tv Power Lunch CNBC September 22, 2014 1:00pm-2:01pm EDT
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talking about the u.s. dollar continuing to rise. >> we are watching alibaba. we are coming off a big weekend where apple blew away the numbers. s&p on track for the worst date since august 5. nasdaq seeing the worst of it today. worst day since july 31. "power lunch" picks up that story right now. "halftime" right now. "power lunch" and second half of the trading day start now. >> thanks very much. the nasdaq getting pommelled as scott just mentioned. here is the day down 57 points a percent and a quarter. the russell 2000 even worse slide down more than 1.5%. a little less than right now. we are all over this sliding picture for stocks. well, sliding is not the word for the iphone. rising is the word there. the number is a big one, more than 10 million iphones sold
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this weekend. what does it mean for apple shares? and cell phone towers are sprouting up all over the d.c. area and other parts of the country. amine javers reports they are not routing cars at all. they are collecting data. why and who is behind it? down to sue at the new york stock exchange where it is a tough day to be on the bull side. >> if you bought into short etf you are on a roll today. the rwm is the inverse of the russell 2000 index. it is up almost 1.5% today. psq is inverse of nasdaq 100. sh on the other side of the s&p. all of those indexes including dug, doug and myy is inverse of
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mid cap and sbb inverse of small cap all up today. we start with bertha coombs. >> the shorts are finally having their day and very tough to be long. both big caps and small cap. yahoo is the biggest cap and the biggest decliner of the day. if you take a look at the last week big enthusiasm into the alibaba ipo. now what? what are you going to do with all of that cash that you are going to get even as yahoo retains 22% stakes. a couple of down grades putting pressure on that stock. the real study is the break down in small caps. take a look at the russell 2000. the yahoo, apple, big caps here on the nasdaq. they are still a lot better than 12% on the year. the russell 2000 continues to drive lower as we see a number of investors sell out. a lot of folks thought it was a source of funds going into the ipo. this appears to be something
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really technical. some of the technicians are noting that about 63% of the russell 22000 stocks are tradin below the average. apple, the biggest shiner of the day apart from cigna. the big halo from the record sale not extending to all cup exponents. quaalcomm is one of the winners today. the plant, none of them seems to be reaping the benefits of that apple halo being in the iphone 6 and iphone 6 plus. >> thank you very much. bob is here and it is an interesting day down 80 points now. >> i'm calling it a lousy day for global growth. outside of the weakness that we are seeing in the internet stocks and some of the momentum names there is your global growth slow down concern. here you look at gasoline down 2%, texas crude, nickel, copper
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all down right across the board. when you get that you get shipping companies, big shipping companies, front lines and eagle bulk shipping. they add a shipping. these guys ship dry goods around the world and liquid goods around the world. you get iron ore stocks and steel stocks down 3% or 4%. all on the weak side and of course emerging markets. we can buy south africa today. there it is. australia, brazil, china and there is the emerging market, the biggest one of them all. finally i want to note here we see weakness in the chinese internet and s&p 500 holding around the 2,000. chinese talks about the idea that perhaps we are not going to do stimulus programs. finance minister and the market
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sold off largely on those comments. >> i will see you again in a little bit. >> i will have more thoughts on what is coming up. down to washington with breaking news. >> that's right. the s.e.c. is announcing it is making its largest ever whistle blower payout to a person they say living overseas. this payout is going to get to the key issue with the s.e.c. whistle blower program which does it pay enough money to reward financial executives to come in from the cold with tips about financial fraud if they face the prospect of losing the rest of their careers in exchange for cooperating with the united states government into an investigation into a financial firm. so the s.e.c. now saying this is the largest ever at $30 million. they say this fraud which they are not detailing in any way would have been very difficult to detect without information provided by this whistle blower. >> back up with the market
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flash. >> let's follow up on comments about the stocks all moving lower not increase stimulus measures. you look at aluminum china, pet row china. a lot of these depository stocks showing sharp losses. you can see from 2.5% to 5% of the down side. >> the iphone 6 went on sale friday. people lining up across the country and around the world to get their hands on one. looks like the new iphones are paying off for apple in a big way setting a new sales record. take a look at how the stock is performing. apple is basically flat but the stock is up 26%. josh has details for us. >> apple sold 10 million iphone 6s and iphone 6 plus phones. that is a record opening weekend topping last year's launch by more than 10%. that is 1 million more than
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apple sold last year during the launch of the 5 s and 5 c. every year apple managing to best its weekend sales. 10 million doubling what it did. the demand we saw wasn't too surprising since we know preorders set a record and lines at retail locations were way longer than in the past. annalests pointing out that apple managed to break records despite dealing with supply constraints. their research indicating that the iphone 6 plus had completely sold out by sunday night at the u.s. stores they surveyed. this figure doesn't even include china which wasn't part of the launch. the stock not doing much today. gene munster blames it on a generally poor tape but investors want more. the stock has enjoyed a nice run this year up over 25%. one question is who exactly is buying all of these new iphones
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in a survey conducted 26% of people who intend to buy the new iphones are new to apple and the majority of them are coming from android. back to you. >> thank you. yahoo a big stock to watch today. shares of the online search giant continue to plunge for a second day following a downgr e downgrade. the alibaba driven thesis is played out. the upside for yahoo from here is uncertain. yahoo has more than 20% stake in alibaba. speaking of alibaba investors are in a selling mood today. the stock down more than 3% off its opening price of $92.70. it is the biggest ipo ever, a huge valuation. putting it into context for us
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and its size in market value dwarfed. >> it is huge. it is bigger than the vast majority of the s&p 500. just to put it in perspective let's look at the numbers erhoo. at $90 a share it is worth $230 billion. it is massive. just to put it in perspective. that is worth 11 macy's. and a very well known brand name. take a look at other comparisons. look at chevron at $93 per share it was a $240 billion company. it is the same size as chevron on the first day of trading. you go through another comparison at $95 per share at one point it got there. that puts it at the same level as wal-mart, the world's biggest retailer period. >> and jack ma saying he wanted to be bigger than wal-mart. maybe he will be. >> one more to put it in
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perspective. there are a number of companies that are still bigger than alibaba at curtain levs. ge $264 billion. google 406. apple at $605 billion that takes the cake. just for fun we extrapolated what alibaba would have to get to. $235 a share just to get to where apple is. hypothetically in that world apple is still very much the king of the hill in our world today. >> thank you very much. sue, down to you. bank of america is another stock we are watching. could climb 50% over the next three years saying while legal costs relate today the global financial crisis have impacted the bank's earnings it should start to become more profitable. b of a expected to raise dividends. the stock is up 0.75% today.
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is it a good stock to own today. jack abln chief executive officer joins us, as well. you like bank of america, correct? >> i think it is a wonderful stock. it has headline risks associated with it. they haven't been able to raise dividends just yet. i think in time people will start to warm up to this name and start to feel more comfortable about owning bank of america. i think that is a lot of what you are seeing here, people trying to gauge where it stands with regard to all of this litigation. breaking news to julia. >> mgm making a big move into television with the big television series acquiring 55% interest in light workers media. that includes interest in shows such as "survivor," "voice,"
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this is just announced by mgm. sue, back to you. >> thank you very much. back to the markets. that is an interesting story to follow. what would you buy or do you own b of a? >> i don't own them and i don't own them for my clients. i have nothing against it. maybe looking forward i would say the future is certainly brighter than its past. as bob said they have written a lot of checks to the government. most of that is behind them. they have simplified their business and so now if we look at the environment i do think if we can get a little cooperation from the economy, if the fed's prediction for the economy does come true we will start to see a much more favorable environment for making money as a bank. as bank of america primarily focused on the u.s. it would be the sweet spot of that kind of
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scenario. >> what about the overall market? >> i think short term it is a little bit tired here. you are seeing a market hovering around the 2,000 mark. i think people got a little bit interested in the market after the federal reserve statement saying we are going to keep the wording along in there and keep interest rates down for a certain amount of time. i think the tiredness is weighed on it. i think that is why we are having a bit of a down day. i think as you take a look at the real details of the economy, the economy is improving. we had a gdp report later this week. we are expecting 4.6% gdp. in the past you wouldn't have expected that kind of growth number. if you are looking outgoing forward you expect to see that economy continue to move ahead. >> last word, how do you feel about the market at this point? would you commit new cash or are we overvalued? >> we would commit to certain
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markets, maybe u.s. large caps and frontier market. even though the russell 2000 is off a lot today it has a lot farther to go to the the down side in my view. and i'm just looking for bargains and there just aren't that many great bargains for cash. >> appreciate it, bob. always good to see you. over to you. >> thank you. new fears about a sluggish u.s. housing market. we are joined from washington with more. >> reporter: blame it on the investors in the first years of this decade they swooped in and bought up distressed property and put prices higher but helped clean up the mess of the housing crash and created a new single family rental market. now they are pulling back on their purchases. total existing home sales disappointed to the down side down 1.8% month to month in august and down over 5% from a year ago. but the headline is the drop in that share of veinvestor purchas
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down 12%. that is why the all cap share is down as well. this does not mean investors are selling the homes. this should make it less competitive for first time home buyers to not have to compete against investors. first time home buyers realtors say are not picking up slack. realtors are blaming tight credit. when you talk to millennials they say they don't have the confidence in the market yet or the down payment but more importantly the stigma attached to the rental home is gone. thank you so much. right outside these doors hundreds of people protesting very close to the nyse today. organizers saying they want to spot light the contribution to
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climate change coming on the heels of sunday's protest that brought some 300,000 people to the streets of new york city. we will be monitoring the situation throughout the afternoon here from the nyse. trouble. an overstatement of profit leading to an accounting investigation. executives under suspension now. the stock taking a hit. american businesses have been the envy of the world but how do people overseas really view american companies and how do americans view american companies? we will get their unique takes after this short break. d techn, you can do just that. with our visionary cloud infrastructure, global broadband network and custom communications solutions, your business is more reliable - secure - agile. and with responsive, dedicated support,
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welcome back to "power lunch." momentum stocks taking a hit. price line, tesla, netflix moving lower on the trade. jp morgan issuing a caution note on tesla. a tough day for some of the larger cap technology and momentum names. thank you. shares of tesco taking a hit overstating the profit forecast and suspending a number of executives. the company is launching an investigation on that. seema mody is live in london with the latest. >> the situation does not look good for tesco. the world's third largest
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retailer admitted it overstated the profit and found an accounting error which involved moving up sales and pushing back expen expenses. four executives at tesco have been suspended. the current auditor declined to comment. accounting firm has been called in for a comprehensive review as well as freshfield which is an exturnal legal adviser. this warning comes as another setback the struggling retailer is dealing with slowing growth, disappointing earnings, price cuts and not to mention rising competition from discount retailers. it also comes three weeks after david lewis came in as the new chief executive. lewis said it was too early to make a call on whether the accounting issue involves fraud. the accounting company delayed results to october 23 when we could get more details around this overstatement. so we haven't seen the end of
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the story just yet. back to you. >> thank you very much. another side of retail, of course, the black market. on the economy the black marketing of iphones going on sale in china. this video just came in from our chinese bureau. those are iphones in china. the product isn't up for sale there. the black market is hopping. reports say they are going for double what the phone costs here in the u.s. guess we shouldn't be surprised. alibaba's ceo jack ma reflecting on his perception of america. >> 15 years ago when i came to america and came to silicon valley i saw the road full of cars and the buildings with lights. that is the passion. there are a lot of american companies i would like to learn from. >> a new survey from cnbc revealing that 88% of chinese
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have a positive perception of american corporations higher than americans' own perception of u.s. companies. why is corporate perception of the u.s. companies so low here in the u.s. and how do people overseas really view american companies? chairman president and ceo of ethan allen. welcome to both of you. welcome back. why do you think that foreigners have a higher impression of american companies than we do? >> well, i think that it varys. china, yes. china and emerging markets have a much stronger perception of american brands. we have 70 locations in china at leth ethan allen. 30 under construction. i think the brand perception
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reflects quality, reflects i would say affordable luxury. let's say in our industry european luxury is much more expensive. >> and europeans may be more inclined to favor their own -- i'm just guessing here that because some american brands would be newer in china there may be the shock of the new or the appeal of the new. fair point? >> we opened up about a year back two ethan allen design centers in belgium. two different experiences. western europe people are much more conservative and much more aware of their own brands. eastern europe is like an emerging market. >> do american businesses have an image problem? have we become contemptuous of them because we are suspicious of bigness and suspicious of corporate misbehavior of which
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there has been plenty? >> yes and yes. >> there is also another thing. let's reverse it. how about the lack of context of americans? one thing that should be talked about within this study is how few americans have left america. and so when you don't have a global context -- the brand of america and american corporations is under rated because we lack the context of the rest of the world. we are so insular into america. i think that has as much as any other variable. >> americans mostly speak one language, maybe two. most europeans speak four or five, right? >> absolutely. i think that it is also a question about how brands reflect to some degree the attitude of american leadership and business. i think if you think longer term longer term is required to build a brand. it is a difference between having a brand that is perceived
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as something that is desired. ethan allen i have always said that our brand should be known and desired to make your brand desired and talking about america you have to work at it. it doesn't happen on its own. i think in the last 25 to 30 years american brands used to be the brands that were preferred in the world. >> what has happened? >> nothing. i completely think they are most desired. walk around the world and understand where american brands stand. the only thing that happened here is we surveyed americans that lack the global context. >> overall, how is business? >> business has been for us i would tell you two perspectives. profitability has been very, very strong. we are a vertcally integrated company. we had really great earnings. sales have been somewhat of a challenge but we are doing well. >> thanks very much, gentlemen.
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good to see you again. >> gary is going to stick around for another segment. for more on the corporate perception index and the survey you can find that information at cnbc.com/corporatesurvey. alibaba is the biggest ipo ever. will it be as big as the amazons and googles of the world? the nfl fumbles, should sponsors ditch the league or stay in the game? could black berry be back? power run down next. we needed 30 new hires for our call center.
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if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial. welcome back to "power lunch." check out shares of auto zone at session lows, one of the biggest losers in the s&p 500 after reporting weaker than expected fourth quarter sales as strengthening economy encouraged some to buy new vehicles instead of repairing the old ones. the rives also fell. advanced auto parts, o'reilly and pep boys all down. the gold market at a nine
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month low. we have the lowest prices in copper, silver and palladium. >> that is right. pretty much all commodities including the metals getting hit today. gold hitting a nine month low turning a bit of a corner now but nothing significant. silver at a four year low, as well. the main reason for this the stronger dollar. yo ahave the dollar index at a 14-month high. many anticipating the dollar will only get stronger from here. meantime we are looking at china, as well. that news out overnight that the government will not issue more stimulus into the economy. that is a factor here, too. we have seen weak data out of china so people are worried about it. we will get a key manufacturing number out of china tomorrow. it could push the metals around. geo politics are calming down. there is no reason for safe haven buying of gold, either. >> special editions of "power
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run down." the man with a million twitter followers and a die hard long suffering jets fan. last year the nfl took in a billion dollars in sponsorship revenue. that could change as more sponsors look at that brand and consider what it may mean for their brand. how would you advise a sponsor right now that is obviously watching what is going on with the nfl? what would you tell the ceo? >> i think this is context at its best. depending on the health of the brand of the business that is what you have to overlay what is going on with the nfl. if everything is smooth and running along this is still the nfl. when this blows over and everything in america does this is the number one thing people pay attention to. if your brand is struggling with other issues this may be a time to step out. we know people stepping out will step back in. >> let's talk about china and alibaba. now more valuable than ebay and amazon combined.
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$200 billion, a lot of fire power and a lot of wealth here. high price compared with sales of alibaba. what is their end game? not that there needs to be an end. what are they? what do they want to do? >> they are an extremely well run company with a dynamic ceo who has enormous ambitious to be the guy. i think they are trying to establish themselves in the top internet modern company. >> can they do it? >> if you can't win in the u.s. you can win in china and it is a major market bigger than the u.s. they will have to win in the u.s. to establish that. we have seen wins at other places. >> do they dominate anywhere else in the world? >> not yet. >> let's move to black berry, a company that once dominated the smart phone space. not so much lately. they have a new phone, new game plan, new ceo. can they make a successful
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comeback or not? all the buzz in the last week about the iphone but black berry plugging alone. >> i said they wouldn't be in business today two years ago. every person who watches this loves about business is you are only as good as your last at bat. if they come out with the greatest phone that we have ever seen every single person here and there will start using it. samsung shown they can do that. apple coming back. if they got it they can win. >> i like my black berry. it doesn't break. when i drop it the screen is good. >> i don't mean the black berry. they need a modern black berry to win. >> i will ignore the remark there. >> we got a vote going on there. can i see the vote? will black berry -- no. 81% yes. i can't read it.
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>> 81% say no it will not make a comeback. >> it is probably closer to 97-3. >> thanks a lot. thank you, guys. to the bond market right now rick santelli. hi. >> we are a couple of basis points lower on the ten year note yield. it is obvious why. it wasn't just existing home sales but coming in with the china headlines. if you look at the charts starting on june 1 of this year you can see we are bouncing around good resistance above us. we are now in the throws of moving and look at the charts of the dollar index from 14-month highs to 50-month highs as we are back towards the summer of 2010. let's look at the pieces under the same timeline. look at the euro versus the dollar still hovering at
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14-month lows. the dollar-yen from june of 2010. you don't see how far back you have to go to top it. it would be an extra two years which shows the euro centricness of the dollar index. thank you very much. this is a really strange and disturbing story as many as 15 secret cell phone interceptor towers have been discovered in our nation's capitol. who is watching what you are saying on your cell phone? who is hacking phones in d.c.? this is a story you must hear. new numbers on how much the airlines make on baggage fees. staggering numbers that may tick you off. we will be right backism
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out by merck by about $17 billion. the nasdaq having a tough day leading all of the major indexes to the down side down by about 1.3%. trading action here has improved a little bit. we were down better than 80 points and now down about 86. >> what do you think we fell off? because the chinese finance minister said we may not have as much stimulus? look what kills stock market rallies traditionally. inflation. do we see a lot of inflation? slow economic growth? we don't see that right now. how about a recession? we don't see that either. the federal reserve? how many times can janet yellen say we are on hold? the things that kill the stock market rallies are not here. s&p 500 just off of 2,000. record earnings, we are
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expecting up 6%. that is exactly what we had in the second quarter. today you can see how cautionary people are. not just momentum. consumer discretionary stocks. underarmer, best buy. you can see modest strength in consumer staples. i want to know what is bothering everybody right now. i don't see headline that would indicate some kind of long term stock market weakness. >> i agree with you on that. >> back up to you. now to washington and there have been alleged cell phone snooping going on down in d.c. what do we know about it? >> this is one of the stories that makes it a little bit nervous to get on your cell phone here in washington, d.c. hackers have known for years it is possible to make a device that pretends to be a cell phone tower. all the cell phones in the area connect to it and think they are connecting to a tower but are connecting to the hackers who can listen to conversations and
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track your whereabouts as you move around the city. all of that. a new company is claiming that it operates a detector that can tell when these cell phone interceptors are operating in a given area. we went out with them last week as we travelled around washington, d.c. trying to detect cell phone towers operating in the area. take a listen to what we found. >> we have proof someone is here operating some sort of intercept device whether tracking people or listening to calls. >> who is doing it? >> who knows? >> no idea. >> and that is the question. they can tell the cell phone interceptors are operating in a given area but can't tell who is operating them. the list is long ranging from foreign intelligence services to criminal gangs that are operating corporate espionage rings to u.s. national security agencies themselves. we talked to all of the u.s.
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government officials you might expect none would comment except the fcc which said it is so concerned that it opened a task force looking into the issue back in august. >> i'll take it. thank you very much. appreciate it. nfl sponsors have spoken out during the recent scandal to the nfl. are they doing enough? we want to hear from you. should sponsors pull nfl ad dollars? go to cnbc.com/vote and join the conversation. we are back in two. 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, no matter what business you're in. today there's a new way to work. and it's made with ibm.
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game that saw two players ejected. chris baker thrown out of the game for a personal foul on eagles quarterback nick foles. eagles left tackle jason peters ejected for throwing a punch. a nasty game in the nfc east. there is a way to get into the action by investing in a football player. fan text allows potential investors to buy stock linked to the earnings of a professional athlete. the athlete gets cash up front for selling a piece of their future brand income. buffalo bills quarterback received a one-time cash payout of $4.98 million. that entitles fantex to receive 10% of future earnings. 49ers tight end vernon davis
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received 4 million for 10% of his future earnings. you can buy a share of either athlete for about $10. there are risks, of course. injury for one as is the case of vernon davis who is out and anything else that negatively impacts a brand. f fantex newest alshon jeffrey getting nearly $8 million in exchange for 13% of future earnings. nfl sponsors have been voicing concerns. are they doing -- cnbc.com/vote to weigh in. this past friday commissioner goodell responded to the very concerns. take a listen. >> we have been in contact with our sponsors, several of them
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have promotion in the market place that are inconsistent with obviously what is going on here. we understand that. and what we have said is we are going to clean up our house. we are going to get this straight and we are going to make a difference. they want to see us make that difference. >> hear with us now former proctor & gamble global marketing officer. welcome back. if you were the chief marketing office of proctor & gamble today and you had dollars tied to the national football league what would you be advising to do about that contract? >> if i were still cmo this would be a top priority. my advice would be to take this very serious, be highly engaged with the nfl, to be looking for the actions they will be taking. i think the commissioner was on
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the press conference friday. he talked an awful lot about apologizing and what they hope to do. i would like to see more action and bringing in the advisers should talk more about that and what their plan is and what the priorities are. it is a long term partnership the nfl and the sponsors, not just pg&e but pepsi, they need to be all in talking about their needs, what they can do together. the nfl is an enormous brand. a love brand, by the way. the teams and players are. this is nothing to give up on. it is about bearing down and getting stronger going through the crisis. >> it is about action taking. >> i was going through the league-wide nfl sponsors to take a look at obviously and seen a lot of strongly-worded comments from companies like pepsi, anheiser busch. when you break down the numbers and how many sponsors there are
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for the nfl versus how many have issued a comment it is less than half. it seems like it is good leadership to take some sort of stance publicly on this. what are your thoughts? >> absolutely. i think i applaud the ceos that have come out proactively. a very strong and personal statement from pepsi. i think very sincere. i know her well and that comes from her heart. i would like to see all of the sponsors doing that. they are saying they want to see action and believe in the nfl and it is an incredible franchise, important to their business but are taking a clear point of view. i would like to see all sponsors do that. >> i'm sorry. why do you think more haven't? >> it is a good question. i think some may be looking for more data. i think that is what i would do in this situation. what is the information?
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what does the nfl have? you can quickly pull the trigger in some of the situations without having the full picture. the conduct on violence and abuse should absolutely not be tolerated. there is no middle ground. so that is just table stakes. i think some sponsors may be looking for more data and their position in it. i am happy to see the big ones, the most at stake, by the way, when you look at pepsis. they are the ones that have taken the strongest position. >> very quickly, i think i know your answer to this. would the departure of roger goodell make this problem better or make it go away? >> tyler, i think in terms of leadership i don't know if it would make it better. it certainly would not go away. if the commissioner did resign or was let go there would not be another transition. the man has been committed to the nfl and the values and has
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simply got to take action that is consistent with the nfl mission and values. i don't think just leaving roger behind would solve the problem. i would like to see what the advisers are recommending. >> thanks very much. great to see you. let's lock in the vote. should sponsors pull nfl ad dollars? 53% say no. 7% say temporarily. 40% say yes. if you are outraged over the cost of flying you won't believe how much the airlines are making off of all of those fees. stay tuned to find out the staggering numbers coming up next with the dow down 76 points. "power lunch" is back in two. h 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... 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.
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performance review in a while. someone whose poor performance is slowing down the entire organization. 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. emc has held merger talks with rivals dell and huelet packer. finish line finished to equal rate cutting. the stock is off almost 3.5%. walgreens downloaded from overweight. the firm cutting the price target on the stock to $68 from $92 and down almost 4%. a new report out on just how
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much the airlines are collecting off of those fees that they get from you. phil labeau joins us from chicago. >> this is where they are making most of their profits. overall for the second quarter according to the department of transportation the airline industry in the u.s. made $3.6 billion. airlines collected $889 million. the checked baggage revenue climbed 3.62%. you want to know the area where they ranked up big numbers is reservation change fees hitting a new all-time record $753 million. look at the growth back to 2008. it is clear the airlines are realizing this is where they can make a lot of money when it comes to fees. as far as airline fares they rose 8.2% in the second quarter. there was discussion whether or not air fares have been
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dropping. in the second quarter they were up more than 8%. profit margins climbed 8% in the second quarter. when you take a look at the airline index up 20% year to date. i know a lot of people don't like those fees. nobody likes paying them when they fly. this is where the airlines make their profits and it is clear that they did that in the second quarter. >> it sure is. thank you very much. over to mandy and see what is coming up on "street signs" at 2:00. >> techs are getting wrecked today. is it stock specific? what kind of wind will we have? lots of things coming up top of the hour. make sure you join us. "street signs" is after the break. with centurylink as your trusted technology partner, you can do just that. with our visionary cloud infrastructure, global broadband network and custom communications solutions,
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that's why hp reports and helps neutralize more intrusions than anyone... in the world. if hp security solutions can help keep the world's largest organizations safe, they can keep yours safe, too. make it matter. to "power lunch." anywhere you can think of right now the oil picture is a little bit soft. all lower on the day. and you might think low prices would help one group, the airlines. not in today's trade. united, continental, american,
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southwest all lower along with the rest of the market overall. >> we are approaching the lows of the day with the dow jones industrial average on the down side by better than 80 points. s&p, nasdaq leading declines. >> that will do it for this edition of "power lunch." >> "street signs" right now. three dig stories that we are all over on "street signs." the nasdaq getting slammed, a big development in the fight against ebola and black berry getting a makeover. is it enough to rescue? >> that is the question. the big market story developing now. the nasdaq having the worst day since july. let's get to bertha coombs. >> it started with the small caps. the small caps had been having a horrible quarter after hitting an all-time high. if you take a look at the rul
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