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tv   Power Lunch  CNBC  August 4, 2014 1:00pm-2:01pm EDT

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that. so adorable. we're going to keep losing it. that does it for us on the "halftime report." we'll see you back here tomorrow. in the meantime don't go anywhere. "power lunch" starts right now. halftime is over. is it "power lunch" and the second half of the trading day starts right now. >> melissa, thank you very much. crisis, certainly trouble if not a crisis in the housing market. the first-time buyers literally just not moving in, either because they don't want to or can't. that means that homeowners can't sell and move up. today just how serious housing gridlock in the usa has become. it is back to school season, about a month away now from the first day of school. ours is september 4th in my town. we have several teenagers getting ready to hill the mall. before they do they'll tell us what they think about certain brands and stores right here live on "power lunch." you know, california is in the midst of a terrible drought.
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now neighbors are being encouraged to snitch on each other for using too much water, and they're doing it with a new app.. we want you to weigh in on this one. would you snitch on your neighbor if you caught him or her using too much water? go to cnbc.com/vote. sue is here in the house. >> i am. we're going to begin with housing. home ownership is at a decade-low second quarter, and it's young people who are out of the market. what does is it mean for the broader recovery as well? diana olick knows. >> home ownership just keeps falling and younger americans are clearly behind the drop. take a look. the rate now is at 64 -- a 19-year, it reached a high of over 69% back in 2004, but add to that the fact that nearly 1 million homes still have
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delinquent mortgages or already in the foreclosure process. the real home ownership rate is even lower. we know first-time home buyers are less than a third of today's home buying market. the median age of a first-time buyer was 31 over a decade ago, but a new survey by zizillow finds that age could jump for 34 or even older over the next decade. that may seem like a small jump, but experts say that will keep home ownership overall lower, could even impact sales of home goods. just think about it. the time horizon for owns, decoratesing, renovating a home will be shorter. now, why are not millennials buys? employment among 25 to 34-year-olds, dhs considered the prime age group for housing demands, they failed a from 75.8% in june and 76% at the beginning of the year, according to the bureau of labor and statistics. it has been up around 80% in
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better times. that's just the beginning. mortgages, student load debt, we'll talk more about that, all of it coming up on "street signs." of course, more online, realty check.cnbc.com. >> diana, thank you very much. tax inversion, it's become sort of the buzz phrase of the summer here, a bigger issue in the u.s., maybe even every day, happens when companies go overseas, they buy a smaller company, then redomicile in that company to avoid paying u.s. taxes. the pharma industry, really the first and maybe the most notable to do it, but there is another industry looking at inversions. dominic chu fresh from your vacation? you didn't spend it looking at inversions? >> no, but my vail occasion has something to do with the next sector. one of the most international industries is hotels. they make revenues from all over the place, so maybe they're a candidate for inversions. of course the one we're talking
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about is intercontinental hotel group. it owns holiday inn, holiday express, crowne plaza. they're based in the uk. that's the reason why it's important. if somebody were to potentially buy them, they might be able to reincorporate in the united kingdom. they had back in may they spurned a $10 billion takeover bid from an unnamed american company. who could those companies be? there's only a handful of publicly traded domiciled in the u.s. >> one begins with the letter "m"? >> one of them does. remember, one of the biggest just went public the past over a year. >> begins with "h"? >> yes, hilton. hilton, marriott, other big names as well. hilton, marriott, starwood, you think of those, all company with his market caps in excess of $10 billion. that's a huge deal. if you look at those hotel
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companies, that's a big deal, because maybe they take a look at buying -- >> you with see these companies buying that and saying we want to reincorporate into those shores, maybe a lower tax rate. we threw hyatt in there. it's not exactly as big as the other once, but an iconic brand. maybe they do something and can move their headquarters to the other side. here's the part that's interesting. the other company that is we looked at are not hotel companies we are spay, but associated with them, but they're casino operators. of course all these have big hotels attached to them. rather, casino gaming, but think about names like las vegas, sands, wynn and mgm. sands is a $59 billion market cap. it generates a lot of revenues from outside the u.s. this is not saying this is going to happen, but these companies have enough ammunition, if they will, to take over some of these
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hotel companies. >> i don't want to wrong put you here, but you mentioned one in great britain. are there others in francis, england? what were. >> accor hotels is a european hotel operator. this maybe they're a candidate, but again it comes down to whether or not these companies feel as though they want to go that tax inversion route. it's all the rage right now. whether or not it makes hotel sense is another question. it's all about real estate dynamics. some don't actually own the properties themselves. marriott -- yes, they operate these hotels, reits own the protsds and they hire a marriott or a hyatt. >> dom, thank you very much. nice to have you back. sue? gentlemen, let's get the trading action. bob pisani is on the floor of the new york stock exchange. kind of steady as she goes today, it feels like.
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>> and quite happy after the chaos last week. sue is right, cyclical names or technology stocks, industrial names, consumer discretionary stocks, they're all stronger today. we're getting some help from europe. portugal led this. they bailed out their bank, some relief they're finally starting to take bondholders and shareholders are finally starting to take some responsibility over there. germany ended down fractionally. bottom line is things are a little more stable there, much more stable in china. have you noticed china has been doing well? while the u.s. and europe were flagging around, flailing around. last week china was very steady. they got -- they're isolated. they don't get affected by the ukraine. in fact the emerging markets in general have been doing much better. malaysia, mexico, thailand, all those stocks have been recovering. lower rates. if rates go up, that could be a
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real problem. commodities on the back of some of these emerging markets. dbb, there is your exchange traded fund that owns a lot of aluminum and a lot of copper directly. you can own these stocks through these base metals. three days of very heavy volume. it's hatching again today. prices are up today, but sue and tyler, very big volume today, more than 100% daily volume just in the last few hours. back to you. >> bob, thank you very much. there's seema mody on the screen. let's go right up to the nasdaq. >> i like sam's note this morning when he said market performance in july was much like the world cup matching, excitement being left to the end.
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today a rebound in some of the tech names. amazon is down about 2.5 last week, up today. same story for facebook, among others. market participants say earnings will be a focal point. groupon will be the stock in focus here at the nasdaq, which, by the way, is rallies ahead of the highly anticipated report tomorrow. that stock up better than 7% last time i checked. small caps, though, seesawing between gains and losses, thor there are some big losers today. an online textbook rental went public last year, and arena pharma. russell posted his worst four-week loss since september 2011. sue, here's what we've got. shares of ver i sign, worked that berkshire hathaway has
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boosted its stake by 11% to about 10.5% of the overall company. this particular company has a market cap of around 7 billion. it gives secured domain names. those shares are up at session highs, but the stock is still down about 8% year to date, sue. the dow negative for the year, the s&p only up about 4% assist last week 'sell-off. is it a good time to jump in we have hugh johnson and susan fulton joins us as well, she is president and founder of fbb capital partners. you both at this point say the market is not overvalued. that's a bit of a change for you, hugh. is it due to last week's sell-off? >> it really is. we were about 4%, sue, overvalued before we started last week. as i do the numbers, we got down to a level which i think is
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about a half of is% and 1% undervalued. it's the first time i've seen undervaluation in a long time. that's good news, but frankly not good enough news. i would like to see much more extreme undervaluation, or a better opportunity in the markets. the other things that's missing from the current equation is you'd also like to see widespread pessimism. there's and that means we are not quite yet at a turning point. again -- >> do you agree with the complacency argument and the fact that even after last week's volatility we still have an awful lot of people bullish on the market? >> we don't think the market is overvalued. we haven't really before last year scream-and-shout kind of mom. we do think there's value. we are picking up stocks that have dropped more than 10% in
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the last week, that are sort of regular customers of ours, bank of americas, which can't count, but probably will survive. and tjx, which is a discount retail shop that sort of buys stuff after everyone else has tried to sell it. >> what would you be putting cash into right now, especially if things are more attractive this week than last? >> i'm dragging my feet a bit, but i would certainly look at materials, energy, health care, which is a good defensive move in a portfolio, and also technology. those are the ones giving the best relative performance. as far as individual names go, national oil, which is a really good energy company is going to participate, all the kind of surge we're sealing in drilling. the second thing i would look at, i would look at merck in the health care area and technology area. apple and nvidia are the two companies were buying.
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>> susan, very quickly. how do you think the earnings season will end up? so far some people say so good, but then expectations were a little low. >> i think it's going to be a very decent earnings season. one of the things were seeing as consumers, we're beginning to go out and spend, and we haven't seen that for several years. so i think that we're going to -- the retailers particularly are going to have a good year. i think the banks may, may be getting themselves uncoiled. there will be problems with housing, because the lenders really sort of shot themselves in the foot. >> right. thank you both. appreciate it. good to see you, hugh and susan. the drought in california turning neighbor against neighbor. jane wells is live in l.a. hi, jane. >> tyler, it's getting nasty. there's even an app. to out your neighbors. caught my neighbors washing her
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car in the middle of the day. how do you feel about this? would you out your neighbor for breaking water rules? go to cnbc.com/vote. we will talk to the ceo behind the app., when we come back. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running.
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investigating whether they're -- that stock you can see down nearly 4% on the trade. still the new york state department of services superintendent looking into this company on insurance claims. thank you, dom, very much. a ban on drinking water that had been in place in ohio and michigan since early saturday has finally been lifted. toledo's mayor announcing that the water is safe for consumption at officials discovered elevated levels of a suspected toxin likely from algae on lake erie. severe thunderstorms in california's mountains causing mudslides that killed one man, leaving thousands stranded. in northern california, a very different picture, with 14 wildfires raging there, the extreme drought providing the perfect fuel for fire, of course. ty, over to you. that california drought is
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turning neighbor against neighbor, and there's an app. to help that. jane wells is live in los angeles let me just finish one thought here, and then i'll let you take it away. in a minute, would you turn in your neighbor for using too much water? go vote, cnbc.com/vote, and let us know. now, janie, take it away. >> if you're living in miami, you might think, what? but here it could be more of an issue. i downloaded this app.. i keep getting alerts from people reporting others it's a surprisingly popular way to use an app., that was originally meant to help people report safety issue it is. >> it's at medina and -- >> this is the sort of thing popping up all over l.a. through the app..
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it launched before the boston marathon to harness reporting into one place. the company will not score the number of users. >> the goal is to turn this content into actionable content, so that the water municipalities, the enforcement, you know, the regulatory agents responsible for enforcing can actually monitor this if they wish. but it's also the community getting together and sharing information. that's what's really powerful. >> reporter: should we be routing people out? >> i think it's about holding people accountable. i don't see it quite like that. i see it more about making sure people play by the rules. if i have to play by the rules, you should too. >> now, when you sign up for the app., you get a map where people have posted. the red drought are, the purple dots are public cameras, one of the its original intents to help
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you with traffic. one guy writes watched his driveway car, lawn at the same time. the hose didn't have a nozzle or judd #droughtshame, which in this case wasn't spelled right. it's going through another round of funding. when i came home from interviewing the other day my husband had the hose out without a nozzle, and i did feel guilty, but i did not report my own husband. >> you didn't report your own husband. >> that's the answer, jane would not report her own husband. the viewers said, well, 47% -- oop, there it is, a last flurry trickling from the hose of the voters. that didn't sound good, did it? 52% said yes.
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48% says no, they would not. >> wow, a must be a lot of an l angelenos watching right now. >> you tell your husband to see a nozzle. >> reporter: that doesn't sound right, either. do you have a nozzle or are you just happy to see me? >> thank you. apologies to jane's husband. >> the passport commodity. which passports are worth the most, which will cost you the most, and which will -- when visiting other countries. there's a big winner. it will surprise you. i guarantee you. much more "power lunch" coming up in two minutes. 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 ustilt to be is the worst performing sector so far. since hitting the high back on june 30th, the sector overall is down nearly 9%, now only up about 7% for the year. leading today's downward trend, american electric power followed by agl resources, and pinnacle west, they're all down by at least a percent and a half or more on the day's trade. tyler, back over to you. authorities in chinaer still trying to figure out what caused a massive explosion at gm's main chinese supplier yesterday.
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you can see the fireball above that woman's shoulder in the security camera. 69 people inside that factory were killed. for now gm is searching to find another factory to make its components. a major russian airliner is suspending business due to recent sanctions from the european union. russia's dobroleat has stopped service. a spokesman says the pressure was unprecedentened and the airline could not continue to operate. it's a subsidiary of russia's biggest carrier. sue? a big strategic victory for the sunni terrorist group wreaking havoc in iraq. taking over large parts of the country, reports say the group known as the islamic state in iraq and syria has seized iraq's biggest dam, an oil field, and three more towns after handing the powerful kurdish military
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the first battlefield defeat. this video was shot by the terrorist group over the last several weeks, firing at cars, blowing up buildings. that dam is capable of flooding large parts of iraq. it also generates electricity for much of the country. mcdonald's is says it's hoping to bring meats back to the chinese restaurants this week. the supplier was knowingly selling meat with an expired shelf life to the restaurants. mcdonald's says it's working with other existing suppliers to bring back the beef and the chicken. shares down -- over the last month it's about a 7.25% drop. let's check the interest rate action. hey, rick. >> hi, sue. it isn't a big day -- this week is no exception, but there is a lot of action at lower yield levels.
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look at a one-day chart. it looks like a decent range, but when you look at it in the context of friday, you can see how squashed we are, and we're hovering just several basis points above the low yield close for the year at 244. look at a one and two-day chart pretty much the same story. their low close ever is a -- and last chart has been a lot of talk about the chinese stock market coming back on its own, doing a bit better. that is true, and to that end, if we look at the currency, the dollar versus yuan, you can see it stabilized a bit after the dollar traded down to the lowest level since march. back to you. >> rick santelli in chicago, thanks so much. you're up to date on the interest rate scenario. let's get you up to date on metals, which are starting to close right now. the gold market is down about 5.80. we do have a bit of a boost in the copper market after a pretty good london session this morning. in addition the platinum market is on the positive side, but the
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palladium market is off better than 1%. when you think of commodities, chances are you're not thinking of passbores, but in many situation it's a transaction to bring in the revenue for the nation that offers it and certain benefits. it's legal, it's sanctioned. it's cheapest and fasters, by the way, in the eastern caribbean. let's look at the twin island sanction of st. kitts and nevis. you can become in as little as four months and without ever having to set foot or live on the island. in neighboring dominica, the minimum investment is $100,000. there's an interview, but no residency requirement here, either. by comparison, the immigrant
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investor program here in the u.s. is much more expensive. you have to make a minimum investment of about $1 million or $500,000 in an economically depressed area and it is more time-consuming. it is also tied to business creation. you must employ and retain at least ten people over a two-year period and it does not result in automatic citizenship. rather it puts investors on a lengthy path toward citizenship. you can apply after five years of living here. that's why the program is not apparently as appealing as in the eastern caribbean. who buys? it ranges from people seeking political asylum to people seeking tax breaks and business mobility. in the u.s. it's mostly the chinese it turns out, 6,671 or nearly 80% of all the applicants in that program in 2013. but there's also some else you get in return that makes
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passports valuable. if, say, you're a lebanese business person, your passport only allows you visa-free access to 38 countries and territories across the globe. a kittithia passport affords you to 131 places around the world. at today's interconnected global world, being able to travel as freely as your capital makes some passports a very hot commodity, sue? >> but buyer beware, a brazilian born soccer player who bake ukrainian, because he wanted to play for the national team was very surprised to learn he had been drafted by the ukrainian army. he currently plays midfield for fc, said being a soldier never
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even crossed his mind, but now he admits that he is completely terrified about about the prospects of going to war. all right. let's check out the teen retailers, the group having a tough time, aeropostal plunging 60%. so are they bottoming out? should you invest in the space right now? you're going to meet the teens that wall street listens to. find out the trends that they're seeing before the analysts do. and where do you mostly shop? go to cnbc.com/vote and let us know. join the conversation. "power lunch" is back in two.
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welcome back to "power lunch." disney shares nearing an all-time high, currently trading up, a look at the board there. it's up about 2% to $87.14.
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these on the heels of marvel's "guardians offal galaxy" surpassing expectation. both revenue and earnings are expected to climb on strength that the studio, theme parks and espn, thanks to the world cup. sue, over to you. >> julia, thank you very much. it may still be summer, but the retailer are gearing up to back to school, getting all those coupons in the mail. we have an exclusive report on what teens are telling wall street. joinings are stef, the senior research analyst at pipe are jaffray. and some of the students are joining us now as well. eleanor hagen, matthew rosado, kathy martin and nick versioli, all seniors here in new jersey. you can go to cnbc.com/vote and tell us where you shop and what
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you're buying. good to see you guys. welcome. good to see you again, stef. >> likewise. >> i can't believe it's back-to-school season already. this is a high stakes season for the retailers. >> absolutely. >> especially because we're seeing traffic spike. we were just talking earlier that teens aren't shopping in august anymore. they're going back to the malls after they go back to school. >> usually i'll take like two shopping trips, which is usually over the summer. once el get back to school i do my actual fall shopping in early october, late september. >> what are the trends that you are seeing? >> for guys, i think the j. crew. i really like sperrys. that's the big thing. when it comes to sportswear, nike is always up there, underarmour, but i think the prep. >> the classic?
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>> yeah, the classic. >> i think there's two different ways you can go with it. its the preppy, kind of like a nice j. crew or more lackadaisical sporty look. >> what about for the ladies? >> preppy is very in. i have more of a bohemian style. >> which is also hot. >> usually i wear jeans until like september, october, then i don't do my winter back to school shopping until october, november, like ellen was saying before. >> where do you shop the most? we're trying to figure owl what retailers will benefit the most. >> my favorite right now is j. crew. i just found the gap. they have like these great deals. at first i wasn't a big fan, but after going inside they have a lot of great basics, which i think will make a comeback. >> the gap fell on very hard times, and it was completely out
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of favor us, but they made a comeback. as a guy would you shop at gap or not? >> i haven't been traveling to gap that often because they're kind of out of favor with guys. i don't see many wearing it. but if i see -- if it's trending upwards, i probably would check it out, see what they've got. >> the rule of social media, how important, nick, is it in the way that you shop? i mean, the last time we were together, stef, instagram was really big. do you use social media to determine what retailers you want to favor? >> when instagram especially, when you see what your friends are wearing, what other people you don't even know are wearing, and from that is kind of like judges, you can see what you want to fwi. >> cassie, do you do the same thing? >> yeah, i don't know about for guys, but a lot of the girls,
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company will tag the models they use on instagram, and you can follow those models. not necessarily they're wearing that brand, but any brand they wear you might like >> does it influence your purchasing power? >> yeah, i think it does. >> would you agree, eleanor? >> i definitely agree. on instagram i'll see seismic i like and i'll be able to go to the actual store and be able to buy. >> let's talk about a couple stocks in particular, abercrombie & fitch. we asked you for thumbs up/thumbs down. eleanor you gave abercrombie & fitch a thumbs down. matt you liked it, cassie, you didn't like it, and nick you didn't like it. matt you're the outlier. why do you like it in nobody else does? >> personally i feel they have good quality shirts in the material, it's very soft. on top of that, there is some good and bad about it, but it
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fits very well. the jeans are very good. it's got good sales recently. >> the rest of you don't like it, though. why, nick? >> appearer chrome by is very big, but for guys, i don't think that we are looking for something that like sports a label on their shirt anymore. kind of like a blank shirt is more in style now. >> that's interesting. let's go through some of the other stocks. pacific supwear eleanor doesn't like it, matt no, cassie you do, so cassie, this time you're the outlier. >> i've been hears a lot about pacsun, because jenner did a line there. i saw a few weeks ago that they're extending their contract, so i think that's been popular this year. >> and nobody likes aeropostal. >> it's also a labeling thing.
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i've never been into it as much. if i was looking at abercrombie versus aeropostal, i think abercrombie is a better place to shop. >> if i gave you each $100 to invest in the stock, eleanor, which stock would you go to in terms of the major retailers? >> of the three? >> um-hmm. >> or another one. >> i wouldn't invest in any of them. i think i would invest in a j. crew, because i feel, like the boys said, the preppy look is coming back for them and it's still privilege enwith the girls. >> i would guess abare chrome by. >> i would say free people or j. crew. >> of the three i would also choose abercrombie. >> what does that tell you? >> go with abercrombie. >> we agree. >> do you think it's getting its footing again? >> i hope so. i think there's signs they are.
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i think think they have changed some of things that i think would surprise people. >> do you think it will be a good back to school season? >> i hope so. it's interests to hear the teens talk about it. i think newness is exciting, i hoe we get something that turns their head, but i know they're thrifting, looking for bargains. >> that's not a bad thing, spoken as a parent. let's lock in the vote, where you do you most of your shopping? 45% say mostly online, 20% say mostly at the mall. 35% say mostly local on main street. that's kind of an interesting development. now to michelle caruso-cabrera on a developing story. >> the development has to do with the tanker full of kurdish crueloid anchored off tex texas. the government has filed in texas federal court, saying the judge should vacation the order to seize the oil, because she
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doesn't have judds and they have every right to sell it. they made clear within this filing, they will try to get this oil into texas. once again the kurdish government not backing down. there were some thoughts they would sail the ship away since it was still outside territorial waters of the united states, but they made it clear they would try to get the oil into the united states. tyler and sue, this could bring to a head the whole discussion about whether this semiautonomous region of iraq will be allowed to sell oil on the international market. if so they would have more money to their name and more to go ichbt and that could lead to the territorial integrity to iraq that we've been talking about. michelle, thank you very much. let's segue back to stocks. it may by time to nibble a bit. seema mody will highlight some
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of the hardest-hit names when "power lunch" continues in a moment. financial noise financial noise financial noise weit's not justt we'd be fabuilding jobs here,. it's helping our community. siemens location here has just received a major order of wind turbines. it puts a huge smile on my face. cause i'm like, 'this is what we do.' the fact that iowa is leading the way in wind energy, i'm so proud, like, it's just amazing.
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is caused by people looking for parking. in a city that's remarkable that so much energy is, is wasted. streetline has looked at the problem of parking, which has not been looked at for the last 30, 40 years. we wanted to rethink that whole industry, so we go and put out these sensors in each parking spot and then there's a mesh network that takes this information, sends it over the internet so you can go find exactly where those open parking spots are. the collaboration with citi was important for providing us the necessary financing; allow this small start up to go provide a service to municipalities. citi has been an incredible source of advice, how to engage with municipalities, how to structure deals, and as we think about internationally citi is there every step of the way. so the end result is you reduce congestion, you reduce pollution and you provide a service to merchants,
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and that certainly is huge. welcome back to "power lunch." check out shares of mcdonald's, china and japan are q. a quote significant impact since the safety scandal in china. earlier today it said it will resume serving a full menu in beijing and other chinese cities later this week. the stock is currently down a half%. tie already, because over to you. the major index is taking a bit of a dip. you see the big three etfs with declines of all greater than 2%. seema mody looking at some of the hardest hit stocks from the week that was, and their new valuation. is it a time to buy? that's the question, seema. >> tyler, it really depends on
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the stock. we looked at the stocks that got hit the hardest, are now trading at a forward price to earnings ratio, and we asked analyst if these are good buys. first up is eastman chemical. it currently trading at 11 times earnings. the maker of chemicals, plastic, and fibers saw the-second jump. keybank which has a buy rating on the stocks, has improvements being a catalyst going photographed. powellry producer pilgrim's pride, the stock has been on a tear, but did get hit hard the past week. stronger than expected chicken pricing, lower than expected grain costs, in general better than expected produce nick. and lost, analysts are cautious
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on the stock, the downturn in crop prices making it harder for farmers to spend on equipment. women blare says earnings will likely be lower in the next couple quarters. sue, back to you. bob? great day here overall, cyclical stocks doing better after a tough time last week. energy and technology all leading here, a lot quieter day down here. the vix last week went from 12 to about 17. it's backing down as well. around 15 and change here, that's a good sign for the overall markets. a couple weak sectors. passenger revenue for available, only up 2% to 4%, that's the weakest it's been in a year. also want to note regional banks weak as well. >> thank you very much, bob pisani. berkshire hathaway now sitting on about $55 billion in cash. what will warren do with all that dough?
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let's go quickly here. they've been crunching the numbers on berkshire's current cash hoard. idea ideas how to spend it? >> a lot of people are pointing to kellogg's, campbell's soup. just speculation. the bigger question is why hasn't he spent it already? maybe he doesn't see bargains, because the market is so hot. >> dom, a thought? >> remember talking about the elephant gun a year or two ago? now he's looking for a meatball? for him i think hi wants to find that specific bargain. >> all right. one big theme this earnings season, sara, as you've been reporting, price hikes, on big companies, hershey's coca-cola,
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some suggest you need to look no farther than what corporations are doing to get a good gauge of inflation. your thoughts? it's broad-based. yes you're going to pay higher for hershey ace mars, coffee prices, but higher prices for home, pauly group, and nike. it's really broad-based. the next time you hear jan janet yellen says it's just noise, look at what corporate america is telling you. prices are going to continue to rise. >> a lot of thinks price hikes, aren't they specific to individual companies? >> there'sle talk about, with commodity prices, remember these are traded instruments, volatile in nature, so when it comes down to core inflation numbers, a lot of people look at that, even though we all feel the pain at the pump, it's something you've got to watch. the interest part for me, just quickly here, if prices for commodities do come down,
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margin, may actually be help for some of these companies. >> by the way, tyler, mcdonald's has been, burger and meat prices at record highs. you'll see it at inand out burger. finally some talk about one hotel's rather stringent wedding policy, a $500 fine for each and every negative review posted on the internet by anyone in the wedding party. you book the wedding, put down your deposit, somebody doesn't like the accommodation at the inn, and you get fined. this doesn't sound fair, does it, sara? >> not at all, but it's not working for them. i went to their yelp review, they have 580 people giving them one start. unclear how many of those hundreds gave it to them after the news but of course that's ridiculous and unfair. >> dom, if this was one of the rules of having my wedding at an
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establishment, i would move to another establishment >> i would probably do the same thing. you win thing i would say is i don't know how much the company can police this or how they actively go after people and collect that fine. it seems to me this is a pr stunt, maybe just to make sure that people don't. >> what constitutes a negative view? let's see what's up on "street signs." what's been the biggest wealth creator since the march 2009 lows. we'll reveal it for you, we do take safe drinking water for granted. we take a look at investing in water plays. we also speak to a company that specifically hires people with autism, tapping a very large pool of talent that may have been previously overlooked. it's going to be an interesting story, and they're also hiring and creating jobs here in america. "power lunch" runs after this. see you guys at the top of the hour. in india we have 400 million people
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clorox is hitting session lows after reversing the stock jumped. the stock did rise. dow jones is citing jpmorgan, which says it expects tepid organic growth to continue form the stock you can see just off the session lows down by about 2.5%. sue, back over to you. steady as she goes. we've added onto our advances. we didn't really take over, but you know what i mean. the way you eye kurpd the network at 1:00. we're up about eight on the s&p and the nasdaq is up about 20. >> very interesting and volatile week. this week starting off on a much calmer note.
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steve liesman was right. there's really a lot less economic data to talk about. >> fun being right next to you. >> nice having you. >> that does it for "power lunch." >> "street signs" begins right now. stocks stop their slide, but the ebola outbreak in west africa continues to heat up. hello, everything. the latest on the outbreak ahead and whether it may be an economic threat right here in america. plus what the president said that likely has executives all fired up. can you guess what the single best-performing s&p 500 stock is over the past five years? a name guaranteed to shock and amazing or at least stun our viewers. >> let's look at they markets here, a big of green here, but it has been a wishy-washy day so fa

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