tv Power Lunch CNBC November 11, 2014 1:00pm-2:01pm EST
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>> financials, ryf is the equal weight version of 11.5%. hospitals got beaten up on their way back. >> ford looks like put in a bottom and own it. >> that does it for us. "power lunch" begins right now. "halftime" is over. the second half of your trading day begins now. wherever you are, however you are watching welcome to "power lunch." over $9 billion in 24 hours. that is almost unbelievable number. i don't know whether i do believe it. that is the number. chinese e-commerce giant alibaba shattering sales records for singles day, a holiday alibaba kind of basically invented. alibaba's stock, however, not setting records, down. our david faber just interviewed the ceo of alibaba, jack ma. he was very interested. that is 30 seconds away. the u.s. and china striking
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a major trade deal. we will have a list of the stocks that stand to benefit from what could be a trillion-dollar deal. getting our heroes back to work. we are going to spot light how one wall street firm is taking our vets from the battlefield and putting them on the trading floor with great success, a story you really don't want to miss. let's check in with sue at the nyse. we do begin with alibaba and the biggest online shopping day in the whole entire world. how big was it? it is singles day. the chinese e commerce giant reaching $9.3 billion in sales in 24 hours in china. the highest number for cyber monday here in the u.s. $1.7 billion. it's not helping alibaba shares today. you saw the stock having the worst day since the ipo in september. our david faber got a major
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exclusive with alibaba's founder and executive jack ma inside the company's headquarters in china. david filed this report just minutes ago. >> reporter: in its most successful day of selling things ever alibaba sells $9.339 billion worth of stuff to largely chinese consumers on its so-called singles day. is it enough to make founder and executive chairman jack ma happy? apparently not. >> this month i'm not very happy. >> why not? >> i think too much pressure. i think i tried to make myself happy now because i know if i'm not happy my colleagues are not happy. and my shareholders will not be happy and my employees, my customer will not be happy. so i have adjusted because maybe the stock goes up or maybe people have expectation on you,
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maybe i think too much about the future and have too many things to worry about. >> in 2009 was not too much of anything. last year 5.8 billion. this year let's figure at least $9 billion. how much can this grow? >> this is number six and on the ten anniversary of 11/11 day i wish it will be a global shopping day for states and europe and anywhere in the world. i cannot imagine how big that will be because i want more companies involved, more offline shops involved. it is going to be big. >> i think the number today i'm happy about that. >> long range interview ma stated he is worried about deliveries taking place.
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and as for happiness, one would expect given the success of the ipo and company and the success overall that alibaba seems to be having in its still early days, remember it is only 15 years old, he might be finding happiness but ma said i'm going to try to at least figure out how to make myself a bit happier. back to you. >> so alibaba singles day sales breaking that record over $9 billion. that's the report while americans spent hundreds of billions of dollars on major holidays each year. aside from big ones like christmas here is a look at major money makers that most people consider sort of fake holidays. there is mother's day. $19.9 billion. that's from 2013 to 2014. valentine day $17.3 billion. father's day bringing up the rear there, $12.8 billion. rbc capital markets is
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hosting a technology conference today. mark harris is head of global research for the firm. welcome to "power lunch." i know you don't specifically cover alibaba but your firm certainly does. it has a $130 price target on the stock and a buy on the stock. when you look at this amazing company now that it is public, will it be an even bigger powerhouse than it is now? david posed that question to jack ma. what are your thoughts? >> i think the reality is it can continue to grow. you look at the market opportunity ahead of it and the untapped market opportunity ahead of it. obviously within china there is still enormous room. you can see the impact as it is continuing to grow. think about the international side of that. our analyst on the internet certainly would be the first to point out they have hardly begun to touch things outside the borders. that is the real opportunity for the company. >> the other thing that may fall
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in your wheelhouse is the issue of net nutrality. it is a big issue after the president weighed in saying it is in favor. should internet providers be regulated like utility companies? they can vote at cnbc.com/vote. while america weighs in, the impact of net neutrality where you stand covering technology as you do. >> i will hold off answering that question because the technology conference is going on. we have a panel of experts specifically addressing that topic. invite me back i will have a better answer at that point. i think the debate is happening. i don't think it is a settled issue. i will have more to talk about after that. >> i think it is far from settled. i think you are absolutely right. let's turn to the survey if we could. you asked 87 participants various questions having to do with technology the way they use technology, some of the more interesting questions was do you think apple will hit a $1
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trillion market cap in 2015 keeping in mind that the current value is at about $630 billion? 14 said yes. i was surprised that a larger percentage said no. what's your take on that? >> so i think people understand that this is certainly going to be a company that is going to be growing a lot. this is over the next 12 to 18 months and we are talking about a company at 630ish now. and the law of large numbers begins to kick in. we asked another question around apple pay is the growth of that as one of the angles on this and said what do you think over the next year and then five years from now. in the next year people said 1% to 3%. five years out they said this is a company that will own maybe around 10% to 20% of the market, almost 40%. 39% on our survey said 10% to 20% and a tail thought more. lots of opportunities within the
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next 12 months i think that is the question you saw a little bit in the apple pay answer. >> on the issue of cutting the cord, you asked what medium they primarily used to watch tv. 60 said cable, 12 said satellite. 11 said apple tv. netflix is only 9. hulu 3. many people say cable is dead but doesn't appear that way. >> let's make sure we set our sample here. we have 1,000 attendees at a conference here in new york across the spectrum of internet to software to hardware. if you are looking at the bigger mass market of it there probably is some amount of chord cutting going on. even when we asked the forward view going forward would you cut it? 75% said no. now and later at least our
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audience did not seem to think that was the case. it is a pretty good sample. 1,000 tech savvy people. >> absolutely. mark, we are going to hold you to your word and have you back. best of luck at the conference. thank you very much. let's lock in the vote. should internet providers be regulated? 62% of you said yes but 37% said no. the u.s. and china making a major trade break through when it comes to technology. it happened at the apex summit in beijing. the two countries agreed to drop tariffs on a range of tech and it products. backers hope that will cover $1 trillion worth of trade. the deal expands and covers everything from medical devices to gps devices. the global deal could be approved by the world health organization in december. thank you very much. let's bring in dominic chu looking at which u.s. companies may be impacted the most by this agreement? as i'm looking behind you here
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it is a lot of medical companies. >> sue talked about them. we are talking about an information technology agreement that covers what some estimates to be $4 trillion in it tech spending trades all over the world. if you take a look at this trillion dollar tech trade solution that sue talked about, maybe a trillion dollars covering medical device companies. the big one in the united states that may see an impact because of lower tariffs, taxes on export products you check out big ones. ge medical device unit makes mri machines, all the big machines. jau johnson & johnson along with medtronnic. could see perhaps an impact based upon all of this trade agreement. this is not an agreement yet. this is just china and u.s. getting together. gps, telecom technology could be
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an important beneficiary. as we look at big names, garmen is u.s. traded. we know who they are. did you check all of your con soles in your automobile for the gps products. tom tom is a european provider. these are bigger companies that may see an impact in case they do come to some overwhelming agreement globally about the information trade agreement. one other thing to note here. we will talk about other places in the market that will do this coming up on street signs. you are talking about all kinds of consumer technology. think video game con soles like mini superkurcomputers. we'll stay tuned for that. meantime shares of ford have been driving higher today. it's a big day for the auto maker, the first of the new redesigned aluminum f-150 pickups begins rolling off the assembly line today. phil lebeau is live in deerborn
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speaking with the ford ceo. >> as we see the new f series rolling off the line keep in mind how important this is for ford. these models will be shipped and headed to show rooms. they will go on sale next month. and then by the end of this month what you want to focus on is the fact that we are expecting mpg ratings to come out from ford. a lot of people are saying what will it be for this truck? will it be close to 30 miles per gallon on the highway? it is what this truck can do offroad, not just in day to day driving around on the highway, but what it can do offroad. in the last month we had a chance in san antonio, texas to put one through the paces. the hill dissent is a piece of technology worked in. it has a 360 degree camera that allows you greater visibility when you are in there especially
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towing. it is 700 pounds lighter because of the aluminum panels replacing the steel panels. ford ceo says those panels and the fact that it is lighter will help this truck improve its capability. >> first and foremost what you get by having 700 pounds out of the vehicle is more capability. that is what truck customers want. they want more pay load and towing and more fuel efficiency. >> keep in mind the f series is the best selling vehicle in the united states and has been since 1981. look at what it has done over the last 14 years or so. the high water mark back in 2004 when they sold well over 900,000. the low-water mark when the recession was hitting in 2009. this year there are over 600,000. we will probably finish over 750,000 f-series sold. as you take a look at shares of ford keep this in mind, ford, gm, auto makers have not
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participated in the rally this year. ford is hoping if people look at next year and look at higher auto sales that perhaps then that stock will get a bit of a bounce. >> a car crash death more than a decade ago has apparently come back to haunt general motors in a big way in its ignition recall crisis. this is a very involved story that tells us a good bit about the history of how that crisis began and was handled. >> reporter: and the fact that this family involved in this story which was detailed today in the "new york times," this family was not notified that a relative was one of the 13 cases that general motors long acknowledged. they didn't know that until they were contacted by a reporter within the last couple of weeks. this continues to bring up the question has general motors told everybody involved everything they need to know? gm has said we have been open
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and honest about the information over the last six months. this story highlights that a lot of people are saying are you kidding me? these people didn't know until a reporter had to call them and yet it was known supposedly there was a victim because of one of the malfunctioning ignition switches? not a good day to say the least. >> phil lebeau reporting for us today from ford assembly line. dominic chu now, "market flash." >> it's analyst investor meeting day today. the company says it seized 2015 revenue gruth and 2017 revenue growth as a result. those shares up towards session highs up by about 3.5% on the day's trade. back to you. to weather now. you don't need to dream of a white christmas because it looks like winter is coming early. blinding snow, gusty winds,
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frigid temperatures slamming the upper midwest. these pictures are from minnesota where they had better than nine inches of snow. other parts of the u.s. expected to feel cold temperatures as soon as thursday. >> well, it looks like the u.s. will be locked into arctic air especially eastern two-thirds of the u.s. for the week. only place warmer than normal is southwestern u.s. for t rest of the country temperatures well below average. if we do this on a day to day basis beginning wednesday temperatures as much as 44 degrees colder than what we normally would see this year in places like denver. as we get into thursday we could see the cold air locked in across the eastern two-thirds of the nation. florida the only place that stays warm. friday timeframe temperatures much colder than what we would see at this time of the year. polar air invasion is in place. if we look at the entire month of november it is not out of the question the eastern two-thirds
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of the nation may see one of the colder novembers on record. >> just what we need. luxury homes have helped big time in the recovery. what is the health of the real estate market right now? robert frank is here with new numbers. >> the higher you go in this market the stronger the market. we will tell you about the most expensive home in the quarter and biggest discount sale. we are talking a $4 million price cut. we will show you that house coming up right after the break. who do you work for? your boss? yourself? your parents? your family? at baird, what matters most to you... matters most to us. as an employee owned firm, our financial advisors have the freedom and resources to realize a plan to fit your family's unique needs.
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welcome back to "power lunch." check out shares of rege. the company are moving higher on positive trial data on an experimental bio tech drug for asthma. as for the french giant trading 1.5% to the upside. thank you very much. stocks trading lower, a little bit but not before the dow and the s&p 500 hit new intraday highs. the nasdaq reached highest level since march of 2000. where are opportunities now? joining me is joe taneus and david marcus, ceo of evermore global advisers. that is the question, when you keep hitting record highs either
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on intraday or closing basis people get a little nervous. are you nervous? >> understandably people get nervous when you see record highs. we tend to focus on underlying fundamentals. just because you hit a record high it doesn't mean the market is going to correct itself. you look for things like are we heading into a recession? do earnings look like they continue to move higher. are valuations at a point. we don't think we are at a point where markets pull back in a meaningful way. >> david, those of you argue we did have the pullback allowing the market to continue its rise. do you agree in general with what joe just mentioned? >> absolutely. it is always about the fundamentals and really looking past just where the indexes are and looking at the specific companies. look, we are a global fund. we can go anywhere in the world. we think the best opportunities are looking at the fundamentals
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in europe and here in the u.s. regardless of the fact that we are hitting new highs here. when you get to europe they are not close to new highs so the opportunities are better there. >> do you want to comment on that? let's take a look at what you like in this market if you had to allocate cash. i know you like the u.s. but you take a global view of things. >> i think it is important that investors realize there is a whole world out there and a ton of opportunities. when we think about where we see the most risk adjusted return we continue to come back here into the united states. if you take a look at what is happening with the housing market and economic data and labor market and dgasoline prics everything suggests the u.s. economy continues with the momentum. overseas in europe i think one day we will be at a point in time where it represents an amazing opportunity. unfortunately, they have so many issues they need to work through that we are still a bit cautious. >> not yet. >> david, what is it that keeps
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you up at night about this market? >> i think that a lot of it's factored in there. everybody expects no growth. there are concerns about where will the pickup come from and when will it come? to the point joe made about sort of holding off on europe i think it is time to go to europe because i want to buy it when others don't want to buy it. that is when i get the biggest discounts. maybe i will be a bit early. sometimes we have been early over the years. i would rather be early to take advantage. i can always add as it comes in if it continues to be weak. i would rather start the process now while everybody is standing on the sidelines. >> we just showed viewers some of the stocks you like and some were based overseas. nice to see you again. thank you. luxury home sales a bright spot in the housing recovery. can it continue and which kind
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of high end homes are seeing the biggest price jumps? our wealth editor here with numbers. >> we have higher prices and demand. let's take a look. sales at homes priced at $1 million or more up 9% according to red fin. they looked at major u.s. markets. we look at homes priced at $5 million or more up 18%. that compares with a 1% fall for the overall national market. inventory at the top getting tight. the number of homes for sale dropping by 13%. the 5 million plus homes inventory down 47%. >> when demand is strong and supply is tight there is only one place for prices to go and that's up. we are seeing that those list prices continue to be strong and heading north and that's very unlike the rest of the market. >> talk about strong, the three
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most expensive sales of the home in the quarter all of these were over $25 million. one of them is in indian creek, florida. that went on the market and sold for $28 million. the biggest discount at the high end, this place in millbrook, new york had been on the market for 9.5. >> i can live in that price cut. >> i can buy two homes for that. >> thank you very much. we are going to talk about getting our heroes back to work. how one wall street firm is taking our veterans from the battlefield to the trading floor. it is a very inspiring story that we really want you to hear. we speak with the man who has hand picked every item going under the hammer.
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session after president obama called for stricter regulations for net neutrality. the president said a free and open internet was critical to american's lives. comcast, time warner cable, charter communications and cablevision all moving lower. >> a little bit of a recovery in progress. best buy joining the parade of retailers opening early for black friday opening at 5:00 p.m. on thanksgiving day. microsoft unveiling its next version of linked which will become skype for business. apple embarking on the most aggressive expansion into corporate turf yet. its shares last traded fractionally higher. thank you very much. stand by because i'm coming back to you in a sec. christys gearing up for what could be the biggest auction
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yet. hand picked every post war and contemporary work going under the hammer. it is great to see you again. this is a very exciting auction that is tomorrow night. am i right on that? >> tomorrow night. >> tomorrow evening. under the best case scenario with all of these wonderful works and we will get to some of them in a minute, how much total sales volume could you expect? give me a range. >> the best case we had the highest total ever for an auction in may. for the week we were just shy of a billion dollars. i think going into this season we have one of the strongest sales we have seen in terms of quality. our low estimate starting point is around $650 million. that doesn't include the premium. we are expecting somewhere in the high 700s, $800 million for the sale. >> that sounds marvelous. who is doing the selling here?
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and how did you come upon or pry out from these sellers these particular works? who is selling? >> i think there is great confidence in the market. we have seen incredible growth in the last three years where each sale record after record is being achieved, but we are seeing both situations where estates are selling, lifetime of works of art. behind me we have two extraordinary war halls which come out of a casino in germany where they were applied in 1978 coming to the market for the first time. it is that kind of work coming to market, very fresh wonderful works. we have been very, very selective in what we try to bring to the market thinking about what is really the appetite and wish list of our top buyers globally. >> coming out of a casino in germany, you have brando on the one hand and elvis on the other.
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who is worth more do you think? can you say? >> it is an interesting point. we priced them exactly the same. they are the same scale. one is from 1963 and the other from '66. the marlin i think appeals to a younger audience. the elvis has incredible iconic stages. i think the bets are probably out there. i would imagine elvis would be beyond brando. it will be a close one. >> it is good to see you again. you also have -- i don't know if you will give me a comment on that. tell me about that painting and what you think it will go for and why. >> the estimate on that painting is $25 to $35 million. we don't comment on our consignors. it is one of the great kline
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paintings left in private hands. the world record price for franz kline is $4 million. we have a sale which we hand picked and looked for works which spoke to the broadest market. and while the worhols represent the pop moment, the kline is the masterpiece of our abstract impression movement which have many of the great artists of their period. >> you have balloon monkey orange estimated between $20 million and $30 million. we will take a look at that. i wanted to skip down to ed. i think it is pronounced russias smash. he is a very hot artist now i understand. >> exactly. there hasn't been a painting of
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this caliber probably for 15 years. within the body of work this is from the '60s and virtually every painting of the series is in a museum. apart from the painting probably only three other works in private hands and the likelihood of those being sold anywhere near this estimated starting point is very unlikely. it has already caused a great store in terms of interest. the word smash has a great moment for the market. it is a smash hit. he was thinking of hollywood. it is a smash in terms of what we potentially could see in terms of records. >> balloon dog went for a lot of money last year. what are you expecting there? that is a nice looking monkey. >> i mean, both orange. the balloon dog made the highest price for a living artist. it made $58 million when it was sold this time last year. it is larger. we are estimating $20 million to
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$30 million. jeff coons accused and had to open late at night to have the attendance there. i think the interest not just on that but the other koons in our sale there is good interest. the market is as much a market very much to sellers because people are taking advantage of the global interest in contemporary art but it is a buyer's market because it is opportunity of the highest order of quality is what is driving the prices and the prices are driving works to market. >> thank you very much. good luck with the auction. set aside that franz kline. set that one aide for me. >> you have to have a big wall for it. >> fantastic. thanks very much. we appreciate you being with us. dominic chu now, "market flash." >> i like that balloon monkey. that is my personal taste.
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let's talk about gold prices. gold mining stocks are starting to move a little bit higher along with the rest of the market for gold. the ones that a lot of traders pay attention to also the gex which is the gold miner's etf. wall street firm making the most of battlefield experience on the trading floor. >> a lot of our vets coming home from overseas have had to be in these situations where things haven't gone correctly. >> you build off each other's strengths and help recover each other's weaknesses. >> an amazing story you won't want to miss about one firm making sure men and women coming home from iraq and afghanistan get a fair shot here in the u.s. e life on your terms? i sure hope so. with healthcare costs, who knows.
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the floor of the new york stock exchange fell silent this morning for two minutes to honor america's veterans. representatives from all of the military's branches were on hand. >> government labor statistics show the unemployment rate for veterans of the wars in iraq and afghanistan sit at about 9%. that is far above the civilian rate. one wall street firm is going the other way actively recruiting american vets. dominic chu has their story. >> reporter: for wall street firm drexal hamilton veterans day doesn't just come once a year. >> the reason we started the firm was i'm a disabled vietnam veteran and i never forgot the people that helped me when i came back from vietnam. what we do here we try to match veterans of wall street up with a veteran from combat. >> reporter: this room houses the capital markets operation. of the 18 members here 7 are
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military veterans and 5 are service disabled veterans. what has been the most difficult part of it going from your navy career to one on wall street? >> the most difficult thing was actually finding the opportunity. >> reporter: seven-tour veteran noticed as well. >> nobody came to afghanistan to campus recruit me. >> reporter: he was convinced he had the skills it took. >> a lot of our vets coming home from overseas have had to have been in these situations where things haven't gone correctly like a trading floor. your trade may be going upside down on you but the ability to manage that risk and be profitable. >> reporter: for purple heart recipient skills weren't the problem. >> burnt over my body, broke my back and was in the hospital almost two years. both of my ears are prosthetic. it is human nature. because of that i couldn't find
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employment. that is when i came across and gave me a new life. you have to move forward. when something holds you down you have to stand up and go forward. my son wants to follow my foot steps. i said just watch out for the last one. >> reporter: an example for a son, an example for a business, an example for us all. now, jerry's story is one of the many, many powerful interesting ones over at drexl hamilton. this is a company filled with people with their own war stories. for many of these service disabled veterans these kinds of jobs and training prepares them for life after their military service and we all have to thank them for that. >> indeed, we do. thank you very much. with 9.4 million members and $132 billion in assets usaa is one of america's leading
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financial services firms. on this veterans day we are honored to have usaa's president and ceo joe roblus. he served in korea, vietnam, desert storm. welcome to "power lunch." welcome back, i should say. what does veterans day mean to you and to the people at usaa? >> it gives us an opportunity to say thank you to all the men and women who served their country faithfully over the years and remember the sacrifices they made and the disruptions in our lives that occurred. we need to give them some recognition and make sure that we acknowledge the fact that we are grateful, we are a grateful nation for what they have done. >> do you do anything special there in san antonio? >> we had a big celebration last week because we didn't want to conflict with the official government version of veterans day. we celebrated within our
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headquarters. and we had wounded warriors. we had members of the various military services and our own employees who love to recognize the veterans of this country and what they do every single day for this country. >> one of the sort of tragic things that i have noted in my reading in recent years has been how prone u.s. military veterans are to become prey for predatory lenders and in the mortgage market. why do you think that is? >> well, i think that many of our military men and women do not understand some of the basics of financial. our financial literacy across the country is lacking a little bit. i think they are preyed upon by folks who take advantage of that. we always tell them if you have question you can come to us and we will be straight with you and tell you the abcs of getting a loan or borrowing money.
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>> you are in different lines of business, money management, insurance. i know you can't lump them all together. how is business? judging from the beautiful advertisements you are running on lots of sports events business must be pretty good. >> business is good because of our customers, our so-called members and because we have great employees who take care of those members in a superior way therefore we keep getting repeat business and we have our customers, our members stay with us year after year and in huge numbers. >> thank you very much. retired u.s. army major general. he is now the president and ceo of usaa. thank you very much for being with us. now to dominic chu, quick "market flash." >> we are watching shares of home builders moving higher after horton reported better than expected quarterly sales and net sales orders during the month of october. all up as a result.
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thank you. for years wall street has focused on ten sectors, industrials, info, technology, utilities, financials, health care, consumer discretionary, materials, energy, consumer staples and telecom. now there is an 11. see what and how you can profit from it. check out gold going back down from mid march, down 14%. why we may have hit a bottom. back in a minute. [ male announcer ] your love for trading never stops.
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so open an account with schwab. and when a market move affects, say, a cloud computing stock you're holding, we can help you decide what to do. with tools that help you see how market activity is affecting your positions. so when the time comes to decide whether to scale in or scale out... you can make your move, wherever you are. and start working on your next big idea. ♪ gilead sciences moving higher. the company says the new hepatitis drug achieved rates in a study of patients who had cirrhosis of the liver and failed to benefit from prior treatments. the stock is currently up by about 1%. let's take a look at stories
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happening this hour. group on seeing growth. says 2017 revenue growth will be 20% year over year. apple facing a lawsuit over vanishing iphone text messages after failing to disclose how the ios 5 operating delivery instructs when iphone users switch to non-apple devices. regenron and sanofi moving higher. stocks are kind of steadying now. bob pisani is at post nine. >> i think the important thing is we are seeing real moves in gold and gold stocks. i want to put up something that is very interesting here. the gdx and show you a couple of things happening here. 5%. here is what is odd about this. gold is only up fractionally. it is weird for it to move higher. you are looking at, what is
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happening is there have been several days where gdx has outperformed gold. this may be a sign of bottoming in gold because sometimes they move ahead of the price of gold themselves. the stocks are down 30% in the last two months. a lot of people are playing a lot in the volatility trade in this one. i want to tell you about the change going on with the s&p 500. there were ten sectors in the s&p 500 but there is going to be 11 now or at least about a year and a half from now. the s&p 500 is creating a new real estate sector. real estate is currently under financials. they are going to take out real estate as a separate sector beginning august 31. now we will 11 total sectors. take a look at real estate investment trusts. simon property group, equity residential, boston property down a bit today. the important thing most of the stocks are near historic highs.
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this makes a lot of sense to me. simon property group $56 billion market cap. it is a different business than the banking industry that it is under when you have stocks that have that kind of market cap it makes sense to sort of break them out. good move on the part of the s&p. >> right back to your real estate roots. lava oozing. i love when i get a chance to say the word oozing on "power lunch." it has been oozing for months now and it takes out its first home. it is still coming. we have the video of the destruction and there is some of it. plus, the holiday video game show down. joelia boorstin. >> i will tell you which game maker is poised to come out on top coming up after the break. then there's trusting your vehicle maintenance to ford service confidence. our expertise, technology, and high quality parts means your peace of mind.
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ten hours, 7 minutes and 23 seconds until christmas. as the elves prepare what is going to happen in the video game market? the battle is on and julia boorstin is in the middle of it. >> i can't believe we have started the christmas count down. with about 40% of game software sales happening over the holidays game makers are
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counting on established franchises to sell. microsoft celebrating the launch of halo looking to cash in on older content and build demand for next year's halo 5. the collection includes ten years of halo games for the new x box one plus the new digital series and the halo 5 guardians multi player beta. >> you need to have a universe in which you can tell hundreds of stories through games and books. that is what we are focused on. >> two other franchises are hitting stores thursday. world of war craft collectors edition and assassin's creed rog rogue. predicts the assassin's creed games will sell the most because they are available on x box and play stations new and old con soles. ultimately says blizzard will win because it has the most
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proven franchises including call of duty and skylanders and predicts digital will be 20% of game sales. a win for publishers and consol makers but not a win for the brick and mortar retailers. for weeks we have been watching the slow moving and unstoppable flow of lava. now it has taken out the first house in a neighborhood standing in its path. the earth under the house got so hot it simply burst into flames. 50 people live in this neighborhood, all forced to leave their homes and many will never be able to return as mother nature claims that area. let's see what is ahead on "street signs." >> hi, sue. coming up the richest restaurant owner in america will give his state of the u.s. consumer. we will be checking in on hotel industry with the ceo of marriott and our friend,
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welcome back to "street signs." the natural foods retailer is moving lower on news that apollo global will sell. >> that will do it for this edition of "power lunch." >> "street signs" starts now. see you tomorrow. what do the richest man in china, richest restaurant owner in america, the guy who owns one of the biggest hotel companies in the world and sara eisen have in common? >> what an introduction. let's start with markets. another day and another record for the dow and s&p. stocks have pulled back from their highs of the session. a pretty mixed picture with the dow down 13. the nasdaq still in positive territory. s&p down fractionally. the bond marke i
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