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tv   Street Signs  CNBC  February 6, 2015 2:00pm-3:01pm EST

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the nyse. i know the folks down there are going to miss you, but you will not miss the commute, and we will love having you back here. >> i'm really happy to be back here. no offense, new york, but i won't miss the east side drive or the west side highway. no offense. >> that's it for "power lunch." >> "street signs" starts now. all right. stocks turning around. they are now lower overall, but the job market moves higher. happy friday everybody. we'll have a deeper dive into the january jobs number. why stocks may be turning south. plus, real insight into the oil drop with the premier of alberta, canada. do you remember the ice bucket challenge? where exactly did all that money go? meg terrell with a special report on that. >> let's get into the meat of it. despite the unimpressed stocks, it is still the best weekly gain for the dow since 2011. the s&p up about 3.3% for the
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week. that is its best week since december. crude, meantime, has rallied nearly 20 berz over the past six sessions. it's still about half its peak, though, of last june, and the s&p energy sector has also enjoyed a weekly gain of nearly 6%. who loses in the rising environment? let's take a look at the s&p utilities because those, among others, are perceived to be losers, and you can certainly see it dropping there in the chart by about 3%. >> well, the number of the day is 5.7 because that is america's unemployment rate after a strong january jobs number. 257,000 jobs were added last month. there's even more good news in that report. i'm not going to tell you. steve liesman is. he is here to bring it down. is this one of these reports that literally you cannot find bad news in? >> i'm trying to think, brian. >> every other report -- >> yes, but. yes, but. i can't find the but. >> i'll tell you why, because even that 5.7% is exactly what people thought was going to
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happen. it brought -- the strong job market has brought 700,000 americans back into say count me, i'm up for work. i'm ready to work. i want to be part of the work force. and it wasn't one report, brian. it was three reports. it was the december and november revisions. not a two-handle on one of those months. not a three-handle, but a four-handle. it's the kind of numbers we've been waiting for. plus, this 257. well, everybody says it's likely to be revised higher. it looks like a strong reporting. it feels like a different gear for the economy. >> a lot of people have been talking about but what about all those losses that have been talked about in the oil and gas sector? is it just a case of they haven't really shown up yet? >> it's a hear no evil, see no evil. >> it's the oil and gas services seconder. the part they do report on a monthly basis january, very muted numbers. 1900 jobs lost. the most jobs lost since the december since 2009 since the recession back then. we're still waiting. there will be jobs lost. my take on it is that whatever
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jobs we lose there are, i think, overwhelmed by other job gains in the economy. >> according to mandy's point, according to challenger gray and christmas. we're going to find the negatives in this report, steve. the last ever edition of "street signs." >> this is the ultimate edition of "street signs." we didn't start with that. >> actually, it's coming out, my friend. 25,000 job cuts announced from challenger gray and christmas in the oil and gas industry, but if you announce something three weeks ago, you're not going to see the impact. >> no. it takes time. look, there's no doubt it's going to be an impact. it's going to be a regional impact. it's going to hurt certain areas a lot. at the end of the day when you talk about other types of hiring, it's probably going to offset that. >> steve, you also found a nerd alert for us in the jobs numbers. we brought out the nerd alert beanie for you. >> who is going to put that on? >> you, i believe. >> no, i think it's going to look great on you. >> no. >> if you are the one with the nerd alert, you have to wear the beanie. >> that wouldn't make any sense
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if i wore it. >> that's not part of the contract i signed. >> there we go. >> brian is going to wear it. >> just if the ears aren't sticking out enough, this should -- >> that's the thing. you have a reputation to give. i don't. i'm like just on the edge here. let me do the nerd alert here. >> now people will turn the volume up to hear your nerd alert thinking what the hell -- >> why is the guy wearing -- exactly. retail trade. this is the -- one of the concepts that, you know, where would you expect to see additional jobs for lower oil prices. you might see it in additional consumption at additional retail jobs. take a look at this data chart here, which is showing you 49.5. 46,000 jobs in january. by the way, they're firing a lot of people. internet, general merchandise, food and beverages, all those places were areas where we aided add retail jobs in the month of
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january. you checked, by the way. it's not as if when you get a positive january it's because of the firing happening in february. when you have a positive january in retail, you also are likely to have a positive february as well. >> we certainly hope so. we'll bring up more about that in a second. as i tweeted out today, 2.8%. that is then employment. that is the -- >> oh, my hair. my hair. >> this is going to spontaneously combust. 2.8% is the unemployment rate for those over 25 and have completed a four-year degree. that is nearly statistical full employment. all the snark masters said they're all waiters and bar tenders. is that true, or are there decent jobs being created? >> i think it's probably true that some people are working below their level of competence and education. but more likely than not, they're employed in places where their educations are -- they're commensurate with their educations. sfoelgs, if you have not been paying attention for the last eight years, we have learned an
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extraordinary lesson in the value of education relative to unemployment? you are two, three, and four times more likely to lose a job if you do not have an education. >> 2.8% dropout for a four-year college degree over the age of 25. >> okay. thanks very much. >> yeah, that's right. >> okay. jaw lew, the cnbc exclusive, 6:00 a.m. eastern on monday. moving on -- >> let's talk more about the retail jobs. joining us now, the guy who sat patiently and listened to us is somebody who knows. steve is the former chairman and ceo of saks. also the most recent chairman of the national retail federation.
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you are very patient. you sat here, steve, and listened to us pontificate. >> at least i didn't have to wear the beanie. >> you might. >> never say never. >> what is the real situation? there you go. what's the real situation with retail jobs? is that where everybody is it going? >> you have a much better confidence in the on the part of the retailers. you are seeing confidence growing. the retail numbers in the fourth quarter reflected it. the numbers came in at a 4% growth, which is much better than people had anticipated. it was a good holiday season. consumer confidence is up. i think people are starting to hire again zoosh i wouldn't mention that 4% number. i do believe that our good friend steve over here actually lost a bet to courtney reagan over that particular number. do you remember? anyway, moving on. 46,000 jobs in retail in the month of january. february, as steve was alluding to, will it be positive as well? will you keep it going
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throughout the year? >> i'm optimistic for the year. i think you're going to see positive numbers in february, and i think you're going to see a positive performance in retail over the course of 15. >> steve, i did some work that i presented first on this show back in november, in showed that when there's good hiring in october, it means a good retail season. what does it tell you about the outlook for skupgs? we give up 4% in the fourth quarter. do you think that will continue? >> i won't give you a specific number, but if i were doing my over-you understand, i would be in that same kind of range for 2015. i think it's going to be a good year for retail. it will be promotional. the consumer has much more power in terms of price transparency. you're going to see some winers and losers wrshz. >> how much does lower gas prices really mean? >> i think a lot. certainly not a lot at saks at
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the luxury end of the market. >> the retailer to consumer. who do you think in particular is exceeding in that? >> well, when i say there's a power shift, i think that the consumer -- people want product anywhere any time that they want to get it. they want to buy on-line, in the store. the companies that are investing in the technology to the omni channel, to meet the consumer demand, to do mobile, to be able to have the technology to move inventory, they're the winners. >> and the losers? >> and the losers are the ones who -- you've got -- look at the number of companies that have been going bankrupt. they haven't been making the investments. >> because it is the final street signs ever. it's friday. i'm going to be more jerky than i normally am because we've been positive on this show and the economy for three and a half years. we took a lot of heat for actually being optimistic in
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mid-2011. you idiots. it's all the fed. now everybody is optimistic, so let's go negative. is there any black cloud out there? >> oh, absolutely. >> what are they? give us some of the reasons to be concerned? >> i'm very concerned internationally. i think that take a look at what's going on in russia. take a look at what's going on in the middle east. you know, china, the consumption is slowing. latin america i see concerns. take a venezuela, brazil. the u.s. is the bright spot in the world. >> in the united states at -- >> the way that the stronger dollar would hurt the u.s. is -- you would be more imports and fewer exports, and one of the things we have is we have foreigners coming here to buy stuff. do you think that's going to be a negative because the dollar is -- >> no question. if the tourism component of the luxury sector is going to take a hit, i think that you're going to see it in terms of that -- i remember when the dollar was at $1.50 or $1.55. you had empty suitcases coming in from europe.
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that's reversing, and you're going to see less of that tourist value coming into the u.s. >> the tiffany's of the world do a lot of tourist trade. >> is the single worst performing retail stock outside of ralph lauren over the last week. >> way to go. way to find a negative. you did a great job. happy now? >> hey -- >> he was -- >> now he is going to be mr. grim reaper. >> solomon grundy. >> pleasure to have you on the show. >> ahead, is twitter a growth stock? the label means a lot when it comes to the stock price and evaluation? herb greenberg has something poignant to say or so he tells us. we'll find out. >> oh, just poo-pooing everybody today. later on, remember the ice bucket challenge? that really swept the nation last summer. well, six months later where did all that money go? we'll dig in when "street signs" returns.
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>> welcome back. >> we're watching, broourn, shaurz of crackle barrel, old country stores. a shopping chain here. the stock is moving lower. one of its major holders, lion fund 2, which is a part of the big glory holdings is fine to sell a good chunk of its shares. that's according to an s.e.c. filing. those shares are down. you may recall, of course, that big laurie, the biggest shareholder in the company, has been agitating for change there. the shares are, though, up about 35% over the past year.
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brian, back to you. >> all right. thank you very much. so -- >> the chart of the ten-year, this is -- i don't know what they said. i'm just going to talk and say what we want. >> let's bring up a board and show everybody what's going on with bond yields here. as we were mention telling top of the show, reaction, stocks seem to be unimpressed and part of that might be also because we're not only that we had a big four-day advance, but rates. fear of the fed becoming more riblg i had. maybe quicker than some people were thinking. the ten-year note, as you can see, they're yielding 1.93 ez 8%. >> let's follow-up, guys.
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>> goldman sachs up nicely. financials are winning. bond yields are higher. tell you what's down, though, gold. not liking the strong jobs at all. let's bring up a board of gold. maybe even the gold etm. i know gold miners are on the back of this as well. yovrl you've got surging dxy. the dollar moving to the up side. gold, nonetheless, had an amazing january. it was up 8% in january. this week alone i think the losses for spot gold is down about 3%. >> yes. by the way, also, so starting monday, people have heard the shows are going to be changing. >> yes. >> you're finally ditching me. >> i am ditching you. melissa gets you, though. >> i'm still hurt. however, i'm going to be writing a piece for cnbc, the new product as well. one of the points i'm going to
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make it that everybody says single stock ownership is dead. oh, well, is it or not? if you buy them, they can be cheap, less risky. however, they can cost you a lot. the s&p mining and metals etf is down 6% this year. if you bought it because you wanted exposure to the gold miners, too bad. newont mining up 27% just this year. well, that etf of which newmont mining is down 6%. >> every monday. >> every monday. >> every monday, which is the first day of the workweek, but not the week. >> got it. >> canada may hold the clues to america's oil business is headed, and the premier of oil
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rich alberta, canada, is set to join us live. >> and later on, you think this week was big? well, we're setting you up for a huge week ahead. two all-star fund managers tell us how they plan to play it. street signs will be right back. your dog's definitely got your back. but who's got your back when you need legal help? we do. we're legalzoom, and over the last 10 years, we've helped millions of people protect their families and run their businesses. we have the right people on-hand to answer your questions, backed by a trusted network of attorneys. so visit us today for legal help you can count on. legalzoom. legal help is here.
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>> backer hughes. drilling rigs in america fell again. down 87 from last week and down 315 from a we're ago. canada, in the meantime, lost 16 oil and gas rigs from last week. and, folks, this is important reminder. these rigs are for future productions. these are the ones that drilled new wells. the wells are current production. not a great single resource like this for finding out how many wells might be being shut in. basically turning off the tap. i have spoken with some produce nerz the la week or two who say, yeah, some lower quality wells are being shut in and manning production is still pretty high. >> yeah. >> joining us is a man who knows a thing or two about oil. jim is the honorable premier of alberta, canada. he is visiting new york today and knows that we have recently been to his fine hometown. welcome. thank you very much for joining us here on cnbc and "street signs wroish ". >> nice to be with you. >> canada lost about 9% of its drilling rigs. we lost about 6%. how -- i know the budget is
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tight up there. how severe is this for canned why, for alberta? >> well, you know, we expect a low price environment, brian, for a period of time. we expect there to be some fall-off in conventional drilling activity, shale drilling activity as well, clearly. at the end of the day our economy is resilient. you know, alberta produces most of its oil from the oil sands, and we will actually be experiencing production increases over the course of the next two years, notwithstanding low prices. >> you say that your economy is resilient, but at the same time with the collapse in oil prices that we've seen, does it really stress to you how much alberta maybe needs to diversify its economy to obviously rely on one of other things other than the oil and gas industry? >> well, certainly we're focused on diversification. you clearly, though, have to diversify around your economic strengths, and we have great strengths in agriculture and forestry, tourism, and, you
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know, strong universities and knowledge-based economy there. energy is pretty central to alberta and to our future. our province is the largest oil producer. we're the largest supplier of oil to the united states supplying close to 25% of u.s. imports. we'll continue to do that, whether prize are lower or higher. >> yeah. you know, we get a lot of commentary premier that lower oil prices are nothing but a good thing for the american consumer. everybody has more money in their pockets. when i was up in algather, people remembered, hey, we remember 1986. houston does as well. what is the -- there has to be some down side to lower oil and gas prices other than just the up side of more money in people's pockets? >> well, certainly. you know, this will be a difficult time. we're assuming that this will carry on for the next 18 months or so, and then we'll number a
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low price environment. i mean, for places like houston and calgary, you know, economic activity will slow down quite consistently. we expect that, but, you know, we have both strong public balance sheet. the alberta public finances are probably the best in north america. we have strong companies. you know, i think there will be some consolidation to strength as we work our way through this. you know, certainly there will be implications, and we're concerned about that, and we're planning for that. >> what have you seen so far with energy jobs, premier, and what do you expect to see? >> we've seen i guess a couple of consequences already wrush we've seen a deferral of large capital investments on new increments of oil sands investment. not surprisingly, people are husbanding their capital. they're being careful. they'll move forward purposefully, but when they're prepared to. we've also seen, you know, significant drop offs in turn of cap x. you've seen that worldwide.
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this is not unique to canada. i suppose there's about a 25% reduction in cap x in traditional oil and gas activity. but much of this will respond to low prices, and the best cure for low prices is, of course, low prices. so, you know, higher prices will return. this will be part of a cycle. we'll eventually see the other side of this. >> let's talk about little pipeline. you may have heard about it called the keystone xl. i sat down with the ceo. are you surprised, mr. premier, at the level of passion, i guess would be a fair word, of the american populous around the keystone pipeline? >> well, of course, it's become a big political issue here in the united states, and, you know, i've just come back from washington. i'm struck by the level of bipartisan support for the keystone pipeline, whether you meet republicans or democrats from the congress from the
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senate. they are supportive of the project. 70% of the american public is supportive of it. you know, i think it's in the best interests of the united states. it's in the hands of your president, however, and he is going to have to make that determination. you know, i don't know how this will play out from here. the president has said he will veto the bill from congress. i assume that he will do that. also, you know, people in the congress say that that's a step in the process and they'll be back in front of the president with a subsequent bill. perhaps an infrastructure bill that has keystone tagged on to it. we'll see how that unfolds. >> all right. jim prentice. we appreciate you taking some time for us on cnbc. thank you very much. >> nice to be with you. thank you. all right. switching gears entirely, yelp in need of help today following a double downgrade. that's coming up in "street talk." >> we're just minutes away from oil finishing out another crazy week. at least it ended up being a
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oil is closing out one wild
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week. let's go down to jackie deangeles at the nymex. >> hi, good afternoon to you too, brian. it was a wild week in the pits. it looks like we're going to close 7% higher for the week. a little by here in the last fubts as we head into the close. about 22 cents. we're up $1.22 on the day. $51.68 is where we stand with the bell ringing right now. of course, we wait for that price to come in. brent crude, $57.80. up $1.25 as well. more news about recount declines. getting traders back into this trade. they're talking about production. eventually starting to decline in this country, and also, those refinery strikes are still on everyone's mind. they are not resolved as we go into the weekend. retail gas prices, they are on the rise as well. triple-a saying a gallon of regular now $2.17. we never got under that $2 mark. back to you. >> jackie, thank you. meantime, twitter shares continue to soar, but as the stock goes, so does its valuation. now, bulls will argue that a higher multiple is okay because this is a growth stock, but is
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it? herb greenberg of gvb financial joins us now. what say you, herb? is this still a growth stock that's deserving of a higher valuation? >> when you see a 09% increase in revenue most people would say, gee, that's growth. that's what people really want to see. of course, you know, look, it's what the street wants. with this company, brian, they want both things. they want the average -- the active users, and they want to see growth in revenue and ultimately in earnings. you know, this is -- this is a fickle market, and investors can be fickle. if suddenly you see revenue really starting to consistently ramp, and it's not going to ramp at 97% a quarter, but you see that people will suddenly start saying, wait a minute, there's something there on the business side of this company that makes sense, and that could justify its label as a growth company. between here and there, quite frankly, yeah, we got to see another quarter. another two quarters. >> okay. so you just have to hold your judgment for a little while,
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herb. i'm sure you also saw sun trust, bob peck, who says he thinks this year twitter is going to have what he called a facebook moment. you know with facebook stock for the longest time, there were all those concerns about monotization. it unlocked the stock and it rocketed higher. do you think it's going to be possible, maybe even now? i don't know, with twitter stock? do you think facebook moment is upon us snsh. >> what is the basis for saying that? >> well, like with facebook -- >> what would drive it? what would be the rationale? >> i don't know. what do you think, herb? >> well, what could drive it is this logged off user. the user that is -- we talked about this yesterday. >> what does it mean, though? >> what is a logged off user? how can you use something if you're not logged in? >> somebody who is coming who is not active, who is actually using the service and is actually eyeballs and is actually getting value out of this. that's where your advertisers and sponsors and everyone else
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could possibly see this. part of me hates seeing the comparison with facebook because it's such a different vehicle. all people on the street want to do is put something in a little box. that's how it works until it doesn't. in this case that's its pier, et cetera mean pier. the moment people are looking for one you see a consistency in the ability for this company through advertising or whatever methods to be able to generate revenue and generate income. >> but they still have a net loss, herb. >> they have non-gap ets profit. >> okay. >> i'm going to sound like the old man here, herb, and say this. maybe -- this is my view, okay? i make a product. it costs me x dlaz dollars to make it. i sell it for z, and y is my profit. my issue with twitter is that it's complicated. mau's, third party integrations. they're going to stop promoting or talking about their timeline views. you know, they're still posting a pretty sizable net loss.
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multiple years into their existence. sfwroo if you could see the tire tracks on my back from -- >> she was at san diego? >> from our view in that very thing about so many companies where i always thought it mattered, but if there's actually a business there, dwoent know yet. remember, this is -- i continue to believe this company should be private. it should be part of someone else. dick costello does not believe it should be private. he thinks it should be an independent entity. we have a disagreement there, but he is running the company, and i'm not. if you can see the tire tracks on my back from just trying to make those rationale arguments, in a market that really will hang its hat on whatever it wants to hang on, whatever the trend is, whatever the quarter shows, as long as when i come back to, it is consistent. the minute that stops, income no income, but the revenues are there, this company may have a little bit runway hfd it. >> there is a guest on closing bell last night, i was listening to it on siriusxm, channel 12,
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by the way. there were 18 people in the discussion. the guy made the best comment. he said twitter is not engagement. it's not a social media company. it's a projection company. facebook is engagement. >> yeah, they're completely different animals. >> i thought that was interesting. >> well, you know -- >> that was a facebook moment. >> ad revenue accelerated. user growth, disappointing. >> loss. gap basis. >> only four million. >> that's the problem. that's the whole thought. mau's. why do we use these metrics. i feel like we're making up metrics. it's flattening out. >> we are. we are. we are. we are -- everybody is making up metrics. that's what happened with the internet boom back in 1999. >> do you know how many users there are on twitter in total? , including us. >> 80 million. >> 288 million. >> give me some credit for that one. pulled that one out of somewhere. >> i know where you pulled that one out of. thank you, herb. it's difficult backing on the of herb's driveway, by the way.
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lucky i missed gatsby. >> time for something we do every day around this time, approximately. it's so-called "street talk" giving the analyst calls on stocks you need to know about today. first of all, why don't we take a look at best buy. this is a rare upgrade. oppenheimer yun grading this by outperform with a $43 target. >> gatsby, somebody was run over. they say the worst is likely over for best buy. management moves and cost cuts they like. a new tv replacement cycle is also coming. very bullish call. >> yikes, looks althis. this is the second stock of the day, and it's the worst day ever for yelp ever. i do believe down 21%. it's worst day ever. they're still up, what, 200% since the ipo in 2012, but still worst day ever. downgrade at both northland securities and b. riley. want helping. >> you can see the stock down. both of them cutting their ratings, by the way. northland securities cutting its
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target to $5 from -- cutting its target even more to $42.50. stocks at $45 and change. >> third stock, grub hub getting an upgrade to buy from hold at green capital. >> isn't that amazing? yelp has the issues. grub hub coming on. very similar company. people love the grub hub is adding delivery. analysts here calls it a "great story" got a $45 price target on grub hub. not a lot of rup side. $4 and change. still, the difference in grub and yelp is very apparent today. >> yeah. also, teradata getting a downgrade for underperform from mutual. >> not hurting the stock too much. down one-quarter of one percent. their target is $35. the stocks at $42. they see a stock at $7 below the current price for tdc. obviously, they're saying avoid. >> today's under the radar name of the day is balkan materials. live long and prosper. go forth and prosper. what is it? i have no idea.
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>> this is an alabama-based construction material provider. basically asphalt, sand, gravel. you talk about infrastructure, this may be the most pure infrastructure play out there. bb & t upgrade to a buy from a hold. they love the earnings and guidance. their target? $90. they see 20% up side. okay. this week in business nearly in the books. we're going to van important look ahead to next week's big news coming up. >> plus, remember the als ice bucket challenge? so many people, maybe even yourself, dumping water on people's heads. many of them also donated money. what happened to all that money? we're going to find out. you're driving along,
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>> it raised millions of dollars for als research. we want to know what happened to to that money since. we asked meg terrell to find out. what did you find out? let's run the package. >> it was the viral sensation that soaked the country this summer. the ice bucket challenge was accepted by everyone from ceos to celebrities to presidents. and a few cnbc faces as well.
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>> ah! >> reporter: it raised $115 million for als research as well as the profile of a disease with no good treatments. >> the amount of funds that the als association has available to them has increased dramatically, which hopefully will allow them to fund more grants able to fund larger amounts of money for larger projects and maybe even be a little more creative in tipt of project that is they're able to fund. >> researcher john landers is part of a worldwide project to sequence the genomes of thousands of people are als. also known as lou gehrig's disease. the hope is that it will lead to understanding of what causes ore ls and improve drug dwromt development. before the ice bucket challenge there wasn't funding for his we've work, but as a result, the als association was able to donate $1 million for the project. the association says the challenge energized the research community. it's received three times the number of applications for grantsing for young scientists just starting their careers.
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while we may not see a repeat every summer, als researchers hope the millions of new donors will remember the cause. >> $115 million that the als association brought in compares with their annual budget of $60 million. almost twice as much as what they annually just from that summer challenge. it wasn't just the als association. it was other nonprofits including project als as well, and their hope is that this will jump-start a lot of projects that then could garner funding from other sources leak the nih. >> it also really changed the way that nonprofits think about raising money. sort of raised the bar, if you like, in terms of the more inventive and innovative ways to come up with this. >> i think a lot of nonprofits are trying to figure out how to emulate it and repeat it, and i'm not sure if anybody has come up with a formula yet, but if it could happen again for a great cause like this, i mean, it would be wonderful. >> what's next? >> i've heard things going the heat direction, like hot sauce or trying to eat a spoonful of cinnamon. >> heat direction? walk across the coals challenge. mandy and meg, i challenge you
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100 yards. >> i would win the hot sauce competition. i challenge anybody in a hot sauce competition. >> in, what, make being it? >> eating it. >> no. >> drink it. >> drink it. >> hot sauce shots. >> put it on your body. i don't know. >> hot sauce, part 2. >> thanks. the maker of turbo tax acting more like a four cylinder today. we'll tell you why. intuit is having problems that might slow down your tax prep. it's been a wild week of big news, big swings. how should you play this market? we have plenty of information. a stock pick is coming up. it's a fact. kind of like mute buttons equal danger. ...that sound good? not being on this phone call sounds good. it's not muted. was that you jason? it was geoffrey! it was jason. it could've been brenda.
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at ally bank no branches equals great rates. it's a fact. kind of like shopping hungry equals overshopping.
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i love my shows, sit around all day. that's why i have xfinity. their cloud based dvr lets me take everything i recorded, anywhere i go. which is perfect for me, [whispering] because i have responsibilities. ...i mean that's really interesting, then how
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do you explain these photos?! [people gasping] objection your honor. sustained. with the x1 dvr library you could take anywhere, xfinity is perfect for people on the go. sflo take a look at shaerz falling. this is the company behind turbo tax. what's hurting the stocks so much? courtney reagan joins us to explain. >> this is one of the stories everyone needs to pay attention to. the company says it has temporarily halted transmission of state income tax returns nationwide after detecting an increase in suspicious filings. in a statement released today intuit says it's working with a security firm to examine the fraudtivities. the suspicious filings theyty did not result from a breach in their systems, but it doesn't rule it out. at least four states have so far issued statements. utah and alabama have flagged
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thousands of returns as suspicious. minnesota has stopped accepting turbo tax returns specifically and vermont has halted refunds. all of the states also say their systems have not been breached and are working with turbo tax on the issue. a spokesman for the utah state tax commission says it's flagged for verifications. they say they also file an old-fashioned paper return as well. in the s.e.c. filings eintuit does warn of data breaches and theft of income breaches and they may be able to circumvent. they also work with third parties to reduce hiring for the tax seasons. there are possibilities for what might have let lead to the fraud. for now the company seems to be in the process of beefing up security measures as just yesterday intuit acquired cloud security firm for an undisclosed amount. we'll keep following the story, but this is something we need to pay attention to. everybody has to file a return,
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and you can't do it through turbo tax. think of all the revenue they're going to lose. >> thank you. we've got a big week on tap for your money. on monday here you go, big earnings like hasbro, diamond off shore, big driller, and nissan tuesday. a report that may be more important than the monthly jobs number, the jolt survey, measures job openings and people leaving the work force. wednesday, back to earnings. pepsi, aol, and tesla after the bell. thursday, big retail day to day. courtney, get ready. we're going to find out if lower gas prices help, and friday consumer sentiment. what does it all mean for your investment dollars? let's bring in zach, head of global strategy for irn vest net and robert luna and cio. zach, we laid out all kinds of stuff, but there's other things out there. what is on your big radar for next week? >> yeah. i mean, actually in all due respect, a phrase that i heard because it usually means that you don't respect whoever is saying it at all, and i do respect you profoundly. i don't think this is a particularly rich news time, and, therefore, you are going to
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have these factors that are going to be able to impact markets. probably disproportionate to their fund mental worth. greece today is in the news again. s&p downgraded. i can see a lot kind of the gre the ukraine stories which are important for their own right but they're not necessarily important for how many iphones they're going to sell or whether mcdonald's is going to have a turnaround. i'm just throwing those out there. i think we will be in a period in the next weeks which is normal for this time of year where the markets are vulnerable to these buzzy noises we'll latch to because there's not a lot of company news or economic data that's going to come out. >> so those things could have an outsized influence. what about you, robert? what do you think in the week ahead will have the most influence over the markets? >> like zach said, what's happening next week isn't necessarily huge news, mandy, but i'll tell you one thing we're looking at right now is
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two things that really have not worked over the past four or five years have been individual stock selection, number one, and global diversification. you're better off buying the index and staying inside the u.s., but i think earlier on this year what we're starting to play out is we're seeing markets like europe outperforming the u.s. companies we own like disney, linkedin, twitter, gl glaxosmithkline reported earnings and we're starting to see companies who is execute outperform the market. hopefully that trend will continue and people will start looking at their portfolios and thinking that s&p 500 kind of fairly valued. staples and utilities probably overvalued. it's time to diversify globally and look at names that have underperformed. >> so you'd be lightening up on u.s. exposure overall. but apart from europe is there anywhere else in the world where you think deserves more attention now? >> i think japan makes a lot of sense right now, too.
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i think some of the tax issues they had that slowed the economy down last year are coming off right now. valuations are pretty good over there. and in the emerging markets in general, i think china there's been a story about the slowdown there but i think a lot of that is a shift to consumption and the actual middle class there is starting to consume at a higher rate. i think longer term that's a place you want to put some money as well. i think global diversification makes sense and for most investors they probably don't want to pick one individual company. i'd cast a wider net and that's a place when you talk about passive indexing, you can probably buy an index to get allocation to all these different countries. >> you know, zach, it's interesting, too, because history says we have never had seven years of gains in a row for the s&p 500. we've had six. this would be a record. do you care about records like that? does that mean anything to you, that it's never happened, or is it literally like it's a neat
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st stat, whatever? >> if there are 100 data points in the history lesson you have just given, from any kind of statistical survey set, that's never going to be enough to make the kind of conclusion that is we all on wall street and investing land seem to make with mind-numbing metronomic regularity. so there's just not enough information for those patterns in my view to be accorded the weight they do. would it surprise me if the markets went up? absolutely no. would it surprise me if the markets went down this year? absolutely not. i agree one of the really interesting questions is going to be whether or not the emerging and global equity world catches up or does better because that's been the call for the past three years and as robert pointed out, that's been the wrong call. >> never have such an honest thing been said on this network. stocks will go up or down this year. >> thank you for the -- my teacher used to write proto for profound restatement of the
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obvious. >> blyou know what, we'll just streak around the building. robert luna, is the u.s. -- sounds like it's done then, right? from an investment proteerspect but from an investment angle overall. >> i don't think so. u.s. a probably the best place in town. everybody is talking about buying the index for the long term. there's a lot of periods of time where that doesn't work. when you're seeing the s&p trading at 16, 17 earnings, i think the active management story that gets a bad wrap, now is the time if you just own the spy you probably want to look at some of the managers who can find some names that are going to be able to outperform the markets so that's all i'm really saying. look for some individual names that offer more attractive value. >> i will be very wonky. i would say you'd probably do better with active management in the global emerging world.
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that's not a bad exposure. you should just know if you're going into index funds in global and international, there's not a lot of stocks that index managers can put together. so often it's the active managers who can find that unusual consumer company geared toward china or india. >> you can be as wonky as you like, zach. >> we got to go. >> zach and robert, great to see you. have a good weekend. see you soon. it's a story only "street signs" has the guts to handle. we'll be back to explain why german prostitutes are loving the swiss national bank. >> and we'll also have our far less interesting stocks of the week.
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if you thought currency fluctuations weren't sexy, you're wrong. german brothels are seeing a boom in business from swiss customers because it's made german goods and services 20% cheaper. a german newspaper quoting one brothel worker says half their customers now are swiss, brian. >> cheesy story. time now for our stocks of the week. you're going to miss this. >> i will miss it. >> you're going to miss that. >> conn's is my pick. up more than 30% this week. some credit problems have gotten better. sales haven't been as impacted. conn's has done great. >> my pick is danbury resources up 30% or more as crude
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obviously has been finding a firming footing but crude isn't the only factor. is note was put out saying denbury's oil hedges were worth 30% of the market cap. best in the industry. it's better protected from falling oil prices. >> okay. thank you for watching "street signs." we said at the beginning it's the final "street signs" ever. maybe needs a little more clarification. would you like to clarify? >> yeah. okay. so come monday we're going to be -- >> it will be all right? >> what? it's going to be all right. >> jimmy buffett. >> from 1:00 to 3:00 will be the two-hour long extended two hours of power. >> "power lunch" goes to two hours. >> that's correct. absolutely. >> and why are you leaving me? >> well, not really leaving you. only physically, not in spirit, but for the first hour it will be myself and tyler mathisen. >> luck quli tee ler. >> and in the second hour it will be yourself with melissa lee at the nasdaq but there will be times -- >> and we're going to overlap. it's going to be great. >> one big happy family. segments we all do together.
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i'm not leaving you, i'm letting you fly, spread your wings a little. >> i'm an emu. but you know what? we're going to work a lot together but you've been the greatest person i have ever worked with, spectacular human being. >> me, too. >> intelligent, professional, funny, talented. >> we don't have time to ditto what he said. thank you for watching "street signs." you've been fantastic viewers and listeners. we'll be back monday. exciting times. welcome to "the closing bell," everybody. i'm kelly evans down here at the new york stock exchange. >> and i'm bill griffeth. one hour to go. this has been a remarkable week for the u.s. equity markets. the dow still on track even with this decline here for its best week in more than three years going back to december of 2011. when you consider how strong the market was in 2012 and 2013,

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