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tv   Power Lunch  CNBC  November 25, 2014 1:00pm-2:01pm EST

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it is 119.36. >> i am now quoting market's cap in decimals, .7 trillion is the only way to do this fairly. >> walmart, it was down a buck, it turned. i like the call activity in there. i think they will report a great savings in store for thanksgiving. half-time is over and the second half of the trading day starts right now. scott, thank you. to cut or not to cut? that's the question the hedge funds are going over two days ahead of the opec meeting on thanksgiving. some say watch for swings of $15 up or down depending on what they do. oil down 28% in six months. we will get you ahead of the trade. "mad money's jim cramer going through the ten sectors of the s&p 500 and picking winners. hear what cramer says coming up. and opportunity is knocking
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potentially on your 401(k) late rally. we are hearing about a new way to manage your retirement warning. it's a fancy footwork that could payoff for you. we'll tell you about it. thanksgiving travel could be a mess. that's video from chicago this morning and that is just the beginning. the forecast, look at that in chicago. rick santelli, lebeau, we're thinking of you. hi, ty. we begin with ferguson, missouri. there was rioting last night in the wake of the grand jury's decision. there are news conferences going on right now. we will continue to monitor the situation and keep you posted. we have two interesting headlines out of the opec meeting or discussions in front
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of them. there's some chatter about the possibility of a compromise involving the saudis. a lot depends on what the actual numbers are. we don't know what november production is, so unless it's a substantial cut, a million or more, the traders i know believe this is really unlikely to move the needle. and right now the consensus is pretty broad. oil prices coming out of the opec meeting thursday are going to fall. in the absence of that sort of grand bargain or anything like it, people are expecting brent krooud to go in the $75 zone or lower. and wti to drift a bit lower as well. maybe in the low 70s. based on the fact that we're just pumping too much oil out of the ground right now, the trader that is i know are essentially neutral or lightly short. so they are betting on that relatively small move. stay within $5 give or take. however, there is a surprise upside scenario. and that holds that the saudis
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and/or others surprise with us a big cut, a million barrels per day or more. and brent absolutely rips on friday up as much as $15. now, if that happens, that could catch a lot of people by surprise and obviously it would be a particularly volatile day with people on vacation and whatnot, a little less liquidity in the market. but even if we have the bullish surprise move, it's not expected to last terribly wrong. bearish fundamentals, sue, but a lot of leaks here and there. and it could be a while. >> kate, thank you very much. we appreciate it. kate kelly reporting on that. now to ferguson, missouri, where we have scott collin live on the developing issues in this particular story. i know there's a news conference going on, scott, what can you tell us? >> translator: if you recall yesterday, we just about this time yesterday were learning that the grand jury that was investigating officer darren wilson in the death of michael brown had reached a decision. and preparations were gearing up for the potential protests.
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well, you can see what this scene looks like today. that's the public storage facility across the street. that was burned. a number of other businesses around here looted and burned. take a look at the scene last night. we witnessed it from here as proteste protesters, looters, whatever you want to call them, flooded this area. there was a good deal of gunfire. there was a good deal of police presence. here was a very chaotic scene and still remains a crime scene a short distance from here. authorities report a body that was found in a car. and they are treating the death as suspicious. very likely the first death to come out of the protesting last night. now, just wrapping up, a news conference with attorneys for the brown family as well as activists and msnbc host reverend al sharpton, they talked about how they felt that the process, the grand jury process was flawed prejudice from the beginning. and at the end, finally a call
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for pee. here's reverend al sharpton. >> michael brown will not be remembered from the ashes from buildings burned in ferguson. he will be remembered for new legislation and the upholding of law that protects citizens in this country. >> reporter: members of the brown family were initially expected to speak at the news conference but they decided not to have them speak because it's very likely that the brown family will pursue a civil suit in this case. and they didn't want to prejudice that. meantime, a federal investigation or federal civil rights investigation is still ongoing. one of the big criticisms from the family members from the attorneys from reverend al sharpton is that that process now has been corrupted by the statements from the prosecuting attorney last night in announcing there's no indictment of officer darren wilson. so this continues to unfold. and the big question now, sue and tyler, is what happens
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tonight? will we have another night of tension or will that call for peace do something? and will cooler heads prevail to try to create a constructive solution here. >> we hope it's the latter, scott. thank you, scott cohn, in ferguson, missouri. breaking news in the market now with rick santelli giving yesterday's auction an "a." how did we do today? >> it's pretty hard to beat an "a," wouldn't you say, sue? but this is an "a-plus." if you were going to have a super solid demand auction, this would be it. we had 35 billion fives. the bid was offered at 161. remember, lower yield, higher price, this auction came out at 1.595. so through the screws and an aggressive fashion, the bid to cover 2.91 well above the 2.74 ten-auction average since march. but get this, up direct bidders
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were 65%. that's the best in ten years. it's a little light, but keep in mind tomorrow with early closes and closed thursday and friday, the auction will come off at 11:30 eastern. sue and tyler, back to you. rick, thank you very much. back to ferguson and the unrest in that missouri town, local businesses throughout ferguson and in really the whole st. louis area with a target of angry mobs as you probably know last night. this is video of the little ceasar's pizza franchise torched amidst the rioting in ferguson last evening. on the line right now is david bailey who has a restaurant in st. louis called rooster. mr. bailey, welcome. good to have you here. were you victimized by the violence and unrest last night?
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>> we had doors smashed in. we lost seven of our large 5 by 9 windows. we are not a very glass surrounded restaurant, actually, but we are on the south grand business district and several businesses had their windows smashed in, unfortunately. >> and what will you do now? i assume you will repair and reopen for business as soon as you can? >> we are actually already back open. we've got a restaurant full of people currently for lunch, and the district is back open for business. we had to board up our restaurant, unfortunately, but we've got a group of local artist that is are coming to paint to boards including our own employees to make them look better. and we are hoping for peace soon. >> you know, the entrepreneurial spirit is one thing, but being the victim of violence or civil unrest like this can zap your spirit. how do you feel today about doing business in the community where you do business? i mean, you're back open today, so i assume that's part of the
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answer? >> that is part of the answer. we are a very close-knit community. st. louis is a small town as far as i'm concerned. especially with our neighborhood where we live, there's a unified call for peace. the people there are interested in causing damage, that's few and far between. unfortunately, they can do a lot of damage in a short amount of time. but as a business owner and i've been speaking to other people on the street and in this district, we want nothing more than to just get back to work. >> yeah, mr. bailey, thank you very much. and good luck to you and to your employees and business. david bailey for us. sue? a high in consumer confidence is seeing the s&p hit a fresh high on the revision to the third quarter gdp. joining us to talk about the markets is phil orlando, chief equity strategist at fred rated investors, and scott is here
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from wells fargo advisers. scott, great to have you with us. >> hi, sue. >> the fourth quarter gdp pretty impressive. what do you think? >> we started with a 3.74% forecast. co consensus is near 3, so we are delighted to see it. the consumer was much stronger. inventory and capex, even housing was falling. so this is a good number. >> would you agree with this, scott? and what does it bode for the economy? >> phil is right, there was better consumer spending and better business investment. that's good. we expect the numbers to improve as we move to 2015. but the 3.9 number, i think it's a mistake to think this is the beginning of a new trend. i still think we're going to get out of this year with maybe a 2.1, who knows, maybe a touch higher gdp index. next year we'll see 2.8% gdp.
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so i don't think this three-plus number is the beginning of a trend. we are in a modest inflation environment. i don't think that's going away any time soon and could easily last a couple more years. >> sue, if i could just jump in here, four of the last five quarters now have been above friend. the third and fourth quarters of last year, now the second and third quarters of this year, the only bad quarter was the first quarter of this year which was impacted by the polar vortex. >> right, by the weather. >> so i would like to believe that we're starting to catch a little bit of traction here. now, scott's correct, we've got to see if this trend holds, but we're encouraged by these above friend readings in four of the last five quarters. >> the s&p forecast, we'll talk about that for 2015. it's at 2350. is that drimven by earnings? >> mostly earnings growth. we have an expectation of 120 this year. we are $130 next year. so we have maybe an 8% earnings increase there. little bit of multiple expansion there. that's how we get to our 2350.
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>> and what sectors of the market, we'll look at what you like. industrials, consumer discretionary, financials? >> if we are right that the economy is starting to crank here, it aught to be the more economically sensitive categories and not the defensive categories to sort of catch a bid here. discretionary, industrials, these are the areas that aught to do well with the economy starting to pick up steam. >> you have also had a year-end target in the range of 2150, scott. with a you would you overweight in this market? >> well, we like the cyclical sectors, too. the consumer discretionary sector is good. i like industrials and technology. and while our target and our gdp number is not as optimistic as phil's is, i would love for phil to be right and see 2350 out there next year, but i still think modest growth, modest inflation. stocks can do well in that and have done well in that. so i don't want to sound bearish
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at all. i just think our earnings number is about in line near 8% growth. so i think the market is going up. the cyclical bull market still has more room to run, i'm just not quite as optimistic as phil over the course of the next 13 months or so. >> scott, thank you. happy thanksgiving. appreciate it. >> same to you guys. >> do you like me turkey tie? >> i love the turkey tie. next time, scott, we'll get you a turkey tie. >> happy thanksgiving. >> ty, up to you. snow already hitting in the midwest, but even more cause for concern in the mideast now as winter storm cato threatens to snarl the busy thanksgiving travel season. here's the weather channel's tom niziol with more. >> well, we're going to be dealing with a full-blown winter storm on one of the busiest travel days of the year on the wednesday before thanksgiving. we'll see the watches and warnings in effect now. the light blue are the winter
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storm watches. and in the dark blue from sbooern p.a. to interior new england, we have warnings for significant snow. we'll see how it plays out tuesday evening into the rush hour wednesday morning. that large area of rainfall works its way northward. and as it gets into the cold air in the appalachians here, significant snows will develop during the morning along the i-95 corridor. probably a mix of rain and snow that will continue throughout the day on wednesday before temperatures get cold enough to really produce some significant snows. just west of the i-95 corridor, along the corridor from washington to philly, we are still going to see a mix of rain and snow. and then it's going to move off quite rapidly overnight wednesday night into thursday. by thanksgiving day, most of it up to the canadian meritimes. total snowfall, as much as 8 to 12 inches in parts of interior new england. stay tuned, we'll keep you updated. i'll send it back to you. so over the snow. weather is one of the culprits that could be causing travel today. delay this is thanksgiving week. but there may be a way around
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it. who better to tell us but robert frank? >> as long as you have the money. if you want to take a private helicopter to your private jet, there's an app for that. we'll tell you about the new service for the new york jets that is actually cheaper than taking a black car. and you'll never believe how fast this thing is. >> whoa, cheaper than a black car in some cases. and the twitter faux pas by twitter's ceo. he sent a tweet he thought was private but it went to 9,000 of his followers. what did he say? we'll tell you next on "power lunch." s! so no set up fees! wooh! yeah! so i get help from rollover consultants? wooh! yes! no rollover hassle. great. woah oh, we're spiking things, robbie.
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watch your personal dvr library where ever you go. with the x1 entertainment operating system. welcome back to "power lunch." i'm melissa lee. check out the stock of comcast. it is moving higher after it was added to the conviction list after an attractive evaluation for substantial capacity for substantial moves. the stock is up 2.4%. >> melissa, nice to have you join us. >> thank you. many will be traveling away from home this thanksgiving. 46.3 million, that is. 41.3 by car and 3.5 million by
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air. this is an increase of 4.2% from last year. that means one thing, congestion on the roads and skies. congestion has been good for one company offering seats on helicopters through an app. robert, tell us about it. >> and some of these will be traveling by gulf stream. tomorrow is actually the busiest travel day for private jets, but in new york that means a 45-minute traffic-filled drive to teterboro airport. it is $800 for a six-person helicopter, that's a third of the price for current services and works out to $117 per seat if you fill the chopper. that's about the same price as a black car. but instead of a 45-minute trip, this thing takes between four and five minutes. super fast. teterboro has between 600 to 700 flights a day, so the goal is to get 1% of 2% of those flights.
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they launched a service to the hamptons this summer and did 800 flights this summer and are adding more cities and airports. tyler, it's amazing, just click on the app and the helicopter will be there in 20 minutes. >> that is very, very cool. you get six people together, it's worth it. robert, thank you. sue, down to you. >> that's the way i want to get to the nysd every day. instead of an hour and a half in traffic. all right, well this was the tweet seen by thousands. and it was intended to be private. oh, and by the way, this was sent by twitter's cfo, anthony nodo. oops! julia has the details from los angeles. this is quite the talker. >> this is worse than hitting reply all. the ceo shared details with the world when yesterday he tweeted a direct message, quote, i city think we should buy them. he is on your schedule for december 15 or 16.
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we will need to sell him. i have a plan. this quick tweet was deleted but this shows that the app is easier to use. yesterday they called out private messaging in particular saying the company is pushing to pick it easier. >> we are going to add significant functionality to private messaging, and you'll start seeing that functionality role out this quarter. it will be the beginning of a steady cay dencadence of improvements within twitter. >> and he suggested a social app secret, and shock or storehouse. and there's a company called drawbridge that tracks customers moving between devices. and the last two ones are interesting, the e-commerce play could make sense as they
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increasingly focus on retail. an hour ago the company announced twitter offers that allows consumers to add deals to their credit cards. tyler? julia, thank you very much. two tales of the u.s. economy. today's strong gdp data and phil lebeau zeroing in on the state of smaller manufacturers. phil? >> hey, somebody's got to deliver some slightly down news today, tyler. we've got it. what are small manufacturers doing when it comes to investing? well, surprisingly to some, they are not sticking new money into new machinery. we'll have all the details, tyler. and blackberry offering iphone users $550 to switch to a blackberry. would you? go to cnbc.com/vote and weigh in. would you take $550 to give up your iphone for a blackberry? we'll be right back.
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it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running. two tales of the u.s. economy today. first phil lebeau zeroing in on the state of small manufacturing and how they might be getting a little nervous. but we start out with steve liesman on today's strong gdp data. over to you, steve. i'm standing in front of a rather large turkey here as we give a turkey award for the data of the day. it's been a feast of data and we want to go through what is today and what is tomorrow ahead of the thanksgiving holiday. gdp number, the second read which sue just mentioned, 3.9%.
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that's stuffing because it was stuffed with more gdp than we thought. we were looking for 3.3% off the 3.5% original report. came in at 3.9 to make people optimistic for the fourth quarter. s&p is a bit above expectations. those home price gains are decelerating. and the turkey data of the day was the bad consumer confidence number. looking for 96, a new record in the post-recession period, came in at 88.7. making us think the prior month was the aboration. and jobless claims could be another positive at 289. durable goods down a half point, but looking at the business investment to rise by a percentage point. personal income, 0.4. and that's not it, just like your thanksgiving dinner, the food keeps on coming and the data keeps coming. we'll see if the consumer sentiment number goes to 90 and
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new home sales at 470, up 0.6%. we'll look at what happens with the third quarter gdp number to the fourth quarter number that came down a tenth. you can see there we are now tracking it on the cnbc rapid update with a very broad range for the current quarter. 1.2% to 4.2%. here's who is who, deutsche bank at 4.2%. and goldman at 2.7. morgan stanley at 1.7 and moody's at 1.2. >> we went from a feast to a little bit of a famine in the manufacturing sector. maybe it's not that bad but tell us about it, phil. well, this is data coming to us from a company that tracks business.
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when you go back through the recession, right after the recession, a big investment in new equipment and machinery came down a bit in 2012. a bit of a dip last year. only up 1.87% this year. well, for the third quarter, they said small manufacturing will be up just 2%. that's where the data is for the third quarter. in fact, nine out of ten sectors actually saw a decrease in spending. and the owners, they are increasingly cautious about future growth. >> we are not seeing a contraction in the data. there's still some growth here barely replacing all the tools and gears and everything else worn down over the last several years. >> bottom line is this, tyler, bill stanley's been tracking this data for a number of years. he increasingly is hearing from small manufacturers that they are just doing enough to make their investments work for their business, but they are not investing in new capital, in new
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buildings, nor are they optimistic about hiring. so that's a bit of an ominous sign when it comes to small manufacturers in this country. >> all right, phil, i'll take it back. thank you so much. melissa lee is back with the market shares. >> we are watching shares of united technologies. this is after wells fargo upgraded the stock. now it seems reasonable. remember, the stock fell yesterday on the surprise resignation of its ceo. so take a look at utf, 111.50 up 2%. tyler, over to you. power rundown time. best buy, folks, bracing for black friday with dry runs at 1400 stores where employees learn crowd control, process sales quicker, even how to reunite a lost child with their parents. can dress rehearsals keep the frenzied shoppers under control?
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julia, let me start with you. >> ler, i've covered many a black friday and have been in best buys on many early black friday mornings. and i have to say, these things operate like well-oiled machines. the people in line are given numbers, they can only enter in a specific order. although it's a little scary when they open the doors, you don't know how fast people are going to rush in, i think they do a pretty good job at keeping crowds under control, particularly if they have followed the rules and everything they have set out ahead of time. >> i have told my wife to shoot me, john, if i ever go to something called a doorbuster. question number two, there they are getting ready in the blue shirts. that's not the new york rangers. one of walmart's most powerful execs stays ahead of the black hole ahead of the holiday retailer season. how big of a blow could this be to walmart? i'm sure what they have already have in place for this holiday season is in place. >> it's not that big of a blow because we have known this was coming since the summer when he
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didn't get picked for the top u.s. job a couple months ago. his wife moved down to texas, everybody knew that he was getting out of there. >> yeah, going from bentonville to texas. all right, blackberry offering iphone users $550 to swap their square screen passport model. go to cnbc.com/vote to let us know if $550 would persuade you to make the switch. julia, would $550 get you to switch from a blackberry? i don't know if you use one or an iphone. >> no, i made the switch to iphone and am never going back. i was a devout blackberry user for many years, but those things broke all the time. maybe i'm a little hard on my devices, but still you cannot convince me to go back to blackberry. >> i found my blackberry reliable and a good typing device. the iphone is a better, easier browser. >> they have to hope to get some of the blackberry die-hards on the fringe who have gotten iphones under duress and see a
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new blackberry and say, oh, i just got this. they just need a few because the market share is not what it used to be. thank you very much. we'll lock in the vote. would $550 get you to swap your iphone for a blackberry? >> 65% say, sure, they would go to a blackberry if you got $550. the power of cash. cash is king, sue. >> cash is king, indeed. all right. to the bond market where rick santelli gave the auction today an "a-plus." how is it doing now and how is the market, ricky, over to you? >> i think the markets are great. since the auction, all maturities are rallying to push yields down. some through significant levels. looking at the intraday and the five-year, you can see the yields moving down. looking at the ten-year, same dynamic. 30-year, under 3% having closing not closed below 3% since october. and the tens, the 21st day in a
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tight range and are breaking out under the 2.30 level. a sue, back to you. >> rick, thank you so much. techs, financials and consumer discretionaries. three of the sectors jim cramer sounded off on. they have all seen gain this is year, but which sector will be the strongest next year? go to cnbc.com/vote to join the conversation. we'll talk about that, next. tdd# 1-800-345-2550 [ male announcer ] your love for trading never stops, tdd# 1-800-345-2550 even on the go. tdd# 1-800-345-2550 open a schwab account, and you could earn tdd# 1-800-345-2550 300 commission-free online trades. tdd# 1-800-345-2550 so when a market move affects one of your positions, tdd# 1-800-345-2550 schwab can help you decide what to do. tdd# 1-800-345-2550 with tools like free live-streaming cnbc tv tdd# 1-800-345-2550 that give you the latest financial news and trends. tdd# 1-800-345-2550 and bubble charts and price charts that let you see exactly
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cool. the magic of the season is here, at the lexus december to remember sales event. this is the pursuit of perfection. now with the you can watch live tv anytime. it's never been easier with so many networks all in one place.
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get live tv whenever you want. the xfinity tv go app. now with live tv on the go. enjoy over wifi or on verizon wireless 4g lte. plus enjoy special savings when you purchase any new verizon wireless smartphone or tablet from comcast. visit comcast.com/wireless to learn more. if you are cooking thanksgiving dinner, listen up. the consumer product safety commission out with the annual thanksgiving warning in the form of this video. it is not a joke. every year there are injuries when people try to deep fry a turkey. you can do it but you have to know the rules and the recipes and obviously be extremely careful. ty? that is frightening to see.
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stocks sitting at all-time highs and jim cramer sounds off on the stocks he likes right now. technologist. now here's a group that has not done much of late. what does it mean? i think it means the pc industry is doing better than expected, which allows you to buy everything from intel to microsoft to hewlett-packard. let's put in sandisk. next up, the financials. if you are a portfolio manager that set out this rally, why wouldn't you want to buy bank of america? it is cheap, you can justify that the economy is getting better and consumer discretionary needs. two words, jas lean and jobs. harken you back to days when target, walmart, macy's kohl's we -- >> discretionary and financials, we want to hear from you. which of the sectors will be the strongest in 2015? for their thoughts, we'll bring
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in jim yorio and jeff killberg. jim, we'll start with technology. jim seems to like some of the names, what do you say, jim? >> i like them, too. the reason is dinosaur technology taken by itself, the names like microsoft and intel, the things that pay you a yield, look really good when you compare them to some of the other yield-bearing instruments around the globe. so i still like that. and even i kind of almost put apple into that group and am long apple. out further than that, i agree with jim's rational. i think the whole economy is doing slightly better than people think it is despite the gdp numbers as well. >> onto the financials, jim cramer likes bank of america. what do you think of that stock or the financials more broadly? >> well, no disrespect to mr. cramer here, but after seeing the s&p 500 up 250 handles since october 15th, i think there are some headwinds against the financials. i prefer tech of all the three,
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but the financials, when we see the yield curve, which the feds have an influence on, how that turns out in 2015, i think that will hurt and compress the bigger base. so i want to buy it much, much lower, ty. >> we'll move on to consumer discretionary that seems to be the leading sector in our viewer vote. what do you say, jeff? >> well, i think, yes, we'll see black friday. you pull out the barometer, don't look at that because he's cheap. but people are spending more, and why is that? we have more buying power, so i think the consumer discretionary will grow. >> there are two parts. one is the rate environment, rich people are doing very well right now. asset prices are going up and they are feeling confident, but you throw in cheap gas and people in the middle are feeling a lot more confident than they have before, too. and the consumer discretionary could do well. i'm all for it. >> that goes back to what jim
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cramer said, gasoline and jobs. one is moving down, jobs moving up. gentlemen, thank you very much. we'll lock in the vote. 62% of you say the strongest sector in 2015 will be technology. 33% say consumer discretionary. just 5% like the financials. melissa lee is joining us again for a market flash. hey, tyler. check out fred's after the discount operator reported a bigger than expected third quarter loss. look at the stock down a whopping 10.5%. sue, over to you. thank you. smoking rates may be lingering around the world at all-time lows in the u.s., but big tobacco is not missing out on the recovery since the recession. take a look, up 150% over the last five years, but will growth for big tobacco falter as china, one of the biggest tobacco markets in the world, considers a ban on public smoking and advertising? here's the managing director of
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oppenheimer to cover the space. ian, nice to have you here. >> thank you for having me. >> what impact will china have on the industry as a whole? >> sure, i think it's important to realize what is really going on here. there are bans right now on tv and radio that is not permitted in china at the moment, but what you would see and what this regulation may call for is additional regulation. so you say, now it's up because china does not have advertising permitted, but oppenheimer may not have that as well. if tobacco makes you a useful citizen, it will not be permitted under something like this. >> does this affect the big multinational tobacco companies we track here in the u.s. or not? >> i think it will be negligible. the way you look at the chinese monopoly, it controls 97% of the
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market. so about 3% of the market is open to foreigners. and i think when you look at it and break it down further, of that 3%, a lot of times there's a higher margin or a higher better brand name that is counterfeited. so if you're a person in china or a chinese citizen and want to smoke a cigarette, you don't want to smoke a marlboro because there's a chance for a counterfeit. you would rather smoke a locally made product. >> thank you, ian. all day here on cnbc we have been looking at the future of energy. what is that sector going to look like 25 years from now? more gr more gran brennan is in a 46 windy floors above midtown manhattan right now. hi, morgan. >> reporter: well, sue, 46 floors up and it's really windy here. what if you could take the wind power or solar power for that matter and store it for peak
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hours? that's just one of the technologies we'll be talking about when "power lunch" returns.
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as part of cnbc's 25th anniversary, we are spotlighting a number of sectors in how they may look 25 years from now. today we drill down on energy and go back to morgan brennan 46 floors up on the roof of the building in midtown manhattan. back to you, morgan. >> reporter: in cities of the future, businesses will generate more and more of their power through alternative energy sources like this solar panel on the top floor in manhattan. but scientists look to develop this much further. m.i.t. is on the cutting edge. researchers here like vladimir are using science to tackle some of the industry's biggest issues. he helped develop this,
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transparent solar cells. unlike traditional solar panels, his design only absorbs infrared or invisible light. because you can see them through, you can put transparent solar panels on just about anything. >> around the roads or top of the buildings or indeed cars. why isn't the surface of a car not covered with solar cells. >> these could even be built into the windows of skyscrapers dramatically bringing down energy consumption. and by building transparent cells into the mart smartphones of the future, charging your device could become a thing of the past. >> it is annoying to recharge it every few days, so can you avoid it? you can, by harvesting just a little bit of the infrared sunlight. >> storing all the energy is also a problem. one that another m.i.t. professor is working to solve. donald sadaway is looking into a new liquid type of battery. >> this is one watt hour. it is a workhorse sale.
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>> it is cheaper and built longer to last than a lithium ion battery. >> if you want to make it cheap, use dirt. we have a battery fully discharged on a daily basis and still have 99% of the initial capacity. >> he's scaling his batteries up to store electricity from wind and solar that can be fed back into the grid during peak energy demand. he says in 25 years his batteries can be put into the basements of buildings taking demand off the grid and saving billions of dollars through carbon-free energy. >> there's all sorts of opportunity for changing the nature of the grid so that we don't have to then build more of these monstrous power plants that are frightfully expensive. >> reporter: so the promise of both of these technologies is essentially energy diversification and ultimately the decentralization of the
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current electric grid. but of course the key to all this happening is scale, bringing down costs so that one day every one of the buildings in a city like this can generate some of its power from these alternative sources. guys, back to you. >> morgan brennan on the top of the world. going over your 401(k) into your pension plan and having it guaranteed. sounds like a good idea indue tiffty, but should you consider it? weigh in and cnbc.com/vote. the risks and rewards you need to know about.
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in this hour of power, rick santelli has breaking news with strong demand for the five-year note auction. he gave it an a-plus and we have seen you move the session lows. andipple hitting a session after moving to a $7 billion market cap early in the session. and a powerful day for petrobras losing momentum in afternoon trading but still up on the day. melissa lee is back with a market flash. and the medical technology company increasing its dividend
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to 60 cents a share. take a look at the stock, bdx. and your money and future now. you can roll your 401(k) assets into your company's pension plan if your company has a pension. and the portion you roll over will be federally guaranteed. is it a good idea? would you roll over your 401(k) into your pension plan if you had a chance to do it? go to cnbc.com/vote. and as you vote, karen epperson will be here to explain the benefits and drawbacks. there's a new ruling here that says if i take my 401(k) balance, i have $550 in my balance, do i have to roll it all in? >> whatever money you want to roll over into your pension, the new ruling is saying from the guarantee corporation is the money rolled over is going to be guaranteed. that's a big change. a lot of folks want to have a pension if they can get one because of the lifetime income guarantee you're going to get.
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the fact that you're able to roll the money over from the pension and from the 401(k) to the pension will allow you to do that. the other thing that it is not subject to is what the normal pjbc limits are, about $60,000. the only part that is guaranteed up to $60,000. the other thing that is really important is that that money that you rolled over, the 401(k) money you rolled over is going to be guaranteed no matter what. so if the pension does fail, you are still going to get that money that you rolled over from the 401(k). so those are some of the pros. >> basically, i'm due a regular pension benefit, let's say $2,000 a month, and i take my $200,000 $200,000, 401(k) becomes $3,500 a month. >> yes, and the extra thousand or $1,500 is what they say is
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guaranteed. you have to consider that not everyone can get a pension and not many company offer them anymore. >> and you don't have access to a big lump sum there if you need it. >> a lot of people want to have a lump sum at the end of whatever their retirement is. they want to take in a lump sum. this will not allow you to do this. you'll be getting a monthly anuitized payment. for me, bottom line, i want control of my money. roll it over into an ira. later you can put it in an annuity. sue, down to you. >> we'll see what's coming up on "street signs" now with man did. technology is looming ever closer. we asked if opec will be relevant in 25 years from now. both sides of the debate are coming up on the show. and we have the best stocks
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heading into the end of the year. and what do these all have in common? tune in to find out. we'll see you then. back to sue and ty on "power lunch." coming up next on "power lunch," getting out of the rat race. there's a difference when you trade with fidelity. one you won't find anywhere else. one-second trade execution. guaranteed. did you see it? in one second, he made a trade, we looked for the best price, and the trade went through. do the other guys guarantee that? didn't think so.
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when a woodworking hobby turned into a business, they went from stock buyers to wine cellars. >> i said to joe, thankfully you pulled me out of trading. >> hello, i'm joseph klein. >> and we are the founders of joseph and kurt custom wine cellars. >> but we used to change in equities. >> when the merck was fulfill, i changed over to new york stock exchange and started talking to joe about combining a message fund together. i remember going into his loft one day and was like, where did you get the wine rack? and he said, i built it.
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>> i had done this because it was a release from trading. >> it began as one wine rack in my garage and driveway. one day i was trading and got a call from a guy in texas that he wanted to build a wine cellar. and he said, google. and i said, this is going to work. and then i started getting contacted from all over the world. we looked at each other one day and said, we have outgrown my garage. not to mention my wife was going to strangle me. and it just became what we did instead of trading. >> we, by no means, were the first people to design a wine cellar but we took it to a different level. we did a 5,000 bottle wine cellar and then 10,000. could we do 20,000? we can do anything and never back away from a design challenge. >> i never felt like i had a business when i traded. here we are building something tangible.
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>> love that. joseph and kurtis are producing the custom wine cellars right here in new jersey though they have built cellars for those all over the world. they range in price from $20,000 to a quarter million dollars. and that will do it for this edition of "power lunch." >> have a great afternoon, everybody. "street signs" begins right now. ty and i will see you tomorrow. well, the world's most powerful cartel be completely out of power over our lifetime? why opec could eventually fail. welcome to "street signs." plus, why so many missed the economic recovery. your best stock bets heading into the end of the year. hello, mandy. >> hi, everyone. i'm mandy drury. we are watching the s&p and the d dow. th

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