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tv   Street Signs  CNBC  September 5, 2014 2:00pm-3:01pm EDT

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that will wrap up this shortened trading week right after labor day, and that will do it for this edition of "power lunch." >> have a great weekend, everybody. tyler and i will see you on monday. "street signs" begins right now. so here's a question for you. can an economy improve without the creation of many new jobs? it's a hot debate on this jobs friday. hi, everybody. plus the man behind one of america's hottest restaurants bringing his secrets to success. another hacking revelation, this time with healthcare.gov. would it help the job market and working parents if schools went to a 9:00 to 5:00 school day? mandy, i know you're a mom.
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>> i am a mom and i have very strong views on it. we just in the last hour wiped out the week's losses on the dow and the s&p, which would mean week number 5 of straight gains. and the greenback rounding out its highest streak in 17 years which means more buying power for you, working america. it is the longest weekly winning streak since the introduction of the euro which i remember very well back in tokyo in 1999. >> and a very strong set of numbers, i might add. while the markets seem to be shrugging off today's disappointing jobs number because they know the market is back in play or august has traditionally been a bad month in the last few years. steve, first to you on this. the numbers came out, saw the reaction and thought, oh, my gosh, we're doomed. but then it was, oh, then the fed is back in play. and i tweeted out august has always been terrible the last couple years.
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what is this? >> if you were at an economics conference and you asked that question, red lights would go off all around you, ding, ding, ding, ding, ding, you have asked the gazillion-dollar question, ask at no time in our history has that been challenged now because of things like cell phones and technology. there's the ding i've been waiting for. the sluggish nature of job growth and now, right now, 4.3% in the second quarter, and i can tell you our cnbc rapid update, unchanged for the third quarter after the disappointing fourth. seriously, there is a relationship between job growth and unemployment, and it has held up surprisingly well in this recession. >> do you think the fed is focusing on the right thing when they talk about the slack in the labor markets? because i'm wondering, we could keep these interest rates forever, steve, for an entire
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lifetime, and is it really going to make a difference to jobs growth? >> let me make the hair on the end of rick san ttelli's neck stand up, they would say rates aren't low enough. >> we make it low and we get more jobs? >> certainly not making them higher. the thinking, mandy, would be that it wouldn't make many more jobs created. >> rick santelli, i'm assuming the hair on the back of your neck is all abristle, so would you like to tell us what you think of the last few months? >> exhibit a. we could talk about bald tires. brian knows. you can have four bald tires and still make it around the track, so i guess you can improve. exhibit a is europe. yes, they have improving economies and they had lousy job markets for the most part, but there is another way to look at this as well.
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interest rates must go up, they must normalize to create more jobs. and i will, as exhibit b, use mr. sam zell. sam zell would maybe like to create a short line railroad, invest billions of dollars over five to ten years. will the exit be messy? will eventually janet yellen decide she's going to normalize quickly and then he'll have all that interest rate risk with no way of seeing it coming or any rule about the feds? >> there is going to be billions of dollars over the next couple years doing interest rate risk. that's what sam zell does. the feds cannot do away with interest. that's part of the free economy. >> you'll all be proud of me, next week i'll be at the epicenter of the strategies of the federal reserve and maybe part of the bank of england, maybe the ecb. i'll be in disneyworld and
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fanta fantasyland. >> i just randomly guessed and i was correct. i thought he might say wrigley field. >> nbc universal studios. >> back on focus. the last ten years, the second quarter of the year has always been the best quarter for jobs growth. so this number today, one month does not make a job market. this economy is still doing well, it is healthy. granted, one thing rick is talking about, we're not getting the high variety jobs right now. we're not getting the high quality. >> let me quote because i know a lot of our viewers -- >> anything above part-time in mcdonald's, yeah, you're right. >> let me give you three numbers i tweeted out this morning, okay? 2011, zero. 2012, 96,000. 2013, 169,000. those are the number of headline jobs before the revisions that were announced in the last three augusts. so let me ask you this, because we have a big debate about school hours and other stuff coming up later on.
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why is august generally so lousy? >> it could have something to do with auto production and when the layoffs happen, when the shutdowns happen. also you have this whole back to school thing. i want to underscore something we said. nobody is out there saying this is a strong jobs report in a vacuum with just this one report today. there is a whole bunch of other data out there, brian, upon which economists are resting their notion that this report itself is the outlyer, and other data out there -- >> it's an anomaly. >> -- it's an anomaly. >> 7 out of 10 americans that never listen to economists think we're still in a recession. >> the debt to income ratio in the household balance sheet is actually rising again. it's $1.25 to 1. this is the first time we've seen it rising since the economic implosion. from a balance sheet level, the only thing keeping this economy, i would say, growing, and also
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optimism readings for positive is the stock market. if you remove the stock market, the stock market goes into any type of bear market, that could have a dramatic impact not just on the household level. >> but that's not the scenario you see? >> not at all. this market is going to continue to rise, things are going to be great. americans are eventually going to get back to work. that spillover effect at the fed and the qe, what they want to do with that intent will come true, it just won't happen next year. >> they have more test tubes at the central banks -- sam zell doesn't know what he's doing. we do great jobs through test tubes. we don't need those entrepreneurs. >> test tubes made a lot of money. >> and you know why he made a lot of money? he had products people wanted, services people wanted. >> nobody cares, but i'm going to say this, anyway, because i feel like it needs to be said.
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i hear what rick is saying. 7 out of 10 people may think there is a recession. we've always had a lot of problems in this country. are a lot of people still struggling? we could fochoose to focus on a lot of negatives out there. let met finish, okay? my mother is a high school dropout who hitchhiked to california when she was 17, lied about her age to be a telephone operator. my point is this, rick. now i'm sitting here, okay? i'm sitting here because my parents pushed me and i busted my butt and things worked out, okay? >> so maybe we have to work on the family unit, then. i'm okay with that, too. >> i'm not saying there is any rationale, but you can't deny the economy -- >> you're on the wrong track, brian. you're making excuses. >> i'm not making excuses. the economy was better three years ago, period. i can find a hundred negative
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data points and 200 positive data points -- >> i'm not negative. that's what's happened since 2008. every time we look at the economy and be honest about the numbers, it's like you're a villain in this novel. >> nobody is saying -- no, no, no, no, no. let me finish my thought and we can plow on. that's not what i'm saying, rick. this has nothing to do with you. i'm saying we can focus on the positives or focus on the negatives. we seem to, as a nation, become obsessed with our problems. there are many. but you can't get ahead in life if you're constantly worried about what could go wrong. >> lifrg ving in mom's basement yeah. >> there's usually a job out there for you. we talked to many people on "street signs." they want to hire and they can't necessarily find people with the right skills. you're saying in america you can move up. it's the american dream. if you want to work, there is a job out there. >> for 11 grand per pupil! what's going on with that?
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>> i mowed lawns every summer in college. >> here you have a stock market doing so well. there are so many optimistic points right now that you can focus on. you can focus on the challenges. maybe you want, houwever, to jut take a step back and look at the bigger macro picture. >> i am. we're still not in a recession. we do have a great economy. >> glass half full, rick, glass half full. >> i'm not agreeing with anything rick said at all or criticizing. we have people on all the time who have succeeded and we listen to them. i know we got to go, guys, i just want to finish this point. every single person i've met who is incredibly successful -- and it doesn't have to be monetarily. success based on money is crap. we define success a lot of different ways. but every single person i met has had the ability to overcome obstacles and keep going and be
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optimistic and positive. that's the only point i was trying to make. you know what, i can't do it, i shouldn't try. >> give it a go. >> give it a shot. that's all i'm saying. >> well said. >> follow your dream. rick, todd, steve, thank you so much. coming up, we'll be talking to the man who runs one of the hottest companies to go public so far this year. we'll ask him about the jobs market, if he's hiring. plus, two real small business -- gasp -- success stories. we're going is to ask if they'l help the job markets by hiring workers. i either need a cocktail or a glass of water. time and sales data. split-second stats. ♪ its so close to the options floor,
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the latest update on a developing story, a large plane flying over the atlantic causing commotion today. aman jabbers is following it and has the latest. aman? >> reporter: the plane that took off was scheduled to go to naples, florida from rochester, new york. it became unresponsive, and nato got two fighter jets to surround the aircraft. it has been unresponsive. it is now flying over cuba. nato was forced to break off before entering cuban air space. the aircraft we're being told is
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a tbn 900 small commercial plane. it has flown over cuba at this point and is now over the caribbean sea. what we're being told now from flightaware.com is they expect to lose radar contact with this flight at which point they'll determine that it is flight result unknown in terms of their own categorization of what's happened here. what they're also telling us is that this flight will now be hitting the very end of its fuel range in terms of the normal expected amount of fuel that would have been on this aircraft, going from rochester to florida. they would expect that would have been about 1585 nautical miles plus reserves, so it could go a little farther than that, but flightaware telling us that flight had gone at least 1400 nautical miles. so an unfolding dangerous and potentially tragic situation here. what we're told now is a little more information on the plane itself. the tail number n900kn. it's registered to an address in
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rochester, new york and not a whole lot more. it's a single engine turbo prop. >> thanks very much, and we'll keep an eye on the developing story. shifting gears, while some restaurants are struggling, others are thriving. and this restaurant offering everything from its chicken is growing. shares are up 140%, making it the fourth best ipo of the year. the company also reported earnings after the bell yesterday. steve is the ceo of el pollo loco. steve, thank you for joining us today. your long-term aim is 1,300 restaurants across the country which means you'll need to do a lot of hiring, sir. are you finding the people you need easily? >> yes, we are. we're very excited about our expansion potential.
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you mentioned the 2300 units nationwide. we're really focused in the southwest right now in the five current states that we're in. next new market is houston for us. and, in fact, we're hiring right now for that store that will be opening at the first part of october. so we're finding the people. >> you're finding the people. that's really good to hear. but how are you staying different from your competition, the likes of cmg, chipotle, chic-fi-la and others? >> we focus on our citrus mayor natured flame grilled chicken. it's very healthy for you. then we take that chicken and chop it into mexican aentrees, tacos, burritos, our very popular stuffed burritos, so we
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have a very unique menu. it's much like the quality of food you would find at a chipotle or pa innnera, at the h end, but we offer quick service. a majority of our business is through the drive-throughs and our pricing is just above qsr but below a chipotle or panera. so very valued appeal to people. >> we grew up with an el pollo loco and loved it. you guys are growing fast, and how big of a growth opportunity is there? >> we did a lot of research about three years ago as we began revitalizing the brand, and what we saw was that our menu appeals very much not only to the hispanic market but also
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the general market. and we were very successful. and i attribute that to companies like chipotle who have introduced burritos and tacos around the country, taco bell as well. >> so it helps you guys, steve? >> i certainly think so. they're certainly -- a factor that we're seeing is that quick restaurant consumer has been demanding for years a higher quality product. really, that's what created fast casual, and that's why i think chipotle, panera and those are doing quite well. we have that high quality product but at a value-oriented price and a format that gives you the convenience of drive-through and the speed and the value. we think we're very uniquely positioned. >> steve, last month we were reporting on russia's ban on various u.s. agricultural products, including chicken. have you noticed an impact on the price of chicken, for example, going down, and is that
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helping you in terms of margins? >> we haven't seen -- first of all, we're contracted through the balance of this year for chicken contracts, so i haven't seen any of that change. certainly the price of corn -- cost of corn going down has helped, but also in the same price you've got beef that is going up, which is pushing a lot of the qsrs to promote chicken products. so we're seeing pricing kind of flat as we look to next year. >> steve, thank you for joining us with your unique view. >> thank you very much, and we're very excited about our future. it is back to school time and it is also jobs day, mandy. here are two questions. do school hours make working or finding a job even more difficult, and should schools go to a 9:00 to 5:00 day? >> yes, please. we're about to assemble a pair of small business owners, including one who has their
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products in target and walmart. we're going to ask them what they think is blocking hiring in america right now. whenwork with equity experts who work with regional experts who work with portfolio management experts that's when expertise happens.
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in august. not great, but does it signal a slowdown in the economy? let's go to front lines and forget the surveys and speak to people who actually run a business. alicia gallagher and larry combs. from your perspective, you're in target, you're in walmart, big stores, but is the economy getting better or slowing down? >> when you talk about the economy overall versus black hair care, those are two different subjects. i see a growth in the black hair care market tremendously and the black buying power, which is projected to reach $1.1 trillion by next year. so that's a lot of growth. now, when we talk about the economy overall, will we definitely see challenges? absolutely. we see challenges with an appointment, we also see challenges with a slow labor growth. for us it's been a plus, and it's been an area of growth
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exponentially year after year. >> marisha, to what degree have you wiped out one of those challenges being taxes, and i just noticed you relocated your office from california over to dallas. >> yes. >> and you're going to move some of your manufacturing there as well. >> you know, i moved my offices, my warehouse and manufacturing is here in texas. texas is a business-friendly state. and so it just made sense for us to do so. >> all right, larry, let's go to you. by the way, we should note that you're a familiar face but you just won an award. i think small businessman of the year in oklahoma. so take a bow, larry, take a bow. i don't know how long you guys have been listening, whether or not you heard my passion speeches, what i'm calling the rant about overcoming obstacles. you guys both did that, larry. can you provide some context as to what it takes to run a business and be successful? i feel like we're just focusing on so many negatives in the
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country now. >> that's a good point. i'm second generation. my father started the business in 1964. this is our 50th year in business. and during that time, we've seen unbelievable amount of problems. in the '80s when the oil bust happened, we lost 60% of our employees. we dropped from a million seven to less than 400,000 in sales. and then in 1984, i lost my father. so the '80s were very difficult on us, and there were more recessions, and then a couple lawsuits on top of that. you know, to be in business today, you really got to want it, and you never run the victory lap because if it's good times right now, you know that it won't be long until things change. and if it's bad times, you got to just hang in there because things will get better. >> and i love your optimism, larry, because i know you do believe that we as a nation here in america can win back our role
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as a leader in manufacturing. but i'm going to play the cynic this time, okay, the glass half empty kind of role. >> oh, i wish you wouldn't do that, but okay. >> i'm just going to say it would be great, i would love to see this country once again have an incredible leadership role in the entire world as a manufacturing base, but with technological advances and that kind of thing, do you really see that happening any time soon? >> i think it's happening right now. we've been calling for it for a couple of years. we outsourced. we had products in other countries. we had to do it by ocean freight to be able to make it economically sound, and by the time a boatload of product comes here and we check them and the tolerances are out of whack, that means we've probably got two other boatloads coming that do not meet our tolerances. so quality is a big issue, and their prices are going up. their prices are going up, we're getting better.
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we bought some new equipment last year that made it very cost effective for us to do the work here in tulsa. and the biggest problem we've got are finding people that want to work and finding people that have the appropriate skills. we hear a lot about a lot of people out of work, but the people that are out of work, they don't have any skills, and our high school dropout rate throughout the country is around 30%. >> let me say, larry, that it's your job to train them. it's not the government's responsibility, it's larry mocha, and if you want workers, you have to build them from the ground up. >> we love it, but we have to get them out of high school first, and that's a big problem. then we want to work with our career teches to mas to make ou even stronger. we can do this. it's a great time for america, it's a great time for oklahoma. we have to get people who want to work.
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>> it's sunny outside, we're heading into a weekend. you're a successful small business person. can you offer a piece of advice for people who may be watching or listening who want to go to work for themselves? >> absolutely. i would say do your due diligence. you want to make sure you know your market in and out before you launch into a business that you may not be aware of. you want to make sure you do so also with support of a mentor, someone who can help guide you that has done it before, that can help you prevent any mistakes, pitfalls, that could cause you to fail. i would also suggest that you look at public services that you can take advantage of in your community, like score for free mentoring, free classes. puck do you can do it if you put your mind to it as long as you're prepared, resilient and in it for the haul. >> a number of your products on the table smell delicious, almost edible. >> almost edible. they're hair care products. right, marisha, almost edible.
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>> you can eat them and use them on your hair so it's like a twofer deal. >> they're amazing. the creme brulee is great for moisture on everybody's hair, straight or curly. you'll love it. >> she coordinated it with her jacket. >> she did. the government now admits the obamacare website was hacked back in july, but is the site still compromised? we'll have answers for you ahead. and we're talking taser. the share is getting a jolt today. we'll explain why, coming up.
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>> are you confused? jane wells is going to complain this odd connection just a little later on in our show. no street talk today. let's move right on to talking numbers, and today it is taser international. jp morgan affirming its positive rating on the stock, and we've got primary executions on the technicals. steven, i'm going to start with you, because if you don't know the history of taser, it has been a hotly contested, technically driven, short trader selling stock for about a decade. how does it look right now? >> you kind of hit the nail on the head. right now it looks like it's gone to a short squeeze. it's pushed up substantially during the month of august, but it is now considerably overbought in terms of momentum ice larters, and it's reaching n area of resistance in the 18 area that we've seen since february of this year. we would suspect those who bought it in that time frame are looking to get out, they're still holding positions there,
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plus people who bought it in august are probably looking to make a profit at this point. we would be thinking of the consolidation phase as a more neutral or cautious phase going forward. >> what about you, erin? >> even though it's a little overpriced, i like tb here. we saw a drop in the price because we saw a drop in income. the revenues were doing very well, the in connection wicomes. recently they issued their orders and they're very strong. yes, everyone knows about their stun guns and they've had orders for that. but with the ferguson incident and tragedy, we've seen a big increase in the tasercam hd which is wearable technology that creates a digital video. and so this has been discussed quite hotly in the media, and even in the orders that were
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released yesterday, we saw, i'd say, about a quarter of the police departments putting in those orders for those cam hds. so looking at just potential future growth, they're already borrowing at about 20% revenue growth year after year. they're trading at about 26% revenue, so i could see the stock going up given the actual cameras. >> okay. thank you very much to both of you for joining us. you can check out on line if you want more. another day, another hacking story, but this time, mandy, it's not with a company, it's with healthcare.gov, the website for health care. the good news, it appears no personal data was taken, but this is still considered since it's a federal government national security breach. joe joins us now. what can you tell us how severe? when i hear no personal data was
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taken, i think, is it that big a deal? >> it's a big deal because it's hypocrisy happening inside the government with the way cyber is handled. there are companies that have high-tech frameworks to protect against these security compromises. why is the government not relying on these standards and protocols out there in order to protect us? >> is it true that cyber criminals can make a whole lot more money with the loot of stolen medical data as opposed to credit card data, joe? >> it's about 20 to 1. for every medical record, they can make $20 compared to a credit card company which is, on average, about a dollar. you can see with the health care push going in 2015 with all digital records and medical devices that now that's going to be the new honeypot, and that's where the health care system is going to have to step their game up big time. >> and make sites like healthcare.com sort of medically
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sensitive sites much of a target for sort of state-backed hackers, no. >> and that's the issue, there are state clout companies out there. there are companies like fire hose. they specifically specialize in hosting web sites. when you have a hospital that has a website where you need to pay your bills, you need to upload your medical records, you need to talk to the doctor. they need to leverage the people in the market that have these solutions. that's the scary part, why are we not leveraging the same talent pool that the bad guys are doing in themselves. they've got individuals out there hacking, state-sponsored groups. why aren't the good guys using the same jedi knights to protect themselves? >> why don't we just go back to paper? i'm only partially kidding. at what point does this become so stupid that every day there is a hacking story that people, if they can, just give up on
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technology? >> that's the sad part. convenience is always going to outweigh it, right? everybody wants their life to be simpler, so we have to have some cyber technology dependency, and unfortunately that's the day we live in. if we could go back to paper, i think people would learn to appreciate on you nice it was during the phone and fax days. >> i remember the days i walked through the ice and snow. it got nasty in california last night. you might have seen the debate between governor jerry brown and challengeer neil kashkari. it was all about money. you'll see how nasty it got, next. speaking of nasty, why is a brothel owner one of the big winners in tesla battery factory's division to build in nevada? it's not what you think. we'll tell you what tesla and
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but parallel parking isn't one you do a lof them.ings great. you're either too far from the curb. or too close to other cars... it's just a matter of time until you rip some guy's bumper off. so, here are your choices: take the bus. or get liberty mutual insurance. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. see car insurance in a whole new light. call liberty mutual insurance. we've got some breaking news on that plane that was flying
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with an unresponsive pilot. let's go to ama narks jabbers with the latest. >> reporter: we now have confirmation from members of the family just who was on that aircraft that has been unresponsive. gentlemjamaica is saying that ps crashed on the island of jama a jamaica. it left from rochester, new york headed to florida. we're now being told that jane and larry glaser from rochester are two people who were on board of plane. larry glaser, a real estate developer. the family says his wife jane was also on that aircraft this morning, so we're getting confirmation of those two names as of right now. what we're told is at least initially they were the only people on board that aircraft. we're going to get a little bit more information here as we have it coming in. but jane and larry glaser are said to be the passengers on board that aircraft which the associated press is now quoting
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jamaican authorities as having crashed in jamaica. >> buckingham properties, the company that's owned by the glasers, they own more than 10 million square feet of properties, including xerox square. they are one of rochester's most prominent families and successful business people who own a lot of real estate that is high dollar and high profile real estate in rochester. >> yeah. obviously xerox a key player in rochester and some of the real estate developments there would have been for xerox and some of the other companies that are there. this will be a potentially tragic development here for the business community there, brian. >> indeed. thank you very much. let's get breaking news on the big chinese ecommerce. i'm guessing more news about its upcoming ipo, kayla. >> that's right, mandy. as we get closer and closer to this expected ipo, more details are coming together as to exactly what the next couple weeks would look like for the
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company set to meet with investors in the next couple weeks. that roadshow is going to kick off monday here in new york city with a big group lunch. a lot of investors will be attending. then it will end a couple weeks later on september 18, also here in new york. but those two executive teams are going to split up so they can cover more ground. they are going to cover a lot of ground and i'm told they're going to hong kong, singapore, the middle east, boston, l.a., denver, san francisco, chicago, baltimore and kansas city, which is interesting, but then they will price that ipo on the afternoon of september 18. they'll have their first trade on the 19th. originally there was talk, guys, about pricing and trading the deal earlier in the week because, remember, ali baba's employees in asia will be taking part in this deal and they will get a good bit of stock, too, but they'll have a big party in their auditorium at headquarters friday night. that's the timetable we're looking at right now. >> thanks for updating us.
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governor jerry brown and tishkari squared off last night and they used the tesla factory in nevada as a line of tension. have a listen. >> governor brown frequently says businesses come and go. it's not businesses coming and going, it's tesla, it's toyota, it's schwab, on and on, and they're all going. we have to rebuild california, and that means we have to bring good jobs to california. tesla is one of many examples of this failure of this administrati administration. >> but governor brown decided to get nasty in his response. remember, neel nashkari was the big chief in the bailout program. >> we learned from goldman sachs and the rest of the people who ruined the economy. we had to bail them out, though. it was kind of like the arsonist
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pigt o putting out the fire. >> jerry brown going after some popular viewpoints in the case, which is washington. >> i think it's interesting the way neel nashkari kept other businesses from going to other states. we spoke to a small business leader who said she also moved to dallas, texas and will be moving some of the productions. she's on the smaller scale, but nonetheless, the outflow continues. >> you're talking about a california-bred guy. we left because my dad couldn't find a job in california and we moved to virginia. i'm one of the ones that left. there you go. by the way, one of the key men in bringing tesla to nevada is a brothel owner. but no, it's not really what you think. jane wells, what should we be thinking about this? >> actually, it is really what you think, mandy. what do electric cars and prostitutes have in common?
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lance gilman. we first met him two years ago. you have to be the most diversified businessman in america, wouldn't you say? >> i have a diversified portfolio. >> that's in 2012 and lance gilman is a long-time developer who also owns a ranch outside reno. he's on the commission and also on the city council. almost $100 million of infrastructure already put in, a freeway and a railroad for distribution purposes. that's where tesla is moving in, and it's a place, he says, where business is to business friendly, they can get a building permit in 30 days or less. >> it's all developer built with private money. there are no bonds, there are no state funds, there are no federal funds. >> tesla will be moving into an industrial center where tenants include already walmart, toys r
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us, petsmart. reno's economy has had a much more difficult time. even the brothel business took a hit. the tesla factory will bring in a lot more jobs. so are the schools making an unnecessarily hard appearance to work? >> how some cities are finally making changes to better work and school hours. it's a hot debate. stick around. inhales ] [ male announcer ] at cvs health, we took a deep breath... [ inhales, exhales ] [ male announcer ] and made the decision to quit selling cigarettes in our cvs pharmacies. now we invite smokers to quit, too, with our comprehensive program. we just want to help everyone, everywhere, breathe a little easier. introducing cvs health. because health is everything. introducing cvs health.
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that corporate trial by fire when every slacker gets his due. and yet, there's someone around the office who hasn't had a performance review in a while. someone whose poor performance is slowing down the entire organization.
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i'm looking at you phone company dsl. 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. well, this jobs friday we want to take a closer look at school hours and whether they are hurting the job market. think about this, most kids get out of school sort of around 3:00, right? if that's the case, your options seem limited. here's the good news, some cities are changing dismissal times to try to better accommodate working families. >> indeed, we asked you, our viewers, on twitter if school hours should mimic the work day of average 9:00 to 5:00 and we got some tweets from both sides. here are just a couple. thank you, everyone, by the way for tweeting in. my kids are home by 2:30 if no activities, plays havoc with schedules. i'll even take 8:00 to 4:00.
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would be disastrous. after school activities and homework pushed till late was okay for us as kids. here on set to weigh in, author and new york post columnist, mother of three kids. i'm a mother of two kids. you're the mother of nearly two kids. >> mother of nearly two kids? >> father of nearly two kids. >> things were different, naomi. >> what do you think? >> i think that school hours are basically set not to suit students or parents, they are set to suit teachers and bus drivers, that's why there are a lot of problems in terms of timing of schools. >> teacher and bus unions. >> absolutely, absolutely. you have situations where kids in high school are starting learning at 7:00 in the morning, even though every study shows they'd perform better if they started learning 9:00 in the morning. there's a situation where the parents' voices are not being heard. that being said, i'm not sure how much it's actually affecting employment rates. the mothers who tend to drop out of the workforce are not
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dropping out necessarily because of school schedules. in fact, they tend to be the wealthier and more educated ones. >> is that true? >> yes, there are real studies that show it tends to be the elite and wealthy who are dropping out when their kids are little. >> yeah, but -- >> makes life hard, certainly, for working parents who are in the working and middle classes. >> fine, but that's exactly our point. some people -- i'm trying to figure out how to phrase this the best way. the reality is that unless you make a certain amount of money, paying for childcare and after school programs and taxes and costs becomes economically the rational decision to say i'm going to stay home, because if i don't make "x," all the money goes to somebody else anyway. >> right, absolutely. >> if you can stay until 5:00 in school free -- >> it would certainly be more convenient. i'm just saying looking at the evidence right now, you don't see a lot of mothers who are working class mothers making the
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decision, okay, i'm going to stay home, because they really, even if that's tight of a margin, they are going to keep working, and often they are the families more likely to have an extended family to help out or some kind of, you know, makeshift childcare arrangement that has to happen. certainly, a 9:00 to 5:00 school day would make their lives easier. >> certainly, less vacation. i can speak for australia, we have a lot more school days in the year and seems kids are always on vacation. >> we're still working with an e grarn a gcalendar. >> is that why? is that why kids go to school? >> absolutely why we get out in june. >> the bus when it's dark. especially in the winter, they are on a corner, it's, like, 6:55 and they are freezing and there's cars wizzing by them. >> the timing is absolutely the result of the bus drivers unions and teachers unions, but the numbers of days per year, suddenly you have to deal with camp, weeks of vacation that you
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have to take over the summer. yes, there are plenty of advanced countries who are doing better than ours in test scores, who are sending their kids to school many more days a year. >> also the other question, if kids are in school for longer, do teachers get paid more? they should, obviously, if they are having to work longer hours. >> who's saying they are going to be in school longer? >> 9:00 to 5:00. >> shifted two hours. >> my kids were in 8:30 to 2:50, a whole lot less. >> that's not a lot of school. >> that's what i'm trying to say. >> two plus two equals, time to go. >> thank you, naomi. >> thank you very much. all right, it is friday. time to reveal our stocks of the week, plus, it might get a little testy on set again, but for different reasons. this time it has to deal with college football. >> i know nothing about college football. >> just wait. who do you trust? whose analysis is accurate? how do you make sense of it all? a simple, unbiased stock score
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all right, my stock of the week, costco, up nicely this quarter. the eps will return to double-digit growth soon. >> mine is actually -- this isn't the type of me getting early alzheimer's, in staples again. past week up another 10%. rival office depot up 10%, as well. it's not just back to school, it's also speculation of a merger between the two, fending off online retailers like amazon. >> okay, okay, we have to move on to something more important. it was called to my attention you tweeted out go tide. >> no, i didn't, roll tide.
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>> which would be fine if your co-host didn't go to another football power house. this is a problem. right now, this is virginia tech, my alma mater. here's a virginia tech hat. hello, my ears stick out. i want you to say go hokies. >> go hokies, roll tide, yawl. have a great weekend. >> "closing bell" starts right now. ♪ and we welcome you to "closing bell" for this friday. >> kelly evans returns on monday, but if she were here, she'd also be saying go tar heels. >> yes, she would. no, she wouldn't, but that's what you would say. >> it's okay. we did have a weak jobs report this morning, but is it good for the stock market? that seems to be what happened today. futures turned around first thing this morning when that number first disappointed, making many believe janet yellen's fed could go e

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