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tv   Street Signs  CNBC  August 4, 2014 2:00pm-3:01pm EDT

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calmer note. 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
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it has been a wishy-washy day so far, but at least as of last week's declines with a gain of eight points, i'll take it. however. however, here's the little catch. if the dow here ends the day down today, it will be the fifth straight day of losses. that really hasn't hasn't, and the s&p 500 is also trying to avoid -- what is the worst performing s&p sector? remember how they were really going bang busters? now utilities, by the way, down over 8% from their record highs on june 30th. back over to you. >> interesting stuff. ebola fears are spreading worldwide following the worth-known outbreak in history. at least two americans both working overseas have been infected. one is currently making her way back to the u.s. for medical help, where the other arrived over the weekend, already
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undergoing treatment. sara is at emory hospital with the latest. >> reporter: the hospital is preparing for the arrival of the second patient in less than 24 hours. the family of nancy say they are very anxious to have her back here in the country and receiving treatment. the doctor's family has revealed he was given a dose of experimental medicine before he left africa. source say he has since received another one here in atlanta. his wife says she has been able to visit him and he reportedly is in good spirit. meanwhile, in africa, officials are scrambling to contain this outbreak. it is now in four countries, including in nigeria where they have confirmed a second day, that of a doctor who was treating a patient who died in early july of ebola. there are now more than 1400 cases and more than 800 deaths
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at a fatality rate of nearly 60%. here in the u.s., four people have shown symptoms that officials thought were worthy of testing for ebola. three of those people have come back negative. they are still waiting for the results of that fourth test to come back. back to you. >> thank you very much for the update. these are some of the companies trying to create a cure, vaccine or even a treatment. biocryst, telmira, and they've funds from the u.s. defense department. why? because it could oohr ebola could be used as a biological weapon. and let's be honest, it's been very rare in first-world countries. well, so much for money managers to focus on lately. david harris, ten-year average return of nearly 10%. always a favorite of ours.
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david, thank you very much for coming on. a lot to talk about, but quickly, israel, gaza, ukraine, argentina's default, now ebola, what of those things are you watching most closely? or maybe it's something else. >> i hate to see it these type of events tend to be kind of white noise. they impact markets, but what they don't impacts generally speak is the long-term ability for corporate world to earn money. so we watch these things, they are important, but we watch them with the idea to take advantage of the severe priors movements, which are not matched by fundamentals, so we can actually exploit some of this what i call white noise to enhance shoat return. >> the basic idea that warren buffett and others have espoused many times, buy when there's fear. >> yes, because this fear, which makes you feel uncomfortable,
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doesn't make you feel good, clearly the world lacks political leadership. we have these foreign policy issues, we have the hot wars going on, but ultimately, when you look at xyz business, it has very little impact in the medium and long-term ability to generate cash flow. the degree we have to worry, that these fears manifest themselves, and we're kind of seeing the opposite. the world is slowly recovering from a macroeconomic perspective. you see it happening in japan, the u.s., even china -- >> are you putting your money where your mouth is? for example, last week did you buy anything? if so, what? >> we're not traders per se, but yes, when we saw stocks drop kind of uniformly, and there are certainly sectors in the last, say month or so, two months that have been very weak, european financials are a good example of this, a lot of these consumer
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discretionary stocks that have e.m. exposure have not done well. to us they've been good places to deploy money, companies like dimar and germany and richment, credit suisse and bnp, not a lot of these things are behind it. for us it's a good opportunity to increase exposure. >> are you buying invite companies that have let rally recent days citing the problems in the ukraine or russia as having a material impact on their money, on their company? >> well, not really, because, you know, none of these businesses really have got broad value appeal to us. you're always good to find a company that might for the certain macroeconomic condition or war condition get hit, but you have to really look at the company over the medium and long term. so, no, we haven't been able to find anything specific about that.
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>> of your top ten holdings there were three the last time you filed anything, david that are u.s.-based -- oracle, jpmorgan chase, and aig. are those still the three best names you like or have they been replaced by something else? >> this is held more in our domestic portfolios, but yes, each one of those stocks harris is a very large shareholder. they're selling low in price, high in quality, good businesses with good cash flow annuitieenu. you'll see these names in our domestic portfolios. >> david, good to talk with you. thank you for joining us once again. >> thank you. why is the street's top -- we've got the answer, next. >> and we've got dare i say -- >> day you say? >> i dare. the ultimate mystery chart for you. this stock has been the biggest gainer in the past five years for the s&p 500.
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it is up nearly 8,000%. yes, tweet us your guesses. it's not abbott and not apple. the name is coming up later on. we're back. when the world moves, futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with paper money to test-drive the market. all on thinkorswim from td ameritrade.
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it is official. bertha is the second storm of the season. it's a big reminder that the hurricane season is once again here, just as back-to-school
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shopping kicks back in. how will the weather impact this vital time of year for retailers. joining us matt foss,ably kirk and our own courtney reagan. i want to start with you. a lot of retailers rely on having good weather trends. do you think the weather will cooperate for them? >> it hasn't in six quarters in a row. the epic cold spring, brutal winter last year. q3, that's what you want, you want to end the beach mind-set, get consumers back in the store. you need something to trigger that. >> so, matt, we're just about to kick off earnings season. so weather has to play into your coverage. it was such a focus. how does that play play into what you're looking at. >> we've had six quarters of
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unfavorable weather, which continued into this quarter. so second quarter i think will be pretty choppy as a whole. what we are looking forward to is that 3q, better weather for back to school. it looks like we'll have a milder winter. that could be a huge benefit, so we recommend a balanced approach. i think you want to stick with best in class. for us that's macy's in the department stores. foodlocker and then nike. >> here's my problem, guys. we always say the weather wasn't ideal or -- >> it could be 72 and sunny with no humidity every day. is the problem is it's those subtle things. >> what's the right weather is my point coke likes hot, dry
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weather. if it's not, if it's the coldest, wettest spring, are you selling coke? no, you're not. >> but you're selling sweater. >> the problem is we've hot fall, record brutal snowy winter, all the wrong weather quarter after quarter after quarter. that leads to markdowns, markdowns, it creates chaos within the retail sector. >> to what extent, what degree is it an excuse? to your points, i think there are other factors in play. it's very slow. i think the consumer is on very unstable footing. i think you're seeing some signs of housing, but i also think there are a number of -- they've
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got -- the second cycle of this i think is they're buying furniture. i think there hasn't been a real trend in apparel, not really since colored denim. you have hits and misses in terms of kors and some of the other names out there, but i think weather has been unfavorable. i think a positive is it moving back into more positive territory. it can't hurt them. >> we talk a lot about time, whether it's timing of weather or sales. what about the kids waiting to see what's on trend? does that shift your forecast for earnings and how sales come into or out of the stores? i think we will -- is a later start. i think kids will go back to school. i think they'll look around to see what the trends are.
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for some of the coldest temperatures. i think that could coincide with that second wave. >> who do you think will win from that, bill? >> i like the retailers that have that good online presence like a j. crew. they have a great online presence. they have the stores. they tend to fare better. you saw the standards, so if you have both of those, it's a -- i get very excited about it. >> very quickly, big lots get bought out, totally random, but some people have been chatting about retailers that may be involved in deals. you cover it. >> you have the takeout speculation pretty much across the board. pretty much anybody who has a balance sheet, anybody who is showing stable cash flows, and potentially has a turnaround initiative. i think the access to credit, some of their initiatives plays out nicely here. >> wonderful, matt foss, bill kirk, courtney reagan, thank you for joining us. we're going to stay with
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retail and find out what's going on with michael kors. why take a break? this story is so good, we don't need a commercial. let's get to the stock. herb greenberg joining us now. herb, the numbers look pretty good on the surface, the stock is getting beaten up. it's down big. you have red flagged this company for a number of reasons. what's your take on kors today. >> are you wearing your microphone? >> yes. >> it's like you're talking to an old follow enginefolger's ca >> i'm aware there's a problem with the audio, they say you can hear me. >> just keep on going. >> so the issue here is very simple. that's when you look at this quarter, what -- the conference call was just horrendous.
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management was very defensive. the ceo said you've got to stop looking at the quarter by quarter numbers. if you give quarterly guidance, people will look at the quarterly numbers. well, from the world i come from, every basis point counts. they said and twitter likes are going way up. that's one of the, except that's not margins, not sales growth. a company has told you it will cup back to normal. that's where we are. >> they always go side by side, michael kors and coach, right? >> and they said do not compare us to one company, but we know
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what company they're talking about. they say compare us to the entire leisure market. look, peers are important. coach is the closest peer that people want to use. they're going to use the template of what happened to coach to look at kors. when they're trying to tell the analyst how to look at the company, it's time to be careful. the smartest sales out there do their own work. the story is not quite the same. >> we've got to leave it there, buddy, but we do appreciate it. this is why we like you in the studio, not talking to alexander graham bell's device. >> we'll get it fixed, guys. we've talked more about water than oil the last few weeks, why this really is the
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most vital commodity of all. >> plus what the president has said from coast to coast. we're going to tell you what that is. stick around.
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the mayor of toledo lift ago three-day-old ban. the ban was triggered after an algae bloom in nearby lake erie that raised toxin levels in the water supply. even though that crisis appears to be over, concerns over water supplies is still at the forefront, a headache for many of the water utility companies whose job it is to provide a safety, reliable drinking source. what is the investment thesis? well, let's ask tim winter. tim, how do we play this space? >> right, we like to play the water utility industry through the water industry, through the water utilities, which are safe, you know, low-risk, mid-digit earnings growth type of companies. the major themes going through the industry are we need to, as americans invest a significant amount of capital. hundreds of billions of dollars
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in situations like this highlight the fact that often americans take the price and value of water for granted. we're willing to pay $2 for a bottle of water at the convenience store, but when you're utility delivers water for less than a penny a gallon at the tap, we -- we seem to be frustrated. what we need in this country is to invest in water and wastewater infrastructure. our industry is extremely fragmented. we have over 5,000 separate water systems. 50,000 serve customer bases of under 3,000. about 80 to 85% of the company is served by municipal systems. so what we are looking at is these water utilities, the biggest once, american waterwork, aqua america, california water service, to be able to grow by investing in infrastructure, by consolidating the smaller private systems, and hopefully by helping to privatize or work with the
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municipal systems on solutions to situation like this. >> what i don't understand, then, is four public companies, america waterworks, american states california water service group, aqua america, a bunch of red. all down. we have major water crisis in a big mid western city and nobody seems to care from a market perspective? >> right. well, the things going on in the industry are not new. they've been around for 20 years. it's a slow-moving industry. a lot of it has to do with the politics involved with running a water utilities. these are long-term themes that are going to play out, but if you look at the track records of saying an aqua america who's made over 200 acquisitions over the past 20 years, and has grown significantly in market value, significant shoulder value earnings, and different growth potential american waterworks very similar, they have, you
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know, the balance sheets and financial condition to continue to take advantage of these themes as they play out. it's a slow moving industry, though. let's look at those names that brian just mentioned. a buy on america waterworks, but american states water is a hold. why is that one a hold? >> well, you know over time we also like american states water. it's trading a bit higher valuation, and they're doing something a little bit unique. they're privatizing military bases, and they've had a lot of success doing that earningswise. it's sort of a bit of a higher risk business and less certainty so, you know, we're on the sidelines there for now, but we'll look for opportunities to get back into the stock. >> that one in particular is up about 6.6% year to date. tim winter, thank you for joining us. a sector worth looking at. >> isn't amazing we have the single best oil tech nothing in
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the world, seismic technology. we can go unand drink your milk shake, but 100-year-old water. we need water. that's what i was saying. >> yes. it's very bake. the millennial indicator. we're going to talk about the one thing that peopyoung people not buying that could have a huge impact on the economy. in today's market, a lot can happen in a second.
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>> deutsche bhachk sees strong operating results. the target bump, so about 17% up side. the stock is up marginally today. >> cautiously mentioned at ubs. >> one of the company's executives left last week. ubs says this guy was a deal maker and closer. their rating remains neutral. target higher than the current price, but still not a ringing endorsement by ups bs of tibco. >> this is not a call for doom and gloom. they ville have about a 140 targets. they just see production being flat next year for cvx. >> the under the radar name is diamond resource, based in of in 1/2, been initiated outperform at imperial capital.
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>> this is a timeshare company. the target is $34. about 30% above the current stock price, the ticker drii. this is one of those companies that got crushed during the financial crisis. it's come back in a big way. up 66%. >> do we use the word "timeshare" anymore? i think they call themselves a hospitality and vacation ownership company. >> is that what it's called? >> something like that. >> if you're watching, steven, call in and tell us what it is. >> please do. u.s. steel getting a boost today following an upgrade at deutsche bank to a buy. let es talk numbers. ari wad, and david see burg of cowen and company. the short-term chart, ari, it looks terrible here. longer term, take us out. what do you see for the big x? >> for new long, we're inclined to wait for some consolidation
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to buy. but the clients we got in earlier, we're telling them to stick with it. this stock i put on one of our top buy lists arier, it was pulling back to a rising -- more recently, we see it as meaningful strength that it broke above some very important resistance level at $31. we think there's more up side. we think the stock can get to $40. we would be looking to sell it up there. in the near term, due for a bit of consolidation to fill that gap. we would be looking to buy it on a pullback. >> give us the case for u.s. steel, david. >> i totally agree with ari. in the near term you could see a pullback. the stock had a big pull back. the guidance was strong, it was heavily shorted, so they took it higher. again i think it's at hide levels. and then you get back involved. we upgraded the stock in december, because we think the long-term story is pretty much
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intact. they have a massive program in place. they saved about $465 million to date. you know, the trade decision was obviously in their favor. there's been some consolidation. some of the foreign players have sold some of their assets to some of the domestic guys. pricing is obviously in effect there. and look, macro environment for these names is getting stronger. so i think the economy micks up, and i think the pricing stability here is going to help long term. so again we have a $42 target on the stock. we upgraded it in december namely because of the themes i mentioned. again, i think the spike up after earnings, you probably would see a bit of a pullback here, you buy it on a dip, down 5%, 10%. >> a really good run over the past year, so as you say get involved on a pullback. good to talk with you. be sure to check out the online
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which means more growth for your business, and more jobs. it's not just business as usual. see how new york can help your business grow, at startup.ny.gov we have another full week of second quarter earnings reports, in fact hundreds of them, but one of the biggest is from aig, which among other things will have a new ceo. you'll be talking to aig? >> the results will hit shortly after the close, and this is an important milestone, if you will, for aig, the last quarter with rob benmosche, and then
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hancock -- >> he came in at the height of the financial crisis, and has guided the company back to a level playing field, so it probably is a good time for him to go. peter hancock has been running the property and karkt business, so he'll take over the reins. >> most of the leadership team is in london, so there won't be much commentary to look for, but the insurance space generally hasn't had great results. it's a -- every day that ten-year sits where they do presents another challenge for the executives. >> on the underwriting. >> you guys know this. even during the darkest time of aig. the role in the financial collapse, their key businesses never lost either first or second in any market share that they were involved in at aig. >> they certainly have been gaining share over rivals, in a very competitive space, we
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should add. >> we'll get to that, plus the last hour of trading. the dow is up 45 points. >> you're welcome. >> yes. >> are you taking full credit for that, are you? >> no. >> as he always does. >> especially because we have a mistake to admit to coming up. >> oh, good. >> we'll sit quietly and. >> kelly, how do you prepare crow? grandma used to make ravens like this. >> anything is good with piecrust. >> she hasn't had to do that. >> we have a good detailed recipe for preparing crow over here. >> we're going to eat some humble pie up here. >> very, very filling. thanks, guys. the home ownership rate falling to the lowest levels in nearly 20 years, and we can blame young people for that. if in doubt, blame the youngsters. we're sounding like grandpas.
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>> let's always blame the kids. we're blaming the mill lennial. they're just not buying homes. the average age is now expected to jump from 31 to over 34. why? debt, jobs and life choices. yes, mortgage rates are low, but mortgage closing costs rose 6% over the past year to an average of $2,539 on a $it 00,000 loan. origination fees accounted for the bulk of it. blame new mortgage regulations and the cost of compliance for the -- then there's qualifying for the mortgage when you have student loan debt. loan depot, an independent lender looked at loan applications for 46,000 potential home buyers. when looking just at those with student loan debt and all the other factors like credit score and loan to value on the house being equal, the difference between those approved for a mortgage and those denied was a monthly student loan payment of less than $300.
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they also found the median age of a first-time buyer rose from 34 to 36 years old. now to jobs. employment among 25 to 34-year-olds, which is the prime age for housing. well, it fell to 75.6% in july from 75.8 in june and 76% at the beginning of the year, according to the bureau of labor and statistics. it's usually around 80%. finally whativity talking about, the life choices, mill lennial are getting married later, having kids later and moving around more, and all of those delay home ownership. >> diana, thank you very much. here is the good news. they may not be buying homes, but apparently they are buying cars. they now account for 26% of all auto sales. all you boomers out there, you're still the biggest market share, but the mill lennial are growing faster and for some reason they like small, compact
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cars. >> because they're much more environmentally conscious. and also if they're in cities, they're renting, you no know, the urban mill lennial. >> that's fair. >> those in new york city you cannot buy a big suv. >> if you buy a car with a battery, because of the environmental reasons, just be sure you know where the battery materials come from. some may be nickel in siberia, and by the time it gets here, the car has already burned -- so some of the environmental cars are the least environmental. check to see where the battery ingredients are made. that's what you need to do. >> a good point. >> just pointing it out. president obama telling rich ceos and hedge fund managers to stop complaining. he sarcastically promises that he doesn't want to take away their hampton homes and private jets. does he really have a point here? we're going to debate it. >> here's where we screwed up. there was a chart up 8,000%. it was general growth properties.
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here's what we found out. the problem is general growth has not been in the s&p 500 for five years. if you do a sort, it comes up, but it only entered in 2013. this is the start of a stock that has been in the s&p 500 since 2009, so it's the -- five years effectively in the s&p. it's up, quote, only 880%. there's use chart. not hard to get. you smart people will get it. we'll tell you coming up. e
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financial noise financial noise financial noise financial noise
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i would. switch to comcast business internet and get the fastest wifi included. comcast business. built for business. a tiny handful of steel executives whose pursuit of private power and profit exceeds their sense of public responsibility can show such utter contempt for the interests of 185 million americans. a few gigantic corporations have decided to increase prices in ruthless disregard of their public responsibilities. that was president john f. kennedy, of course, back in 1962, bashing the then c oeismt of u.s. steel and his colleagues for raising prices. at least president kennedy was willing to name names and say exactly what they thought those
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executives were doing wrong. contrasting that with the president's statement to the economists this week. >> oftentimes you'll hear, you know, some hedge fund manager say he's just trying to stir class resentment. no, feel free to keep your house in the hamptons and corporate jet, et cetera. i'm not concerned about how you're living. i am concerned about making sure that we have a system in which the ordinary person who is working hard and is being responsible can get ahead. and are seeing modest improvements in their life prospects, if not for themselves, then certainly for the next generation. >> i think there's a lot to agree with, kate kelly, michelle caruso-cabrera also here with us, but i think the stop complaining is getting a lot of attention, and someone suggested, is it fair to bash
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businesses this much? we haven't heard a lot of -- maybe less complaining. well, okay. at delivers alpha, i interviewed ken griffin. in fact he actually said the problems in illinois and springfield are greater than the ones in the white house, but here's what he had to say broadly about the economy and some of the policies we see right now. >> our country that competes with every single country in the world, and we have a broken school system. we have broken tax policies. we have a series of regulatory decisions that place -- we need to start to make some hard choices about regaining competitiveness. >> you think that was fair and justified? >> listen, i think these are legitimate concerns about our system. you hear a lot of this from those in the financial world, and it's fair. here's a guy that creates -- i don't know the head count at citadel, about 1,000 or so,
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pretty well-pays jobs in chicago, providing benefits and retirement benefits, et cetera, and expecting a longer work tenure, perhaps, than some public workers might have. yet they get their entitlements. i get where he's coming from. i don't know if obama was referring to that. there was some backlash against the last slate of criticisms, and he it people like dan loeb and cooperman striking back, so maybe he's referring to some of those. >> the president is quite clever here, right? he says he's not trying to stir class resentment, then uses phrases that are directly about stirring class resentment. i don't care about them. they can keep their house in the hamptons. they can keep their private jet. what i found extraordinary about the interview, what he goes on to say next, i'm really concerned about the bottom half of the population. we haven't done enough. listen to what he says.
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>> where we have made less progress than i would like is the trend of an increasingly bifurcated economy, where those at the top are getting a a larg share of gdp, increased productivity, corporate profits, and middle class and working class families are stuck. >> so, here's the president talking about working class families being stuck. he has passed three major pieces of legislation, extraordinary. you'd have to go back to the 1940s, right? health care reform, dodd/frank, education funding. and yet, they haven't worked for the people he's trying to help. yet, he doesn't acknowledge that his policies haven't worked! >> hold on, because i've got numbers. >> okay. >> i have numbers to make you go hmm. and this is not about president obama. this is all presidents. because this has been growing
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forever in the united states. here we go. 175,000 pages in the code of federal regulation. 180,000 new federal regulations since 1976. 4 million, the approximate number of words in the u.s. tax code. by the way, the hong kong tax code is 400 pages, not 4 million words -- >> i think we can all agree that the tax code and dodd/frank are labyrinth. eve he says some of the legislation was oversupplicate kplikted. he's also faced more dysfunction on the hill than perhaps in u.s. history. >> i disagree. >> are you kidding? >> three major pieces of legislation -- health care reform, dodd/frank, education. these are major -- those are transformative pieces of legislation! >> he's had to govern by executive order. >> health care law, those are the things businesses are complaining about -- raised their costs. >> the reason they're so long and complicated is because of the dysfunction. >> we have to go. can we continue this tomorrow? >> we can continue this tomorrow. >> because i will cut the president some slack because i don't think that anybody --
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>> i'm trying to cut him some slack. >> you can be albert einstein, you cannot navigate the troubles of congress. >> that's why government should be smaller. >> and on that note, on that note -- >> thank you. >> okay. thank you, ladies. thank you. you can check out ken griffin's full comments at deliveryalpha.com. you heard a snippet there, but you can indeed check it out yourself. a scary situation last night in a new york suburb. a 6-year-old boy with autism drove a battery-powered toy car on to a busy highway. luckily, several good samaritans noticed the situation and helped pull the boy off the road safely. so, it's got a good ending, but this story's just one side of the growing number of people with autism, and we're about to introduce you to a company that is dedicated to hiring them, giving them jobs, and that is coming up in just a couple of minutes time. brian, a good story. >> yeah, and thankfully with a happy ending. >> absolutely. >> scary stuff. all right, so, one last look at the real mystery chart.
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the total stock return since the end of 2009. 890%. many of you smart people have already got it, but those of you who don't know, we'll bring it to you coming up. ant to say, i bundled home and auto with state farm, saved 760 bucks. love this guy. so sorry. okay, does it bother anybody else that the mime is talking? frrreeeeaky! [ male announcer ] savings worth talking about. state farm. starts at 6:30 a.m. - on the (vo) rush hounose.und hereeeaky! but for me, it starts with the opening bell. and the rush i get, lasts way more than an hour. (announcer) at scottrade, we share your passion for trading. that's why we've built powerful technology to alert you to your next opportunity. because at scottrade, our passion is to power yours.
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[ male announcer ] humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal infections and cancers, including lymphoma, have happened, as have blood, liver, and nervous system problems, serious allergic reactions, and new or worsening heart failure. before treatment, get tested for tb. tell your doctor if you've been to areas where certain fungal infections are common, and if you've had tb, hepatitis b, are prone to infections, or have flu-like symptoms or sores. don't start humira if you have an infection. [ woman ] take the next step. talk to your doctor and visit humira.com. this is humira at work. all right, time to reveal the real mystery chart today. the name that is up almost 900% since 2009. it is priceline.com. the best performer in the s&p 500 in the last few years, general growth properties. the cool thing there was it was almost bankrupt and came back. wealth creator, wealth
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destroyer. priceline, for those in the s&p since '09, is your number one name. joining us on the cnbc news line is dan kroneos, priceline analyst for the benchmark company. dan, this has been a giant wealth creator for five years. who'd have thunk it, maybe except for william shatner? will it be as good or a good wealth-creator for the next five? >> i think it's difficult to say that priceline will replicate its success over the next five years, but you know, it's still early going in terms of the market opportunity for them. but you've got a company here that's almost nearly $10 billion in revenue growing 20% top and bottom line. that's impressive and i think investors are rewarding that right now. >> we look at the gains. are you yourself even surprised by how well priceline has done? and i understand some of that may be low float, the $12.95 price target, or price, because they don't have a lot of stock outstanding. what could derail it as well? >> i mean, look, a lot of things could derail it. if the growth starts to slow or if they, you know, large numbers
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in and of itself could derail the stock. i can't say i'm surprised by its performance. as i said, there are very few stocks that have this kind of size and with ebitda margins approaching 40% that have been able to grow this consistently. >> all right. real pleasure to have you. short but brief. we like it, dan. good stuff. dan kurnos benchmark company. thank you. ultratesting is a new york start-up tapping an underutilized workforce, people in the autism spectrum. how is this a competitive advantage? art is with testing. great to have you joining us. 80% of adults on the autism spectrum are unemployed. >> sure. so, that's a misleading statistic, but it's a spectrum. on one end, it can be quite severe and debilitating. on the other end of the spectrum, you wind up with about 80% of folks that are unemployed or underemployed. >> what was your motivation for getting into a company that specifically hires people on the autism spectrum and what do they bring to your company? >> great question. my co-founder, his wife is a
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child psychologist and she spent a lot of time with folks on the spectrum. she came home one day and asked us, why are we spending so much energy on what they're not good at? >> right. >> why don't we focus on what they could be great at? and we had wanted to do a social business for quite a while, and we said, this is it. and we were in a position to leverage some of their talents to be software testers and to do quality assurance for folks who develop mobile sites or websites, and we did a pilot and the results were fantastic. >> and it's just growing and growing and growing. you've got ten testers now. i think you plan to hire another, what, 15 or so by the end of the year? >> 15 more. >> and exponentially grow within the next three years. >> the goal is 250 to 300 testers in the next three years. we've done amazing testing for folks like the webby awards, which is the digital equivalent of the oscars. and we expanded their defect detection by 20%. our testers just perform amazingly and create this high-quality service for us. >> why don't more companies do what you're doing, art? >> it's interesting. we have a unique challenge in employing folks on the spectrum. we have to create a different
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business model. and one of our core values is embracing the differences of the folks we're trying to create jobs for and we have to create an operational process for them and ourselves that helps us provide a for-profit, commercially viable service as a company. >> when you post a job opening, are you flooded with applications? i've heard of that happening with other companies that are doing a similar thing. >> it's unbelievable. within 72 hours, we had 150 responses, a third of which were post secondary educated. >> great stuff and good work. thank you so much for joining us today, art. >> thanks. >> art checkman. all right, so, final check of the markets. why don't we do that? i feel bad about the general properties thing, but still, priceline, many of you got it. we're lucky we found it when we did. here you go. the dow is up -- what a rally! 70 points! what happened? >> yeah, sudden turnaround. look at that. >> dual the "street signs" effect, or more buyers than sellers. one of those is correct. >> you are very profound, which is why you do the job that you do. >> i'll leave it to you to determine which is correct. >> we had quite the route last week, remember, down 2.7% over
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the course of last week for the s&p 500. so, you know, we've got a restoration to come right now to the market. so we're still gaining going into the close. we'll see what happens in the final hour of the trading day. >> it is the most important hour of the trading day. thanks for watching "street signs," everybody. >> "closing bell" and some crow recipes coming up next. and welcome to the "closing bell." i'm kelly evans at the new york stock exchange, where as bill -- >> start over again. >> as brian and mandy just mentioned, we have a bit of a rally on our hands. >> i'm bill griffeth. not exactly a manic monday. that's a good thing, considering we just came off the worst week of the year for most of the major averages on wall street, but we'll take this kind of, i guess the bulls will, i should say. and art cashin pegged this earlier in the session with the dow on the open this morning up about 23 points. it hit a certain level, then

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