verify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured.
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with you kem bomb, they're popping on words that they wee need to -- for allergan to be acquired, according to a jpmorgan survey. this offer is expected to come sometime in the coming weeks, but still interesting that some investors, sue, are putting a price tag. >> absolutely. it's progressing. dom, thank you very much. given the recent meltdown in momentum names there's a case to be made in hospitaling dividend stocks. that's not entirely risk-free. check out this conversation last night. >> on a risk-adjusted basis, if you look at treasuries versus equities, the yield in treasuries is much safer than the yield in a lot of these stocks. >> let's say you went long right now a bask of ten-year bonds. you're trying to tell me that you're safer in that than a corporation that's growing -- you're going to lose -- if rates go back up to 4%, the 40-year
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average, you're going to be dead in the water, down about 18% on that bond. >> well, are dividend stocks a good investment? we welcome back katie nixon, and we have jim dunnigan with us as well. chief investment officers at pns. good to see you, jim. katie, i'm going to start with you. do you like dividend stocks? >> well, we think dividend stocks can play a good role in client portfolios, but i do agree that some of the comments made last night insofar as you need to be selective, right? not all dividend yield is created equal. >> what i mean is you have some dividend yields as reflected last night that can be considered risky. can the dividend be sustained? what we like to do at northern is look at the intersection of quality or profitability and dividend yield. so we're looking for companies that are highly profitable, with
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government structures, with also a high different y50e8d. >> that would be secure sirchlts that being said also, i have to say about a third of the s&p 500 today has a dividend yield higher than the ten-year treasury, so you don't have to look that far. jim, to that point, a lot of times you'll see a stock with a dividend yield north of 6%, it looks very attractive, but that doesn't mean that dividend will be intact for long. >> that's exactly the case. the high yields can be very sell ductive, sue, we would suggest caution there as well and ratchet that down a bit to those that have high dividends here, but have a good prospect of growing thor dividends. that will be around a base of strong corporate earnings growth around that, and a cash base and low payout ratio that would allow them to grow that dividend. you look at two things, what the dividend is and what their payout ratio is, how much room do they have over time to grow
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that dividend? >> casey, what else do you like? you liked developed markets and bullish on the u.s. does that still hold? >> absolutely. we continue to be bullish on u.s. equities and relatively bullish on european equities as well. recognizing that in the u.s. we have a till accommodative central bank that's adding oomph to the market here, but we also have strong fundamentals, we're ready to pass the baton back to fundamentals. and a lot of up side on earnings there. >> does it worry you at all that the bond yields in europe have been creeping up which the some people say the bond market knows something that the equity markets don't? >> it is interesting, but they're bouncing off an extremely low left here. >> point taken. >> jim, what else would you put money into in this market? >> wife continued to favor those sectors and industries, sue, exposed to continued economic
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sxax, to the backdrop is positive here, so those sectors, industrials around the area os space, airlines, are all positive. consumers discretioniaries we continue to look at. the consumer continues to improve here, particularly those media, travel would all by positive sectors around that. so those expos the to economic activity. values have adjusted here, as we are at new highs, but still opportunities in this mark on an economy that continue toss expand. >> overall, jim you first, overall does the market look slightly over israeled? fairly vailed or undervalued? >> i would say it's fairly valued here. the market at these highs has had a little trouble adjusting to the altitudes, so i think we'll probably continue in the sideways correction, but with an upside bias here. but it's pretty fairly valued on these earnings as we see them
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going forward. >> i agree with that comment. i think the market is fairly valued also. as i said before, it's back to fundamentals, so there will be a combination of earnings growth and dividend yield. >> on that note, thank you both. have a great long weekend. we've all earned it. ty, over to you. >> sue, thank you very much. volatility? what volatility? wall street's so-called fear index, now at a 14 me have month low, everybody has bracing for some crazy move downward, but really not so much. is complacency setting in, how you can protect yourself. the dow transports hitting new highs. delta air lines up more than 40%, southwest up 35. both of them all-time highs, and alaska air up more than 30% this year for good measure. "power lunch" will be back in two-ish.
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tomorrow is full of promise. we can come back tomorrrow. and we promise to keep it that way. driven to preserve the environment, csx moves a ton of freight nearly 450 miles on one gallon of fuel. what a day. can't wait til tomorrow. welcome back to "power lunch." how about shareholders of aeropostal? they're taking it on the chin today as the struggling retailer reported weaker sales. the company has reported a wider than expected second quarter loss. you can see those shares down about 23% just off their session lows. so, again, another up day for the markets overall, but not so for aeropostal. >> hard to believe that stock is now 3.50. the s&p and dow on track for the best week since the
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beginning of may. the transports hitting new ultra-day -- mary thompson now joinses from the nyse floor. >> hey there, mary, all of this in fairly light pre-holiday trades. investors won't want to leave a lot of money on the table ahead of the ukrainian -- so the dow up 48. right now trading above its all-time closing high, but below the all-time record high. take a look at the stock that's leading the s&p 500, that being hewlett-packard. the company reporting strong free cash flow, but also announcing 16,000 job cuts. vesselors like it as the group that is leading the s&p 500 is the consumer discretionary group, because of the home builders. they're responding to the stronger than expected new home numbers. all of them are getting a booth, not only the home builders
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themselves, the building products companies like as a rule van also higher. sue mentioned, of course we have the dow transports at record highs, the reason for this, it's all about the airlines today, they are higher as we go into the unofficial start of the very busy travel season. crude prices are up about 66 cents right now. sue, back to you. >> thank you, mary, very much. on kind of a quiet trading day, the gold market is ready to close. let's see how the metals are doing. and we have a 1% loss in pa palladium. those are the big standouts on the board this hour. ty? >> you've seen the ads, probably new york selling itself as the start-up state, ravenle number 35 in cnbc's top businesses for -- can it move higher? scott cohn takes a closer look.
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>> this year i've been looking closely at one particular state that sure has been talking big. new york is running ads everywhere, but really, new york? a top state for business? yeah, just imagine. america's top state for business is -- new york! it could happen. of course it would be quite a turnaround from 35th last year. ken adams is the state economic development commissioner. >> it took a long time to get to the position where we were on this list, and you don't get out of their rankings or improve them overnight. >> then andrew quoema has made competitiveness the priority. >> why is our arizona-based company relocating manufacturing to upstate new york? >> value tech ceo greg hyland is moving 25 jobs to new york. >> i think there's a new edge,
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wanting to be competitive and attract high-tech companies. >> the ads tout start-up new york, a ten-year total tax break for businesses that partners with universities, but no company is officially on board. new york is still expensive and joblessness is still higher than average. >> are you giving a clear picture or promoting your aspirations. >> the ads and friends of ours in the business world are saying, yeah, things are changing, it's a new new york. >> new york's efforts are aattracting some grudging attention. >> i would suggest because rick scott, rick perry have come out here to promote. >> we're a target, because this is where the companies are. >> but a top state for business? hey, a state can dream. new york does have its strengths, perennially near the top for education, access to capital, and technology and innovation, but it will probably take more than that to be one of america's top states for business. scott cohn, cnbc business news.
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so was a recent donation to newark's public schools zuckerberg's $100 million mistake? what really happened to all that money facebook's founder gave to newark's school system. ahead the american federation of teachers and head of charity navigator will weigh in, next. ♪ [ male announcer ] since we began, mercedes-benz has pioneered many breakthroughs. ♪ breakthroughs in design... breakthroughs in safety... in engineering... and technology. and now our latest creation breaks one more barrier. presenting the cla. starting at $29,900. ♪
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welcome back to "power lunch." on the heels of yesterday's strong gains, check out what's happening with zillo and truia. in the green again. yesterday was existing home sales. these are both online real estate companies, both catching a nice bid from the strong housing data. tyler, back over to you. to the bond market we go. rick santelli is the man with the mojo at the cme. hi, rick. the futures have closed in trading for everything that doesn't have equities in it. foreign exchanges, treasuries. as you look at the intraday chart, cash mart is open for another 25 minutes. we see yields are down, despite the fact that the we canity markets are up a bit. month to date, this is
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fascinating, as we sit here at the 253 yield, remember or low yield closed was a week ago thursday at 249. since then, this looks to be the sixth close in a row that is in between a yield of 251 and 255. tight range. if we look at a two day of the euro versus the dollar, it's hovering just above 136. these are the lowest yields in over three months. this is very important to contemplate, as we see the june 5th ecb meeting looking to keep a weaker euro, and of course the elections for the european parliamentary group will be fully completed by monday so when we come back on tuesday we'll have a much better idea. tyler, sue, back to you. >> thank you, rick, have a great long weekend. in the fall of 2010, a then 26-year-old mark zhukker birk made a headline-grabbing dough in aition to fix neuro, new jersey's crumbling school system. here is how he laid out the
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vision. >> we're setting up a challenge grand so mayor booker and governor christie can have the flexibility they need to turn newark into a symbol of educational excellence for the whole nation. >> well, four years later, that money has pretty much been spend. did it go to the right places to help this very troubled school district. some insight from randy weingarten, president of america's federation of teachers. ken berger is here with me, ceo of chairity navigator, ken, a very well-intentioned donation, extremely gen russian and large donation. did mr. zuckerberg think it out completely in your view, as compared to other charities that and foundations that make large-scale gifts? >> unfortunately no. i think we see this very often, that people start from the heart, very generous donations are given, but when it comes to the question of using the
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community, engaging the community, sometimes that gets lost and there's a top-down approach that occurred where there's a disconnect with the realities on the ground of second is it's often a very short-term kind of view. this was meant to be a short in the arm when and you have massive social and educational problem on the ground there. and, you know, the third thing is just generally the models we have seen at work, it's incremental, one community at a time, one step at a time, not try to change a whole city at once. >> randi, weigh in on that. obviously some zuckerberg had very good intentions and there were good things that came out, but a lot of it now is gone, and newark is still entrenched with some of the same problems it had when he made that donation. >> well, ken is actually totally on target here. you know, there are some good legacy things that came out of that, but this notion that one
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silver bullet, no matter how large it is, is going to magically change, you know, years and years and years of social, economic inequality and all of the things that have happened to newark, it will -- you know, whether it's newark, whether it's detroit, whether it's any city or county, we're working in mcdowell county, west virginia, as well intentions as it is, this -- the work we're involved in is not a silver bullet kind of work. you have to actually engage community, you have to have a shared sense of what you need to do, and then you have to do it. you know, and unfortunately, i think there are good aspects of a contract we negotiated, but also remember, as soon as the ink was dry, cammie anderson was on a whole other process, and that actually then totally undermined any trust in anything that we even negotiated, because she then said the contract's not good, and let's do another --
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let's do this one newark one, which was essentially privatizing all the schools. >> right. as ken mentioned, it's an incredibly complicated process. >> right. >> and a district that has been entrenched in issue foss years. so ken, let me turn to you about how giving can best be done. there are probably some very philanthropic people watching this segment now who might want to try and take on a school system or some other problem area. how exact, if you are a billionaire or multimillionaire, and you want to have your money go to a specific charity, how exact do you have to be about the way the money is allocated? >> you know, i think the thing that was done right in this case was the 20 million spent on consultants, i don't know how much that was right, but the idea of measuring and results is critically important. the thing that's often lost in
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that measuring is the importance of the consultants, whoever is looking at this, to fundamentally engage the community, but the more general answer to your question, we think there are three critical things that a philanthropist needs to look at. one is the finances of the organization they are considering to make sure they have the strength to sustain what they're going to do overtime, and the second is the governance structure. here we had a foundation with only millionaires on it, and then third we have the whole question of results. are you going to get to meaningful results? you don't want to just have a general effort. there was a lot of emphasis in measurement here, but the other two pieces was not there >> randi, you get the final word. >> and what i would -- this notion about sustainable, remember at the very same time as this was going on, governor christie cut $56 million out of the newark schools, and then a
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couple other sustainable experiments like the global village and other kinds of things were pulled out as this was happening. what you are seeing, as you saw in the election of rods baracka, you had a well intentioned but totally different agenda than other things going on in newark. >> did you find the incentive base that was negotiated into some of new teachers' contracts, the incentive-based bonuses? did that work? did you get some measurements on that or not? >> it's too soon to tell. remember, that was negotiated last year. as soon as it was negotiated, within a month or two, the superintendent was saying, okay, we're on to a new reform strategy. >> right. >> thinking about using a contract to develop improved capacity of our teachers is l e absolutely the right idea. paying a bon us, a one shot, what we have seen through
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research, it doesn't really work. >> all right. lessons for those who give and give generously. >> we want business to be involved in schools. that should not -- the lesson here is we need the engagement of the whole community to be involved in schools. >> absolutely. that's one of the xonants missing in newark. hope springs eternal. >> indeed. >> thank you both very much. we want to know that "power lunch" reached out to mark zuckerberg for an interview, and he decline, nor did they provide a statement, but mr. zuckerberg, you are welcome on "power lunch" anytime, we would love to discuss this and many other things with you. >> from the high cost of health care to low-market volatility, how do you make money? up next, dom, you first. volume tilts is nil, nada, nothing, zilch, dead, it's super cheap right now. how do you get in on the action? that's coming up next, meg. and the commonaltily used
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i've been waiting here patiently all afternoon for this. in today's finance question of the day -- what's your view of the stock market three months owl? dominic chu, 29% of you say, i'm bullish, 30% say i'm bearish, and 39% of you just don't know. they're neutral. to the nasdaq noun. seema mody following the movers. i was talking to a market technician who says in the nasdaq with break 4200 that would be seen as bullish from a
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technical standpoint. on the ipo deck, a women's health specialty pharmaceutical firm went -- the 78th ipo in terms of ipo, to have listed on the nasdaq, two of this are chinese. of course no word on that yet one of my sources back in india quite surprised even after in a ren rend ra modi has won. >> ty has already started the weekend, but first we have to start volatility. how do you profit from that? dom any chu knows how. >> basically the options market is pricing in, sue, little risk the average investor, 13-month
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low sharp move from the down side, but there is an exchange traded product. this -- stocks in the s&p, so if you're looking to buy an asset that goes up in value and the s&p goes down, this could be one of them. there's also inverse etfs that move in the opposite direction. they do not move the exact opposite and track daily movements. if you see a chart of the s&p up 15% over the last year, the short etf won't be exactly down by 15%. remember, it's daily moves. there's a reason why traders are more askish about the market right now. according to bespoke investment group over the last three months, they have traded in a tight range. the last time it traded in a
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narrower range was almost eight years. drug prices much higher in the u.s. so we look at why that is the case. >> that's true. you think that's high? well, compared to what it cost in other countries, it may look higher. in egypt, gilead will charge $900. so what's up with that? it comes down to what the mark will bear and the country's ability to negotiate on price. that process is vastly different in the u.s. from the rest of the world.
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the u.s. has many different u.s. providers, so while some other countries have single insurers in the. of government. some say it's just political untenable. >> they will just say know. if you have a monopoly system, the system allows you to charge whatever you want. >> so the result? drugs in other countries can cost a fraction of what they do in the u.s. take nexium, the purple pill for acid reflux, it can cost $215 a month in the u.s., just $42 in england. $194 in the u.s., $71 in spain. now that imbalance has led some to question whether the u.s. should allow medicare, the government-funded insurer for the elderly and disabled to
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negotiate prices or implement other controls, especially's scrutiny mounts on the rising price of special drugs, you can read more on cnbc.com. meg, thank you very much. fascinating stuff. just before the holiday weekend, we're looking at the new and most popular sporting or sport-like activity in the u.s. sarah eisen is ready to roll. >> memorial day activity, badminton, shuffleboard, both fun, but you'll never get what the number within participatory sport is right now. it's more than 100 years old, but the growth is being drich by millennials, and i'm term at it. e
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and yet, there's someone around the office who hasn't had a performance review in a while. someone whose poor performance is slowing down the entire organization. i'm looking at you phone company dsl. check your speed. see how fast your internet can be. switch now and add voice and tv for $34.90. comcast business built for business. before the break, we teased you about what the most fast-growing participatory sport or sport-like activity is in america right now? it is not, by the way, any of the sports you see on that screen. sarah eisen is with us for the answer. based on your tease, sarah, i would have thought because you were in a bar and you referenced mill lennial, it was competitive drinking, but it's not.
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>> it's not competitive drinking. how about a business proposition? 67 million customers, average customer age 29 years old rapidly growing popularity among the younger demographic? it's bowling. not your father's bowls, not your grandfather's bowls, bowling for the 21st century. we're here in sometimes square as bowl more lanes, a company that has 272 bowling allies across the u.s. the largest bowling company in the world. it all started back in the late '90s when ceo tom shannon bought a run june bowl alley. we caught up with him. >> i converted it into a much more relevant customer focused and special events focused property. it became the most successful bowling alley in the world from 1999 until the present. so weersed that there was updale
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potential for bowling that hadn't existed previously. >> reporter: what he's finding after the recession is it's way more competitive. think brooklyn bowl or lucky strikes. this wee bowlmor is launching bowl-erro, launching in texas. we'll see whether it's a strike with millennials. but tyler and sue, while i'm here, i told you i wasn't a good bowler. keep in mind i haven't bowled for years. i told you i was bad, but let me tell you, there's an amazing cocktail menu, the atmosphere is great. that's really why these strategies have been successful. they're not catering to the middle of haddaged man, they're catering to people like me. >> absolutely. you get a pass on that, it's hard to bowl in a tight skirt. there you go.
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have a great weekend, everybody, and remember why. >> that's right. "street signs" starts right now. we'll see you tuesday. as the home audience laughs and applauds as putin speaks, we dissect and critique. a biotech soaring on surprising news we'll be speaking with the cfo. with you high flyer getting even more love today. and summer is around the corner, slap on the sunscreen and peruse our summer stock watch. scott cohn filling in. >> thank you f. mandy. >>
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