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tv   Street Signs  CNBC  June 27, 2014 2:00pm-3:01pm EDT

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a few minutes ago. we'll have more on "street signs." the nasdaq is unaffected. the yield on 9 ten-year. don't forget it's jobs thursday next week. >> we have some data that is out next week, which may move the market. simon, it's been a great week. thank you. >> a pleasure to be here. "street signs" begins now. ♪ oh yes it's ladies' night oh, yes, it's time to forget about soccer and get back to work. no world cup matches today. we have amazon looking to get into another business. this time takeout food delivery. if you can order your food online when at home, why not at the restaurant? that's what panera is doing,
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with automated kiosks, but here's a question, how the restaurant industry is going to avoid minimum wage increase problems. the real estate market was left for dead fiveiers, but south beach is hot again. you won't believe why. and welcome, melissa. not lady in red. >> but lady in coral. we like specificity. a look at the markets here. you might be lulled into thinking nothing is going on, but you're seeing important moving. energy is pulling back. exxon mobil, chevron, refiners continuing to be weak, as specially after that export news on condensates. mean 250i78 we are seeing -- and bob pisani, of course, russell rebalance is in focus. >> that's right. that's going to be at the close. this happens once a year it's
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going to rebalance. some will move into the 200 and vie versa. >> it's a very simple one to look at. >> sometimesing this related to oil. you can see the drop in some of energy stocks. guys, back to you. >> rick, for the week we saw the biggest move in bonds in more than a month. >> yes, definitely a substantial move, as we sit right now, we are down nine basis points on the week. after settles at 261. but i get the more important
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issue is there seems to be a lot of smart assets managers. we're talking about good reasons, collateral shortages, but in the end the market speaks for itself. maybe the thing that hits me the hardest is with so many bears out there, yields just keep going down. >> rick, thanks for that. forts about same-day delivery. amazon is getting into the one-hour delivery game. just the latest new business. we'll have the key details, plus a live preview of "amazon rising" coming up in just a few moments. mandy? guess what is not happening right now. yeah, a world cup match. the games have been a bit of a distraction to say the least on wall street since they kicked off back on june 12th. we decided to look at the best and worst performers since then, to fill you in.
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here is what you might have miss ed. we also have a brea-edly here in a cystic fibrosis treatment that rocketed shares of vertex up by 24%, and the williams company over here, surging 23% on the heels of a $6 billion deal to expand into oil and gas presence to major shale areas, but it was not all sunshine and lollipops. shares of regen ron drops, as patients began switching away from its best-selling drugs. and coach here take an 11% dip as the company plans to close 70 stores in north america, and more winter woes for fmc, as it blames snow for earnings weakness. back to you, melissa.
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monday marks the first year of end of the quarter. let's bring in matt daly and dan greenhouse. greats to see you on this friday. at the same time, should we still be expecting to see ratcheted down gdp forecasts for the end of the year? >> yes and no. it's likely to be somewhere around 3, 3.25. from the market perspective, though, i think if there's one thing wyche lorne most recently is the market can do things differently than the economy, and i don't see any reason why the back half should be different. >> should we go into the sectors that didn't do well?
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there this notion that will play out or catch-up trades, so to speak, when it comes to sector rotation? >> i think so. some of these groups that have acted so well, obviously the energy sector has been one, and also in the semiconductor stocks. it's not been just this year, but for two years. they've been kind of straight up, some of them well over 100% over two years, and, you know, multiple double digits this year. the problem is, when they get any kind of whiff of problems or any kind of change, they get hit pretty hard. we saw that earlier in the year with some of the stocks of the other high flyers. these stocks, a lot of leverage gets built up to them. we saw that earlier this week with the refiners. i wouldn't be chasing some of these names in groups that have
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been so strong. >> let's talk about some of the sectors. dan, let me get to you. so far the best sectors are utilities, energy and health care. would you expect to see a rotation out of those winners into some of the laggards in the second half? or do you expect more of the same? >> i'm not sure why we would see a rotation. if the fundamental story that's doesn't change, just because the calendar changes, doesn't mean necessarily investors will. i think the only one really at risk necessarily might be the utility space, which is obviously benefited from the 50-base point drop. so if yields push higher in the back half of the year, which is what we expect -- >> to where, dan? >> sure, i wouldn't be surprise ed i'm not sure we're going to get there, but i certainly don't see why we can't reverse the first half of the decline.
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>> what sectors -- what's your target on the s&p 500? >> officially at 1980, but obviously we're right there, and we're not making a move now, but i think something like an earnings season, which we're about to enter is grounds for revisiting any price target. >> i want to ask you about some of the risks oar seeing. what do you expect to be any trickle through, if any, to the financials here in the united states in the second half? >> it's something to be concerned by. i'm not looking for a repeat of 2011, because there are a lot of things going on in europe at that point in time, but we've had a bit of a sell on the news thing after the ecb's announcement earlier this month. the financial stocks are down about 7% over there. that's very similar to what we saw in 2011. the financials had been lagging all year last year -- i'm sorry, all year this year, and they had been lagging back in 2011. however, once they started to
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roll over instead of just rising more slowly, the rest of the european market rolled over with it. we're seeing the same thing now. they're starting to roll over a bit. it's not broken a key support level yet, but if it does, you may see the correlation regain itself. that would be a problem for us, because if you look at the correlation between the dax and s&p, it's been incredibly strong in the last five years, so europe is something that people aren't focusing on, especially the financials. if that continues, it could calling some problemivities matt and dan, thank you so much for joining us. enjoy your weekend. >> no mystery charts today, but we do have two mystery guests, they're about to join us from the lone start state. and we are counting down with the happiest workers, career data surveys, coming in at number five, salt lake city.
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stick around, we will tell you where you can find the happiest workers in america, when "street signs" returns ♪ clap along if you feel like a room ♪ the fact is, it comes standard with an engine that's been called the benchmark of its class. really, guys, i thought... it also has more rear legroom than other midsize sedans. and the volkswagen passat has a lower starting price than... much better. vo: hurry in and lease the 2014 passat s for $199 a month. visit vwdealer.com today. in a we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work.
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because the future belongs to those who challenge the present.
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they surged in may after it hired morgan stanley to look for strategic relationships, and
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those shares again, mandy, down 7%. >> big drop there, thanks a lot, dom. before the break, we did promise you some mystery guests. let's bring in one of them. yeah, it's brian sullivan, someone you know and probably love or hate, but nonetheless it is our very own brian sullivan, live from the indy grand pre. it's a about three-second delay, so over to you. >> reporter: thank you very much, mandy. the know and love part, you might be 0 for 2 on that one, bur i guarantee our audience knows and loves this guy. second in points here in the series, and fairly good dancer. hey, man, thanks for coming on the show and lets us in your pits. you are an investor, and i'll get to that in a second, but indy car, already, after they split, what are you talking about? a number ofiers they broke
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apart. how much years ago are we see now? >> the biggest thing for us is verizon. it's on board right now, also in the series, and as we see, this way, when it comes in, you know, it's getting better and better. not only the technical part, because that's what they're looking for, the live stream and the internet area. and also in the financial part. when you have that kind of support, man, we just keep going up. >> we can't show too much of the cars, because they're working on them, there's some trade secrets, but i did notice they have go pros on them. did you invest in the ipo? >> i did not, and i'm like, i should, in fact i'm going to have to look there at some video to make sure they all have go pro, to make sure we know what we're doing. man, i should have done something. you have the scoop, i don't. >> reporter: no, you have the scoop, but you did invest in apple? >> that's right. >> reporter: what do you invest
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in? >> apple. hca hospitals, i have verizon stocks as well. most of my sponsors. i used to have shell pennzoil. now they're up there, but i don't understand anything about it. i let the experts do it, and hopefully one day i will get more into it. but i do watch you guys every time i'm working out in the morning, so doing a great job. >> reporter: clearly i'm providing the mott railings for that. brazil, world cup, got the olympics. is it worth investing in? >> i don't know. >> i'm from brazil, but i live in america right now, i will keep investing in america. >> reporter: perfect timing to cut it off, because they're back on track. we had to shoot in the window so we should hear each other. your injured hand, be careful. we'll be back with another special guest. thanks very much. >> don't injure it even more. i think a lot of people have go pro regret, by the way,
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looking at the performance. >> wow. amazon is uppen the ante in the delivery wars. david faber will join us live with his take. >> it's just abouttime for 2014. we've been looking ahead to what the second half might bring. here's jackie deangelis. >> here's what to watch for in the energy sector in the second half the traders think that crude oil prooss could see more volatility. hot spots boosting prices in the first half, those area looking like they're not cooling off. we could see prices stay high. also as the u.s. is ramping domestic product, there is the possible that washington is considering exportic some of the domestic oil that could ease tensions. the keystone pipeline is an ongoing issue. while no date is expected, traders are thinking they may see a dig after the midterm
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thank ythank you for defendiyour sacrifice. and thank you for your bravery. thank you colonel. thank you daddy. military families are uniquely thankful for many things, the legacy of usaa auto insurance can be one of them. if you're a current or former military member or their family, get an auto insurance quote and see why 92% of our members plan to stay for life. well, amazon may soon be circumstances its teeth into the takeout business. tech crunch is reporting that
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amazon plans to launch a new takeout service to rival the likes of grubhub. and the app. was quietly tested in seattle by apple ios, but has since been taken down. you know what, amazon is going into everything. you can imagine please don't come into my sector, because it's a big be heap moth, and it does what it does so well. >> eye specially when they're saying they can get something in one-hour, the new delivery promise seems to be a bit of a stretch. >> when we tested the amazon same-day delivery, as i sat
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there waiting i thought, what is the point of this? if amazon does do -- they're going to they i'm -- it is available for same day. >> and you actually did a test between amazon, and was it google? >> google shopping express, so they're doing they pilots, where they will pick up a number of different retailers. >> this very sunday on cnbc, our over david faber will be looking at even closer "amazon rising" let's take a quick sneak peek. >> reporter: the undisputed king of online shopping has made its vast enterprise look easy.
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amazon now offers same-day delivery in several major cities. think that's fast? nadia shora-bora says just wait. >> i think the true vision is one hour. >> one hout? >> one hour. >> that's not possible. >> we are going -- >> what are you going to do, drop it from a chute? >> we'll have the same conversation in five years, and we're going to see what happening. >> reporter: whether that happens by drone or some other mind-boggling means, the point is clear. bezos refuses to think small. >> let's bring in david faber himself. we're looking forward to the documentary on sunday, david, what was the most surprising thing that you learned? >> you know, i think so many different things about this company can be surprising, of course. one of key things is to understand bezos, which continues to be a puzzlement,
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but nadia, for example, on that piece was a former executive, a russian-born math me 'tis, who helped devise a lot of the algorithms behind getting things to you quickly. when she says an hour, mandy, she's not kidding. obviously i was somewhat skeptical. we'll see if it transpires, most likely not be drone, but this is a company, to answer your question, that is surprising on so 78 frontsds, because it's so incredibly aggressive. >> anyone who is interested, you can catch the documentary "amazon rising" this sunday at 9:00 p.m. eastern and pacific right here on cnbc. okay president courtney, as we were talking a moment ago, of course, you put them to the test, we saw david being very skeptical, and he's like, really? one hour? they must surely if they're going to do that have a lot of restrictions in terms of the geographical reach. what do you think is the realistic possibility? >> we know they're building
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distribution centers all over places, and they won't tell us their plans on where to put them. that will be an expense -- the logistics involved, chutes in your house? how are you going to do that? >> i think amazon can afford to do this and lose money doing it, but there are plenty of other services that offer one-hour delivery, so basically it's a person that brings that bag of diapers to you or whatever you may ed on an urgent basis, and they don't have to have that cost, so you've got to wonder whether amazon is really spending its money wisely. >> are they doing it just because they can? >> exactly. >> and quick note to the producers playing "lady in red" you are orange, you are coral, and you are red. s. >> cord any, good to see you in your orange. okay. once again, 9:00 p.m. eastern sunday for the documentary.
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coffee and computers are both getting upgrades. street talk is on deck. and the happiest workers, coming in at number four, norfolk, virginia. we'll reveal the top three when "street signs" returns. what can your fidelity greenline do for you? just take a closer look. it works how you want to work. with a fidelity investment professional... or managing your investments on your own. helping you find new ways to plan for retirement. and save on taxes where you can. so you can invest in the life that you want today. tap into the full power of your fidelity greenline. call or come in today for a free one-on-one review. (water dripping and don't juspipes clanging)ncisco. visit tripadvisor san francisco. (soothing sound of a shower) with millions of reviews, tripadvisor makes any destination better.
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welcome back to cnbc. i'm michelle caruso-cabrera with an update on a developing story. some of the puerto rico's debt is slumping in mid trading session. anything related to their utilities, the water authority, the highway authority, the sewer authority, the immediate reason is the downgrade from moody's, but the reason moody's downgraded is is there's a brand-new law that now allows for the rue structuring the 9 public utilities. significant when investors were considering getting into risky debt, their concerns was it's not a country, not a state, what is their bankruptcy scored in there isn't one, but they built one at least for this section of bonds, so they've been selling off. but in the municipal bond market, that's a huge move intraday, particularly when you look at the electric utilities
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bonds, some haven't traded since mid april. we're showing an index of a bunch of muni bonds. keep in mind there's all kinds of puerto rico bonds. general obligation bonds actually trading better day, because some investors perceive them to be protected, because maybe puerto rico has chosen where restructuring will happen, which many believe is absolutely inevitable. $73 billion of debt for an island with less than 5 million people, plus unfunded liabilities for their pensions, retirement obligations, et cetera. back to you. >> thank you for that. time for "street talk" here we are looking at intel. >> this is actually the second beth performer. who would have thought? it's been a painful trade stacy was on halftime with me, and he
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was say, yeah, i was wrong, but now he's raising his price target to 28 bucks. he does see positive catalysts, like a stronger pc outlook, gross margin strength. this is a small cap, but bringing it to your attention, big moves on top of a big move yesterday. >> and it was a strong reception for kim kardashian. >> can't wait to download that. i'm all over that. keurig green mountains upgraded by argus. >> they don't they see revenue improvements. 9 target is $140, it's currently at 125 and change. also watching verisign.
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>> and what they're seeing is domain name ads absolutely below the midpoint expectation. the target range reduced from 56 to 60. and now, for the under the radar pick today, mwe is the ticker, a natural gas transportation company, head quartered out in denver, coke coke. >> it's being added to the conviction buy list. with a 78 target. that's about 11% up side than what's currently sgleets who do you have standing next to you? >> reporter: i know how you're always feeling outnumbered, so i felt like i had to bring if the lead commentator, you know him
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from the olympics, a bunch of other cool stuff, and an australian. >> hi, mandy. we're going to try to get you over to the carlton blues side, away from the bombers. that's australian football, but come over to the blues. >> reporter: that is fantastic. go ahead, mandy. i was going to say i started my life in carson. i was born, and then i became a bomber supporter, so i have a leg in each camp. >> reporter: now she's claiming she used to be a supporter -- anyway, it's not working on us, mandy. lee, we were just talking about how great indy car has come up. for people in our audience that may be not tuning in, why should they? >> first and foremost, it's exileding. it's an exhilarating sport, you have multinational doing spice well over 220 miles an hour.
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it's a great competition, with a diverse range of companies, nationalities, personalities involved, and a great variety of -- like this one, which you know all too well. a quite bumpy street circuit to super speedways. i would say diversity wraps it up in a nutshell. check it out -- there's two days. >> yes. >> reporter: tell us when to tune in. >> both daze on nbcsn live at 3:00 p.m. eastern, a doubleheader only happens three times a year, and in this heat in houston and the humidity, it puts extreme demands on the drivers. >> reporter: lee, thank you so much. by the way, you know, i'm going to be racing a support class here. we have a great fan zone president if anybody watches "street signs", come down. we're in the way back, the low dollar side of the parking grauk, but take a look and say hi. we have to get the aussie on just for you. >> the blues.
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the blues. >> go aussie aussie. i'm going to, i don't no, cheer, the whole nine yards. let's do talking numbers, and talk about dupont. shares are down 4% with the company slashing profit forecast after winter chipped into the agricultural sales. but could depont still have the right chemistry for your portfolio? >> that's terrible. >> we had to say that. rich and erin are here. i hope your puns are better than mine. rich, give us the technicals. >> one minute you're you have half a million in soy beans, and the next your kids don't go to college and they repossess the bentley. i'm going to show you how to avoid that. you can see the run, this stock has climbed higher with the well-defined trendline. in fact late last month we break
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out to a fresh new high, almost touching $70, but you can see the sharp pullback today. what should have happened, mandy, if the stock were healthy is that the support at the low end of that consolidation and the trendline and 150-day should have provided support. clearly it has not, which really spells trouble for the stock. when we zoom out and look longer term, it goes from bad to worse. i'm looking at the 200-week moving average. that longer term moving average has acted as a making net, resistance on the way up, support on the way down. i think we could get another pullback back to that 200-week moving average. we're going to test better support around that level, where this whole move started to the up side, your first loss is your best loss, and that loss is today. >> this is part of a group that has been on a tear this year. >> yeah, we're not quite as negative on dupont. it's in one of our portfolios, more defensive, more focused on
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income-producing, currently dupont offers about a 2.8 dividend yield, and yes, this quarter has been disappointing, this is two quarters in a row where they've lowered guidance, about 20 to 30 cents, but still trading about 15 1/2 times forward earnings. . we're looking at good growth of about 13% next year. basically the issue this quarter is they didn't sell enough corn, they sold a lot more soy beans, but the soy beans didn't make up for it. dupont is still focusing more on the agricultural business. >> so lukewarm -- you like it here or don't? what do you say to them, erin? >> this is a pullback to buy. we still like it here. i think they made one mistake for this quarter, but long term, still a solid stock. >> guys, good to see you. rich and erin, be sure to check out the online edition in
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all right. take a look at the nasdaq, the only one of the three major indices in the green. keep in mind it's been a tight range, only about a 19-point range. we had russell rebalancing going on, so this is something to watch into the close. pa feria bread says it never wants a customer to wait. morgan brennan is on the a pa feria in braintree, massachusetts with a look at what the company hopes will be the future of quick-service restaurants. hey, morgan. >> reporter: this is called panera 2 had the 0. customers did order via a new app. on their smartphones.
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gone is the crush that ron shake refers to as the mosh pit. the whole point is to improve customer service and cut down on ordering mistakes. panera is rolling it out to the 1,800 stores by the end of 2016. which is one of test sites. so far higher same-store sales here than at cafes without the tech. that's significant, analysts say they could become a major player in the e-commerce space. take a listen. >> what we did is we took the labor savings that comes from the digital input, and we re-deployed that in a place that makes a difference for you, as a guest. >> reporter: analysts expect the costs to rise short term for moor, folks specializing in cybersecurity. they hired a new c.i.o. from
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mastercard to oversee this. they're not the only one adopting new tech. domino's pizza hut, even starbucks that says about 14% of the transactions are done via mobile. back to you. >> morgan brennan, thanks. senior restaurant analyst steven anderson for more. panera is his top restaurant pick in this space great to have you with us. the traffic has been slowing since 2012. could this be the answer? >> i think it's a big part of the answer. the big part of the reason why sales have not grown as strongly is because they do have the crush at lunch. to a smaller extent at dinner. relative to more casual sit-down restaurants. as a matter of fact, it's a victim really of its own
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success. what panera 2.0 tries to address is getting more customers through the door and in online rather than having the customers go away. chipotle has had some of the issues, and the measures they have taken have improved sales by about 150 basis points. >> we saw the same sort of domino's, with tremendous deploying in online ordering. are you putting this in as a factor right now? will we see it filter through f if. >> as management said, they will use some of the savings from tech to have more servers bring the food to you, which is not the case in a lot of the restaurants, though i would not be surprised that over time that they will have a net savings. not only on the labor line, but also the food cost line. so such as that -- the tech will enible a reduction in food waste. >> steve, we're going to leave
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it there. thank you. to reiterate, that is his name for to 14. his favorite last year was chipotle. now, throughout the show we have been counting down the cities with the happiest workers. time now to reveal the runner-up. coming in at number two -- san francisco. >> i would be happy if i worked there too. >> me too. we're happy here in new jersey. >> could not be happier ifrgts but we could also be happy in san francisco. >> love the commute, it's awesome. anyway, this weekend san francisco is holding one of the nation's biggest lbgt pride parade and the big tech is coming owl in full force. josh lipton is along the parade route. you moved out from here to there. i hope you're happy, joshy. >> reporter: it's a beautiful day here, mandy.
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i wish you were here. it is, though, one of the biggest gale pride parades anywhere in the world. big tech this year is more involved than ever before in san francisco's pride parade. more than 15 of the top tech firms in silicon valley are participating -- apple, google, oracle, intel and sailsforce. it's a two-day event, starts tomorrow and cull minute yates in the parade on sunday morning. >> they employ some of the best and brightest, including members of the lbgt community. by participating and coming out, they're absolutely telling the world that they support their employees and they have policies in place that protect that you are employees. over 1,000 googlers will participate on sunday, have their own float, custom jerseys. 75 oracle employ crease will also march. their tagline -- out and proud, engineered to be ourselves. and salesforce will have 300
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employees marching behind a giant cloud float. apple meanwhile, tells me it has thousands of employees and their friends and family will celebrate sf friday. they even have a t-shirt as well as an lbgt station on itunes radio, all part of this event that's expected to show big support for the lgbt community. we are about to head out to one of america's hottest housing markets, where millionaires may have to thank hugo chavez, not blame him, for the boom. we have that story when "street signs" comes right back. in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities
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and see them through, we say: let's get to work. because the future belongs to those who challenge the present.
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the fastest printer. the fastest lunch. turkey club. the fastest pencil sharpener. the fastest elevator. the fastest speed dial. the fastest office plant. so why wouldn't i choose the fastest wifi? i would. switch to comcast business internet and get the fastest wifi included. comcast business. built for business. proo private islands, the wealthy have been buying up miami. a far cry from just five years ago when the miami market was considered a bust. the scale of the new boom is prettying. our very own diana olick has the story umpts i'm going to take you back further, from the boom to the bust to the boom again. we've got fox the story for the last decade. when you pull the numbers together, they truly boggle the
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mind. these numbers are from cranespotters, a new website that grew out of condovultures, and that says it all there. during the condo boom back in the mid 2000, towers with 49,041 units were built in south florida's biggest coastal market, downtown miami, south beach leading that. as of the first quarter of this year, 1,486 of those are still unsold. now, the last condo construction crane building a condo tower came down in october of 2008. the project was the paramount bay in greater downtown miami. literally, it all came to a dead halt. no more construction. fast forward just three years, the first new crane then went up in august to construct the 23 biscayne bay project also in greater downtown miami. now, since 2011, developers have put up six new condo towers with 480 units east of i-95.
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that's miami-dade, broward and palm beach. an additional 72 towers with 7,909 upts anits are currently construction. 92 towers with 10,102 units are in the pipeline. that is shovel-ready from a planning and zoning approval process. but i'm not done yet. 95 more condo towers with 14,914 units have been announced but don't have the zoning and approval yet. all right, who's going to buy these nearly -- yes, i did the math -- 33,000 condos that haven't hit the market yet? all i know is that at least 80% of new or preconstruction condos today go to foreign, all-cash buyers with 50% deposits down in miami, ft. lauderdale and west palm. though they're asking for just 25% there outside of miami. the numbers, again, boggling. >> they're mind-boggling, absolutely mind-boggling. >> and i had to do math!
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>> better you than me, though, i'm going to say. diana, thank you. but we really want to know whether or not the fun in the sun can last. joining us is sam from bravo's new series "million dollar list in miami" and cnbc's wealth editor, robert frank, who knows a thing or two about these things. sam, is this shocking overcapacity? is this going to end badly? >> the list went on and on. like condo, condo, condo, 33,000. that's insane! that's mind-blowing. but at the same time, we do have a huge amount of foreign buyers in south florida, over 30%. and over 90% of them are paying cash, so -- >> but are they still coming? are they still going to come to buy all these new condos being constructed? >> they are. miami is so hot right now, i mean, literally. literally and figuratively, miami is hot. >> but say, will it be hot 33,000 units later? if you're an investor paying all cash, you theoretically want to buy the investment because it's
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going to go up in value, but if more supply is coming on to the market, can that value hold, in your view? >> is it right now? yes. will it in years to come? i mean, we're doing a pretty good job of it. i mean, the inventory, there's a lot of it here, but at the same time, we've had so many buyers. if i could tell you if it's going to last ten years from now, i'd be making a lot more money, but you know, we'll see what happens. but i can definitely tell you that the demand is there. it is there. >> well, it might be there now, but robert, what do you think, okay? we've had a lot of buyers in places like brazil, venezuela, argentina, russia, china, et cetera. are they going to keep on coming, do you think, in the future? >> look, with foreign buyers, you need wealth created in those countries, whether it's brazil, argentina, venezuela, russia or china. right now those economies are slowing dramatically. and my question for sam is, you know, you need wealth creation to have foreign buyers. those countries are doing
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terribly right now when it comes to economic growth. isn't that a problem? and secondly, these apartments are just safe deposit boxes for wealth. they're speculative. isn't that a bad sign relative to maybe people who are buying true apartments to really live in? >> i agree with you on that, but i'm also looking long term as far as, let's say the market does turn. we have a lot of people that then need to rent, and then it would still make sense for people to invest in the miami market. if these other markets, these international markets slow down, it's still miami is the best deal in town. so, it's really -- you know, we don't know. we can't really predict what's going to happen. if we could predict that, the world would be a much better place. >> robert, i'm curious, in terms of the wealth, as you mentioned, a lot of the wealth obviously from latin america gheeg miami, but could we be at a point now where maybe the supply is coming on so strongly that those investors who do have the means
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will go elsewhere, they will go to the tried and true markets like a new york city to invest? >> well, i'm seeing the foreign buyers look outside of miami, new york, san francisco to go to cheaper locations. miami has gotten really expensive. but the other issue i do see is kind of offsetting that, which sam hasn't talked about, which is a positive, which is that a lot of new yorkers, northeast people, because of this winter being so cold and because of the tax breaks in the northeast just getting so high, maybe new york is the new brazil for miami. in other words, there's a lot of hedge fund guys, a lot of new yorkers who are paying high taxes suddenly saying, it's time to go south. mia miami's very cosmopolitan, it's got a great art scene. so, sam, i'm wondering, is new york the new brazil? >> new york could be the next brazil. i mean, who knows? obvio obviously, i'll be a little biased because i live in miami and i love miami, but i also am a big new york fan. i'm here right now, and new york is a great place to live, if you
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can afford it. if you can afford it, it's a great place to live. it's definitely a lot more expensive than miami. >> we've got to leave it there. thank you very much for joining us. >> thank you. >> just some things to chew over. a programming note, you can actually see sam and her fellow realtors on "miami dollar listing miami" on wednesday nights on our sister network, bravo. up next, we reveal the city with america's happiest workers. ♪ you've reached the age where you've learned a thing or two. this is the age of knowing what you're made of. so why let erectile dysfunction get in your way? talk to your doctor about viagra. 20 million men already have. ask your doctor if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain... it may cause an unsafe drop in blood pressure. side effects include headache, flushing, upset stomach, and abnormal vision. to avoid long-term injury, seek immediate medical help
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throughout the show, we've been counting down the cities with the happiest workers, right? based off an employee satisfaction survey. to recap, at number five, salt lake city. number four, norfolk, virginia. at number three, washington, d.c. a at number two, san francisco. so, it's time to reveal the city with the happiest workers. would you like to do the honors? >> ooh, san jose. glass door says the big tech firms help make it the happiest place to work. >> if i had free food and a ping pong table and big bean bags to take a nap in halfway through the day before the show. >> i'm sure they work very hard. >> and i'd probably be a lot happier as well. >> we're plenty happy here in englewood cliffs, new jersey. i'm surprised we're not in the top five. let's be honest. >> we're extremely happy. >> let's look at where we stand heading into this weekend.
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flat-lining here a little bit, but we see a nice push towards the green by the dow jones composite. we are seeing strength today in utilities, a back-off in energy as oil is backing off of today's session. remember, rebalancing, so could be dicey. >> we'll catch you tonight on "fast money" and "options action" at 5:00 p.m. eastern right here on cnbc. >> "closing bell's" up next. and welcome to the "closing bell," everybody, on this friday. i'm kelly evans at the new york stock exchange, where we could be in for a volatile final hour. we've got the annual rebalancing of the russell indexes at the close, bill. >> kind of like the world cup at the new york stock exchange. it's one of those days. i'm bill griffiths here at cnbc headquarters. the rebalancing will occur at the last minutes of trade today, could make it one of the biggest trading days of the year in terms of volume.

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