penney.here i saw it close today around 30 cents, i'd probably stay with it. >> we want to go to carter braxton worth. carter got us in. what would you do? >> stay with it. this is as bad as it will be. >> he says stay with it. >> i hate jc penney. i think that company is toast. there is almost no way you can justify owning the eng this. take a look at the prospects over two years and compare it to macy's, there would be no reason to think they will spin out of this. >> it's a trade to the bitter end. i think a limited order to buy this back makes sense, i think that's the smart trade. >> when you look at this stock, they need to borrow going out three years. you tell me a company that can borrow 12% and make it through it. you'd be crazy. mike set up a great trade. if it gets cheap that spread, you can take it off, you might as well do that. this is a great trade, it's paid off well. >> coming up next, ford shares have been on fire. according to charts and our main man carter, they are about

jc penney, whatever that is supports bullying. the latest back to school a d is facing severe back lash from parents in case for mother nature network. the problem is a scone where a teen has friends and they all disa pore. >> why do i do my best shop nothing jc penney? >> it means they can find it and it is affordable. and got all of the other brands. i have been told the stuff can make or break your entire year. i will not pretend to know what colis. nwe'll watch the important moment. and moment of outrage for me in slow motion. >> (inaudible) this is so obama's america. concerned moms and dads reacted angry on line and they should. there was a campaign against the a d. jc penney released the at the same time our intent was not to trivialize bullying. we are committed to have a range of styles for kids to express individuality and did that while punching a baby in the face. yes, a baby. you know who doesn't need friends? dogs who play fetch by themselves. ♪ that is really out. but you know it is really lonely. after all of that,

penney and the drama is far from over. bill ackman resigned, a move that's surprising after the hedge fund manager sent two letters advocating for number of executive changes, including the replacement of the bored chairman thomas and a speedy search process. as akman resigns, j.c. penney and former department store ron tyso will replace akman on the j.c. penney bored with a yet to be named bored member. akman may no longer have a bored seat but with 18%, one of the largest investors. it's worth half the $18 billion and because akman has privy information he can't sale shares at this time. many believe his resignation removes some leadership uncertainty but doesn't solve the issues of poor sales and low traffic in stores. those continue to be j.c. penney's biggest problems. >> i don't think many consumers that shop at j.c. penney are paying much attention to the paid in place or as the world turns aspect of this story. i do think they are paying a lot of attention to what products in the store, what pricing looks like, wha

jc penney, whatever that is supports bullying. the latest back to school a d is facing severe back lash from parents in case for mother nature network. the problem is a scone where a teen has friends and they all disa pore. >> why do i do my best shop nothing jc penney? >> it means they can find it and it is affordable. and got all of the other brands. i have been told the stuff can make or break your entire year. i will not pretend to know what colis. nwe'll watch the important moment. and moment of outrage for me in slow motion. >> (inaudible) this is so obama's america. concerned moms and dads reacted angry on line and they should. there was a campaign against the a d. jc penney released the at the same time our intent was not to trivialize bullying. we are committed to have a range of styles for kids to express individuality and did that while punching a baby in the face. yes, a baby. you know who doesn't need friends? dogs who play fetch by themselves. ♪ that is really out. but you know it is really lonely. after all of that,

jc penney was a declining story before johnson got into play. >> did have a chance to find out.hey lost and burned through $1 billion in cash in the last three months. >> what he was trying to do was reinvigorate the brand and turn around a sinking ship. it was sinking slowly. >> right. >> but obviously needed big changes. anybody who had been into a jc penney realized that, now you've got a business doing close to $18 billion in revenues is now down aron 13. >> doesn't that legitimize what ackman is saying, before if ackman was saying we want this person as a ceo, you got it wrong the last time but now that perry capital is involved there's someone else. >> one guy on his side and mike makes the point that this is playing out in public. everything ackman is involved in is playing out in public and everybody except for perry capital is against it. mr. ackman, when everybody has a problem with you, you're the one who has the problem, and people are lining up for the bearish case in jc penney. >> speaking about playing out publicly, take a listen to who howard schultz had to say i

. >> jc penney, short. >> okay. simon baker. >> you know on the back -- >> quick. >> network appliance going into earnings next week. >> that's quick. have a great weekend. see you on the other side. "power lunch" starts now. >> "halftime" is over. "power lunch" and the second half of the trading day start right now. >>> scotty, thank you very much. the dow taking a bit of a hit. not as bad as it was earlier. we're down on the day by about 90 points but we were down more than that, 150 points or thereabouts. are we getting close to a good entry point for all that money that is still sitting on the sidelines? and he is really angry, mr. ackman is. bill ackman's next big call. he wants jc penney's chairman of the board of the out and wants to replace the ceo i guess. really turning up the heat in that ceo search. scott wapner has been all over this one, and he'll join us in a minute. >>> terrible flooding out in the middle west. this is a ferrari. what a terrible waste, ladies and gentlemen. a ferrari is a terrible th

jc penney denied it, but hey.ay something specific, and i think cit's lack of doing that hurt this story. >> it certainly hurt jc penney's stock price. they could say, no, we didn't, instead of saying we don't comment, right? you're still bullish on this name. how come after all this? >> i'm bullish for a number of reasons. number one, the biggest ability for this company was having enough cash to make it through a tough financial period. so these guys came through this quarter and gave them a chance to maintain cash and availability to get themselves through -- they're moving from now a new ceo was once an old ceo, changing their operating model in a number of ways. they need cash to do that and they have it. >> but were they really banking on this back-to-school season and they're really operating on borrowed time. that's why i think the market moves so much when you see reports like we saw yesterday about cit maybe changing its financial structure for jc penney. what do you think the company has left in the nex

penney stores that said the soros field was supporting j.c. penney. can tell you that according to sources close to glen view and familiar with the firm's way of thinking is that the firm had been chosen sides in this. the source telling me that glen view has a pass at stake and that the firm believes that there is only one side to take, according to this source that everybody agrees that j.c. penney needs additional human capital to fix that company. so, again, just to reiterate, because this early report did move j.c. penney stock a good amount, about 2 or 3%. according to my sources, familiar with glen views thinking sheer that they haven't chosen sides in the boardroom fight with bill ackman. they have a pass at stake. they only believe there is one side in this whole thing. that's that everybody agrees j.c. penney needs additional human capital to try and fix what's gone on at that company. so that's the very latest and, you know, there will be slightly more developments over the next 24 hours or so, if not before. we'll bring them to you, meliss

penn penney's ad.izes bullying. >> i have been told it will make or break your year. >> it shows students leaving students line. on j.c. penney facebook the fact that jcp sdoo gets a lot of flack doesn't make much sense to me. another asks what in the world is going on. you have an ad that mroets bullying. critics say the ad ostracizes students who can't afford the latest friends. we showed the ad parents the ads. >> i think it's creative. i guess if you are asking me if it would lead me to buy something i would tell you yes. >> is there anything that stood out? >> no. >> the arizona jeans and the converse stood out for me. >> what about you? >> well, i thought that the jeans were stylish and they would look good on me. >> here's what the same parents said after we told them about the bullying complaint people had about the ad. >> bullying didn't come to mind. not to my mind. >> i totally missed that. >> a big fuss about nothing. >> social media has made it a bigger deal than it is. there's a lot of pe

now he's in a big fight again with the board of jc penney.t's get the latest on the jc penney situation from courtney reagan. >> it's a brawl that has moved beyond the board room and into the media. at a time when jc penney doesn't need any more negative attention, there are reports the two sides could be working to resolve differences. bill ackman released two letters at the same time he sent them to the j.c penney board. he's also asking to replace the current ceo with the former ceo. jc penney released a statement saying they strongly disagree with mr. ackman and is disappointed the letter was released to the media is he same time it was sent to the board. richard perry with 7.3% ownership in jc penney is joining ackman's side. sources tell cnbc 4.3 stake holder glen view capital has not chosen signdes in the battle. looking through the bylaws, removal of any board member requires a shareholder vote and 6 of the 11 board members have to agree to call a special shareholder meeting to vote on any of these changes. so you can't really do anyt

but also, consider jc penney.hael monday running things but the company still delivering a weak second quarter. there was speckation earlier this month an alan qestrum might take the helm. michael dell still trying to take the company private and many wondering if the company is better off staying public and if new leadership might be what the doctor ordered. finally, apple. tim cook's performance is lackluster with apple stock struggling but could someone innovate better? is there anyone else to fill the shoes of steve jobs? back over to you. >> so many questions. not enough days. thank you very much for that. how would general electric stock fare if the ceo were to make a planned exit like steve balmer at microsoft? >> we asked two analysts. one things the stock would pop 9%. more than microsoft on friday. river front investment group's doug sandler thinks the stock would drop if he left. jason, what's your reasoning on that? we picked this stock because immelt famously, that stock down 42% during his time since

if macy's misses what's jc penney going to come out?story. >> when i heard jim say that, i was driving my car in and i said, well, how do i know that those people who had gone to macy's hadn't shifted back to jc penney? >> they might have. >> indeed they might have. >> so that gets down to the jc penney equation here and part of the story. >> and it also gets down to the broader consumer. >> i don't believe that the macy's shopper is always the same as the jc penney shopper. i think the jc shopper is more of a tjx, kohl's shopper. it is more about how the consumer is feeling in general and that could be the problem in addition to all the other stuff. >> we'll get the big reveal won'ty we. jc penney up by .8 and macy's, meanwhile, is down 3.5%. thanks, security. >> a really great day for apple crossing 500 bucks a share but the next guest says there is another tech name out there that you should be buying right now, and it is the best thing you're going to see all day, really, i promise it is. raising the bar on bar mitzvahs when "street

. >>> tonight jc penney is defending a tv ad that some people say encourages bullying. the scene a mother explains the importance of buying kids new clothes for the new school year. >> i have been told stuff can make or break your entire year. i'm not going to pretend to know what cool is. >> that scene of the child sitting alone caused a number of parents to vent their frustrations, one saying every day kids are made fun of for things they have or do not have and your ad is adding one more thing to be bullied about. is it a point or an overreaction? great to see all of you. let me start with you. do these parents have a point? >> first of all, obviously, when i was a kid if you wore jc penney clothes you got bullied. people think if you wear this you are cool or you will be popular. >> there are a lot of brands at jc penney. >> every ad tells you if you buy that product you are going to be popular, attractive, successful. when i was young i wanted puma sneakers, my parents couldn't afford it. was i the most popular? no. was i bullied? no. >> all advertisers try to pres

>> first of all, obviously, when i was a kid if you wore jc penney clothes you got bullied.think if you wear this you are cool or you will be popular. >> there are a lot of brands at jc penney. >> every ad tells you if you buy that product you are going to be popular, attractive, successful. when i was young i wanted puma sneakers, my parents couldn't afford it. was i the most popular? no. was i bullied? no. >> all advertisers try to pressure consumers into buying their product. apple is great at trying to make you feel uncool for not having their product. usually they don't target kids. having been bullied as a kid i know how terrible it feels to sit alone at a cafeteria table. i have been there. to have jc penney join in the act bullying parents into buying their clothes and bullying kids who might see the commercial into telling their parents buy me cool clothes it is a misstep. >> i was thinking when i saw this today i was remembering and i'm not going to use names because i'm sure these mean girls grew up to be very nice, i was remembering incidents of where did you buy

jc penney reportedly is under pressure to find a new ceo. according to cnbc, hedge fund manager bill ackman wants the jcp board to name a new leader in 30 to 45 days. "i would guess that he's just trying to spike the stock so he can get at least somewhat out of his position. that's what i think he is trying to do, because otherwise, if he was actually trying to fix the company, this is not the way to do it." that was maragret bogenrief of acm partners. the news sent the stock 7% higher yesterday. shares recenly drifted to a year low of $12.50. a penney spokeswoman calls the demand for a new ceo "rumor and specualtion." penney has struggled to win back customers after losing ground under the management of former jcp ceo ron johnson, who came from apple. the retailer's sales plunged 25% after johnson eliminated promotions and coupons. we'll have more on the stock later in chart talk. the greek crisis is hitting home. greek prime minister antonis samaras is set to meet with wall street investors behind closed doors wednesday. yesterday, the pri

see if this jc penney ad ticks you off. >> and it's got all the other brands i have.been told the stuff can make or break your entire year. but i'm not going to pretend to know what cool is. i'll take them to the sale and leave the rest to them. >> notice the message here? parents are ripping jc penny's adding saying if you're not wearing jc penney clothes you are a loser. mom says parents have every reason to be ticked and the worst of all messages to send. stacy, what do you think?l, nei parents are understandably taken back when you have an ad saying it's style over substance, kids saying talking about quiet confidence and then the real message of the ad is, you either show up to school looking cool or you will be one of the social outcast kids for the rest the year. >> now i agree. this is jc penney's saying this and last time i checked they weren't winning any, you know, like iconic fashion awards. that's just me. i think the message to kids is as you said, like if you don't look right, don't dress right, no one is going to be sitting with you. come on? >> right.

penney reporting.nd out what jim cramer thinks about this down at the new york stock exchange. >>> tomorrow on "squawk box," who will replace ben bernanke? and when will the feds taper the asset program? those are the key questions for the fed heads gathered in jackson hole this week. our live coverage starts tomorrow at 6:00 a.m. eastern. if you're serious about taking your trading to a higher level, tdd#: 1-800-345-2550 then schwab is the place to trade. tdd#: 1-800-345-2550 call 1-888-284-9410 or visit schwab.com/trading to tdd#: 1-800-345-2550 learn how you can earn up to 300 commission-free online trades tdd#: 1-800-345-2550 for six months with qualifying net deposits. tdd#: 1-800-345-2550 see how easy and intuitive it is to use tdd#: 1-800-345-2550 our most powerful platform, streetsmart edge. tdd#: 1-800-345-2550 we put it in the cloud so you can use it on the web. tdd#: 1-800-345-2550 and trade with our most advanced tools tdd#: 1-800-345-2550 on whatever computer you're on. tdd#: 1-800-345-255

penney, commercial lenders c i t cut off credit line, a report penneys is a denying but the stock should and in the morning star analysts, and the stock is 10%. and the company has denied the new york post report but something is not -- what is going on? >> people are worried that the home longe, the home relaunch in 500 stores is more destructive than people expected. in general, and they are the peak draw on the credit over the summer because they don't go back to school and start shipping from asia for the holidays. >> in cash at the end of the quarter. and final funding the 9 the report and should also point out it only funds 4% for those vendors anyway. but yet the stock is 10% and reason for people to give a seller in the long term. >> i am a believer that it will turn around but it is a classic story that there is going to be -- when do you pick the peak of pain and it was ironic there was downgrading overnight. the analysts, this is the last straw, more trouble whereas this morning to me the news is not bad. i would also point out there was a difficult recession in 2008-2009 so t

herbalife and jc penney working against pim.h loeb, icahn and soros, are they betting against herbalife or ackman himself. you have been all over these tories from the get-go. from your standpoint, are they ganging up on ackman? >> i think a little bit of both. with herbalife, whether it is george soros or carl icahn or dan loeb, if they didn't see value, but as icahn said, as bob chapman made on my show yesterday at noon, if you can gain stock and inflict a little bit of pain, and those are my words, that is a win-win. the gentlemen i mentioned, have set it up quickly. >> how many investors in these respective hedge funds are getting sucked into what looks like an ego battle royale? is that what it is? >> i think that's the question i would ask if i was an investor in one of these funds. i'm wondering, the herbalife thing, it is an isolated incident here. but you have to ask yourself, are these guys really just -- are they making sincere bets or have they become kids on a playground? ackman is the i go standing by the swing set

this morning activist investor bill ackman resigned from jc penney's board. he, of course, had been calling for the chairman to quit and wanted to accelerate a search for a new ceo. ackman says that his departure is a win for him as he was able to elevate the conversation at jc penney and make an impact. marcus lemonis is the president of camping world and stacy which had litz a cn-- widlitz and her greenberg is here. he's calling it a win walking off the battlefield declaring victory here. i made the case last week that maybe what ackman was doing is precisely what jc penney needed. they needed a disrupter. he was loud. he was brash. he was impolite. did he do the right thing, herb? >> it could be argued whether his methods were correct but i think a lot of companies need disrupters, whether someone like marcus who will come in, big company, a lot of people don't want to see someone come in and disrupt their plans, but that's what activists do. can you argue they are healthy for the market, and in many cases as kate kelly pointed out in a study that she poin

penney. hopefully we will get a comment, perhaps some further explanation, we have the her that bill ackman sent. he owns 17% to 18% of the company, clearly has sway on the board. he's the one that brought ron johnson in. johnson was out, they rebrought in mike ullman from what we understood to be an interim period. we have no idea how long they intended ullman to say. now it would be less, because he came in in april. >> so it seems like in reading the acman letter, acman, correct me if i'm wrong, frustrated, ticked off that the board is acting slowly for the search for a full-time ceo, so it seems like he is proactively then got out and got questrom, who said yes, i'll be chairman, but you have to hire the ceo that i want, which some think may be himself. >> he was approached when the whole shift happened sudden at that point he was not ready to rejoin. he now, as you said has conditionally accepted chairman, as long as he gets to work with a ceo that he, quote, has positive kem industry wi

let's get to jc penney. few executives withering fire when he came in to clean up the mess of ron johnson, the fired former ceo. looked to be a terminal situation with comparable store sales at one point down almost 30%, that's a tailspin that almost no one can break. but break it he has. and you saw that when the company reported today. now, some nitpickers looked at the decline, wrong focus, people. ullman's bringing back old customers with the promotions penney's known for and he's fixing the housewares division bringing pricing back to where pen penneys shoppers can afford the goods. there's a ton more that has to be done, ullman said that, he admitted it. but also said that back to school season was strong. and he indicated the company had ample liquidity. that's all you really needed to know. penneys will make it through the holiday season. something it was in doubt a couple of months ago and i think the turn, it is at hand. the only thing lacking here, an apology from hedge fund activist bill ackman w

what is going on at jc penney?ext. >> let's go to the fed when i speak to the richard fisher. who should succeed ben benanky? that's later on "closing bell." she's still the one for you - you know it even after all these years. but your erectile dysfunction - you know,that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immediate medical help for an erection lasting more than fo

penney, the ceo and shareholders in public. is this war fair ever good for shareholders. >>> bringing jobs home. more companies are moving overseas operations back to the u.s. but not just workers benefit. who else is reaping the rewards as we wrap up the series made in america. all that and more tonight on "nightly business report" for friday, august 9th. >>> and good evening everyone and welcome. i'm tyler mathisen along with sue herrera. susie gharib has the night off. in a far-reaching press conference today, the first in three months, to took questions and gave answers on top picks critically important to american business. he tackled healthcare reform and the possibility of a government shut down to immigration, privacy and whom he might choose as the next chairman of the federal reserve. >> good evening, tyler, the president addressed a series of issues, as you say, in his press conference today and said he doesn't think the leaker from the nsa, edward snowden, is a patriot and released a series of reforms he would like

penney is getting a lot of flak for this back to school and. >> plus in gary's world, that as miss a win. was there a bad call? also, something you can do in your own work out. >> we're watching all so they weather and traffic. those stories and more on the kron 4 morning news continues. >> top stories we are following for you on this wednesday august 14th, police on the scene of a homicide in san lorenzo. details on the investigation coming up in a live report. >> we're learning new details on a deadly cargo plane crash at an alabama airport. what officials are saying at this hour. >> and the search has come to an end for a missing bay area woman. reaction from sandra coke's family following the tragic news.

penney. you look at the company, does this disruption in the end help it because they get the things he wanted in, they get the things sooner or does it hurt it because it raises questions with suppliers and customers. >> i think those questions are already out there. i can't imagine that this whole circumstance could help. if it -- maybe if it creates more of a sense of immediacy within jcpenney that, okay, if we don't do something quickly, we may not all be around this table a year from now. i don't know. >> you know, we're not going to know until we look back a year from now. hindsight of where the stock stands that the point. we'll see. >> yeah. >> all right, activist investor glen view capital management says a majority of shareholders in health management associates voted to oust the hospital chain's board. the members will be replaced with glen view's slate of directors, david faber first reported the news yesterday morning. the board changeover complicates hma's planned sale to commun

penney stock.his is a huge loss for ackman, courtney reagan reporting that the average purchase was was $25 per share. that would likely mean a loss of $400 million in about three years. larry, back to you. that is some serious change. >> you win some, you lose some. >>> almost certain military intervention knocked down stocks today. the big story was the plunge in business investment. maybe even next we're. i continue to think bond rates are going to drop. here's what our market pros have to say. mary glazer. >>> how did this guy make money? >> wall street is a mean and unfwrendly place, and you saw a lot of people with carl icahn have some fun. it is a tough place to do business. performance can be fleeting. it's tough to maintain your reputation. the fastest way to put j.c. penney out of business is if we bomb syria and see $2 oil. that would be the death of the consumer. perhaps there's a lot of things going on behind the scenes, none of which is probably positive, and i'm sure he's chasing his

he has 19 million in jc penney. 19 million shares of jc penney. >> thanks so much for that. karen, much different story now. buying into increasing the stake. >> it's interesting. we know this as of june 30. things have changed somewhat since then. we know perry when they took their position, they started buying in june. i don't know. i actually am not that optimistic. i don't like to see perry and soros and all that on the other side. >> and you're still short to be clear. >> and we're mostly now -- >> up 4.5%. who won the street fight? dan, the bear, won the street fight on google, so dan, good for you, risk reversal. >> i saw dan voting again and again. >> the final trade. grasso. >> mcdonald's been under pressure for the last week. time to start nibbling. >> dan. >> i don't like the -- >> karen. >> i actually sold a little bit of apple ahead of its extraordinary run. >> and bk. >> that cisco news is not great for the broad economy. >> see you back here tomorrow at 5:00 for more "fast money." meantime, "mad money

penney and barnes & noble should take note. it's part of the ceo's efforts to make best buy for inviting for customers telling me earlier today we wanted less about measuring the temperature of the consumer. we know they are looking for value and a positive experience. we focus on what we can do to provide compelling offers and service. with best buy shares at a two-year high, investors hope that service is compelling enough to keep shoppers coming through the door. >>> well, on wall street not even those kind of sort of better than expected retail earnings could stop the dow from falling for a fifth straight session, even if the loss today was modest. one dow stock in the spotlight, exxonmobil lost ground in the 19 of the past 20 sessions. the dow down 20 points but closing above 15,000, just barely. the nasdaq was up 24 points thanks to the strength of txdot and the s&p 500 added six. >>> emerging markets struggled with higher treasury yields to drive investors into the dollar and that sucked money into a host of foreign curr

penney directors.ky, you got them live on the phone on cnbc, apparently, as best i can understand, it seems like ackman in this letter that he conditionally was coming back. >> that was my understanding, too, i called alan because the way it was playing out was, wow, it sounded like it was a done deal. so i called them to say, you are going back, what's happening? that's when -- >> there seems to be a disagreement, correct me if i'm wrong what ackman said in a letter and questrom told you? >> that's my understanding of it. i was surprised when alan said no. i talked to him. he was live on the phone with scott afterwards. he was kind of pulling back a bit. i'd go back under some conditions. in fact, he said i told them i would consider going back, one of those circumstances had to be it was not a hostile situation i situation. this is a hostile situation. now the board is ticked at ackman more than they were. >> you have to imagine they were so ticked at him for him to decide to send a letter to release

penney back-to-school commercial is putting the company back in hot water. the ad features a voiceover from a mother saying her son's clothes could make or break him for the year. then it shows the students sitting alone at a lunch table. critics say it promotes bullying. j.c. penney says it was not intended to promote bulk and removed the ad. >>> stocks following after the retail can be macy's reported poor earnings. taking a look at the big boards right now, major indices have dipped in the past week after climbing to an all-time high in the beginning of this month and right now you can see the dow is down 91 points. >>> the u.s. postal service making an effort to raise revenue. the agency is now offering free online tracking for priority mail shipments free insurance and date-specific delivery. the improvements are expected to generate more than a half billion dollars. >>> at 32, jed york is the youngest ceo in the nfl and about to enter his fifth season as the 9ers head man. he sat down with our kpix 5 editorial board this morning and talked about everyt

. >> attorneys for j-c penney and macy's are set to be back in court today after a three month break to present closing arguments in a contract dispute over a partnership with the martha stewart brand. the case centers on whether macy's has exclusive rights to sell certain martha stewart merchandise-- including bath items and kitchenware. the trial has put the c-e- o's of both companies and stewart herself on the stand. a new york state supreme court judge could decide the case as early as tomorrow. >> a new smartphone app and plug-in device could turn your phone in to a bio- sensor. a series of lenses and filters in the plug-in device mirror those found in larger, more expensive laboratory units. when pluged in to a smartphone then app can detect toxins and bacteria, spot water contamination and identify allergens in food like peanuts. the handheld biosensor was developed by researchers at

penney did they would have ten years ago or so severe not making that large car anymore.re going to make supporting new cars and try to new audience. for going to go down that path in need to be prepared to him which cash. it's likely not going to work. the transition to a turnaround plan. you have to build a bridge, some kind of bridge between existing customers. dennis: keep the old business going because that is paying your bills. >> absolutely. dennis: we have a chart. you have a partner, struggling retail sales. >> it's like watching a slow-moving train wreck. you can sort of see it coming from a long way off. i think when -- and i'm not picking on in the individuals. i was a die-hard blackberry user the very late adopter of technology to begin with. but maybe they let perfectly in the way of a good solution. three years because it had done one. if the panel probably still be using my blackberry. you put chauffeuse. you wanted to be just right. frankly, by the time because of what it was too late. you're betting the ranch and the marketing dollars on a launch a likel

penney saying it is not worth the time or money? >> keep in mind what j.c.neys has done is like mcdonald's saying we are changing our cheeseburger taste, you have to like it. pennies said -- j.c. penneys saying what you have known of us, we're putting it on the side, the customers have not standed. this is cutting at the edge of loyalty for the customers, it may take a while for loyal j.c. penney customers to proof in the brand against -- to belief in the brand again. neil: i am rather proud he says, enough is enough, i'm cutting my losses, that is a big mistake that small investors do, this he is saying, it is not working i'm going. neil: does he lead to the tajes of the stock? -- tanking of the stock, people lose confidence in the stock he is losing? >> some might but we've seen other large investors come in say, you know what maybe it turns out to be a best buy look at gap, two years ago horrible they revamped store, and their product line they turned it. it is gap and best buy or gimbels from 80s, we don't know yet. neil: i don't know, there have been a

>> just saying. >> jc penney, short. >> okay.now on the back -- >> quick. >> network appliance going into earnings next week. >> that's quick. have a great weekend. see you on the other side. "power lunch" starts now. >> "halftime" is over. "power lunch" and the second half of the trading day start right now. >>> scotty, thank you very much. the dow taking a bit of a hit. not as bad as it was earlier. we're down on the day by about 90 points but we were down more than that, 150 points or thereabouts. are we getting close to a good entry point for all that money that is still sitting on the sidelines? and he is really angry, mr. ackman is. bill ackman's next big call. he wants jc penney's chairman of the board of the out and wants to replace the ceo i guess. really turning up the heat in that

penney. that's coming up at the top of the hour. from what happened . . >> welcome back. u.s. equities futures at this hour. let's look at how we are setting up on the streets on this monday. it looks like it will be a lower open. at least that's how it's shaping up at this hour. the u.s. stockmarket ending six weeks of gains on friday. that's how we are looking right now. we get ready for the trading week ahead when "squawk" returns. . >> good morning everybody, welcome back to "squawk box" on cnbc. i'm becky. the futures as you can see are weaker. the dow futures are down 66 points. the s&p is off close to 10 points. this is after the markets are coming off a weaker week from last week. how many times can i say week in one sentence there? the dow was off, that's the first in seven weeks we seen the dow down. japan economy grew at a slower than expected rate. the world's thirds largest economy, grew an an annualized basis. it was below what had been forecast. the nikkei dropping to seven-week lows on this news, down by .7 of a perc

penney looks awfully similar.andle both of them. >> beth are severely distressed companies. isn't it trial they get it right? >> two wrongs don't make a right. is there a way to consolidate those businesses, stream line the revenue, get rid of the sg and a, the fixed costs born in the leases. >> can i ask you a different question. >> yes. >> you are an entrepreneur, an operator. you look at bill ackman, an investor. >> he thinks he's an operator. >> eddie lem better lambert thinks he's an operator. >> a smarter guy, though. he understands merchandising and inventory. that's his difference. >> how should we think about the distinction between investors who think they know what should be happening at these companies and the operating guy? >> what i always like to see is an investor who recognizes his or her role in the place, role in the business and for a guy like bill ackman, it's surrounding himself with good leadership at the operations level who can lead his business and understand he's the money guy the capita