Skip to main content

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

1:00 pm
feminist. that's what they're saying. >> i don't know what that is. >> i'm out on that whole thing. judge, i'll see you later. >> i'll stay. let's do final trades quick. doc. >> cod bought it. >> citibank going higher. >> stephanie link. >> osh kosh. >> that's it for today. halftime is over. power lunch and the second half of the trading day start right now. >> all right, folks. europe's new plan is like the old u.s. plan. quantitative easing. remember that? kind of -- well, kind of. we'll explain it to you so you can make your next moves. european investors like it so far, anyway. look at these european markets. they were up across the border across the atlantic today. a 1% moves in lots of markets. britain basically flat. here in the u.s., the dow intraday all time highs there. nasdaq, s&p, russell all of them higher. ten-year note there it is there at 2.45. also today, one very big call on
1:01 pm
the state of the american housing market. first, though, to sue who's here at cnbc headquarters because the traffic was so bad in the city. >> it is really awful out there today, ty. i had to turn around and come right back. we're going to talk stocks which are marching to new record highs. growth in the u.s. services sector surging to a nine-year peak. europe announcing a big stimulus plan to revive that region. major ramifications with that move. so let's take a look at how things are faring right now. dow jones industrial average is 35% on the trading section. s & p 500 up about 4.5 points. up for the first day in three the nasdaq the best gain in more than two weeks. it is traded on the up side by better than a quarter of a percent. in terms of 10-year note the yield was baumped up to 2.45% today. let's take a look at the dollar versus the euro especially with the move earlier this morning. you can see we are moving off the lows of the trading session,
1:02 pm
right, ty? >> that is right, suit. thanks very much. so europe announcing its own sort of fed style bernanke style bond-buying program. some call it qe light. they don't like light beer over there. qe light. what exactly are they doing? chief international correspondent michelle caruso-cabrera is in milan for us. >> mario drage surprised the markets in two ways today. he announced the ecb had cut three interest rates more than the market had expected. second he also announced that beginning in october the european central bank will start buying in large quantities things like acid-backed securities what's known as abs or covered bonds which are similar to mortgage-backed securities in the united states. these are financial products that contain things like auto loans and mortgages. right now european banks aren't making those kind of loans. but mario drage hopes that if the banks know there is a buyer who's willing to buy those in
1:03 pm
size massive quantities they'll start making those loans again and hence help reinvigorate the european economy. back to you. >> michelle reporting from milan. to sima live, she's look at what europe's big stimulus plans the u.s. companies are doing business in europe. welcome, sima. >> thank you, tyler. that's right. global markets may be cheering the ecb's decision to cut rates, but the stark reality facing europe is that this recovery is going take longer than expected. that's a concern for investors. remember, 80% of companies in the s&p 500 make 25% or more of their annual sales in europe courting to thompson reuters. companies include coca-cola, phil phillip morris and molson coors. isite group says weakness in europe could impact these companies services business.
1:04 pm
that's something to watch out for. with sluggish growth across europe, inflation hitting a 5-year low, the state of the consumer in europe a major concern for invests. mcdonald's recently reported a decline in eu sales the first time in four quarters. pharmaceuticals will also be a focus. gillead sciences, bristol-myers, abbott labs. research put out by goldman sacks th sachs expect under performing with the weakened euro under performing. the dow and s&p 500 hitting new record highs today. let's check the three major averages over the past one year. pretty impressive performance. but where are the opportunities right now? dominic chu knows. he's at the nyse looking at stocks with big upside
1:05 pm
potential. some as much as 20%, don? >> here's the deal, sue. if you're looking for what stocks have the most up side potential you often look to the opinions of those who arguably know a company best. those analysts on wall street that cover those particular companies, those stocks for a living. we decided to look at the entire list of s&p 500 companies and figure out which ones have the most up side potential according to those analysts. of the 500 companies, only 36 of them have price targets that are that 20% above where currently shares are trading right now. so that's a pretty small number. check out shares of price line.com the online booking travel site. analysts are overwhelmingly bullish here. 24 baste, three holds, no sells. in terms of the average target price, analysts think these shares could reach 1500 bucks a share in the next 12 to 18 months, 21% up side from current levels. another stock ready for a pop is cbs, the broadcast giant behind namesake networks like itself and also of course show time premium cable.
1:06 pm
it's gearing up for football season, right? it got those rights to broadcast thursday night games in addition to its weekend roster of games. most analysts have a buy rating here as well, no sells. according to the average target price we could get 71 bucks a share or 22% from up side from current levels. next stop coal name peabody energy. analysts predict 27% higher than current levels. this is the one that everybody wants to talk about. delta airlines. this stock has been volatile, call it oil prices, traffic patterns. but analysts still think there's a possible 32% up side from current levels. this is the only stock, sue, that has every single analyst on the street covering it saying that's an outright buy. now to be fair, sue, we all know not every analyst gets it right. but if you're looking for those people who get paid to make these conditions, that's where they think the biggest upside comes from the s&p, sue. just one more thing, we miss you down here at the nyse. >> thank you. i tried to get there, dom. you're so sweet. i really tried to get there.
1:07 pm
tomorrow i'll be there. it's a date. >> sound good. well, is the ecb giving a green light to stocks in the u.s. and europe? we have $3 trillion worth of investment advice for you. mike wilson is chief investment officer at morgan stanley wealth management. bob brown is chief investment officer at northern trust. nice to have you guys here. >> good to be back. thank you. >> everybody thinks that september traditionally it has been a very difficult month. but have the odds of a selloff gone down based on what the ecb did last night? >> well, definitely doesn't hurt. the ecb has shown their card here much more aggressively than they have so far. but i actually think we got a selloff in august that was pretty severe. in fact we added to risk assets in the middle of august taking advantage of that, is a selloff that people were worried about what the ecb was going to do if anything. amongst other things, ukraine and russia was weighing on the market pretty heavily then. we actually think september could be a fine month. one thing we do worry about is
1:08 pm
the fomc has to transition, the u.s. market towards rate hikes. we think that meeting on september 17th could be that meeting in which they do that, which could create volatility. >> bob, would you agree with that? >> well, we certainly agree that the ecb did the right thing. we thought they needed to do something material and they did. and the markets are reacting accordingly. we're probably in a different camp with regard to the fed. we don't think they need a pivot relative to what's pricing the forward curve if anything we think they'll take their time and they're not going to put the recovery at risk by moving earlier than they need to. that's one of the reasons why we've remained overweight risk assets. we think not only the ecb but the fed will remain accommodative for some period of time by any historical standard. >> talk to me about those risk assets. you like high yield. but where in high yield? and what other areas would you be putting new money to work in given the environment that you just laid out? >> well, overall we like credit and specifically high yield as you point out.
1:09 pm
we've been significantly overweight for some period of time. we're avoiding the bottom of the credit curve. we don't really play in distress or triple cs but we still think there's good value in double ds. and we're buying those assets accordingly. we've been overweight u.s. equities for some period of time and we continue to be overweight at developed markets broadly. so think of that as japan and europe. and we're finding this by being underweight cash and investment grade fixed income not because we're really negative on bonds and the interest rate story but we just think they're a better funding vehicle for buying equities. >> mike let me turn to you. david tepper of appaloosa management said he thinks the bond market moved to the upride, the rally that has been so long is over, that the party's over there. it sounds like you would agree with that. >> we're in the same camp. we thought the party was over a year ago. we've been underweight bonds since march of 2013 on the
1:10 pm
premise that rates were going to start to move up. the big adjustment in 10-year interest rates was last year. i think the rally this year everybody's been confused about it. it's really a consolidation. the feds tapering we think is a form of tightening. they're moving towards the rate hikes next year. we believe actually qe if it's done by the ecb later this year and maybe the bank of japan steps up is a catalyst for rates to go higher not lower as inflation rates move up. there's been a lot of comments today and this week about qe pushing rates down further. we couldn't disagree more. we actually think that qe will drive rates higher, not only in europe but also in the u.s. >> gentlemen, thank you very much. mike, bob, we'll leave it there. >> thank you, sue. >> let's send it over to courtney rag nan for a quick market flash. shares of bp experiencing its worst day in three years because of the news the oil company has been found grocery negligent by the u.s. district court judge in new orleans in the 2010 gulf of mexico oil
1:11 pm
spill. the ruling could add billions of fines to the more than $42 billion in charges taken so far. bp says it is appealing the decision currently trading down about 5%, tyler. >> courtney, thank you very much. tesla shares on the move at this hour. the electric carmaker choosing nevada for its $5 billion factory there. it's a battery factory. but the question why there. we sent phil lebeau just outside reno soon-to-be home to that tesla gigafactory, phil. >> the gigafactory where they are moving the earth and getting things ready here. it will take about three years to put it together. we're in sparks, nevada about 15 miles east of reno. a lot of people are saying why reno? why put the gigafactory here? it makes sense on a number of different levels. first of all tesla wouldn'ting coming here unless they could get a huge incentive package. that need to be finalized with the legislature. but estimation is they'll get at least $500 million in incentives
1:12 pm
from the state of nevada. the location is prime how it is relative to the tesla plant four hours to the west down i-80. that's where they build all the electric vehicles, the model s, model x and model 3 coming out in three years. this is a right to work state which will be important for tesla as it continues to develop the gigafactory in the years to come. and finally, nevada is home to the only active lithium mine in the united states. and remember, what they're building at the gigafactory are lithium ion battery cells so that there's a greater supply for tesla as they ramp up production of their electric vehicles. guys i'm going to move out of the way. back here you see those earth-moving trucks? bulldozers? a number of different construction vehicles? i'd say there's about a dozen of them. that's some of the work that's being done at one of the locations that will eventually be the tesla gigafactory. when you look at this area, keep in mind there's a rail line i'd say half a mile from here that goes out to the port of oakland. it's used by both union pacific
1:13 pm
and bnsf. we're 15 minutes from the reno airport. they've got about 30,000 developable acres out here. we've already seen some of it. bob pollack my photographer is going to pan over here. look at some of the businesses already here. this is a huge industrial park. you've got an infrastructure that's already being built up. and in addition to that, tesla looks at these different factors that are here, sue, and they sit there and say this is the right place to go. that's why are going to be building the gigafactory here. the announcement coming later today. we will be there with the governor of nevada as well as with tesla ceo ilan musk. we'll talk to him about the decision for nevada as the location of the gigafactory. tyler and sue, back to you. >> phil, thank you very much. we have gone at least 120 seconds without a courtney reagan fix. back to her for a flash. >> let's check out another company ilan musk is involved in. solar city shares trading up
1:14 pm
about 4.5%. tyler back to you and i'll see you soon. >> you bet. fears about europe's economy overseas tension is history repeating itself? our cnbc contributor ron ansana saying 2014 looking a lot to him like 1937. not that he was alive then but he knows the history. he'll join us to explain. plus the 2014 nfl season kicks off tonight. sue's favorite team the packers. and she's got the garb to prove it will face off against the seahawks. expect a lot of technology used in the games this year. join the conversation. will new tech-driven stats like distance traveled or acceleration rates of your players enhance your enjoyment of nfl games? go to cnbc.com/vote. power lunch back in two. your fidelity green line and you'll see just how much it has to offer, especially if you're thinking of moving an old 401(k) to a fidelity ira. it gives you a wide range of investment options...
1:15 pm
and the free help you need to make sure your investments fit your goals -- and what you're really investing for. tap into the full power of your fidelity green line. call today and we'll make it easy to move that old 401(k) to a fidelity rollover ira.
1:16 pm
1:17 pm
ron insana has written a very interesting piece that draws parallels between this year and 1937, warning that world is potentially at the cusp of economic and geopolitical troubles. he joins us now to explain the argument. >> tyler, i'm not suggesting we're on the cusp of world war iii although the west has a history of ignoring creeping imperialism in parts of the world which we seem to be experiencing again. >> putin. >> yes. my biggest concern at least until this morning when the european central bank finally
1:18 pm
moved on monetary policy the economic mistakes we made in the united states, raising interest rates and raising taxes in 1937 sent us into a separate discrete depression is happening outside the u.s. european monetary policy not as aggressive as it needs to be. japanese fiscal policy very tight and other consumption taxes coming next year even though the bank of japan is easing. you look at russia on the brink of recession. other areas of the world. china which is slowing down rather dramatically. all these areas seem to be making very symbolsy mistakes either on monetary or fiscal fronts that we made in '37 and caused great trouble. i'm less concerned about us, more concerned about the rest of the world. that doesn't leave us entirely stable. >> you would argue that drage this morning is playing catchup. >> 200-year lows in german bond yields suggest he is playing catch up by a lot. he had to go back prebismarck for those levels. and i think largely speaking outside the united states in particular, deflation is still the principle economic risk. i also think -- and listen, the
1:19 pm
cusp of world war iii is beyond my ken. that's not an area i would go to. but you look at the way in which the west is not dealing with vladimir putin and not yet necessarily stepping up effectively -- although president obama did make a very strong statement about estonia, latvia and lithuania yesterday. but containing vladimir putin in the absence of having done that in prior prewar periods particularly before world war ii is also equally important that. type of thing can slip out of control without everybody noticing. >> very quickly. >> we know from 1938 when hitler took over austria and poland. we don't know what vladimir putin does. i don't think people as they didn't with hitler -- it's not a direct comparison by any stretch of the imagination. i would never do that. but people didn't take him seriously enough. i don't know if we're taking vladimir putin seriously enough, either. that's the comparison i would make on that front. >> on that note we leave it. ron insana, thank you very much. check out the full article ron
1:20 pm
wrote at cnbc.com. let's go back to courtney reagan. fed-ex and ups slashing prices by as much as 50% for biggest commerce company in time for the holidays this an attempt to steal business from its publicly-traded rye values, fed-ex and u pkz s still trading higher by a little less than 1%. not getting dragged down quite yet. sue, back to you. >> courtney, thank you very much. it wasn't such a great home-selling season. and a noted bank analyst sees a second mortgage crisis ahead. so what is the health of housing? deutsche bank is out with its latest outlook. we have it first on cnbc. plus crime and punishment. andrea day is on the case. andrea? >> hi, sue. from pot king pin to that's all coming up on power lunch. the top exec who could be heading to jail as early as tomorrow morning. we'll have that story coming right up. when change is in the air you see things in a whole new way.
1:21 pm
it's in this spirit that ing u.s. is becoming a new kind of company. one that helps you think differently about what's ahead, and what's possible when you get things organized. ing u.s. is now voya. changing the way you think of retirement. i know what my money is doing. i rebalanced my portfolio on my phone. you know what else i can do on my phone? place trades, get free real time quotes and teleport myself to aruba. i wish. 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. i'm spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast? go to ziprecruiter.com and post your job to over 30 of the web's leading job boards with a single click;
1:22 pm
then simply select the best candidates from one easy to review list. you put up one post and the next day you have all these candidates. makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter.com/offer2. we're changing the way we do business, with startup ny. we've created tax free zones throughout the state. and startup ny companies will be investing hundreds of millions of dollars in jobs and infrastructure. thanks to startup ny, businesses can operate tax free for 10 years. no property tax. no business tax. and no sales tax. which means more growth for your business, and more jobs. it's not just business as usual. see how new york can help your business grow, at startup.ny.gov in a we believe outshining the competition tomorrow quires challenging your business inside and out today. at cognizant,
1:23 pm
we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. welcome back to "power lunch" check out the dow transports a record high for the third consecutive day up 16% this year. as you can see they're up about .9% today. airlines leading the way including united, jetblue and delta, land star system and union pacific rounding out the top five. tyler back to you. >> court, thank you. the ceo of a multimillion dollar pharmaceuticals company is under fire and how in atlanta. investigators say he failed to recall four dietary supplements, and that's just the beginning.
1:24 pm
andrea day is here now with the story. hi, andrea. >> reporter: hey, tyler. talking about a guy with a big history of crime who's now the ceo of high tech. but this time he could be shut down for good. take a look. this is jared weed, a convicted drug smuggler who operated a massive pot trafficking ring in the south. that was 20 years ago. now he's a ceo. his company manufacturing and selling supplements that claim to make you thin and healthy. >> he's been able to steal more money from consumers than a lot of the other people we see. >> reporter: in 2011, the ftc slammed him with a $40 million judgment and ordered him to recall four of his top-selling diet supplements, a case he's desperately trying to fight in court right now. >> it's a joy beggigantic numbe. and massive contempt. it's not the first time weed has faced off with the ftc. in 2004 the agency hit him with a massive judgment for claiming
1:25 pm
his pills caused extreme weight loss and could treat erectile dysfunction. >> we had a $15 million judgment in the underlying case that he moved money around constantly trying to hide that money from the ftc. >> reporter: a judge ultimately sentenced weed to federal lockup. but it's what happened behind bars that stunned investigators. >> amazingly, while he's in jail he decides that he needs to make more money, sell more product. he was calling the shots for the whole thing, and he was doing so from jail. >> reporter: according to the ftc, while weed was serving time for his deceptive practices, he orchestrated a scheme to market four new diet supplements, called fastin, lipedrene, benzadreme and premerex. >> they sold millions and millions of dollars of this product. >> reporter: he says the print campaign designed by weed promised rapid fate loss and
1:26 pm
called one supplement a cyberthermo burning -- >> reporter: weed was ordered to pay a $34 million judgment but he claimed he was flat broke. >> he's still telling the court he can't afford to pay the judgment. yet he's driving $135,000 lamborghini. >> reporter: a federal court gave high tech until july 14th to recall the four products. but more than a month later, cnbc spotted these trucks at high tech's loading docks. emblazoned with the same claims that got the company in trouble. >> how does he get to continue on? >> because the court has not banned him from doing so. but the $40 million judgment may have that effect. >> that could sink him. >> that's possible. >> reporter: all right. it's very rare to wind up behind bars in any ftc case. but just this week a federal judge ordered weed jailed for
1:27 pm
failing to pull mihis pills off store shelves across the nation. he must turn himself into federal marshalls by tomorrow morning. back to you. >> what a case, andrea. here are headlines for you. d.r. horton higher today, the stock upgraded to buy from ups saying the home building is well positioned heading into the next stage of the housing recovery. mattress firms soaring more than 10% today. the retailer beating earnings estimates and it's buying rival sleep train for $45 million. go pro is taking a hit. jpmorgan downgrading the high definition cameramaker to neutral from overweight. it's pretty much a valuation call because as you probably know go pro shares have more than doubled from their ipo price of $24. let's take a look at how the metals have been performing. it's been a very volatile week for the gold market. down big early on in the week. now it's down just about $4 on the trading session. big move to the up side in
1:28 pm
palladium up almost 1.5%. and now rick santelli. >> reporter: is the market turning? it certainly looks that way. anybody who's a technician like mr. step tepper is seeing the same thing i am. do note we haven't traded above yesterday's intraday high yield of 246 hoping to chart up the mid july. you can see why this is so significant. it was a kilo yield. if we look at boones 98 basis points sounds like a very small yield but it's close to a two week high yield close as you see on this chart. the last start on july 1st because the euro is prominent in the dollar index. you have the euro at the lowest level since the first week or so of july, and you have the dollar in exit the highest level. as we close the year under 130, watch many of these traders go home short. back to you, tyler. >> all right, rick, thank you very much. coming up, two girls in their own dramatic words on
1:29 pm
surviving a shark attack. and has the european central bank's new bond-buying program to stimulate the region ended any talk of a correction for stocks? and what does the big move mean for bond investors? also the real read on real estate. dhoi deutsche bank's housing call. plus -- >> today's powerhouse is home to the nascar haul of fame. steelmaker new core is centered here. and it's the nation's second largest banking center. can you name that city. this is a burrito made with
1:30 pm
chocolate, soybeans, and apricots. what kind of chef comes up with this? a chef working with ibm watson, on the cloud. ingredients are just data. watson turns big data into new ideas. and not just for food. watson is working with doctors and bankers to help transform their industries. today there's a new way to work. and it's made with ibm.
1:31 pm
1:32 pm
welcome back to "power lunch" check out energy the weakest sector in the s&p 500 thanks to falling oil prices due in part to a rising dollar. you can see there it looks like the energy sector down abo about .8%. west texas intermediate down about 9% over the past two months. as a result oil companies taking a hit. these four oil companies all moving lower. sue i need to take a break. >> we're overworking you, court.
1:33 pm
thank you. the dow and the s&p 500 hitting new highs. as you can see the market is solidly in the green all the way across the board. let's get the latest trading action from dom chu. >> reporter: we talk about this idea the path of least resistance to the markets is the upside here. the balance, the verdict if you will for right now for the markets is this slow grind higher. you're seeing that again today. if you look at the s&p 500 intraday, we are off of our session highs but still positive for the day. so a good sign for some of the bulls out there. if you look where the action has been, you look at the best-performing sectors. there are names like consumer discretionary on the heels of better earnings numbers coming out from the likes of pvh. material stocks in the green, you heard courtney just speaking about the energy sector on oil prices. also telecom stocks one of these rate-sensitive sectors. interest rates are ticking higher. 10-year yield up about 2.45%. that's almost we'll call it
1:34 pm
maybe four basis points there. so again, telecom and energy the lag gua laggards in trading. it was been a stealth rallyish if you think about it the tracks on the eem. three-year high here so perhaps an indicating as well for risk and tights, sue in the market, back over to you. >> thanks so much. earlier this week we told you dick pave was calling for a second mortgage crisis. our next guest says he doesn't see that. joining us first on cnbc is mark roberts head researcher on strategy at deutsche bank wealth assets management. good to have you here. >> thanks for having me on. >> in your new report out yesterday you say real estate conditions are still favorable. can you give me the most important points that sway you that way? >> sure. i think one of the things is it's probably been one of the best times to buy a home right now. despite the little uptick in treasury rates, mortgage rates are still very favorable. household balance sheets are in good shape. as we saw in the note on energy,
1:35 pm
stronger dollar should help in terms of consumer income and disposable income. and yet home prices are still low relative to where they are at weak. we think it's a pretty good time to buy a home. the other side of it was just in terms of the commercial market as well. returns through the first quarter or through the second quarter for the last year were about 11%. this is an index that reflects the type of buildings that pension funds own. conditions are pretty favorable there, too. >> so from an investment standpoint, then, if i'm an individual investor who has a fairly long time horizon, it sounds to me you're still saying there are places to put my money to work in real estate. and if that is indeed the case, what would you recommend? >> obviously single family housing is one. also individual investors can get access to the reet market. those dividend yields are still much higher than the 10-year treasury yield.
1:36 pm
and also the fundamentals on property look really good. earnings typically grow in line with about nominal gdp about 5 to 6%. given the limited amount of new supply, the good job growth we've seen, vacancy rates are coming down and rents are getting higher. so we should see some higher earnings growth out of the reet sector. >> can you address dick bove's comments he sees a second mortgage crisis coming? you say you do not see that happening. it seems to meet environment is quite different than it was what we went through in 2008, '9 and '10. >> i think you're exactly right, sue. you compare some of the metrics today to where they were in 2007 or 2008, back at that time home prices were much higher than they were today. homeowners were borrowing much greater amounts. today they have to put down a down payment. interest cost as a share of disposable income is down to about 10%.
1:37 pm
that's one of the low points over the last 40 years. at the same time, regulators and banks have been judicious about doing income validation tests, down payments are required. i really don't see that kind of rest nkt mortgage market today. >> all right. mark, nice to have you here. thank you so much for spending time with us. >> thanks for having me on. appreciate it. to the nasdaq. bertha coombs. >> reporter: we've got a nice bounce back on tech today led by apple, apple yesterday down 4% in the wake of samsung presenting its new models including that new note with the edge on it that john ford has been talking about much of today. that is certainly helping things move higher here of course a lot of folks saying often apple a little low ahead of the presentation which is next week on the 9th. mean while, amazon today very robust in helping to move the nasdaq higher.
1:38 pm
bernstein is raising its price target to $450, saying they think amazon still has a number of categories where they can expand. amazon you can see there today up about 2.25%. sue? >> i'll take it there, bertha. two girls and a giant shark and a story they will carry forever in their own dramatic words next. and are you ready for some football? the 2014 nfl season, if you hadn't heard, it kicks off tonight on our sister channel, nbc. fans will get to experience the game like they never have before. plus he's 6'2" in real life but teeny tiny in the new madden nfl 15 game. we'll tell you what's going on. and -- >> the city featured in today's powerhouse is the largest u.s. metro area without a zoo. michael jordan has a home here. and it hosts bank of america's headquarters. can you name that city?
1:39 pm
tdd# 1-800-345-2550 we can help you decide what to do. tdd# 1-800-345-2550 with tools that help you see market activity tdd# 1-800-345-2550 is affecting your positions. tdd# 1-800-345-2550 so when the time comes to decide whether tdd# 1-800-345-2550 to scale in or scale out... tdd# 1-800-345-2550 you can make your move, wherever you are. tdd# 1-800-345-2550 and start working on your next big idea. tdd# 1-800-345-2550 is caused by people looking for parking. in a city that's remarkable that so much energy is, is wasted. streetline has looked at the problem of parking, which has not been looked at for the last 30, 40 years. we wanted to rethink that whole industry, so we go and put out these sensors in each parking spot and then there's a mesh network that takes this information, sends it over the internet so you can go find exactly where those open parking spots are. the collaboration with citi was important for providing us the necessary financing;
1:40 pm
allow this small start up to go provide a service to municipalities. citi has been an incredible source of advice, how to engage with municipalities, how to structure deals, and as we think about internationally citi is there every step of the way. so the end result is you reduce congestion, you reduce pollution and you provide a service to merchants, and that certainly is huge.
1:41 pm
shares of verizon down today off half a percent. virifone raising its third quarter revenue forecast thanks to sales of devices that can accept chipped embedded credit cards. costco revenue increased 10% to $8.8 billion. ty? >> all right, thanks. i buy my tuna fish in 144-pound pallets. powerhouse time. it is home to the nascar hall of fame. can you name the city? i'll bet you can. charlotte, north carolina. joining us is bonnie popandrea with wilkinson e.r.a. real estate median sales price of a home there very manageable $217,000 with an inventory of
1:42 pm
about 10,000 properties on the market an average of 61 days. so you can choose and you can buy smart at a reasonable price. first listing, 401 dover. it is listed at 565. taxes, an absolutely preposterous $2,000. four bed rooms, three baths, living space or 2400 square feet. tell us about this one, bonnie. >> this one is the up and coming sedgefield subdivision very close to town. you can get on the light rail, you can be up town in center city within five minutes. it going to have a $21 million retail facility being built that would be very close just minutes from this particular house. this house is brand-new, new construction. it has unbelievable features, all hardwood except for the master bathroom and the bathrooms in it. it has carera-looking tile in the kitchen with a beautiful
1:43 pm
carera-looking back splash. it has a drop down zone. a huge utility room. >> fantastic. >> it has a two-car garage. >> that looks really nice. let's move up a little bit here in price. tell us about 6915 colonial rea court listed at 875 grand. taxes just over $9,000. five beds, 4.5 baths. 2200 square feet of living space, bonnie, 4200. >> this is a diamond in the rough. this particular home is in stonecroft. the homes range all the way up to $2 million. this one has five bed rooms, 4.5 baths. has a large family room but feels cozy at the same time. has a great kitchen, gourmet kitchen. >> look at that. >> yeah, with a breakfast room that overlooks a large fenced-in backyard. great location in town. >> that looks -- so it's closer to town.
1:44 pm
there's the exterior another aspect of it at 6915 colonial rea, i guess is the name. 1811 pinewood circle. i can pronounce that one. >> there you go. >> 1.449. taxes $14,500. five beds, 4.5 baths, 5500 square feet. that looks like a southern mansion, bonnie. >> it does. and it feels like it. it is absolutely gorgeous. when you walk into the front doors you see a beautiful two-story foyer with a winding staircase. it has a master on the down with hardwoods anytime. it has beautiful tile master bathroom. it also has a gorgeous kitchen and it has a beautiful area for outdoor living space. this house is incredible as far as all the architectural details that go along with it and the designer high-end hardware that goes through the house. >> bonnie, i'm going to ask you,
1:45 pm
bonnie, to choose among your children here. which one of these properties do you think represents the best value given price, neighborhood, et cetera? >> i would say dover. >> dover. fantastic. was that the second one or the third one? that was the third one, right? >> that was the first one. >> that was the first one. that was the brand-new one. you said that was an up and coming neighborhood, brand-new. new house looking a little like an old house. bonnie, thank you very much. sorry to put you on the spot there. >> you're welcome, tyler. >> great to see you again. >> that's lirt. you, too. >> go panthers. talk about a powerhouse. here's the former rocky mountain estate of john denver out in aspen, colorado. you want to own it? it's for sale. it's for sale in aspen. 10.75 million. the compound has a six-bedroom main house, five-bedroom guest house. it's set on more than 7.5 acres in one of the beautiful parts of this beautiful country. sue? >> absolutely is, ty. you know, it's never a good
1:46 pm
time for a shark attack, of course. but it's probably a good thing that this happened at the end of the season. otherwise it could have ruined business on the massachusetts coast. two girls on kayaks attacked by a great white shark. listen to them tell their story. >> we were just talking and paddling. and i look over to talk to her. and it came completely out of the water and got the bottom of the board and flipped her over and knocked my kayak completely over. i saw at least four feet of its head. we were sitting in the water, and she was sinking. and i was flipped over holding onto the bottom of the kayak. and it was petrifying waiting in that water for the harbor master to come and not knowing if anybody was going to come get us. >> the scariest part was sitting in the water waiting, wondering where he was. you didn't know if he's under you or around you. >> oh, my goodness. that's a terrible story. all right. well, let's talk about something
1:47 pm
a little bit happier than that. because did you know that the 2014 nfl season kicks off tonight? with the packers and the seahawks. guess which one i'm rooting for. and this year my cheese head is falling off my hair. i'm surprised with all the hairspray that's in there. and this year the fans will get to experience the game in a whole new way. julia boorstin is at the centurylink field in seattle with that part of the story, hey, julia. >> >> reporter: hey, that's right. new technology is changing the game both for koemps and players here on the field and for fans at home. that story is coming up after the break. and we want to hear from you. will new stats like the distance that players are traveling enhance your enjoyment of nfl games? go to cnbc.com/vote. "power lunch" is back in two minutes. work with equity experts who work with regional experts
1:48 pm
who work with portfolio management experts that's when expertise happens. mfs. because there is no expertise without collaboration. in today's market, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price, maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today. dovisit tripadvisor new york. with millions of reviews, tripadvisor makes any destination better.
1:49 pm
this is holly. her long day of outdoor adventure starts with knee pain. and a choice. take 6 tylenol in a day or just 2 aleve for all day relief. onward!
1:50 pm
the green bay packers will take on the seattle seahawks tonight. and this year fans will get to experience things in a whole new way thanks to some really cool fresh technology. so do you think technology will help the game, and have you enjoy it more? you can vote at cnbc.com/vote.
1:51 pm
our julia boorstin has gone up to seattle centurylink field. jewel yeah, they say it is the loudest field in the nfl. it's quiet now, but it won't be that way for long. >> reporter: it's going to be filling up in just a few hours, tyler. and one of the things that's true here and in stadiums across the country is a range of new technologies. technologies designed to help fans and plays while boosting ratings as well as ticket sales. the league's new nfl now app, there's both a free and premium subscription version, offers the largest library of nfl video along with customized stats on favorite teams and players, plus access to the locker room and game highlights. on the field like this one expect to see microsoft's new surface tablet. the sideline viewing system enables teams to instantly review and analyze plays. microsoft is providing 25 tablets per team and paying $400 million for the exposure over
1:52 pm
the next five years. >> they're getting the ability for players and coaches to get four times the photo and content they had before. it's coming seven times faster than ever before. it's really going to redefine the game. >> reporter: to give fans access to next gen stats including player's acceleration and total distance run, the nfl is installing zebra technology's real time location systems in 17 stadiums to track both players and officials. so the fans here can access all that data during the game. stadiums across the country including this one have invested over $1 billion to upgrade wi-fi and enhance the technology throughout the stadium. the goal toys make sure that the folks here can watch video and access stats as quickly and as seamlessly as if they were sitting at home on the couch. >> jewel yeah, thank very much. let's lock in the viewer vote. we asked will new real time stats like distance traveled enhance your enjoyment of nfl
1:53 pm
games? 48% say no, but it will help the teams. 52% say yes, improve stats and in-game measurements are needed. and take a closer look at this video. one of these players is not like the other. he is much small. in fact, courtesy of a glitch, accidental or not in the new madden nfl 15 game, the tiny player -- i'm telling you tiny. look. look! he is cleveland browns linebacker christian kerksy. it's 6'2" tall in real life and taking it all with a good sense of humor. he tweeted "this glitch of me on madden is hilarious, might i say no matter how small you are you can have big dreams and live big on madden" sue. >> that's right, you sure can, ty. let's turn to the markets once again. the dow and s&p extending their record runs on the heels of u.s. data and the ecb move. and the dollar clocked some
1:54 pm
gains against the other currencies including the euro this morning. but is the run up short-lived? market analyst kenny polkari joins me now to talk about that. we got what we wanted from europe, kenny. i was a little bit surprise thatd market wasn't able to extend its move to the upside more. >> you felt it right away this morning, right? we did. we challenged the highs 2010 on the s&p. but then i think what ends up happening is that after they start looking at it and they pull it apart and digest it they really wonder, a, is this going to solve the problem number one. and b what does it really mean? has the market run up in anticipation of it? there is a whole lot more up side here at the moment or does the market need to come back and churn and build more of a base around the 2000 level. and i think that's just what you see happening. because once again, we're not getting explosion in volume, which would really be indicative of large asset manager kind of conviction. >> yeah, we're going into september. but increasingly even though september historically is a difficult montfort market, i'm
1:55 pm
finding a lot of people out there who say, you know what, we had our correction in august. and the underpinnings of the u.s. market in september this time around look pretty good. >> and i think you're right. and down here also. when i talk to customers and traders down here i also get the sense that people are much more comfortable this august-september as we move forward. there's not that sense of -- there's not that sense of maybe nervousness or pullback yet in the market. but listen, it's only the third day in september, right? we've got 20 more days to go. >> that's true. on that note we'll leave it there. good to see you, kenny. i'll be down there tomorrow. >> okay. three big winners after a break. but first mandy is right over here next to me, and she's got what's coming up next. >> as the euro is hitting 14-month lows against the greenback, what does it all mean for you as a u.s. investor? can we also have a strong dollar and stronger stocks? i'm going to pose those questions to our panel. also, life-changing wearable
1:56 pm
technology that monitors the glucose in you the diabetic. we're going to be speaking to the ceo of dexcom that makes the device. stay tuned for "street signs" starting at the top of the hour. [ male announcer ] what if a small company
1:57 pm
became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade. cozy or cool? exactly the way you want it ... until boom, it's bedtime! your mattress is a battleground of thwarted desire. enter the sleep number bed. right now, all beds are on sale. he's the softy. his sleep number setting is 35. you're the rock, at 60. and snoring? sleep number's even got an adjustment for that. you can only find sleep number at a sleep number store. head in for the final days of the biggest sale of the year. all beds on sale, with mattresses starting at $599.99. ends sunday. know better sleep with sleep number.
1:58 pm
1:59 pm
all right. let's check the markets. we are still in the green. the dow jones industrial average up 29 points. s&p 500 up about 4 points on the trading session. and the nasdaq composite is up about 12 points on the trading day. the yield on the 10-year moved up today. and last trade is 2.45%. we also had the dollar moving against the euro because the ecb moved today weakened the euro. so that is the performance of the euro versus the dollar. you can see the euro actually touching its lows of the trading session. three winners right now, pvh corp, fastenal and best buy. fastenal up 4% and 9, almost 10% gain in pvh corporation. >> you know, i've never seen you talk with your hands quite the way you're doing right now. >> spirit fingers. >> you're almost like a kenny paul kerry talking with your hands. >> oh, my god. >> there you go. >> i want to see you blackberry
2:00 pm
with those things, you know? >> no. it doesn't work on an iphone, either. >> and then she has graciously lent me her cheese head for the packers this evening. >> that's how much i love you. share the cheese head. >> thank you very much. "street signs" begins right now. see you tomorrow. go packs. u.s. economy is looking good. and a strong dollar is good for america. but is a strong dollar bad for stocks? we'll show you why history says it just might be. hi, everybody. lots on that. plus our picks for ceos who need to go and the chosen ones who should run them. the one sector of the stock market you probably have not realized has done spectacularly well. and finally, a feel-good airline story, mandy, that may restore everybody's faith in humanity. >> i certainly hope so, brian. we have had records a go go earlier on today. let me take a look

232 Views

info Stream Only

Uploaded by TV Archive on