tv Power Lunch CNBC December 4, 2014 1:00pm-2:01pm EST
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film in that series and at least daniel craig will be back at 007. "inspector" expected a year from now. final trades, what and why? >> united technologies. i like this. something will happen or they may slit up the company? >> mass avenue curve? >> halliburton, oversold. >> pete? >> love utx, right there with the giddy-up. >> all right. "power" begins now. >> halftime is over and "power lunch" and the second half of the trading day starts right now. >> thanks very much. is opportunity knocking? today we are focusing on three areas. oil stocks, china and beyond dow 18,000. a massive tax hike plan in the works. we'll tell you about it and where. plus, in one of this country's fastest growing real estate market a plan for a newer bigger mansion tax, and we're live at the apple trial where it is possible that previously unseen testimony from steve jobs could be shown today. all that and more on "power
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lunch." this hour first to sue at the nyse. >> good to see you, ty, and the dow really remarkably is only slightly lower on trading session right now. we are well off the day's lows because about two hours ago we were near a triple-digit loss. right now we're focusing, as ty mentioned on three areas where many stock watchers see some gains, china, beyond dow 18,000 and oil stocks. by now you surely know that oil has been beaten down by 35% in some six months, but what happens if it does start to turn around? how do you play it? well, take a look at many some of the stocks in the energy sector, transocean, down 52% and danbury down 54% and noble down 50% in a year. pretty much the same stories for diamond offshore. cnbc.com jeff cox is here to explore how investors can benefit if oil turns around and you'll give us some names on that, right? >> thanks, sue. i did a report for this about cbs.com earlier, and readers are
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just diving into it. a lot of interest. let's do three quick names. the first one is conoco phillips. one of the big balance sheets staying power companies, well-positioned for a shakeout in the energy industry that a lot of folks are expecting to come. the second one is oih. this is the market sector's oil services etf. it's really gotten hammered this year, but it's well diversified and two big holdings are schlumberger and halliburton and also, finally, the third one is kinder morgan. you want to talk about diversification, a well-diversified energy company. it's easily out. a lot of interest. one thing i want to say, sue, this is a real buy the dips kind of a trade. investors looking for weaknesses in the market so a day like today when energy stocks are down you want to start to nibble on these things, but really wait for the weakness. >> all right, jeff. thank you so much. now to some more opportunities,
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but this time overseas. india is soaring. chinese stocks seeing their best one-day gains since the year 2012. stock market there up almost 40% this year. it's been white hot, an incredible run. bob pisani, as you can see, is next to me here on the floor. he's tracking rally and dominic chu on the etfs riding the rally overseas. bob, you go first. >> who would have thought, mainland china dead for years, been roaring back. 4.3% today. almost vertical since the middle of the year. let me show you y.take a look at ahsr, a retail that invests in mainland china stocks being opened up to investors outside. mainland china really for the first time, one of the few funds that could own it before november when the opening happened. what we're seeing is a huge increase of volume of foreign investors going into mainland china and the stocks are going up. that sector there, that's up about 38% this year.
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now look at the fxi. this is a basket of 30 big chinese stocks but they trade in hong kong, not in mainland china and 80 yards outside of hong kong. it's only up about 8% so mainland china is what's hot right now. take a look at chinese oil stocks. they have been battered like all the global oil stocks. had a terrible time, but today those stocks are moving to the upside so china petroleum, petro china, all which have had a terrible time recently, have been rallying back. it's good news we're seeing big global investments going into mainland china. that's good. it will help china diversify global investments what. i'm a little concerned about, the chinese economy still showing signs of slowing down so investors are piling in as the stock is slowing down. that's not a good fundamental indicator, but right now just having china catch up to the rest of the world in terms of investment. i think it's a positive. >> thank you, bob. to steve liesman with an alert for us. hi, steve. >> the market moving, in fact
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the dow turned positive on news that the ecb staff would prepare or the ecb would consider proposals in january. we've confirmed that, for quantitative easing. we've confirmed that, but not entirely clear to a lot of the analysts who cover this closely that this is news. i would point out for you that draghi said at the press conference that the staff has stepped up technical preparations for further measures which is right in line, a source tells us, with considering proposals for qe in january. i think what happened here, sue, is the market may have misread as hawkish comments that it would be not until the end of the first quarter that the ecb would consider qe. that's an outer limit and our sources tell us, sue, that it's well within what draghi said this morning for consideration of kwooquantitative easing by t european central bank at its meeting in january. tyler. >> now to the topic become with dominic chu and he'll tell us about etfs that are tracking the big rallies in china and india
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that bobs and others were looking at. >> we looked at the fx side, not the year-to-date or the one-year numbers but where investors could have gotten rewards. we went to last year and what the intraday lows were. look at the world of etfs, juxtapose the china and india story with u.s. and the rest of the world, the spyder is up 19%, much petter than the year-to-date reward if you had gotten it at lows of the year. if you look towards another developed country, this is germany in the center of the eurozone, in the core of the eurozone, it's up about 14% if you take it off the 52-week lows we saw over the course of the past 12 months. you take those returns of the developed world and juxtapose them with china. you saw in the earlier chart, the fxi, the etf that tracks the
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main stocks in mainland china and elsewhere in hong kong, these stocks are up 27% if you picked them off with a 52-week low. some investors on pike dips have made a lot more money and one big one, a huge winner so far is the inda. one of the big etfs that attracts the indian stock market. we know they are near record highs. if you had bought those stocks here, 52-week lows. the indian etf is already up about 40%. if you take a look at some of the real standouts, it comes down to whether or not you could have timed some of those picks correctly. >> that's the whole point here. if you can pick the very low point, you're going to make money. >> some people, when they looked at these and bought the dips, they have been able to do a little bit better than the overall market, but, still, china and india, two of the real stand puts. the inda for india and fxs for china, two of the major ones that track the markets. >> thanks very much. >> china may be picking up steam. dom just highlighted some recovery in europe but it's
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generally still under pressure, and earlier today the dow was down almost triple digits when it interpreted the ecb as indicating there would be no additional stimulus and as you know steve liesman just told us perhaps it's a misread and it's actually turned the dow jones industrial average positive on steve's reporting just a few moments oak, so let's talk more about where the global opportunities, are especially with the recent drop in oil prices. joining us now is matt sloan, cio of mutual funds at usaa. welcome, matt. good to see you again. you oversee the five-star morningstar high-income fund and as you can see from the screen it's done very well indeed. welcome, matt. let's take a look at where you see opportunity, and let's talk europe, first of all, because it's a perfect dovetail with what dom was just talking about. do you see opportunity there? >> so we absolutely do. so when you think about europe, they are really the haves and have-nots so the northern
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country is clearly doing better, but the southern countries really are going to benefit from lower energy prices, so we think that europe long term, tremendous opportunities, but i do think that mario draghi is running out of runway. he needs to start backing up his promises with actions, so i think the commentary was right on. if we get much through the first quarter and still don't see any action from the ecb. that could be a short-term problem. >> talk to me about the drop in oil prices. i mean, it would seem that it's also a boon to the u.s. consumer and the u.s. economy, but it -- on the other side some of those energy stocks have just gotten crushed. are you playing oil at this point? >> yeah. so oil is clearly a mixed bag so you're quite right. for the economy, the consumer is going to benefit and we're going to see that reaction over the next two or three quarters. we do think that oil importing
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countries and regions around the world, so places like india, turkey on the em side and japan in southern europe clearly will benefit, but there is a negative. and that negative is not just in the oil stocks, but it's in the u.s. a little more broadly in the markets, but it's harder to measures so when you think about energy-related cap-x, that's about a third, 20% to 30% of s&p cap-x. we expect that to come down, and we think the other story that's not being talked about is how employment, especially in some of the oil-producing regions, could get hit. that being said, we think that looking at energy stocks makes a lot of sense here, especially the players that are going to come out stronger in the end. >> all right. >> so the larger -- the larger, stronger companies, we think they are going to come through this just fine and have a lot of m & a opportunities down the road. >> all right, matt. thank you so much. great to see you.
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>> dominic chu with a market flash. >> sue, we're watching shares of starbucks, the company detailed its five-year plan at its biannual investor conference. it projects sales to approach $30 billion by 2019 and starbucks announcing it will add beer, wine and evening snacks to thousands of its domestic cafes. starbucks shares, you can see there, up by 1.25%, outpacing the overall market. back to you. >> slapping tax dodgers with a 25% levy. details of the new plan and enormous ramifications especially for wealthy luxury real estate buyers. >> london's mansion market is frozen on fears of a possible tax on multi-million dollar properties. new york could be next. we'll tell you who could get hit and how much it could cost after the break and join the conversation. is a mansion tax a good idea? go to cnbc.com/vote. "power" is back in two. here's some news you may find surprising.
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we're for creating more innovation and competition. we're for net neutrality protection. now, here's some news you may find even more surprising. we're comcast. the only isp legally bound by full net neutrality rules. welcome back to "power lunch." check out the transportation stocks hitting their session highs right now with the overall market. the catalyst here, the airline stocks all flying high as oil prices continue to fall. united, continental, delta, jetblue and alaska air safely in the green so some analyst action lower oil prices mean green arrows. >> and big percentage moves, too. dom, thank you. barnes & noble under pressure after reporting weaker than expected earnings. the book retailer also buying
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back microsoft's stake in its nook ereader in, a move that it says provides a clearer path towards the potential split of it business. sears has been taking a hit in today's trading session posting a smaller than expected loss. however, loss was wider than a year ago, and its revenues dropped some 13%. the stock is down almost 3%. crowinger is higher though beating its estimates. profits at nation's biggest supermarket operator soaring more than 20% thanks to stronger sales. ty, up to you. >> all right, sue, you think taxes are rough here in the u.s. the uk cracking down on foreign companies trying to avoid taxes there, slapping them now with a 25% tax, 25%. also a massive tax looming for luxury home buyers. seema mody is going to join us from london in a moment. robert frank with the ramifications for luxury real estate. first, we want you to join conversation. is a mansion tax a good idea in go to cnbc.com/vote. seema, great to see you. you first. >> hey, tyler.
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well, the message is loud and clear from the uk. multi-nationals that derive profits here in the uk and use these offshore havens to transfer that profit to lower tax countries will face scrutiny, legal challenges and a 25% tax rate come april 2015. the government's reasoning, competition. >> that's not fair to other british firms. it's not fair to the british people either. today we're putting stop to it. britain has led the world on this agenda, and we do so again today. >> tax plan that the uk chancellor george osborne is proposing, tyler, has been left -- has been met with some uncertainty from policy-makers. for one, how do you actually verify if the profits derived here in the uk are being diverted? how is that actually going to be implemented or tracked? second, this 25% tax rate that
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is going to be effective in april of 2015, that's coming in one month ahead of the uk election in may where david cameron and conservative party, they might not even win, so then the tax policy presumably could be thrown out the door by the new government. now because of the moving parts. the questions around how this tax polley will actually work. at this point analysts i spoke with say this is just being considered a potential head wind for the apple, amazon, facebooks and googles among the other multi-nationals being targeted by the uk, but it is being seen as a political signal from the european policy-makers. back to you seema, thank you very much. robert frank now on the uk considering a 12% tax on luxury estate purchases. we'll ask whether a mansion tax is a good idea, not only in london but here. keep voting at cnbc.com/vote. major ramifications here potentially, robert. >> yeah, and big dollar numbers. governments around the world actually are looking to cash in on the luxury real estate boom but some of the taxes are
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already hitting sales. now in london the lane party is proposing a tax of 3,000 pounds a year on properties worth 3 million pounds or more. that's an annual tax. got to pay it every year. they say it can raise more than $1 billion. they would put that towards education. not a pad thing but fear of the tax is already hitting prices in london, especially at that high end. prices falling in september and expected to fall about 5% in the first half of 2015 in large part because of that tax. now, it's facing stiff opposition from realtors, of course, and from, get this, angelina jolie. she told britain's channel 4 that the quote, that the tax could put me off of moving there with brad and the kids. singapore has seen dramatic slowdowns after passing similar taxes and fees on foreign buyers. they imposed a 10% stamp duty on foreign buyers, and that cut home sales by 56% in the first half of 2014. hong kong, prices are expected to drop 15% next year after a
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similar tax. the question is whether new york is next. new york state senator brad hillman is planning next month to reintroduce a tax of 4% on second residences in new york city valued at more than $5 million. mayor de blasio considering a slightly different approach. he would like to double the mansion tax, a tax on sales from 2% to 2% on homes over $1 million. tyler, this is really gonna hit those brand new condo developments where you're talking about a $10 million property. that's a $200,000 tax that you're now adding to that sale. >> that's a sales tax. >> that's a sales tax. >> not a yearly like the one in london which would be every year. >> correct, but the one that brad hillman is talking about is an annual tax, two tracks here. either way realtors are freaking out over this, especially at high end, this could kill. it already happened around the world. >> let's lock in the vote and see what you think, if a mansion tax is a good idea. 58% of you say yes, a mansion
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tax is a good idea. i guess -- >> not mansion owners. >> must not have any mansions. 42% say. sue? >> okay, guys. apple's ipod trial is gearing up for the taped testimony from the late steve job, and later on "fast money," a cnbc exclusive. solar city's ceo weighs in on the drop in oil prices and whether it affects the solar sector. that's today on "fast money" at 5:00 p.m. eastern time. crime and punishment, andrea day is on the case. >> she conned investors out millions so what made her break it down and add mitt it was all a big scam. that answer coming up right here on "power lunch." there's a difference when you trade with fidelity. one you won't find anywhere else.
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welcome back to "power lunch." check out salix farm suit calls as it could be an attractive takeover deal possibly for shire. shire is up by 1.5% today. sue, back to you. >> a new front of turmoil for russia. a gun battle breaking out overnight between islamic militants and security forces in the chechen cap to the of groit. nine militants and ten police officers were killed before that building race we captured. as the conflict grows between europe and russia about
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aggression in the air, norway releasing this video of a close encounter between a norwegian over 16 and a russian mig. the norwegian pilot was forced to take evasive action as the russian fighter came within 65 feet. where's tom cruise when you need it? russia is moving fighter jets to the crimean peninsula in a show of force regarding the conflict in ukraine. now to fighting in the syrian city of kobani. this video obtained by a free lanse journalist army shows rebels holding the sit against isis militants. many of the fighters, up to one-fourth, are women. ty, back to you. >> sue, she conned hundreds of investors out of millions promising massive returns, but the feds say it was all a ponzi scheme. andrea day hats story. >> she's been called the ponzi princess, turning on the charm to literally take investors for a ride, but after conning people for years, this princess has
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finally been de-tloend. we caught up with her minutes after the judge slammed her with three years in federal lockup. when the money was flowing, did you ever imagine this day would come? why is this woman trying to hide from our cameras and have her friends do all the talking? >> the victims are all crooks, how about that. >> clearly, she had nothing to say to us, but let's go back a few years when investors say laurie schneider loved to talk. >> every single dime you put in you will get back. you will be paid in full with your interest and everything that i promised you. >> this involvementor asked us to conceal his identity. >> she didn't let you speak. it was always her. every question you asked, immediately she had an answer to respond. >> when the answers didn't add up, he secretly started recording. >> i have proof of what she said and how she lied. >> i am as real as they come. >> was there any truth to her investment opportunities as all? >> no, these two schemes were the figurenent of her imagination. >> according to the assistant
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u.s. district attorney laurie schneider ran the two schemes at once, raking until almost $7 million from dozens of victims. the prosecutor speak exclusively with cnbc about his case. so how did she lure these investors in? >> through her charm. >> one scheme dubbed the china deals focused on industrial machinery on the other side of the world. schneider claimed she had a business contact in china who could buy the equipment. >> so the pitch was i can buy it at cost and then sell it back in the united states for a large profit. she was promise being very, very high rates of return, sometimes as high as 60%. >> did she have any real business contacts in china? >> no. >> her other con was in real estate. schneider opened a shell corporation called eager beaver that bought distressed homes. >> personally guaranteed, and some of the deals were 20% and 30%. she would pick us up in a car and drive us around. hey, we bought that house for 250 and we sold for 320 and, you
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know, she drove around another block, no house we bought. >> no reason to question the deal especially since he knew schneider did have a legitimate business. >> she had this huge company where they did bar mitzvahs, weddings, go to the warehouse, 10,000 square feet full of products. >> in the beginning he says he made cash and when the checks stopped coming in, he got suspicious and started recording the meetings. >> the art of smooth talking, she mastered it. >> i can't speak right now, i'm running into a closing. >> i'll pay you out of my own personal money, don't worry about it. >> if laurie schneider is speaking then she's lying. >> mark morowitz once considered schneider a close friend, a tactic he believes was all part of the lure. >> she didn't talk about the business, fwaukd me and got to each of us through a personal connection. >> and the personal connection felt so real he even convinced
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44 of his relatives to invest. >> i am as real as they come. >> the only thing real is the 2 million his family lost. >> left with no money but left with huge debts. >> schneider's attorney released this statement to cnbc. she made good on a series of high interest loan until the pressure of debt overcame the profitability of her companies as well as her perspective. seeing no alternative other than more borrowing she made promises she could not keep in in order to forestall the inevitable collapse. >> you kept the lies going for a long time. when did you finally break down and add mitt it was a scam. she was charged with masterminding two ponzi schemes and she finally pled guilty. >> all the evidence in the case was so overwhelming she had no choice but to accept responsibility for what she did and plead guilty. >> schneider's been ordered to pay close to $7 million in restitution. she has until march to report to priss op. back to you. >> and i yeah, thank you very much. the gold market is closing right now. all the metals are, as a matter
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of fact, so let's get you up to date. the gold market is down just a fraction, less than 1/10 of 5% on the trading session, silver, copper and palladium have all traded across the board with palladium and platinum the biggest percentage movers and copper has now overtaken palladium on that front. ty, over to you. >> all right, thanks. to the bond market now and the great san telly, rick, tracking the action at the cia, cme though he may be tracking it at the cia for all i know. from chicago and we have a two-day chart of tens y.did i pick a two-day chart? because the ranges, like they have done for the last six weeks, they are compressing, and they are compressing under 2.30, slightly lower than yesterday's lows. the trend is they will ease their way down, especially all the resistance above $2.30. look at the bund chart, even
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after the pacification of a big plan to come, next meeting and look at the chart going back to the 24, roughly a high yield. look at the euro flew from 1.23 to 1.24, gave hamp of it back and here's the chart you want to look at. get your microscope out. if you look closely, we traded above 120 intraday, first time that's happened since the summer of 2007. tyler, back to you from the big "c." >> thanks very much. day three of apple's billion dollar antitrust lawsuit, steve jobs' testimony from a videotaped deposition months before he died. josh lipton is live from oakland with the latest. josh? >> reporter: eddie q. in charge of itunes is on the witness stand right now. what he had to tell jurors, when
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"power lunch" continues. >> today's powerhouse is the birthplace of actor and film producer samuel l. jackson. it averaged more inches of rainfall last year than seattle and it has the nation's first professional sports stadium to be certified by the u.s. green building council. can you name that city?
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welcome back to "power lunch." we're watching some of the nasdaq gainers leading the way on the nasdaq 100 index. avago technology soaring on better than expected third-quarter earnings and tripadviser gaining on news that the company's ceo is buying more of its shares. microsoft is also moving higher. the company has reached a point where it's likely to take a page from apple's playbook and some some of its cash on a possible buy back suit. >> the dow making a huge comeback, down 97 points, and now it has swung into just a negative one point on the trading session. the s&p has been struggling a little bit, although as you can see it's down only about half a point.
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bob, some big swings in this market. bob is down on the floor here with me. >> again, every day, liquidity helps the market move forward. we're essentially at new highs. take a look at the dow jones industrial average. let's not quibble about a few points. the key thing here, we're there essentially right now and if it wasn't for the darn energy stocks, that's one year. exxon and chevron both holding back and those two are rallying. they are down. holding us back, do the math, about 15, 18 points on the dow. we have a few stocks, not many on dow and 3m is there. that's a new high for 3m. that's 15%. look at that move up since october. a lot of stocks have had big moves in the last few months. the airlines having a great day. jetblue is on fire again. it's another new high but this stock, look, this thing was $8 in january. it's $15, and do the math there, look at rally since october. it's up 87%, 88% for the year. a lot of consumer names have had big rallies recently, and to be
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honest, they are very overextended from a technical point of view. there's a good one kroger going up all over the place. $38 at the beginning of the year. what is it, over $60? and a big real since october. these stocks are due for a little bit of a pullback on a technical basis. another good one is whirlpool. whirlpool is what, 140 or 141 way back in october and now it's sitting near 190. the third quarter earnings period has ended. why has it ended? i just declared it ended. 499 stocks reporting. we've got earnings increases of 9.16%. sue, that's another record. bottom line on the revenues, 3.5% or so. that's a little bit on the disappointing side, but once again we're expecting another 9%, 10% improvement in earnings for the fourth quarter. you can still get those gains and, yes, unfortunately, much of it still on cost cutting. sue? >> thanks very much. more on today's market moves
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with kenny pull criand steve willons of sprout asset management. kenny, the big turnaround when the market got the news that the ecb is looking at january. >> right. >> for stimulus. but you made the comment that europe got crushed much morech. >> maybe they were putting it off, not three or four weeks out, could have been two months out that the market was certainly disappointed. saw europe turn around immediately and saw futures go from positive to negative as they were disappointed. steve came out and confirmed it and talking about the ecb moving sooner than the market expected and that's when you saw the turnaround. made a lot of sense. not a lot of volume though. at the end of the year and i've said this. large asset managers, unless there's a significant change in the story, our asset managers will ride it out. >> john, weigh in on this, if you could. do you pect 2015 to show the same kind of growth that we have seen or maybe even better growth than we've seen, and how do you
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play the market at this point? >> well, our view has been the u.s. economy would do better than people thought, and that was before oil prices took a 40% nosedive, so that actually makes it even better really for the u.s. economy looking at a 15 so i think there's a lot of challenges and risks, but i don't think economic growth in the united states is going to be one of them. >> so what is the biggest risk? i think you're focusing on china for one, and japan for the other. >> well, those to us are risks that are mayber longer in name. maybe hard to time in terms of when they play out, but, you know, china is peeking around 50% of the economy from the investment. that's a 30% investment to hold and as it starts to drop it will slow down economic growth which is what we've been seeing in china. that's keeping xlod tis really depressed, but the real concern is the credit bubble happening there and how that eventually unwinds to. me the big issue is probably
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japan. the map is just not good, demographics are horrible. the debt-to-income ratios are horrible, and the savings rate have really been declining, so that one to me, you know, we're seeing the end push through the 120 level today. it's been weakening a while now, but what you're really fearful of is a more dramatic break down in the value of the currenty. >> absolutely, absolutely. those are a couple of the risks. what do you see as risks for this market? >> i think the risk is going to be whether or not europe -- whether or not draghi and the ecb will be able to get europe up and running because i think people are expecting it's going to happen, but it has been a drag, and if something doesn't turn around fairly quickly, i think people will start to, you know, be more concerned about europe. is that a risk for us? not necessarily because maybe you see money come into the u.s. market at that point. people get frustrated with the lack of growth in europe and they will come to us. from our side we're a little bit overdone and technically overbought and the markets will either churn for a while and do noig nothing and allow the
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economics to catch up or pull back a little bit but people shouldn't be concerned. >> kenny and john, thank you. appreciate t.ty, up to you. >> sue, it's day three of apple's billion dollar antitrust trial. the testimony everybody is waiting for, steve jobs defending his company in a videotaped deposition just months before he died. josh lipton live in oakland, california. josh. >> reporter: well, tyler, apple's top executives are taking the stand today, including eddie qcure who is apple's man in charge of itunes. he's there to defend the ipod updates in 2006. remember, it was after the update that music from rivals real networks wouldn't work on apple's device and what plaintiffs' lawyers want to argue is apple made that update because it wanted to still competition, it wanted to expand its monopoly over the online digital music market. they want to say apple executives were worried about
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real networks that had its own music store and software that allowed music to be played on ipods. in fact, this morning plaintiffs' lawyers showed e-mails from steve jobs to eddie cue and paul schiller and other lieutenants in which jobs referred to real networks as hackers saying they are were breaking into the ipods, plaintiffs trying to portray jobs as a frustrated executive who wanted to crush the competition. cue is taking the stand to argue, that, no, update didn't have anything to do with real networks. the update was about security, that apple products are less secure if you let a third party into the itunes system. that opens the door to bugs and malware. he also pointed that update in '06 came with important benefits to consumers. it was the first time movies, for example, and tv shows were available on ipod. i can tell you also just personally having interviewed eddie cue myself a few times, cue always comes across as very approachable and direct. he comes across as a straight
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shooter, and that obviously is the impression that apple is hoping that he's also going to make on jurors. we'll head back inside the courtroom and bring you headlines as they happen. guys, back to you. >> all right, josh, thank you very much. they are not public just yet, but irish might be about to make you an offer of a share in the company. would you buy uber stock? it's going to have an uber valuation, whatever it is. go to cnbc.com/vote and we'll have that story when we come back. >> it's easy powerhouse is it's the birthday of academy award winner goldie hawn and investors spent $6.7 billion there last year. can you name that city.
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it's the birthplace of actress goldie hawn. can you name the city? washington, d.c. i was born in georgetown hospital. there's a wing there, the tyler mathisen wing and today we're focusing on the suburb of alexandria, virginia. you know who lived there, george washington. with us now from d.c. is eddie barenbaum. let's check out alexandria markets, median sale price there 429,5, inventory 1,200 and property on the markets for an average of 57 days. welcome. good to have you with us, edward, and what part of alexandria are we talking about here? >> well, we're going to look at three properties that really span across alexandria so we're going to start with one that's in the southern part, kind of smack between old town alexandria and ft. belevoir and we'll move up to the final properties in old town. >> old town is wonderful,
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reminds you of georgetown if you haven't been there. it's beautiful. the first one is 7552 great swan court, 405,000, two and a half baths and three beds. tell us about this one. >> it's a great starter home. it has three levels and as i was saying before it gives you really, really good accessibility to ft. belvoir, 18,000 jocks in the process of moving, dod, department of defense jobs down there, so if you were a first-time home buyer this would be an amazing opportunity for you. get an fha loan. >> one thing i learned, edward, prices follow job growth. when jobs grow, prices move up, so if you can get in at this price and have 1,000 new buyers coming in behind you, you'll probably make some money. second listing, a single family home at 3500 woodside road,
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699,1, that would be $700,000, annual taxes of about $7,700, five beds and four baths and 2,400 swear feet of living space. that's a nice up. where is this one, ed in. >> in wilton woods in the neighborhood. it has a lot of demand for wilton woods. if you look on a map, it's just barely south of the beltway. it's known for real big lots, old-growth trees, and it's within about a mile as the crow fly to the huntington metro. you can literally live on this third-acre lot with a five-tier deck that climbs up the backyard. the views from the top are amazing. here you are surrounded by trees yet you could literally walk to the huntington metro. >> are these alexandria city schools or fairfax county schools? >> these two are both fairfax county schools which, you know, are always in high demand. >> among the best in the country by many reckonings. let's look at the third one here that you say is closer to or maybe even in old town.
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808 snowden hallowell way, 965,000, annual taxes of about ten grand, three beds, three and a half baths and more than 22 hundred square feet of living space. smaller than last one we saw. that's partly abuse of the nature of the building there and also closer in. tell me about it. >> all location and finishes. you're talking about a new house in old town. it would in the northern part of old town alexandria. built by eya, one of the premiere metro urban-driven builders in the d.c. area and they specialize in properties close to the metro. this is about a third of a mile to the braddock road metro so you could walk five blocks east or west, and you would -- you'd be at the metro. >> is it a single family gelg or part of -- >> i couldn't tell. >> it's an attached home. it's got four levels of living
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and the top level is spectacular so the top level is an open loft. it has a -- an exposed brick on one wall, and it has a rooftop terrace so from the rooftop terrace you've got a two-sided fireplace that's completely indoors. you can see the masonic temple and all of old town. yes, just a spectacular -- >> great restaurants in old town. i worked there for several years, years ago. how is the market overall very quickly? >> market overall, extremely healthy. if you looked at alexandria you'd see the last two years the median sales price has been up a little over 6%. i think we're going to finish this year up, and i think we are -- you know, for a broker for myself, we've seen volume down and days on market which is up and a bit of a bummer but for the actual investor it's extremely healthy, 2.5 months worth of inventory as of today. >> all right. >> which is a seller's market. >> eddie, thanks very much. appreciate it. >> thank, tyler.
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take care. >> talk about a powerhouse, take a look at sanctuary fashion designer donna karan oasis on a private island in turks and cakeiestios. seven-acre compound listed by christy's real estate, $36 million will get it for you, chef's kitchen, yoga studio and neighbors include the willis family and the other neighbor, keith richards and christie brinkley. >> beautiful property. all right. it's still a private company, but irish want you to take a bite out of taxi business. seems the recent scandals haven't tarnished interest in that brand. how high could that valuation go? like to hear from you. if you could, would you buy shares in unier? join the conversation at cnbc.com/vote with the dow down two points. "power lunch" is back after this. (vo) watching. waiting.
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salix pharmaceuticals moving higher after the company is an attractive takeover company for shire and microsoft has reached a point where it's likely to take a page from apple's "playbook" and spend some of its cash on a stock buyback. all right. dominic chu is back with a market flash. dom? >> how about a downside mover. gravity taking shares of biogen after news of positive trial data on one of its experimental alzheimer's drugs. shares down a little over 5% and they were up 12% in the previous two days. back over to you. >> thanks very much, dom. the yahoo! finance question of the day, we asked which of these areas is the best opportunity to invest in right now? energy stocks, overseas etfs or domestic stocks? let's see the results. come on, survey says, energy stocks, 47%. i agreement i think you can buy them at a low price right here. overseas etfs, just 0% and
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domestic stocks 43% of you say that is where the best opportunity is right now. now, uber isn't public yet, but if you could buy shares would you? go to cnbc.com/vote to join the conversation. first, let's see though what's coming up on essigns. >> hey there, ty. two amazeing gifts. an entrepreneur and all-around nice guy and also have a really new shocking revelation on a tax that will have you asking your hr if your personal information is safe. "power lunch" returns right after this quick break but make sure you join us with a very special "street signs," and as i say with two very special guests at the top of the hour. act i. scene 3. open port twenty-two-oh-one-seven
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there's a lot of investor interest in the still private ride service called uber. if you could, would you buy shares. tell us what you think cnbc.com/vote. jon fortt is here on the floor of the nyse with more on that. they would like you to take a piece of them. >> uber might have had a controversial november in the press, but there doesn't seem to have been much controversy among investors. the ceo saying the company raised $1.2 billion.
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to put that in perspective, like gopro's i'm poe and planned secondary together that amount. it's not technically over. he could raise even more. the money is targeted to ooeb uber's expansion into asia which might be urgent since telco giant softbank put in for a riley. the company is six times bigger than a year ago and grew faster this year than last, though it's not clear whether he's raising revenue. some concern in recent weeks over reports that an uber executive talked about an idea of digging up dirt on a journalist and they have been less than careful with potentially sensitive customer records. the blog post says it the company will mature as it grows and be a better corporate citizen. let's lock in the vote. 59% said no, they would not buy uber shares and 41% said they
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would. appreciate t.markets were down almost triple digits on trading session. right now the dow is down only five points on the trading day. the s&p 500 is down a fraction, you can call that flat, and the nasdaq is positive, ty. >> thank you very much. that does it for this edition of "power lunch." >> "street signs" starts now. >> well, it is the question that not many are asking. could lower oil prices actually hurt the american economy and the stock ral? hi, everybody, i'm brian sullivan, and we will ask and try to answer that question as well. right now, mandy, it seems that europe is actually in focus for the markets. >> yeah, you're right. we've been seeing quite a bit of volatility and after the rocky start the dow and s&p hit intraday highs, and as brian correctly said it was stocks moving higher on reports that the ecb is questioning a broad qe package for its next
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