tv Power Lunch CNBC September 2, 2014 1:00pm-2:01pm EDT
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growthia. >> i did. >> let's go around the horn quickly and do some final trades. joey? >> josh? >> duncan brands. i think it's delicious. >> tbf. >> you guys have a great rest of day, all of you as well. "power lunch" is next. half time is over, the labor day weekend is over, the summer is all but over. stocks getting off to a mixed start as we kick off a new trading month, a new season, really. but energy and commodities are getting crushed, not just off to a slow start. september, of course, historically one of the worst performing months of the year, so what should you do? should you sell, lighten up or die on the dips? one of the strategies is calling for the s&p 3,000. just hit 2,000. it turned out to be a basically so-so home selling season this
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summer. fall is not usually the hottest time for selling, either. no one wants to move as you get close to thanksgiving and christmas, but we'll tell you how it may be different this time. and a dark cloud over apple. the high-tech service had a dozen celebrities had their private nude photos stolen and published on line. what does this mean for apple ahead of its big event next week? the stock is high today. >> the dow is struggling, so is the s&p 500 after hitting a new record high thursday. once again, we're focusing on commodities, specifically energy here, that is really getting crushed. brant is down. comex gold, that's a two examan half month low, but we're still
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down, closer to 2% or 22 bucks. silver are down almost 1-3/4%. the spdr etf down 1.6%. gas is down also. let's check the market indices, the dow is down 74 points on the trading session. s&p 500, after hitting that record high earlier, is down about 7 points on the trading session. nasdaq is not faring that bad. the dow is at a 13-month high getting a bid today, and it is up just a fraction. and a ten-year note yield 2.4%. as for the small caps, the mid caps, the dow transports, the russell 2000 is not doing too badly. the s&p 400 midcap is down just
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a fraction, and because energy is getting hit so very hard, we are up on the dow transports by just under 1%. so we're going to further explore commodities in just a few moments, but first to meg durrell with news for us. hi, meg. >> enough on ebola. we're getting word that a mission director in liberia has tested positive for the ebola virus. he's currently in isolation still in liberia. the organization called sim usa says he's in good spirits and doing well but has tested positive for ebola. tom freeman just got back from the western countries in south africa saying the ebola virus is spreading rapidly. there is a window to tamp it down, but that window is closing quickly, saying the outbreak is overwhelming and the response must also be overwhelming. tyler, back to you. thank you very much. september historically one of
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the worst performing months for stock investors. i'm no big fan of trying to time the market, but the question naturally is, should you sell in september? don chu taking a closer look. tom? >> the reason why so many people say september is a bad month is historically it has been, since the 1950s. we're going decades back. on average, the s&p 500 loses a half percent. but the bulls, who have been in control arguably since 2009, have made a strong case. if you go to the depth of the financial crisis since then, the s&p 500 for the month of september is actually up an a m average of 2% each year and it's been up four out of the last five. what's interesting here also is you take a look at some of the star performers overall. this is memorial day to labor day. we'll call it the summer vacation season this past year.
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>> this is this year. >> this is this year, between memorial day and labor day. the s&p 500, we look for the top performing stocks. among the names, interestingly enough, the sciences that continue that biotech streak in three months. family dollar, we know the story there. there is a takeout battle going on, people want their stock. but look at under armour. they sign giselle bunchen and the stock is up 41% between memorial day and labor day. the bearish side, we want to present both sides, some of the stocks haven't done well at all. take a look at walgreen's down 33%. maybe some investors don't like the fact they didn't do a tax inversion. also, michael kors, that hasn't been doing well between memorial
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day and labor day. and genworth, the worst performing stock between memorial day and labor day. >> was there a report on that? >> there was an earnings report and there was concern that they weren't long term. you wonder whether or not investors are going to pay attention to this on the divided side or the strong side. >> thank you, dom chu. down to you. >> that was really laid out in terms of what we should do in september? do you buy or do you sell? abigail dolittle and jack, good to see you both. abigail, i know you've been cautious. one bright spot for you has been natural gas, but today it's really falling out of bed. so what do you do at this point? >> well, sue, natural gas has been very volatile like many of the markets, and my bullish call is precarious at best. it starts out with the
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technicals, and waehat's going , you have the term suuspending. they're in there but it could change on a dime. right now as long as i see signs of those buyers, i have this bullish view. really, what it looks like is the potential for a wild card pop-up, similar to what happened early this year, above 6 or $7. for better or worse, this matches the wild card fundamental situation around russia. there were reports that russia may cut off gas to the ukraine. you have european officials worried about natural gas supplies to southeast europe during the winter. russia supplies 30% of the gas here. it sort of fits that you could see this happen. again, it's precarious. investors can look at this through ung, best bought on strength and use tight stock. >> jeff, i'm going to turn to you. you made a note about a conversation i had the other day
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with josh brown, and that is there are portfolios out there that have been underinvested for some time. you're seeing a melt up in stocks because of that. >> that's exactly right. one of the things i've been saying all along is we're watching portfolio managers start to chase this market. we're starting to see it little by little. i think what we'll see over the course of the next couple months is a real run for returns. remember, what they're doing -- and you can't blame portfolio managers, really. they look at the yield and the tenure, they look at the yield in the 30 and it scares them. it keeps them out of the market and it's been one of the biggest problems that this market has faced and one of the reasons it's been one of the most underappreciated and disrespected rallies i've ever seen in my lifetime. so with all of that, it's contributing to a scenario that this could be a september to remember. >> all right, guys. appreciate it very much. back up to dominic chu for a
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market flash. >> sue, oil is continuing its fall in china and europe as well. you can see wti and ice brent down a couple points or so. natural gas having its worst day since july 13, down 3.5%. the energy sector is the worst performer, you can see they're down about 1.7%. danbury resources, s&p energy. >> nice mov cowsteres is the nation's largest pension fund, a $185 billion portfolio last year realized an 8% return and that was the highest of all u.s. pension funds. to tell us where he is putting money now is christopher ailman.
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good to have you with us. >> good to be here, tyler. thank you. >> the performance last year was really terrific in a rising market. how about this year? >> this year is proving to be a challenge. just like you said earlier, we don't want to be a market timer, but this equity market is obviously very long in the tooth. it's starting to flatten out a bit, so for us we're skimming some of our profits off the top, but we're staying invested in u.s. stocks. >> to your point there, this bull market is now more than 2,000 days old, one of the longest and sort of upward sloping bulls of all time. you say it's flattening out. what do you expect in the next six months to a year? >> i don't expect it to be a september to remember, but i do expect this market will be driven by corporate earnings. the fed, while they're taking their foot off the gas pedal, janet yellen isn't touching the brake yet, and everybody has
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been taulking this morning, they're expecting a strong employment report on friday. those are good signs for the economy. we think corporate earnings will keep the market moving. it's not going to be a 20% per year pace, but a nice 8% that we've seep n so far this year i what we're expecting out of stocks. >> basically all public equity separate from private equity, are you above it, below it? you said you were lightening up a bit. >> we're actually a little bit over, and since this market has begun to rally with the market hitting 2,000 last saturday, we're going to skim this over time. it's just rebalancing and taking money out. when you look at our global equity, we still have a home country bias. we still think the u.s. is the place to be.
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>> two-thirds u.s. stocks, one-third non-u.s. stocks. i want to go back to the stocks you favor in that allocation, but you said something very interesting to me. and that is the idea that as opposed to market timing, you rebalance because in your equity portion, just the basic fact of capital appreciation can take you back your benchmark or your comfort level. is that what individual investors should be doing later this month? >> absolutely. as you said earlier, we're coming into a new season of the year. grab your august 30 statement. most of them get them on line, but people don't look at their 401(k) often enough. look at that and rebalance those stocks. those who have been riding the stock market for two years have too much money in equities and
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some don't have enough money in equities. >> quick thought, within that domestic equity sliver which you said is two-thirds of your total equity position, which areas in particular might you be heavily invested right now? what kind of stocks appeal to you? >> in our case, we actually own the whole market. 70% of that portfolio is actually passively invested in the russell 3000. so we own a slug of the market. i would say, though, right now we have -- our active managers are looking at small cap and midcap stocks. the large cap have done so well, but you're a little bit worried about the economy, especially in europe and in asia, so then you have to look more to domestic smaller cap companies. >> chris, thank you very much for being with us. very interesting points, including the last one on passive or indexed investment. we appreciate it. continued good luck to you. sue? >> good conversation, ty.
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to housing now. summer unofficially over. fall isn't the hottest season for housing, historically. diane is here with a look at washington about how this fall could be different. >> families don't like to move during school, and fewer families house hunt. that's why house sales fall in the fall. a couple things conspired to change that and we'll tell you where. but first to the why. after a sluggish sturummer, pri gains are easing and homeowners are getting a little more realistic. homes are selling above list down from 27% to 20% per year. where do places cool off in the fall. a real estate sales site tracked the activity. searches in new england stay strong in the fall, massachusetts especially.
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also new york and then in much of the west, california, seattle. the chief economist said that's because it's dry and cool in these regions, a nice time to be out. now to the bottom. searches fall off most in florida, south carolina, phoenix and austin. most of these markets see the worst weather in the fall. i don't like the weather excuse, either, but that's where it slows down the most. could these markets see a surge. the argument on the other side is fall is usually when first time home buyers take over the market, and they have trouble getting credit and affording that down payment. if there's not more numbers, there's more on line. sue? >> diana, thank you so much.
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we have job losses on one coast and job creation on the other coast. first to morgan brennan in atlantic city. hi, morgan. >> reporter: as you can see behind me, revel is now officially closed for business. they even took down the sign which people tried to take off. we'll tell you what's next for ac right after the break. first, let's send it to jane wells. >> i'm jane wells in santa monica. in california, there are 25 of these stores, now there's one of these. a dunkin' donuts is fueling up. we'll have that next on "power lunch." stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice.
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doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern. ugh. heartburn. did someone say burn? try alka seltzer reliefchews. they work just as fast and taste better than tums smoothies assorted fruit. mmm. amazing. yeah, i get that a lot. alka seltzer heartburn reliefchews. enjoy the relief.
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welcome back to "power lunch." a tough day for casino stocks. cal casino revenues came in worse than expected for august. those revenues fell for the third straight month as china curbed gambling and blamed the world cup for their problems. wynn resorts, lag vegas sands, mgm, all the big ones, moving south. >> take a look at these incredible pictures from that active volcano in iceland. the alert warning now at orange matching the lava and flame there, indicating a greater potential for an eruption. fountains of lava shooting 44 miles into the air, and huge
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clouds of smoke, mostly vapor and gas rather than ash. the ash is the real concern here, dangerous for planes. ash could be seen coming out of the volcano. remember back in 2010 when ko volcanic clouds grounded a lot of flights and they lost revenue. sue? >> groupon upgraded to reform by capital. nike winning the battle for can he have ic-- kevin durant, signg him to a $30 million contract.
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also using giselle bunchen. a procedure for advanced stage cancer lower on failed study. atlantic city casino closed its doors. morgan is live on the boardwalk with more. hi, morgan. >> reporter: this is the rebel which shut down early this morning. behind it is the showboat which closed on sunday. further down the boardwalk is trump plaza also shutting down. these properties employed more than 7,000 people, which is why the state is teaming up with the local union at the convention center. the drop in supply will aid the aging remaining casinos,
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especially those who are already investing in renovations. they expect the city to become much more centered around group events. >> i think we'll be doing probably 100% more convention business than we are now. we have a new convention ceo who just joined the market here. >> but perhaps the most interesting new concept is coming from the developer of the chelsea, the city's first high-end non-gaming hotel in 30 years with legislation that is supposed to be introduced this fall. he's expected to roll out a gaming boutique, mainly with slots to advance hotel business. this is a different model than what currently exists here. sdp >> i think it's both. the chelsea will always be a hotel first and foremost, but what we want to do with our gaming community is control our
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destiny. right now we're at the mercy of whatever the casino decides to charge. >> they hope to attract urban young professionals at the same dem graph the revel had hoped to cater to. both are in active discussion with investors that we could even get a bid on showboat as soon as this week. the hope is that projects will be announced for both of these buildings before year's end. sue, back to you. >> morgan, thank you very much. over on the west coast, jobs are being created. dunkin' donuts announcing its expansion into southern california, and jane wells is on that story. >> guys, duncan has returned to california after leaving more than a decade ago with its donuts between its legs. it performed poorly. now a return to a state with 2500 starbuck's. why? well, if the line down the block before dawn this morning is any indication, why not? this is the first stand-alone
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tradition tradition traditional dunkin. >> i brought the supplies. >> the company is betting big on the franchise, so less risk for the franchise company. gary har has seven dunkins in new jersey and hopes to open 10 in l.a. >> i'm told from driving around and talking to landlords and real estate brokers, it's true, but you just have to be persistent and keep looking. >> har says it costs about half a million to open one of these stores. there is a starbuck's down the block, so you'll be able to tell pretty soon which one has the longest line. obviously today, this one does. the defense sector has been going strong, what he likes.
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working with citi has also helped to fuel our innovation process and the speed at which we can bring new products into the grocery stores. we are employing 1,000 people across 27 urban areas and today, serve over 1 million meals a week. until every kid has built those life-long eating habits, we'll keep working. welcome back to "power lunch." bucking today's downward trend is 1-800-flowers. they have a market cap of nearly
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$140 million, those shares up nearly 18%. courtney reagan has a news alert on home depot. >> that's right, dom, home depot is now responding to a previous report from craigsecurity.com that the stores may have been the victim of a stolen breach. home depot in a statement saying at this point they can confirm at the very least they're looking into some unusual activity, working with banking partners and law enforcement to investigate. they say for security reasons it would be inappropriate to speculate further but we'll provide more information when it does become available. so right now home depot is looking into some unusual activity as it may relate to a possible data breach. sue, back to you. >> the stock responding to the downside court. thank you very much. as the saying goes, you better check yourself before you wreck yourself. this man's drone was about to
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crash in the lake. he threw his cell phone down and ran into the water waist deep to try to catch it. the whole thing was caught by the drone's camera and he posted it on line. lesson learned. power up before droning over the lake. >> that is a nice catch by that guy. that is really pretty good. way to go. if you got a drone, you got to be able to catch it. an upgrade for northrup grumman. the price goes to $128 a share. the analyst believes there is a valuation gap with the rest of the sector. in the last year, lockheed is out performing northrup but not by a whole lot. the philly sector is up.
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kai, welcome, good to have you with us. >> thank you very much. my pleasure. >> let's talk about your underlying thesis for why you think these stocks as a group can go higher. what underlies your viewpoint? >> well, we think that the group is fairly valued at about 9.5 times the all-time peak in 2002 right after 9/11 when we were of an uptake and margins were lower. >> do you think as the president called it last week, the world is a messy place. it seems to be an increasingly dangerous place. does that mean defense spending, and hence, defense companies, whether the spending comes to the united states or elsewhere, that these companies will do well in this environment? >> i think there are two possible scenarios. one is the republicans' pickup
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in congress and continued restraint on spending. that could be negative for the defense. on the other hand, the world is clearly a more dangerous place. isis has made major inloaroads. they're a much bigger threat than we've seen for some time, and if the president were to change his position and decide to be more actively involved, that could benefit the stocks. for example, in 1979 when jimmy carter decided to spend more on defense after the russians went into afghanistan, the entire group moved higher. >> very, very quickly, is there one stock that stands out as a better value to you right now than others. >> well, within this sector, we like l3. it's got a 9% cash flow yield, the others are all at 6.5 to 7%. it's got more margin-yield potential, so that would be our
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pick. >> thank you, kai moore. we appreciate you being with us today. police arrested more than a dozen people in china last night. they were protesting who was in the next election. china has decided to end that process. sue? >> ty, we focused on the gold margt early in the show, and as gold prices start to close for the regular session, we're down 22 bucks, 1 poi.3% in the gold market. platinum is off a percent as well, so it's all the way across the board as the commodity process in general gets hit hard today. >> you know what happens when yields are low, you get a lot of supply, and boy, the calendar for corporate whether it's investment grade or high yield picking up, bank of america.
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open the chart up to mid-may. the yield closes above 345. let's look at foreign exchange. dollar/yen, that is a 105 handle. opened up the end of last year, it wasn't only the extreme of a yield last year, it was this trait. we're only a whisker away of challenging that level, and the dollar is the big benefactor in hewitt. we're looking at the next big thing in the cholesterol market. >> lipitor was once the world's best-selling drug, but still millions of people don't reach their cholesterol goals with a list of therapies. now a new class could spell
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lunch." session lows off by about 85 points and those energy stocks we told you about earlier, chevron, exxon, mobil. and intel rounding up the bottom five, if you will, with home depot. dom, the dow hitting another record hiatt a whopping 200% at the 2009 lows. morgan stanley expecting the rally to continue, expecting a 3,000-point peak in the next five years. as some people have pointed out, you including, if you compound that out, it's basically a 6% move per year. >> they're expecting the rally to continue, and i think that's great, but it's just simple math. 6% a year is going to take us to 3,000. so if you're in the market and you're expecting 6%, you're not surprised by that call. if you're in the market and expecting 15%, that would be more of a dramatic call.
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certainly there is nothing wrong with the call. it's safe, it's conservative, it's great. >> but it's the 3,000 mark. >> the 3,000 is trying to stir everyone's excitement, but it's simple math, right? >> it is simple math, and those we talked to said it was a safe call. talk to me about the fact that one of the expectations is that money managers that have been underparticipating in this market are going to start to feel a lot of pressure as we get towards their close of book date. >> we tend to have this conversation every year, and really, that's what a lot of people thought last year was all about. at the end of the year, we vaulted and we were up 30% at year end, it's because a lot of people thought there were money managers who were expecting a pullback, expecting a pullback, then we went three-fourths of the way through the year, and all of a sudden they're going, oh, my god, and they have to play catchup. a lot of people are saying that's exactly what fueled that year-end rally last year, right? is it going to be the same this
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year? i suspect you'll get some of that. i don't suspect, though, it's as big as a lot of people think because we've had three kind of pullbacks, and every time we pulled back, we've seen the market had real support and taken off once again. >> thanks, kenny. ty, to you. lipitor was the best-selling drug in the world. i even bought a little bit, too much information. there is a new class of drugs that could be a $1 billion cholesterol market. >> as many as 17 million people in europe and japan have high cholesterol that is not currently helped by available therapies, and there is a race among drug companies to invest in that market. they are called pcsk9 inhib inhibitors. they said today of its compound in europe, last week it complied with the fda here in the u.s.
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the european meeting is expected to have it by the end of the year. we talked with the race market and what's at stake. >> everyone would like to think this is a winner take all race, and i don't think that's exactly the way it is. if you think of the staten class, which is sort of the stand-by for, and will be for treating lower cholesterol. we're pretty competitive and would like to get there first. >> they purchased a priority view voucher by another one, which gives them the better deal. for this market, it's anybody's game. let's go to amen jabbers now. amen? >> thank you, tyler. a new video seems to show the
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beheadi beheading event of steven sotloff. if it is a video of a second beheading of an american journali journalist, the second in one month, that will put lots of pressure on the u.s. isis said of james foley that if the president continues its attacks on isis, they will execute sotloff. that appears to be what this new video suggests has happened in response to president obama attacks. tyler? >> thank you very much. we will be back in just a moment after this word. rts work with equity experts who work with regional experts
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dad: he's our broker. he helps looks after all our money. kid: do you pay him? dad: of course. kid: how much? dad: i don't know exactly. kid: what if you're not happy? does he have to pay you back? dad: nope. kid: why not? dad: it doesn't work that way. kid: why not? vo: are you asking enough questions about the way your wealth is managed? wealth management at charles schwab women come back to "power lunch." the second worst performing is dj utilities.
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lower, public service enterprise group, first energy, exelon, energy and the southern company all down by 2.5. let's take a look at apple all-time high today. despite its celebrity photo hacking scandal, julia is here with the latest on that story. julia? >> reporter: photos of jennifer lawrence and kate upton were posted reportedly taken from i-cloud accounts. it seems like a straightforward password hack. apple's iphone service was reportedly vulnerable because it allowed numerous password guesses. security experts say this kind of hack attack can be prevented with what's called two-step application which apple offers but don't require. this two-step application shows
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how users are sent a code to another device. whaet next for jennifer lawrence and others who want to attack the hackers? they say they are investigating the matter. now we can expect authorities to put hackers in two-step verification as well as security codes. that means for the likes of us a lot more password headaches. general motors reportedly planning to install sensors in new cars to make it harder to text while driving. we want to hear from you. will devices designed to stop distracted driving make the road safer? you can go to cnbc.com/vote to join in the conversation. now in chicago to phil lebeau with more. >> what's interesting about this is general motors is not the only automobile maker working on a system that will alert drivers
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if, in fact, they become distracted, they become tired, they lose focus on the road. it's pretty simple how these sensors work, sue. they sense if you get tired and will alert you. if you're distracted, it will alert you. it's not taking control of the car yet, ilt's more alerting yo, but in the future you can see the path of vehicles where the car will act like an auto pilot and assist you in you are completely distracted. sdplz thank you very much, phil lebeau. will cars designed to keep you from being distracted keep the road safer? 60% said yes, 45% said no. free lunch in silicon valley. it could be at risk. all of that coming up in power
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the 19 to 36-year-olds, are five times more likely than baby boomers to take credit for someone else's work just to get ahead. is this a sense of entitlement, or is this a result of a strong or weak job market? i say it's another reason why we baby boomers must and will crush the my lillenniamillennials. >> i'm on that cusp of millennials. i would hate to think i'm one of those who takes credit for someone else's work. >> if 39% of my peers were also unemployed, i would do whatever i can to keep my job. so these guys are cutthroat maybe because the rest of their peers don't have jobs. >> they are more inclined also, as a side note, to define themselves as workaholics than
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any other cohort. the millennials are, these tireless little snots. i'm teasing, everybody, i'm teasing. >> but this idea that you have -- >> some of my best friends are millennials. >> maybe i'll just leave it there. >> leave it there. under armor lost kevin durant but just signed giselle bunchen to be part of their women's campaign which just kicked off last month. she joins her husband tom brady, also a paid endorser. nice for under armour. >> this was such a fascinating bidding war because this is under armour can take nike in the big leagues with its 200-plus contract. they lost, but guess what? both stocks are up today. and under armor is up even more. so the shareholders are saying big win for under armour. >> here's the thing. courtney reagan has done
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extensive reporting on this, because more and more people are using athletic wear as comfort wear. robert looks good in this stuff, i do not. i will say this. under armour gets about a third of their sales from this women's athletic wear side of things and it's growing. >> have you seen that ballet commercial they have? fantastic. misty copeland, the ballerina, this is a great campaign. for a brand that's known for men, they're effectively shifting into women. >> very interesting stuff. the irs increasingly eyeing free lunches at many silicon valley firms. when employees haven't held taxes related to the meals, the irs have often sought taxes equal to 30% of the meal's market value. should the irs tax free lunches? let us know what you think.
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this is not the occasional lunch. this is a cafeteria that is free. is that a benefit? income? >> it is a benefit, but i don't know where it stops, because anything you consider to be of some value to you, you can say the government can try to tax. this was supposed to be a way to get employees to maybe want to stay at work a little while, to make their time there more enjoyable, to make it so they can be more productive. i don't know whether or not it's fair to then say, yes, we're going to tax you on that particular item. >> if it was a car service, for example, those of us who work late here would take a car service home, or we hitchhike, or take the chopper. you take the chopper! but that can be taxable income if you use that car service enough for commuting. >> the exception is if they can prove that this is for the convenience of the employer, which it is, because your employees don't then leave for a long time, then it's allowable,
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so i think they're going to win. >> these nice suits we're given -- >> you may be given them. i, however, just use them on occasion. >> you just use them on occasion. that could be imputed income as well. >> let's lock in the results. should employer-provided lunch be taxed as income? there is no free lunch. 72% of you say no, it should not be taxed as income. >> i agree with that. just saying for the record. >> just saying. let's see what's coming up on "street signs." there is no free lunch here on "power lunch." >> there's never a free lunch. new season. we're dgoing to bring you the bg stock questions heading into fall. if your kid has ever held a lemonade stand out in the street, this story is going to make you smile. lots of things coming up. top of the hour, guys, on
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treatment of a parkinson's disease psychosis symptom. kat katie, you can see they're trending 11%. we've come a long way in the dow markets. we're down 64. the yield is 21 poi.4%. the commodities, 2 to 3 percent losses in crude. nat gas down 4 points on the day. >> that's exactly right. you touched on the dollar. a 13-month high, and that is where the pressure in the commodities section right now is coming. let's talk about oil prices first. as you mentioned, wti seeing a near 3% drop today, about 2 and a quarter on brent. we're seeing brent come close to
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$100, and it's interesting because we have this rally going on, and equities, you would think oil would be able to rally a little bit, but traders are saying we saw technical pressure here today. once we got through key technical lefrvels, then the sas intensified. they're saying it looks like all the situations are manageable right now. what they're focusing on is china demand and they're bringing it back to the eurozone, saying it could go back to china and impact that oil demand and that's why they are steepening throughout the day. oil prices down a 20% drop. that stronger dollar is one of the issues, but geopolitics haven't been enough to offset that. we're looking at a physical demand for gold and this capital he cequity flow into the market.
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a very busy day ahead, of course. we have received these reports that another american journalist may have lost his life at the hands of isis. we'll be monitoring that for you through the remainder of the afternoon. sue? >> "street signs" begins. we'll see you tomorrow. if you have been away since memorial day, welcome back! you missed the s&p 500 hitting another record, but don't worry, we're going to give you the four biggest stock market questions as we head into fall. next, the big apple story that has nothing to do with kate upton, what wall street may really be saying, and what gm is doing that may make you thipg twice about buying one of their cars. >> don't you hate it when you have a justifiably bad hate for someth
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