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tv   Power Lunch  CNBC  September 3, 2014 1:00pm-2:01pm EDT

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shout. we appreciate it so much. >> thanks so much. bye. >> richard branson there. guys, a weird segue, or whatever it is. do you want to give me a final trade, steve? >> american airlines. goldman sachs. >> that does it for us. thanks for watching. have a great day. "power lunch" starts now. >> "half time" is over. "power lunch" and the second half of the trading day start right now. >> ooii've been waiting all morg for you. fears of stocks, is it justified? this company, infini finfinity, stock soaring. is the run done? fight over airspace. space in the plane, the cabin. what should the airlines do about quarrelsome passengers who want to recline, they want to lean back. we want to hear from you at
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cnbc.com/vote. first let's check in with with sue at the new york stock exchange. >> hi, ty, good to see you. we're going to start with three rings of fear. on the list, international crisis, another mortgage crisis and fear of a sudden market drop. that call coming from sam zell on squawk this morning. >> it's very likely that something has to give here because you just can't -- almost every company that's missed has missed on the revenue side, which is a reflection of the fact there is a demand issue, and that demand issue continues to be prevalent. when you have a demand issue, it's hard to imagine the stock market at an all-time high. >> dominik chu is with me. sam zell very well known. >> he's an exceptionally smart businessman. >> he is, but he made a couple mistakes. he made a bad call on the tribune. >> yes.
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>> do you think he could be right this time? >> of course he could be right. here's the reason why. it's the stock market. nobody knows exactly what's going to happen. >> there's no crystal ball. >> there is no crystal ball, and anyone who says they have a crystal ball wouldn't tell you they have it because they would be making all kinds of money all over the place. i will point out a couple things you said. he had a revenue probe. i would just say based on this past earning season, we did see sec companies with revenues at about 4.5%. that's at least one sign that the bulls could hang their hat on. >> could be. ty, to you. >> from one crisis to another mortgage crisis, dick bovay said the housing market could be in serious trouble. that's how he sees it. he says the 30-year mortgage could dry up. quote, this means there will be less money available to fund housing and the terms of the
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available funds will be considerably more onerous. this means higher monthly payments, lower housing price. it means a crisis in the mortgage markets and the economy. diana olich covers real estate. is bovay right, diana? >> no offense, but i think it's a dramatic overreaction. let me just counter the three points he's making. number one, he says once the fed pulls out of buying nbs, suddenly no one will be out there to buy it and the market will dry up? currently the market is producing more than twice what the fed is buying and plenty of investors are picking up the slack. in fact, investors are actually viewing nbs as a viable component to portfolios now, and even if they were to weaken against treasuries again, they would make it all the more attractive. to his second point that the government is suddenly going to pull the plug on fannie mae and freddie mac, there is more of a chance we would colonize the
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moon. the government knows they need backing in the mortgage markets, they're going to slowly change the entities, and they know this market needs a 30-year fixed mortgage. they like that. finally to the point that interest rates are going to rise when the feds are gone and we will we'll have rates so high nobody can afford a house? remember, every time the fed has tapered, rates have gone down. rates follow the 10-year treasury, and even when the fed finally pulls out entirely and fannie mae ask freddie mac start to wind down, rates will go up sharply but they're not going to go up suddenly and not enough to suddenly crash the housing market. what's wrong with housing right now? not enough people want to get mortgages. not enough people have money to put a down payment on a home and credit is still very tight. that's the problem. not a crash coming this winter. tyler? >> diana, we'll be back with you later to check in with you. third ring of fear standing right here. >> there's a johnny cash line in
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there somewhere. >> our international correspondent. we're not talking about the crises so much in the headlines, the middle east, ukraine, russia. michelle is taking a look this hour at three potential simmering things that may not be on the radar screen on the front pages but are very much there. >> we've been talking so long about these are the traditional geopolitical hot spots weaver been telling you about, ukraine, libya, pakistan, nigeria, et cetera. the very first one, some people are asking about whether we're actually goes to see the return of the of the eurocrisis. that's because the news coming out of europe is so bad you wonder if people will be able to pay their debts. the gdp since 1999, potentially flat. flat or even below where it was. it doesn't grow and yet it incredibly indebted. the blue line has grown, even
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though it, too, is incredibly indebt indebted. there are huge expectations that because of data like that, the ubc central bank will do something big maybe as soon as tomorrow, and that's why the euro has been weakening. but monetary policy can only do so much. at some point those countries have to grow or we'll start talking once again about structuring, defaults, et cetera. another thing that could be problematic, china housing troubles. we got fresh pmi data out of china that suggests a rebound. but if you look at headlines in china, every day they go from bad to worse. and the question is, does it start to have a ripple effect within the banking sector because so many people in china invest in real estate because they don't really have many other choices? and then let's tell you what's going on with brazil. the data we've just gotten, it's in recession in the first half of the year. the markets in brazil have actually been rallying, because it looks like this woman could actually lose the election.
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this rally is because the numbers get worse and worse for her every single day. however, what we don't know is the person who succeeds her, marina silva, whether or not she has economic policies, tyler, that would actually help brazil. that's not clear. there was another candidate, he's in third place. >> her politics are what, basically? >> doma? >> yes. >> and the succeeder is somewhat leftist. >> she ran on an environmental platform. she was critical of dilma of not being socialist enough in some ways. better than dilma? there was a positive business candidate, looked like he was in second place, now he's in third. >> sue, down to you. >> those are the three rings of fear we've outlined, a sudden stock drop, a mortgage crisis and an international crisis. let's talk more about that.
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anthony valeri is an investment specialist at hugh johnson advisers. anthony, i'm going to start with you. what about those three rings of fear, if you will, and how they maia ply to a market that by some measures may be somewhat overvalued? >> well, the market is a little expensive here. i wouldn't say it's overly expensive, certainly not what we saw pre-crisis or even in the peak of evaluation height, which in '99-2000. we're expensive for a good reason. growth is good, earnings have been real good, but in terms of the mortgage market, no, credit is tight and we actually have better mortgage credit there. don't see leverage an issue there, so i don't see that tripping up the financial market here at all. we do have interpretly some
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volatility in ukraine and the like, but the real story here is u.s. growth and that's the drive for markets that will push stock markets higher. >> you think the market is a little expensive in some sectors, but you still say to some clients maintain a meaningful or overexposure or weight to equities. is that because there isn't anything more compelling out there? >> it's in major part due, sue, to the fact that when you look at the underlying monetary and economic numbers, they tell me that the economy is going to continue to expand, maybe not at a strong pace, through 2014 and 2015 which essentially says that the current stock market economic interest rate cycle is not over. that doesn't mean we vaenlt become overvalued, and i think we are overvalued. it's also the case that optimism is a little bit too widespread. things are a little bit frothy, so we're likely to get a little bit of correction, or a good
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chaps of a correcti chance of a correction, who knows, but what i'm saying is maintain heavy exposure towith e time build some excess which i think is getting better. >> anthony, the selloff if indeed we do get it, you would maintain to put money into the market, that those moves should be bought? >> yes. at lpl, we would add to ta weakness. good example, late july, early august, we had a good opportunity. as long as the if you understfu good and healthy, we are good. >> you're saying selling it right now. what doou you think? >> it's not as cheap as it was but it's not overvalued. apple is going to introduce new
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products at a big meeting. the real question about that meeting is, is apple meeting the competition from samsung? i don't know, but i think the answer is going to be yes. wait until september 9. i think you'll see good news and i think you'll see apple start to regenerate to the up side. that's an extremely important meeting, and let's not forget, when you buy apple, it's 2% dividend yield. you get paid to watch things unfold. >> that's very true. thank you, gentlemen. appreciate it. very good conversation. let's go to courtney reagan for a market flash. court? >> check out toll brothers, the homebuilder reporting better than expected quarterly earnings, but this is higher home prices that deter americans from buying its luxury home. stock currently trading below 4.3%. all down by more than 2%. sue? oh, and a programming note. douglas yearley will be on "fast
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money" tonight right here on cnbc. how could i have forgotten that? >> for whom the bell tolls. august automakers reporting their sales. behind the wheel for us in chicago, phil lebeau. they look good, phil. >> absolutely. when you look at the different brands, we just heard from mercedes best august ever, 9.4%. when we show you the major brands and the major automakers, keep in mind almost every automaker reported better than ever sales in the month of august. people say, why were they better than expected? first of all, driven by low financing. in about 13% of the sales came with 0% financing. that's bringing people into the showroom and onto the lot. there is also heavy demand for trucks and suvs. in august jeep sales jumped 49%
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basically across the entire product line. they are seeing extremely strong demand. best august or best month of sales for a number of different models there. we did some computing. peter shaq at our desk compared sales volume now compared to 2009 when the industry was bottoming out. look at chrysler. outpacing toyota, general motors and ford, and when you go back over the last five years, compare ford and toyota and how those stocks have done from august of '09 till now, no comparison at all. ford outdistancing toyota. tyler, by the way, we get the full monthly sales pace, the expectation could be 17 million. we'll get that in the next couple hours. that would be the first month since '06 since we hit 17 million, if it happens. stick around. we have news of another flight diverted over a reclined seat and the flight prompted a third such incident in just over a
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week. what can and should airlines do about it? go to cnbc.com/vote, and we will ask our experts next. the world has gotten you far, but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running.
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check out a positive reserve note from morgan stanley. it says the stock company could be worth 1 million a share in
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2020. the stock currently trading up 12%. tyler, back to you. >> court, thank you very much. for the third time in about a week, another flight was diverted after a fight broke out when a woman calmly knitting reclined her seat into a passenger who was napping on her reclined tray table right behind her. the result, an emergency landing in jacksonville and more headaches for passengers and airlines alike. we want to hear from you. how should airlines stop these in-flight quarrels? go to cnbc.com/vote to join the conversation. phil lebeau is back, seth kaplan, managing partner of in line weekly also joining us. phil, what should airlines do to clamp down on these arguments, whether it's over reclining seats or luggage or something else? what can they do? >> fight them. fight them hard.
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they have the potential to go after unruly passengers for, i think, up to $25,000. but it's rare that the airlines go after people after a fight. they think the trouble is not worth the adversity. i disagree. this is not a game. you're here from point a to point b, and if you can cannot control yourself or you force the airline to divert a flight, you ought to be paying. >> jerks on a plane, seth. what do we do about them? >> i totally agree with phil there, but not only that, we're still making these announcements for fines in smoking in the lav to her which is not that big a deal when lately there are bigger deals. announce that. announce the $25,000 potential faa fine. make people realize there are real consequences, because tyler, quite honestly, particularly when you go back to that united incident in the economy plus section. the guy who started it had a
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half foot more legroom than others who don't start fights. some of these people, quite honestly, seem to have issues that have more to do with other things than reclining seats. >> i'm sure they have issues, whatever is going on in their lives that may pollute their experience on a crowded airplane. but seth, is there an argument to be made for having seats that just don't recline? >> well, i mentioned spirit just a minute ago. they do that. they euphemisticall call them pre-reclined seats. >> pre-reclined seats? that's rich. >> the irony is, as tight as it is on spirit, and if you've flown them, you know you have less leg room there than any other airline, but nobody is fighting over reclining seats. to take away the rights to recline because of a few people, as i said, perhaps they're just looking for a fight. perhaps if the seat didn't recline, they would be complaining about something else.
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>> phil, what do you do when somebody reclines their seat deeply into your lap? anything? >> no. i sit there and i roll my eyes and i say this guy is a jerk for doing it, but i don't sit there and complain. the fact of the matter is, tyler, the pitch on the seats, they're about as close as you're going to see them in this industry. i think there might be room for slightly closer, but generally speaking, i think the airlines have wedged as many rows as possible into these planes. when you're flying, tyler, you're in a confined space. that's the way it goes. you're there for an hour and a half, if you don't like it, shut your mouth, play with your ipad or whatever. >> the results of the vote coming up in a few minutes. phil, thank you very much. a pre-nup agreement is supposed to help you avoid this. >> i'm the one who found this house, i bought everything in it. >> with my money! it's easier to spend than make it, honey buns!
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>> maybe you didn't make enough for me, sweet cakes! >> that may be a classic movie, but in real life, do pre-nups really work? plus -- >> up next, a potential dream come true for a nightmare commute. revamping the four-wheel ride with an electric skateboard controlled by your phone. >> what is the price rate going to be? >> i'm still stuck on competition being a huge barrier. >> will the panel be on board? stay tuned to vote with the power pitch panelists, live. are you in or are you out on this week's startup. go to cnbc.com/vote right now and get ready to start voting. how do you beat the number one seed? you just have to win 70% of your points at net. and keep unforced errors under 10%. on the ibm cloud, the us open analyzes 41 million data points from 8 years of competition to uncover key insights. data can help show you how to win,
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and trade with paper money to test-drive the market. all on thinkorswim from td ameritrade. welcome to "power lunch." check out amazon.com moving lower. after 20 years on the job, a growing investment frustrations on the company's increased spending. the company traded lower by about .9 of a percent. how should airlines stop in-flight quarrels? 80% said divert and land, 30% said ignore the quarrel and start flying. our panel of experts and you decide if you are in or out. take a look.
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>> i'm matt belcher, whether you're just trying to get across campus, short trips in a car have always been frustrating. in a car you have to deal with tral i traveling, parking and fuel costs. on a bike, you still have to find a place to lock it up. the electric skateboard is the lightest form of transportation, weighing in at only 9 pounds. it has enough power to go 25 miles an hour, will take you over 10 miles on a single charge, and everything is inside the deck, making the board completely weatherproof. on top of that, it connects wirelessly to your smartphone, allowing you to control and customize all your rider safety. so far we've sold over 400 electric skateboards.
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>> welcome to power pitch, everybody. you just saw matt's pitch, so let me introduce you to the ponl. we have andrew mitchell, the founder of brand foundry ventures. he invests in birchbox, harry's & alpine replay. greg selkoe, ceo of karmaloop. also joining us is don brown, a world champion skateboarder. he also has sole technology which makes different brands of skateboards. matt, you are in the hot seat right now. andrew, would you like to throw out the first question? >> how are you going to stand outside of your competition? >> well, we're focusing a lot on
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the idea of transportation, not just the sport of skateboarding. our board is significantly lighter, it goes significantly faster, interacts with your phone so you can control all the settings that you would like, even mapping your routes out. you can control your battery life, the acceleration, the braking, all those things can be controlled directly from your smartphone, making it more of a complete package. >> the product sounds awesome, it sounds really cool. i think the devil is in the details. what is the price going to be? could you do skateboard sharing like bike sharing in cities? >> skateboard sharing is definitely a cool idea. our price point right now is $1299. that will go down as we get things into full production and start selling more boards and getting them out there in the world. >> can i try one? >> if you're in tampa, you
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definitely can. we have a demo fleet of about 10 boards. >> i know living in new york, there are restrictions on sidewalks 5 miles and below. what can you tell us more about that? >> different cities and states even have different ordinances and laws about where you're going to be able to ride the board, so it's important wherever you do live to understand those. right now living in tampa, we use the bike lanes and then there's a couple bike paths we use. we have a couple different wheel options. there are some railroad tracks, some brick streets, we want to make sure people are comfortable getting over those, so larger wheels and soft wheels definitely help with that. >> who is your target audience? $1200 is not cheap. >> we're really looking at mostly young professionals, somewhere between at least 18 but up to 35, people that live in urban areas or have short commutes and short trips they take on a daily basis. there are 65 million americans
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every day that take a commute less than 10 miles, so we're trying to reach as many of those people as possible. we're not trying to build just an electric skateboard company, we're trying to build an electric vehicle company. the electric skateboard we built so far is our first step and really our proving ground for where we want to go. >> okay, guys, we all heard what matt had to say. are you in or out? this includes you, the viewer. just go to cnbc.com/vote and vote realtime on whether you are in or out. andrew, what did you think? >> i'm still stuck on competition being a huge barrier, and i think that because of that, i'm out. >> don? >> i'm going to categorize it as electric transportation mode. i see this in a sky mall where you ride between the massage chairs, the helicopter remote controls, i kind of see it there. i'm down for a better future and a better planet generation. thumbs up, i'm in. >> craig? >> obviously, alternatives to
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the automobile are the future, particularly for someone like me. i live in boston, i live in a dense city. i don't drive, i take the subway, i walk of t. this would be a great additional intermodal option for me. there are kinks that need to be worked out but this is a lot cooler than the segue which never really took off. i think there is a real place for this in the urban environment, so i'm in. >> we have two ins. matt, what's your reaction? >> grateful. i love hearing the feedback, and i'm excited to move forward with things, and every detail, whether complimentary or critical that you guys said, i just really appreciate to hear it all. >> thank you very much, matt. and also to our panelists, andrew, don and greg. thank you for your in or out. and that is today's power pitch. >> we should point outman did ms
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a scooter right by her desk which she uses frequently. >> 50% say they would be in and 47% say no way, i'm out. sue? >> i think i could get to post 9 much faster on a skateboard than i do sometimes in a car. of course, the ecb is getting ready to meet tomorrow and all eyes are going to be on mr. draghi, rick santelli. so what are we expecting and how is the bond market performing? >> i like that piece, and they say tesla has no competition. it's all about central banks tomorrow. cut through all the geopolitical? show me the money. qe is the money and they're all trying to grab a piece of it. it gets right up to that 245, 246 and fails. why is that important? open up the chart to mid-may. two major yields at bottom. at 245 it's the key area. dollar/yen, another area where everyone is looking for qe, hence the weakness in their
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currency. it's hovering at the lowest level in the dollar since new year's eve, but today has amounts equal to that. rick, back to you. this is one form of hot share selling at more than 40% right now at this hour. should you get in? the company ceo will join us sfirs first on cnbc. new record highs today. which transportation stocks are benefiting the most from those lower oil prices? that ask mond more when we retu. when fixed income experts work with equity experts who work with regional experts who work with portfolio management experts
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that's when expertise happens. mfs. because there is no expertise without collaboration.
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welcome to "power lunch." check out shares of lumber li liqu liquidators. the stock currently trading at about 6%. tyler? >> courtney, thank you. this is one red hot stock today. shares of infinity at nearly 50%.
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getting up front payments from abvi as part of a new part of infinity with blocancer drug treatment. >> ceo of infinity, angela perkins. ms. perkins, thank you for being with us. >> thank you for having me. >> are you going to develop this in time for your drug? >> absolutely. we think wts partnership with abvi, we plan to get rid of a lot of blood cancers, and we plan to do that evaluating our medicine called duvalesev. treating patients about duvalesev alone, and taking it
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to the next frontier, which is combining our targeted medicine with other targeted medicines. we think that has the potential to take patients from a life-threatening condition towards, in the near term, living with their disease as a chronic condition and getting to more curative outcomes. >> where do you guys fit in the treatment paradigm, do you think? >> well, there have been really tremendous advances over the last several years in the treatment of patients with these blood cancers, and they're all with a new class of therapies that are referred to as targeted therapies. and while we're seeing great progress, these patients are not yet cured. and so we are really at the tip of the iceberg and there is a tremendous opportunity to do much better than what we've done today. and we do believe that that will be achieved through combination therapies where you take two different targeted therapies, and together they're tremendously synergistic, and it
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can really change the outcome and the life expectancy for these patients. >> and you mentioned just the way treatment is changing for these kinds of leukemia and moving away from keem therapicc. does that mean more patients could potentially be treated, is this market expanding and how big do you think it is? >> that's exactly right. when we talk about targeted therapies, cancers are really smart, and the reason they often evade treatment with other therapies is that they hide in protect niches of the body like in your lymph nodes. our drug is designed to shut the kar cancer out of those niches and shut it down so they can't get back in those protective niches. if you go with other target therapy that goes to killing those karcancer cells, you can e tremendous impact. and our goal is to limit
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patients having to be on chemotherapy drugs, which has a whole host of side effects. if we limit our patients with chemotherapy, the next goal is having patients live with their disease as a chronic condition, on the path to getting to notably no detected disease. so with our single medicine, patients see significant reduction in cancer cells, and we hope when we combine it with drugs, we'll have tremendous impact. >> thank you for joining us. sdp >> thank you, meg. >> sue, down to you now. >> interesting conversation, ty. thanks. the dow transport is hitting record highs today and oil is bouncing back in a big way after its sharp decline in yesterday's trading. jackie deangelis outlines it for us today. hi, jackie. >> that's exactly right, traders seeing a little of that dip
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action, but they also say they're nervous about potential military action in syria so that's on their mind. even with the >>kri crisis in the middle east, production hasn't been lessened, so right now the market is supplied. the news overnight of potential cease fire between russia and ukraine, those oil economies will rebound and that could boost the demand for oil once again. remember, we have seen those sanctions did impact the eurozone yesterday. wti is close to $95 a barrel, a 2% move on the day, and brent crude is trading at over 102. back to you. >> so the dow is hitting a record high. what does the falling commodity prices mean for that sector? todd rosenbloom is here.
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good to see you, todd. >> good to see you, sue. thank you. >> what do you think about the dow in general? when you look at that sector specifically, are you bullish on it? >> we are. we're bullish on the airline stocks which make up a good chunk of that index as well as the air freight logistics companies. we're seeing demand improve, we're seeing good things happen from a revenue perspective for these companies, and if oil moves down, that is the kicker that is actually the larger cost, is energy prices for these kinds of companies. >> it used to be airlines would hedge their fuel costs and jet fuel was a little bit different kind of animal as crude oil is. but does a drop in crude and/or brent directly impact the bottom line of these companies? >> the commodity cost is a major cost. in fact, for airlines it is the largest cost factor. so if you see an energy stabilizer actually pull back,
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that's going to be an added benefit for companies like jetblue, like southwest, like delta airlines. that's going to be a big driver for their earnings. >> it's interesting you didn't mention any of the rails. >> we're neutral on those stocks from a if you understafundament. they are the largest sub-industry you'll find. it's railroads and it goes airlines and then air freight logistics. we just happen to like the other two industries more from a value perspective. >> is this an underlying improvement in the economy? >> it certainly is. that's the driver and will cause revenues to move higher. people are likely to travel more, that's going to help the airlines, and of course packages to pick up as on-line shopping picks up. we really think fedex is another beneficiary in the u.s. economy, and the global economy hopefully shows signs of improvement.
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>> in our yahoofinance.com, we asked what's the threat to markets right now? 18% said another mortgage crisis. 66% said international crisis, but 17% of you out there, ty, say they're not worried. up to you. >> thanks, sue. prenu prenups. they're supposed to be the ultimate divorce insurance for the wealthy, but how secure are they? robert frank, tell me, please. >> ted griffin is in a war of the roses with her ex-wife. she says her prenup is unfair and would only leave her 1% of his $5 million fortune. we'll tell you why she might actually have a case after the break. does a prenup lead to more divorce? go vote. cnbc.com/vote. >> i like that, pre-wealthy. with fidelity's new active trader pro investing platform,
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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. dad,thank you mom for said this oftprotecting my future.you. thank you for being my hero and my dad.
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military families are uniquely thankful for many things, the legacy of usaa auto insurance could be one of them. if you're a current or former military member or their family, get an auto insurance quote and see why 92% of our members plan to stay for life. machines will be sprayed to be made. and making something stronger... will mean making it lighter. one day, factories will work with the cloud. one day... is today. welcome back to "power lunch." apple having its worst day in
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over seven months. they will unveil their newest iphone next week. in addition, rival samsung unveiled two new smartphones at a trade show in berlin. the stock currently trading lower at 3.5%. sue? >> a trio to tell you about. lu lu lumber liquidator srs up at 58.. jp morgan chase, 59 poi.76. and boulder brands at 14. >> they're supposed to be for the wealthy, but how safe, how
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ironclad are they, and do you think they would lead to more divorces? we'd like to hear from you. go to cnbc.com/vote. now to robert frank. bring us up to speed on the griffin divorce and how it fits into the context of big prenups. >> well, prenups are almost always challenged inevitably, but they are rarely broken. that's likely to be the case of robin griffin and billionaire ken griffin. she says her prenup gives her roughly 1% of his income. she's using custody of their kids to get more money. she's already received tens of millions of dollars, they say, during their marriage. there is a challenge to prenups. the first is fraud. that's where the wealth was either hidden from them or the assets were undervalued. steve kohn argued repeatedly there was fraud in their divorce. didn't work. representation. the argument here is that the
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spouse didn't have proper legal representation or wasn't capable of understanding the prenup. not true with ann griffin. she's a harvard mba who had the top divorce attorney repping her in her prenup, so not likely to stand here. the last one is duress. she says she fousigned the pren just hours before their rehearsal dinner and she didn't have time. and ken enlisted a psychologist to help persuade her to sign. these are the arguments, but if you're honest and you have a good attorney and straightforward in the process, unlikely to be challenged. >> does a prenup lead to more divorces? 65% of you say yes, it does. 35% say no. sue? >> well, you guys are talking about divorce, but these two are making up. two of the world's top luxury brands agreeing on a truce following a four-year battle
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where lbmh had been accumulating a stake in its rival. they redistributed their 25% stake to shareholders. it won't buy any hermes shares for five years. we all know the chinese are buying up homes here in the u.s., but now they're going apparently one step further. cnbc's real estate reporter diana olich is back and she's following that story for us. diana? >> sue, right here 200 units are set to go into this property. landsea, a chinese developer, working with lamar. we'll have that story for you coming up next on "power lunch." when change is in the air you see things in a whole new way.
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and file downloads you'd take that test, right? what are you waiting for? you could literally be done with the test by now. now you could have done it twice. this is awkward. go to comcastbusiness.com/ checkyourspeed. if we can't offer faster speeds or save you money we'll give you $150. comcast business built for business. did you know that 80% of all u.s. eb-5 immigrant investor visas which are died to business creation went to the chinese last year. but it's not just businesses the chinese are believe in this country, they are building homes as wellment diana olich is in walk egan, new jersey with more.
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>> these condos are going in next to me, but that's not what you're buying. you're buying the manhattan skyline, that million-dollar view. landsea is working with lamar who actually sold them this property next door. we sold to the executive john ying through his interpreter. >> the chinese housing market is very competitive and the u.s. housing market is growing or expanding rapidly. so for us as a company, to invest a certain amount in the united states makes a lot of accepts for us. >> landsea, which calls itself china's preeminent green builder, is putting about $1 billion into the u.s. housing market, beginning with three developments. this one is wehawken, new jersey will be condos with priceless views. it also plans to build townhomes this san francisco and homes in
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los angeles. landsea is centering on markets where job growth and information tech followinology is strong. >> our primary customers are still here domestically in the united states. but because of our background and who we are and our brand in china, we will get chinese customers woho want to buy our homes. >> they also want to build near universities. people have been inundating cities with clenolleges to thei children can attend school. and landsea says they are looking at development projects also in boston ask wand washing d.c., again, spots where there are good universities. that's what the chinese home buyers want right now, and
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they're not the only ones, billions of dollars coming from china into the united states home market. sue? >> thanks, diana. appreciate it very much. let's see what's coming up at 2:00 p.m. eerp time on "street signs." >> the equivalent of sand disk, the more the measurrier. has apple gotten too big? we're going to try to make sense of it all with our resident russian speaker. and look at radio shack. it is down big today but it has been soaring over the past month. we also have facebook. more than ever before. tune in. make sure you joip us tn us tope hour. we're here at nasdaq with news you do not want to miss.
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who work with regional experts who work with portfolio management experts that's when expertise happens. mfs. because there is no expertise without collaboration. before we hand it off to "street signs," let's check the market right now. the dow is holding onto an advance of about 33 points. s&p 500 up just a fraction, holding onto an advance not by much and the fnasdaq has turned
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negative. the dollar versus the euro because we have that big meeting tomorrow and all eyes will be on the central banker. transports are down 12. the 10-year notice yielding 2.41%, and in terms of the you're euro ver versus the dollar, things are quiet right now but that's because they're waiting to see if they make a move against the stimulus. ice brent crude down 7.77% and dow transports up 14%. "street signs" begins now. is apple so big that it is
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dapg ru dangerous to the whole market? some incredible stats on just how big it really is. plus our take on fortress, america. >> the s&p hit 2009. the outside influence in just a second, but first let's get breaking news on the beige book. >> the economic growth reported modest to moderate. one district says it's increased since the last beige book. consumer spending growth was slight to moderate in most districts, reflecting some of the lackluster spending numbers we've had. auto sales were leading the consumer expansion, philly and dallas saying the numbers have fallen back from the highest levels. resident real estate, all they say in the beige books is it expanded or held steady in about

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