tv Power Lunch CNBC August 28, 2014 1:00pm-2:01pm EDT
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>> positive economic data, this stock is in doc's play book. it's the only thing going against it. the stock is waiting to move higher and this news today could move it. >> off slightly downed day on the street. dow jones industrial average down two, have a great day, we start now. >> power lunch and the second half of the trading news -- >> stocks getting back the recent gains. dow down about 31 points. it was much worse earlier, the nasdaq falling as well now down just a fraction of a percent and the s&p and russell both lower as well. we should say that the smarkt coming back. now usually there are many reason why is stocks fall on any given day. but today, there is one very important reason, reports of new and intense fighting between russia and ukraine. the washington post is reporting russian forces have just captured a key town on the border. the big russian etf down today, it's down more than 8% in just two months.
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that is not a very pretty chart. and the bayer case, several came out of hibernation today. today we found another one. she's going to make her case on why she is so confident stocks will go lower. but she is bullish on one sector. all of that is straight ahead. tyler continues on vacation. simon is my partner again, hi. >> as you say, there's a lot for the markets to react to. we have an upwards revision of gdp. a drop in initial claims this morning. we have the bases covered with international correspondent. reporting also on the new opportunities, let's kick off with you. >> here's what's going on with the marketplace. this last pullback was just 4% from the s&p. investors fought at the dow bounced right off of its long-term trend line. you see over the last two years, every single time the dow has
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touched that green line, the long-term trend, the stocks have gone up afterwards. and this last time, august 7th, no exception, but some stocks have done marketly better than others. the dow is up 4%. still, a good performance, but check out some of these names here. these are large cap companies in the russell 1,000 and they have all outperformed since august 7th. trinity industries is up 16%. this is a company that produces rail cars. so a transportation type may be even a leading indicator for the industry. also another big one to look at. check this one, it's burger king, bkw up 21%. of course we know the headlines here, they're going to buy tim horten, do a tax inversion. and here, this company specializes in liver drugs, it's up 33% just since august 7th. and you use that drop in the
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markets as a catalyst. you made out pretty well, not just buying etps, but these stocks. back over to you. >> dom, thank you. we're down 32 points on the dow. the concerns over the ukraine basically overshadowing stronger than expecting economic data. bears making their case yesterday. david thaison on the show called for 30-60% stock market crash right here on "power lunch." another big bear in five minute's time. he's chief executive officer at rnc, craig is also here, portfolio manager for the morning star, five star rated horges. welcome to you boept, thank you for joining us. >> let me kick off with you dan, it's inevitable if you're trading at these levels s&p 2,000, but you're going to review where you're going. what the bigger picture is.
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tice got a lot of attention. his argument was trees don't grow in the sky. q serks only a short term fix. why is he wrong? >> trees don't grow into the sky, they grow in a strong foundation. we're in a position where we're probably going to see 17819 or 120 on earnings this year. likely 130 next year. and training got roughly 16.7 pe trails and a 144 forward. we're not on that shaky a ground. the reality is that certainly we have to overcome the unknown with the fed right now, and when the fed does start to raise rates whether it's first or third quarter of next year, we're going to have a 5 to 7% pullback before people realize a 2% fed funds rate, you can go forward. i'm not going to disagree that we have downside here and people probably should average into it, i thinkout start to look at the
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way we look, looking at the next 12 to 18 months. there's not a major interruption in earnings and evaluations are fair. >> gentlemen, stay with me. i have to bring an interruption, we've the had result of the auction. rick joins us from chicago with that. >> thanks simon. the yield of the 29 billion of seven years found a new home. 2.045. that was the offer side of the one issue market. so very average there. 2.57 a bid to cover almost spot on with ten auction average. 48.8 on indistricts, better than a five. a bit below dealers took down a bit under 31% of this auction. this is a c fraux top to bottom. even though it's a longer maturity, simon, we've had a lot of buying going on today which took concession away. they are enamered with the long end, basically the week after next, when we get the threes,
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tens, and 30s, maybe investors will be a more aggressive presence at the auction. back to you. >> okay rick, thank you very much. let's return to our equity conversation with craig. craig, there are so many people who are worried where the market is and whether it's fundamental. can you get a new super cycle. we could gain further. >> the way we see at hogs, there's opportunities every we. the news cycle is negative, and there's a lot of anxiety and a lot of pessimism and you turn on the news and you get the press, the untold story are that u.s. corporations have a lot of cab, they're not hiring, so their margins are going up tremendously. you're able to buy stocks at low prices. especially compared to the growth rate. we're buying stocks at eight, 12, ten times earnings that are growing faster than that. that's a healthy risk reward in
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our eyes. so you know, we're kind of blocking out all the negative noise, and you know the economy's going to recover. that'll be a tail wind to us. we use the downdraft as opportunities to buy great stocks that go on sale. >> what are you buying at the moment? >> you know, we like energy, our favorite area is the enp area, two stocks, aflon and math dor. both companies are run, great assets that have a lot of potential. to go from vertical drilling to horizontal drilling. they're in great areas in the basin. that's an area we like. we have the papers, and we love industries have very high barriers of entry. and if we get that, then there's limited competition and there's a big upside in these names. >> dom, what are you stocking up on for september? >> well, i think this is just
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mentioned that, we like the energy space also, i would add petroleum on the same theme. right now we think the energy prices range down, between 90 and 120. you have to focus on new production. and so whiting is just a very, very out in the forefront with regards to new recovery techniques. they are going to see production that's up about 17.5% this year. proven reserves are up 23%. we also look at the technology area. michael chip technology, obviously going to be a consistent leader in the technology and rapidly moving into 16 and 13. and they pay at 3.5% dividend while you wait. i think especially in this market, having that tail wind is going to be important. >> for sure. it's good to meet you both, thank you for your time. thank you. we now down 33 on the dow. let's get a market flash with dom chu. >> all right, so simon, down for the markets, but check out t-mobile, the stock is smieking on a bloomberg report that the parent company of t smoebl willing to negotiate a sale of
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the company at $35 a share or more. that's according to a person with knowledge of the matter. it is a majority shareholder of t-mobile. remember the t-mobile rejected the 33 per share offer. and the merger wants to go as a stan alone company. t-mobile trading off about by 2% simon on the trade, back to you. >> looks like the germans to want sell. let's talk about the markets in general, what's cooking? >> pressure from the ukraine hurt europe early on. we've come off the lows as europe is basically closed here. let's look, flight to safety stuff is doing well today. gold tooks are up a little bit. ten-year-old yields are on the upside a little bit. oil was up, it's not anymore, ten year, dollar index also. they've been sideways for the last few months. these are not breaking out into any new realms. it's the retailers disappointing me. abercrombie was disappointing
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wi with. guess 50% drop in earnings. tilly's guidance below consensus. there's three important trends. number one, we're seeing an elevate prod moelgs environment, nas put, pressure on margins. number two, a love the nimble competitors out there. the kids are shopping at zarah, forever 21, and other places like that. they all turn over the fashion quickly, and the prices are low. those are the two characteristics, and this is the most important, talk to the kids today, they're more interested in the technology than in the clothes they're wearing. then it's more important to have the right cell phone than to have the right bare of jeans. that's the most important trend from when i was 20 years ago. >> iphone 6 next tuesday. >> they will. >> bob, over to you. now to the crisis in ukraine, the country's president says russian troops have crossed the border accusing russia of a direct invasion. chief international correspondent has the latest on what's tense and developing
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situation, michelle. >> yeah, in just the last hour, leader of germany angela merkel says there will be new sanctions against russia on saturday. she made that announcement at a press conference in germany today after meeting with leaders from the baltic nations. the reason for the consideration, the evidence increasing evidence of actual russian military troops within the sovereign territory of ukraine. that new evidence today, nato releasing what they say are satellite images which they say show russian combat forces engaged in military operations inside ukraine. a general at nato says that there are 1,000 russian military troops operating in ukraine. and if you'd like to see the photos yourself, they're at the nato website. you can take a look. this comes on top of earlier in the week, you recall, ukrainians capturing troopers ten miles from the russian border. once again, inside the sovereign territory of ukraine, and they were brought out in front of the journalists so they could be
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seen also today on russian today. the mothers of those paratroopers begging for their return. so this is what you're seeing here. these are various mothers asking that their children be sent back to russia. also suggesting further evidence of russian involvement, alexander, he's the self-proclaimed prime minister, the self-proclaimed people's republic which is in the eastern part of ukraine. he gave this interview to russian state television. he says what's the big deal. we've had three to 400 russians fighting with us since april. it doesn't say their military troops. he calls them proths, etc. but once again, more and more evidence of involvement by russian which is like what ultimately matters to the markets, what kind of trade disruption occurs between russia and the rest of the world. if we see more sanctions over the weekend, we're going to see more economic impact. >> absolutely.
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thank you michelle very much, appreciate it. the fbi is investigating a massive cyber attack on jpmorgan and other four large financial institutions. vast amounts of data were stolen. amen javrs is in washington, and we were talking about russia and questions about whether or not this originated from russia. >> yeah, that's right. there are media reports to that affect, but we don't know a whole lot about this including where this attack oe rake natoed at. department of homeland security. none are saying what the source of this attack is. jpmorgan confirms it occurred. here's the bullet points they gave us. they're not seeing any unusual fraud activity at this time. also say they're working closely with law enforcement to determine the scope of exactly what happened here. and what was taken. and they're taking steps to safeguard sensitive or confidential information at the
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bank. also say that customers will not be held liable for fraud because they have a zero liability protection program. if you're a customer of jpmorgan, you might be able to breathe a little bit more easily here today. big question here is what was exactly taken and who was it who did it? we're waiting on answers to both of those questions. >> thank you very much. to dominic chu now. >> radio shack is soring on rumors the retailer could be in line for a possible cash infusion. earlier this week, shareholders standard general could give radio shack a package. standard general with 10% stake in vad owe shake recently gave american apparel a lifeline as well. radio shack, you can see they are up 35%. this is still a very small capped company. it is up 90% this month, back over to you. >> thank you, dom. back to the markets, gina martin adams has been a
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strategist with a year end s&p target for 1850. which warnings signs should investors be paying attention to? gina's back on power lunch, good to see you again, welcome back. >> thanks for having me. >> one of the latest notes that you put out pointed to stocks and the flattening yield curve. and that that's something that verss should really be taking a look at. why? what does tell you? >> you know, first let me just clarify, i consider myself to be mutual towards stocks, i know in the context of very, very bullish outlooks we look like we're bearish, we're not. we're thinking look, we probably enter an environment of policy uncertainty over the next six to 12 months. and the flattening yield curve supports that view. typically as the fed gets geared up and move the short rate higher anyway, the long rate has actually moved lower. and we've seen the yield curve flatten so far this year.
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similar to the way it has done over the last 30d years at this stage in the cycle. that doesn't necessarily mean it's all over for the equity market, but it does mean evaluations stop expanding. in seven of the last instances in which the yield curve is flattened. pe's have fallen. so we're expecting pe's to come in label the. and the market to start to transition towards more of an earnings driven market opposed to an evaluation. >> we're expecting something more mixed? >> as opposed to this continuous bull trend that we've been in. >> do you maintain for the s&p? >> it's a fair value estimate. the very most important thing is what the fed does. our assumptions are that economic growth will continue to improve, inflation numbers will mark higher and probably forces the fed hand by the end of the
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year. maybe 2015 to expect higher interest rates going forward. that simple fact should create a bit of volatility and turmoil for stocks. we think it's probably a long-term buying opportunity that's created. you know but in general, if the fed doesn't go forward with guiding investors to move higher. i think you can strongly make the case that stocks continue to move forward. we'll ve have to see where it guides us. >> stay with us, we're going to talk after a quick break because there are sectors in places gina does like. 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.
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welcome back to power lunch, i'm in los angeles, sources telling me netflix is making a deal with sony pictures tv for the rights to the hit nbc show the blacklist. and that netflix will play in the blark of $2 million an episode which would be one of the highest fees paid for a show. is serialized story line and following on nbc make it a good fit for binge viewing. they're trading up about half a percent. >> wells fargo strategist gina marltens adams is back with us. there are sectors you like particularly health care, why? >> we like health care. we've liked it for more than three years now. and the single largest history in earnings. this is a sector that just continues to beat expectations, continues to print very rapid earnings growth and we think it's going to continue to produce incredible earnings
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growth over the next 12 to 18 months. despite the fact that evaluations are creeping higher with health care with the rest of the s&p 500. we continue to recommend health care stocks as one of our sectors along with tech and materials within the s&p 500. >> you must have esp, i was going to ask you about that. some of them do look stretched, but i guess it depends on your time horizon as well. >> i think in a lot of ways you have to growth adjust evaluations right now and look at them in the context of an index that's higher end. and acceptabilities like the biotech segment within the s&p 500 health care sector have gotten beaten unquite frequently over the last year or so. the reality is that when you growth adjust these evaluations on the biotech names you're looking at incredibly cheap opportunities within the index. so i think you can find that trend in a lot of health care and tech and specifically within the s&p, but within health care,
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we've really targeted that evaluation measure. >> thank you so much. good to see you again. >> good to see you, thank you. simon, down to you. >> september 9th, mark it in your calendar, that's when apple will hold its special event. invitations going out. we believe it'll be iphone 6. now the iwatch too. smith kline is beginning human testing of its ebola vaccine. it's one of several under development, the deadly virus has claimed more than 1500 lives now in west africa. but that number could end up being much worse. much worse. former reporter meg terl will have more on that developing story a little bit later on in the show. simon, lighter note, check this video out. a hurricane off the pacific coast creating monster waves in california. dangerous season certainly, but a dream for surfers. plus crime and punishment,
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andrea days on the case. >> it was a $25 million psychic scheme brought down by the feds. one of the fargts, a new york city times best selling author who lost millions. than story coming up right here on "power lunch." ♪ do you know what this means? the greater the curvature, the bigger the difference. [sci-fi tractor beam sound] ...sucked me right in... it's beautiful. gotta admit one thing... ...can't beat the view. ♪ introducing the world's first curved ultra high definition television from samsung.
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and daily live webinars. and trade with paper money to test-drive the market. all on thinkorswim from td ameritrade. take a look at this the, this is video from a drone in southern california as tropical storm marie, which is not a threat to land, stirs up the surf. as they'd say out there, they are shredding the nar, but it's
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no joke. surf that strong is dangerous and deadly. the strong waves caused damage up and down the california coast. and forecasters say the ocean will remain rough for a few more days. now the eastern sea board experiencing something very similar. this video is from ocean city, maryland, where tropical storm cristobal is whipping up the surf on the atlantic coast. there are strong tide alerts throughout the area, simon. >> sue, it's a mystical readings of the unknown. it's a story that cnbc would not normally profile, but the scam we're about to tell you about is so big that the feds had so get involved. andrea day has the story. >> reporter: we're talking about a $25 million scam here. where the network of so-called fortune tellers all over the country. one of the victims, a new york times best selling author who lost millions. a family of psychics obsessed with living large. just check out these videos they posted on youtube.
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lavish parties, water front homes, ferraris, harley's, bentley, and boats. store fronts cross country to lure in clients. a fortune teller family, but the fortune was illegal. >> the bottom line is a fraud's a fraud. >> reporter: charlie stack was the lead detective in what is now known as operation crystal ball. a federal investigation into a scheme sophisticated, it left the investigators stunned. >> when i read it, i remember leaning back in my chair and saying oh my god. >> reporter: blown away because this network was raking in millions. >> when i subpoenaed the bank records, that's when i realized wow, there's something big here. there's a lot of money coming in from various sources. >> reporter: those were unsuspecting victims, all giving their money to these people. all part of the same family. and at the head, was this woman, rose marks. also known as joyce michaels. >> she had no, no remorse for
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taking and what she did to these victims. >> reporter: victims stack says are intelligent and accomplished. but all share a common thread. >> they were vulnerable at the time of the taking. >> reporter: like new york times best selling author, jude devreo who was one of the biggest victims. >> jude estimates it at about 17 million. >> reporter: he says she was troubled by the loss of her young son and crumbling marriage and was lured in a promise that cleansing her money would help her get her life back on track. >> when the family talks about clensing the money, what does that mean? >> what is the root of all evil? money. so in order to remove the curse, we have to cleanse the money. >> reporter: paul hoougs knows that story all too well. >> well, you know, 500 here, 500 there, but it worked up to be thousands, and then tens of thousands. >> reporter: thousands he was told needed in order to rid him
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of the curse he was carrying. >> they said it was going to help me in my future life. >> reporter: but besides the money, they needed to quote unquote cleanse. they also asked him for gift cards, lots of them to high end stores. >> niemann marcus, banana republic, fancy stores like that. >> reporter: hoougs says they kept promising to give the money back. if they symptomed the work now, it would have been all been for nothing. >> i was isolated, and i was told not to tell anybody. >> reporter: exactly what happened to this victim. who was too ashamed of how much she lost in a scheme to show her face. >> i think it was over $500,000 at least that i could account for and probably more i didn't keep records of. >> reporter: half a million dollars handed over to a woman she thought was her friend. and that's not all. just check out this credit card statement. close to $32,000 all racked up our victim says by rose marks. >> some of the things that they were buying, like a $2,000 suit,
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and i was skimping and hardly had anything. it is rather upset pg. she said well, at one point in time, i get all my money back. >> reporter: but she never did. during the course of the four year investigation. stack helmed some of the victims finally turn the tables. one victim went undercover to help investigators put this network of thieves behind bars. nine members of the marks family, including rose, were convicted in operation crystal ball. five wound up behind bars. >> it was a high rolling lifestyle. and finally came to an end. >> reporter: rose marks is currently serving ten years. the family assets have been seize the including loads of high end jewelry. all of it going to help pay back millions in restitution, back to you. >> wow. andrea day reporting. let's get a check on gold, slightly higher, gold, 590, up almost $7 on the session. let's get back to the bull markets.
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that's where the actions are. not least in the wait of the auction. >> the auctions this week were average. we had a total of 93 billion in supply, nothing stood out as very super aggressive in demand or super weak. everything was about to see, maybe the time of the year, seasonality and it's also of course all the rallies pushing rates down. maybe the concessions are needed. the old days where you'd see a sell off you could buy into. now if you move down to the extreme end of the curve, look at the day 30, we're not only under 310, but if you look to a month today chart, this has been about lower yields. if you open up the charts, you can clearly see that's the last time we had any test of 3%, but also acknowledged it's the type the pattern that looked consistent. many say they're a bit ners to step in front of it. simon, sue, back to you. >> thank you very much, i'll take it. well do you think you can increase your intelligence? some powerful new research is
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there's no reason we can't manufacture in the united states. here at timbuk2, we make more than 70,000 custom bags a year, right here in san francisco. we knew we needed to grow internationally, we also knew that it was much more complicated to deal with. i can't imagine having executed what we've executed without having citi side by side with us. their global expertise was critical to our international expansion into asia, into europe and into canada. so today, a customer can walk into our store in singapore, will design a custom bag and that customer will have that american made bag within a few days in singapore. citi has helped us expand our manufacturing facility; the company has doubled in size since 2007. if it can be done here in san francisco, it can be done anywhere in america.
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welcome back to power lunch, tough day for the iron or miners, this a spot iron or price hit a two year low. you look at names like cliff natural resources, ri oh, tinto, all the major global miners all moving lower. >> you can see anywhere from two and a half to 6%. simon, to the downside, back to you. >> thank you very much, dom. i guess you could characterize the session overall one in which we've cut our losses. he joins me here, what would you say? >> more than 100 points in the early morning. and i think the key point here is europe closed, and when europe closed, and we got close to the european close, the stock market improved. this is an indication that a lot of the selling pressure we had earlier today came from europe.
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and indeed, concerns in the ukraine, germany was now more than 1% at one point, and now that that's all gone away, the europe kbrans have gone, our market stabilized. still a little bit of a risk on day here. stocks and riskier assets certainly under some pressure. gold's on the upside, crude was on the upside briefly ten year yields, also moving down again. there's your tenure note up and dollar is also stronger. gold stocks were up today, but i've seen very little real action in gold stocks far while now. this is not indicative of a typical day. they've been sideways. the key story were the retail stocks where we had common tear and really disappointing sales numbers from william sonoma, the key point here, very promotional environment, that's really starting to hurt margins overall. we also see issues with many of these older names, the
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abercrombie and fitch is out there losing grounds to the lighter, more nimble companies, the forever 21's out there. cheaper clothing, and they love those cell phones. they want cell phones, they don't want jeans. that's the simplest way. and really, it's apple, it's not alababercrombie that's matterin. >> thank you very much. in the yahoo finance question of the day, new study saying 71% of americans think the recession exerted a permanent drag on the economy. what's your take? this is interesting. >> 5%, i think we're out of the woods, 42% say we're slowly making progress. 53% suit. so things are still looking grim. for an economy that relies so stronger on the consumer. that's an important statistic. >> that i think might account for the fact that the retail investor hasn't been that confident in getting into the market, simon. >> absolutely, without question. >> all right. 79% of americans are generally
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very optimistic about their inate ability to learn, but only 46% believe that they can actually change their intelligence. what do you think? go to cnbc.com/vote and weigh in. there's new research out by stanford university that suggests that intelligence can be learned. and society is getting it all wrong. we are joined by the founder and executive director of the khan academy which is a nonprofit online education organization that provides free classes on virtually any subject you can think of. it's nice to have you here. >> great to be here. >> you say that we can basically start to change our mindset about learning by not telling, this is one example, not telling our children that they are quote unquote smart. can you explain that? >> yeah. there's actually been research for the last several decades, what's neat is there's very few times where you have research coming out. the work that was led by kyle as you mentioned from stanford,
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duckworth at university of pennsylvania and others where if you praise someone's perceived innate ability, that people naturally want to do things where they continue to get that praise. they're less likely to push themselves in areas where they might struggle or fail. on the other hand, if you praise their process, hey, i like the way that you did that. then they're more likely to struggle. the more you struggle and fail, the more likely your connections are going to form. >> it comes down to two types of mindsets. they have a growth mindset. give me an example of how as a parent i can have a growth mindset in praise my child, but praise them in a way that encourages them to really work harder to struggle a little bit with either math or science or whatever it is?
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>> yeah. i mean what i've been doing with my son, he's learning to read, and when he, inevitably struggles with a word, one, i do let him struggle. then i praise him on the struggle. i really like the way you struggled with that word, when you struggle with a word, that's when your brain is going to grow. and its been fascinating to see him, for know keep giving him this praise because a few months later, i see him saying hey dad, i want to try a harder book because i want to struggle more so that my brain can grow more. its been a night and day difference even in my own family and the research backs up the same idea. >> you have basically some five ways that we've been running on the side of the screen. to change how we think about learning. i want to skip down to number five. i mean they're all very interesting, but i wanted to start with number five because it's, it says basically it is not your teacher's job to teach. it is your responsibility to learn. and you know, there's been so much controversy this year with
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the common core being implemented in states and parents kind of an an uproar in some states about it. that's kind of a controversy statement for the educational system. >> yeah. well it's, i think anyone who, you know, if we introspect on our own educations, this is students that take ownership over their learning that do better and succeeding. and this isn't in any way to down play the role of the teacher, what it really is a putting the teacher up the value chain, where it isn't just to desimilar nato information, but to really help students change their mindset, help them take ownership over the learning. i've talked to master teachers all over the countries, and that seems to be the common denominator. the teachers that that coach and mentor over their own learning. >> i know off big ad campaign coming up. let's run that then we'll talk about it.
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that's just a piece, what are your hopes about this? >> well, you know, the mission is to provide a world class education for anywhere for free. we're reaching students on a morntly basis. but we are recognizing, there's far more people that could learn but their mindset may not be allowing them to believe that they can learn. the whole point of this, and this is psa's piece is for us to hopefully change people's mindsets. recognize that look, if you embrace struggle and failure, you can learn. hopefully that drives people using things like the internet generally because the internet really is a, if off growth mindset, it's really your dream. >> number four was my favorite,
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learning is also about learning not to quit which is one of the most valuable lessons in life. sal, thank you very much. >> thank you. all right, let's lock in the viewer vote. we asked, do you think you can increase your negligence? well 66% of you said yes. only 25% of you said no. simon, down to you. sue, the ebola death toll topping now 1500. ahead on the show, where why it might get worse, much, much worse, startling new estimates. plus the city featured in today's power house has host of the super bowl twice. can you name that city? l and the freedom of the open road? a card that gave you that "i'm 16 and just got my first car" feeling. presenting the buypower card from capital one.
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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. welcome back, it's power house time. before the break, we gave you
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some hints as to what city we're in this week. the stiphosted the super bowl twice. it is the birthplace of spike lee and ups among others call it home. it's atlanta. at a solo baden is the realtor with birk shire hathaway, it's nice to have you here. >> thank you, sue. nice to be here. >> let's take a look at the stats. median sales price of a home about $209,000. inventory, over 38,000 properties for an average of 71 cays. we're focussing on the atlanta suburb of alpharetta. it is list at 409,000, three bedrooms, two baths, tell me about the house. it's very pretty. >> yeah. well yeah, beacon hill is a sought after home. we don't have a lot of ranches here in atlanta.
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and most folks, you know, although we live on hills, they want, they want a ranch. so this house is actually about just over 2500 square feet. you know, it's got even tones, hardwood floors, open floor plan. great house. >> yeah, it's a very open floor plan and beautiful pool and patio area and nice kitchen as well. $409,000. all right. let's move on. 655, america's cut cove list at $550,000. taxes $5,000. seven bedrooms, this is big, five baths and over 4,000 square feet of living space. tell me more that's a pretty patio. >> yeah, i imagine when most people think of georgia and atlanta. this is the house they think of. i mean its got a front, front porch that, you know, with rocking chairs. again an open floor plan, two story foyer, excuse me, two story family room. this. house overlooks, it is next to the lake there and also has brand new kitchen, brand new
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granite countertops. it's just a great entertainment house. >> yeah, it is beautiful. i love all the molding and the panelling that you saw in the entry way. it's obviously extremely well finished. and let's go to the power house of the week. it's 2350 black heath trace. list price, just shy-1.3 million. six bedrooms, 6,500 square feet of living space. this looks like a mansion from this shot. >> yeah, it's the power house far reason. you have to be in a power position to own this house. it overlooks a lake. lake winward and the golf course. just a beautiful house. once again, very open floor plan. lots of details it's one of the nicest houses in the lake area right now. >> wow, it is just beautiful. thank you so much, appreciate it, come back and spend time with us again soon. >> love to, thank you. >> all right. we just took a look at beautiful
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houses including the power house of the week. this one may just take the cake. jenny craig's glamorous mansion in gorgeous del mar, california. priced at $39.5 million. 8,000 square feet. it features five bedrooms, seven bathrooms, media room, two kitchens, there's also, and look at the view. there's also separate staff and guest quarters and it looks like that has a beautiful patio. big size, simon, and an ocean view. down to you. >> well of course you'd have to have a separate house. >> of course. >> ahead on the show, race to find a cure for ebola. human testing far vaccine begins next week. the company that codeveloped it, next. his doubleheader day at the park starts with back pain... and a choice. take 4 advil in a day or just 2 aleve for all day relief. peanuts! peanuts! crowd cheers!
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startling new numbers from the world's health organization on the large's ebola outbreak in history. just over 3,000 infected. and nearly 1600 deaths in west africa. mick is here now with the latest on the efforts to stop the spread of the disease. >> that's right, the who said that the outbreak continues to accelerate with 40% of the cases
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having occurred in just the last three weeks. now the organization taeld outlined an -- today outlined a map the infected countries. the plan assumes that overall cases may actually be two to four fold higher than what's currently reported and says the total number of infected could top 20,000 over the course of this outbreak. and remember, we're talking about a disease when a 52% fatality rate currently. the who put a budget of $49 million on the plan. and separately, a potential vaccine today. testing on people is scheduled to start next week on an ebola vaccine. results are expected by the end of this year. and with the grant of the welcome trust and the others in the uk, it'll begin manufacturing an additional 10,000 doses so if the trials are successful, stocks could be
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made available immediately. >> what we're looking for is for any adverse side effects as well as is it producing the immune response that we need to help control and prevent the ebola disease? that should happen at the end of 2014, and then it will be up to the world health organization what to do after that. will we go into phase two or make the decision to actually use the vaccine in high risk populations, particularly health care workers? >> groups in the uk also plan to test the vaccine, the nih has plans to test a vaccine, that from genetics, you guys. >> you know, meg, people will wonder why the others going through this testing period at such length instead of getting the vaccine out there, as good as it is. >> that's true, but what they know is it has worked in animals, but they need to test it on humans for safety. and the difference between a vaccine and a drug, a drug you might administer, give to people who are infected and don't have
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options, with a vaccine, it's preventative. you'd be giving it to healthy people, and they want to make sure to not to do harm. >> got. . and where is it being tested? >> they are starting testing here in the united states next week. in the u.k., they'll be testing overseas including in west africa. though not the four countries, others in west africa they'll be doing testing. >> thank you, for the latest on the e bow lea outbreak. let's check on the markets, three winners in today's market. and indeed, what's coming up on street signs straight after this show. >> yeah, literally after. the bank hack attack. we're speaking with the president of the american bankers association. also the ceo under huge fire for abusing a pup. it is controversy, we nonetheless ask where's the line and what should bad deeds in your personal life not come into your professional life. hot debate.
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this is testament to the resilience of this market, by the dipping crowd to come in. we had earlier losses. triple digits on the dow over concerns with the ukraine. we've been able to erase those losses. s&p 500 climbing back towards 2,000. >> it's interesting, simon, even though the equity side managed to pair its losses. we still see yields on the ten year note moving to the downside which is very interesting. i think it does reflect some of the fear that's in the market as it pertains to ukraine and russia. also we're going into very thin trading session, tomorrow's expected to be one of the lightest volume days of the week, and it's a three day holiday. i think there are some big money players out there who are seeking shelter in the bond market. >> could it get any lighter? let's have a look at three winners now. dollar general came through with results today and says it's still intent on getting its hands on family dollar despite
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the fact they're going with another partner over antitrust issues. dollar general say us it would ditch 700 stores to get that. presumably sue, higher bids coming through at least from one of the parties. >> that does it for power lunch, see your tornl. >> street signs agabegins now. we begin the show with a simple question. up or down. which way will the economy and the stock market wind out the year and could one vladimir putin hose down all of our high? happy national cherry turnover day. developing details with the cyber attacks against banks. what the government might do to mexico that could make soda companies sad, but millionaires even richer, and we'll meet a doctor whose prices are so low that even patients with medicare or obamacare are going to see them because it is still cheaper. >> it's an amazing story, can't wait. it's also in national bow tie day by the
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