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tv   Power Lunch  CNBC  June 7, 2012 1:00pm-2:00pm EDT

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off. >> people got to eat. adm, archer daniels. >> zach. >> september lulu calls. >> steve weiss. >> joy global. >> lulu had the 200-day, i like it. >> all right. power begins now. >> announcer: halftime's over. the second half of your trading day begins now. it is rally time for the second day in a row u.s. stocks are up and rather sizably. this as fitch cuts spain's debt rating by three notches to bbb. europe in rally mode as well. take a look at greek stocks on the board here. they are up believe it or not 3%. there you go. there's greece. look at that. up 3%. and there's the ftse up $1.8. this men, big ben testifying on the hill. and he was very candid. the one headline you need to know, the fed is ready to act if financial troubles increase.
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and the big question this hour is china's economy slowing down? the central bank over there today cut rates for the first time in years. and take a look at the video of what some might say is greece's version of "meet the press." we'll have the story behind the attack -- watch that. look at that. left, right and left. politicians attack each other over with all of greece watching. more evidence of how far and fast things have fallen in greece. sue is live at the new york stock exchange as always with three traders who are chopping at the bit. >> indeed i am. thanks, ty. everybody is reacting to mr. bernanke's comments of earlier today. here's a key bite of the session. >> if we decide that further action is required, then of course we also have to decide what action is appropriate or what communication is appropriate. we have a range of options. obviously the traditional
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reduction in the short-term interest rate is no longer feasible. but we do have options that we can consider. in looking at those options, we're going to have to make some difficult assessments, both about how effective they would be and whether there are costs and risks associated with those steps that would outweigh the benefits they might achieve. >> that's one of the reasons we saw a steep move to the downside in the gold market there. you can see a big percentage drop as well as a better than $40 drop in the price of gold. stocks obviously going the other way. let's talk about this right now. bring in art cashin of ubs financial services and steve of meridian and kenny joining us as well. gentlemen, welcome. art, everybody seems to be reacting it to not as much to the downgrade of spain, which surprised me. the market's still holding on to the lion's share of gains. >> couple things going. number one, still hopeful they're going to be able to bring the spanish banks. that talk in europe is still
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keeping things alive. two rate cuts in china. gave them a little bit of hope, although everything's a two edged sword here. and bernanke at first they were somewhat disappointed. and after thinking it over they said, you know, he's the chairman. he doesn't want to go into the fomc meeting saying my mind's already made up. >> especially this fed chief. >> he had to look neutral. >> yeah. do you agree with that, steve? you said on a note this morning really highlighting the china situation because they not only cut key rates but deposit rates as well. an interesting situation. >> china's a big deal. first time in four years. they really showed a little bit of aggression, maybe working with the bank of australia on this. i'm not sure. they're big trading partners. they did the same thing at the same time. as far as what's going on this morning, this is -- we're holding onto gains made through yesterday's short cover due to what's going on with spain. although nothing can really happen with spain until at least after the imf next week. and maybe so after the fed on
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the 20th. it seems like there's a hopefulness here that i'm grabbing onto. >> you know, yesterday you were not sure about this rally. you really thought it was going to be short covering. you still feel that way? >> i still feel that way. i'm not really buying into it. the market's going to have to come back a little just to retrace. my sense is when people sit and think about it what the future holds, there's still a lot of issues on the table that need to be dealt with. monetary policy, whether it's qe-4, qe-3, call it what you want, it's not going to fix -- monetary policy does not fix the economy in this country. nor is another stimulus program going to do that. >> but at what point do they wake up and say, you know what, this is not the fix that it's going to be. >> bernanke said it today. he said it today congress. he said i need help from the fiscal side. they're just sitting there. i don't think really anything's going to happen between now and the election. they're not going to do anything to help themselves at the moment, which is frustrating to everybody and equally frustrating to bernanke because he needs the help. >> right. thank you. we're going to see you at the
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bottom of the hour. we appreciate it. ty, back to you. >> another reaction to chairman bernanke from the bond world. mr. lut nick, welcome back to cnbc and "power lunch." >> nice to see you. >> great to have you with us. i want to get your general take about the state of the u.s. economy and whether from where you sit the federal reserve needs to do anything more right now to juice growth. >> well, you know that there's no u.s. economy. i mean, when the fed has our interest rates at absolute zero and they're doing what's called operation twist, so operation twist is they're buying long-term bonds. i mean, our federal government is buying our long-term bonds and selling short-term bonds. so they know there's no economy. bernanke is very worried. and really the problem he's having is these tools, he just did you want have many tools left. >> what tools he has left, the main one, which is interest rate
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policy, has severely been blunted because as you point out -- that he has in the arsenal. >> oh, they're going to be coming out with every ridiculous thing you can think of to try to help this economy. but the problem is they just don't have that many tools. the big tool, you saw it in china, you know, you cut rates. you hope to move things. but what's happening in the world is there's so much money sitting on the sidelines. so much money sitting on the sidelines. and the fact is there's a risk-off feeling in the world. people just don't want to weigh in. of course there's going to be rallies in the market. but the fundamentals are people are afraid to weigh into that risk part of the world. and therefore there's money sitting on the sidelines. and there's not much mr. bernanke can do. there's not much that mr. obama can do. you need to have this economy get jump started. and the government just doesn't have the tools to make it happen.
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>> i want to bring in a couple of other vigorous guys just as vigorous as you, howard. our senior economics reporter, steve liesman, and rick santelli, to get their perspectives on mr. bernanke. and basically on what you just said. steve, mr. lutnick says the fed doesn't really have many effective tools left. the big one, the big gun, interest rate policy's played out. >> i think that's largely right. i think the fed at this point especially where the 10-year is right now and interest rates in the real economy are, i think the fed could only have a very marginal effect. but it's not, it's why interest rates are where they are right now. and that's because of a serious risk-off trade. you may call it capital flight out of europe. if that were to stop, where would interest rates be right now? and could the fed have an effect on that interest rate? i think it may have more effect there. but bernanke did emphasize the cost and benefits of additional policy. my take was he left the door open but didn't promise to walk through it. >> he certainly didn't it. rick santelli, you said
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something earlier about an hour ago that struck me. and it was almost that you were sympathic with mr. bernanke. you felt sorry for him in a way because of the political stalemate that is holding up a sensible fiscal policy. he certainly called for that. i want you to elaborate on that. and then i want to turn back to howard with his reaction on that. >> well, since i totally agree with howard in his assessment, there's boat loads of capital. some day we are going to have an economy cooking in greece. but the medicine of lower rates is very similar to a family who's under water on their house, they're upside down. you could give them 3%, 2%, minus 4%, they still have a collateral issue. their collateral isn't worth what it needs to be. governments are the same way. my comment on ben bernanke is i feel he's almost gotten pushed into doing things that really aren't helping or applying the salve that isn't working on the infection. he continues to think he needs to do more because the fiscal
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side is in a lockup. i'm not arguing with the lockup. sometimes it may be better to be locked up than to do the wrong thing, but it's a dynamic that he really can't win being in the middle of. >> rick seems to be arguing there, howard, that more fed action not only might it be dangerous or adverse to the economy, but that we need to do more on the fiscal side. do you think that that is the case? and what would you like to see congress and the administration agree on between now and year end or between now and the time when those spending cuts and tax hikes go into effect? >> so, again, you know, you're thinking it's all about the government. what are some of the rumors we're hearing out of the government? we're hearing that the obama administration is thinking of nationalizing fannie mae and freddie mac. let's face it, the housing is the number one thing we're talking about. what they would do is they would nationalize fannie mae and freddie mac and refinance
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mortgage. but the only people writing home mortgages in america is the u.s. government. what a disaster. we've got to get the private sector back into this business. the business of the united states of america has to be business. we have to get banks to lend. we've got to stop talking about what the government's going to do for us and start talking about how we're going to fix the housing market. how are we going to get the economy going again? we know it. 10-year u.s. treasury interest rates at 1.5, but a guy with a bakery wants to go and open another one. he can't borrow at 1%, 2%, 5%. he can't borrow at 10%. and that's why we're not growing. that's why we've got serious problems. >> risk first lenders. mr. lutnick, i want to change gears a little bit. you run an investment company, a brokerage company among other things. i want to get your reaction to what went wrong as you sat and watched and maybe even participated in the facebook ipo a couple of weeks ago? and do you think that nasdaq has
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done enough to make it right? >> well, look, nasdaq, they made a technological error. their technology guys thought they were so smart that they were capable of doing something really special, which is they would allow cancellations and orders all to be live right until the moment the ipo happened. and that was just a technological mistake. they ended up being in a loop. and, you know, they took it. they took the pain. they closed the thing off and they went forward. so what the right thing for them to do is -- >> have they done enough to make it right by their customers and clients, which mostly are brokerage houses and companies, not individual retail investors? >> well, you know, if the stock was up, no one would be talking about it. so i don't know how much is really the fact that these investors lost money because the stock was down or it had to do with nasdaq. but the answer is always management's got to keep control of their technology guys. there's got to be fundamental
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logic in the things you do technologically. this was a case of where the technology guys and diagnostics just thought they had the shot to do something totally -- >> right. >> -- what they thought was sexy but in the real world probably wouldn't amount to a hill of beans. they never saw an ipo anything like facebook. i don't think anybody's ever seen that. and therefore they had problems they hadn't anticipated. but they've got a pr problem probably more than they have an economic problem. and it's cost about just a chunk of money because, you know, they botched something that could have made them look like superstars. instead they look bad. and i feel badly for them. but these are the rules of being a ceo. you got to keep control of your technology. >> all right. howard, always great to see you. thanks for coming and playing. appreciate it. sue. >> all right. keep control of the technology. words to live by certainly. dan fitzpatrick joins us now. mr. bernanke is finished, the market's up 99 points on the trading session. dan, how would you play his
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statements and the testimony you heard this morning? >> you know, sue, we talked about this a couple days ago. that is that the s&p was rallying because of this. so let's talk about what we're going to do. we talked about trading the inverse etf of the s&p 500. that's down today. it's actually at a really good buy point. also another way to trade it is the vxx, the complacency or fear index. folks were paying less for portfolio insurance. the vxx is pulled back to a point that you can be buying it right now. last, gold, it's been trading between 1,500 and 1,600 an ounce. right now there doesn't seem to be much fear of inflation. i think gold is down at a good buy point. as long as it stays above 1500. >> okay. >> thank you very much. we're going to talk about it more. is $40 million enough to sway investors who lost big on facebook? next up, more on that nasdaq plan.
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at home...why would he? ♪ woooo! [ male announcer ] citibank mobile check deposit. easier banking. every step of the way. welcome back to "power lunch." b brian shactman at the markets desk. when you look at the u.s. economy, you have to put in a bunch of factors on relative strength and weakness. two names on earnings i want to look at.
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titan machinery, agriculture, big equipment retailer down 17%. basically they missed on an earnings, weak guidance. and this is a business where pretax margins are 2.9%. they don't want to boost margins because they want to protect market share. also nav getting thumped. a surprise loss and lowered their guidance. this stock, if we can get it up quick, it is down double digits as well. >> thanks very much. ten days before the next election in greece, tempers boiling over. this is video of a greek political talk show this morning. it ain't kathy lee. the man on the left of your screen, a representative of golden dawn, a far right party, is being accused of being greece's version of the gnat si party threw water on a leftist and then attacked a rep from the communist party. it all started after one of the ladies brought up his upcoming trial for robbery. how dare she. a prosecutor in athens has put out an order now for his arrest.
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let's bring in our chief international correspondent, michelle caruso-cabrera. who is this guy? what's his party? and what's their stake in the election next week? >> he's with the golden dawn party. they're known for being fascist, anti-immigrant, local media call them neonazi. they got 7% in the last inconclusive election in may. and he goes on trial for a mugging he allegedly participated in. >> here's another mugging he participated in very clearly on camera. now, what does this say, michelle, about of the political situation in greece, about a society under stress. >> yeah. we see often during debt crisis the total break down of the social fabric in society when they're under so much stress, tyler. the whole world, when we woke up and saw how the greeks voted after the last election, the economic groups of the world say oh my goodness, they voted anti-austerity. and we were all horrified. in greece, a lot of greeks woke
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up and said, oh my god, 7% of us voted for the nazis? they were horrified. what does that say about us? especially because the nazi occupation of greece during world war ii was horrific. 10% of the population died by either starvation or execution. it's why to this day there's still so much tension between the greeks and the germans. and for everybody to wake up and say, my goodness, 7% of us voted for the nazis, how could that be? there's a lot of horrifying thought. >> soul searching. >> absolutely. >> this is horrifying video and amazing to see. >> their position in the polls has dropped dramatically since the last election. >> very interesting. you'll be watching that story all next week. >> absolutely. >> thanks, michelle. sue. >> all right, ty. now to the facebook fall out. after robert greifeld apologized, today he faced angry peers at an industry gathering
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in new york caught up in the mess. kayla tausche is live at the conference and joins us live with the details on that. hi, kayla. >> hi, sue. he was the man of the hour, the man of the day, but bob greifeld did not stray far from the company line today that even though there's a lot of emotion in the air, the board's review was a clinical one and doing what they are legally allowed and required to do. that being said, his comments followed a fiery panel of mostly competitors including the ceo of batss kayaks europe. and they did not let him off easy. hard to follow, but listen to this. >> we're going to vigorously contest it. if people think this is provided some kind of closure to this chapter, it really hasn't. because now in fact going back to the drawing board. >> little surreal the way it's been handled. the timing, letting things go, i think we're coming up on the one-month anniversary this
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friday, lack of communication, hard to envision it having been handled more badly. >> effectively considering offering different pricing to different customers. i don't quite get how that works. if you want to admit liability and do that something outside your wall framework, well, get your lawyers and go about that. but to sort of start waving rules and changing rules to solve the problem, i don't think it's the best way. >> so that ceo telling nasdaq's bob greifeld that he did not carry out the right way. a lot of people saying bats did it right, pulling and deciding to come back after a later date. i asked bob after the conference was over how long the s.e.c. process would take. he said he didn't know. but given all the competitors' ire here today, sue, it doesn't look like it will be a short one. >> no, it does not. thank you very much, back to you, tyler. >> thank you very much, sue. analyze this is coming up next. on the list today, the golden arches, the cruise business and an energy stock that has been in trouble. before the break though let's
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welcome back. and let's analyze this. analyzing the analyst. dan fitzpatrick with us once again. we're going to look at several companies. first up deutsche bank on mcdonald's reiterating a buy
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call saying one of the most stable business models in the world with the majority earnings coming from rent royalty payments generated by a healthy franchise. year-to-date the stock down 11% but may be showing signs of life. they like it. do you? >> i actually do. i like this call. finally a fundamentalist who's a little bit early on this. the stock still making lower highs and lower lows. you can see it down here. but it's got support about $86. i'd buy it right now. >> you'd buy here. >> yep. >> all aboard. next on cruise lines, stifel nicolaus says still a buyer. a note out there saying we believe advanced bookings are trending at levels above current investor expectations. carnival, royal caribbean are the two they name. do you buy them or not? >> i buy carnival. people love to eat, i guess, right? >> yes. >> here's the thing on carnival. you can see the stock has had like a 10-month base. that's a big long base. also, you can't see it here, but the 200-day moving average, which is a key technical indicator has drifted down.
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price is just crossing it. i think this is a good call right here, right now. >> royal caribbean. not so much? >> it's fine. but technically this is the better trade. >> looking a little bit nicer. i guess they've gotten most of that cruise ship disaster in italy behind them. >> yeah. it's only about 9% since that low. >> all right. wond wonderlich securities. initiated coverage on chesapeake with a buy rating. >> uh-huh. >> let's go to alice in wunderlich. too great to ignore. chesapeake down because of the problems of aubrey mcclendon's deals. >> right. we talked about that if you remember we just talked about that a couple days ago. good value trade here. i think it has about another 10% of upside before it hits support. i think that's a really good call. couple days late. would have been nice to have them a couple days ago. but this works for me.
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>> and the oklahoma city thunder in the nba finals. he's an owner of that team. thanks, dan. >> thank you. >> metals market about to close. big bad day if you're long gold. let's check out the board. we're back in two. the metals close in three.
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welcome back to "power lunch." brian shactman here at the markets desk. you know, tyler talked about some down movers just a few minutes ago. one name he neglected was united technologies, utx, by far the strongest name in the dow. in fact, the gains in the last two days make it positive for the year. it's sort of a sleepy name in the dow. it yields 2.7%, sue, which is about half a percent above the s&p 500 average. back to you. >> that's right. you get paid while you wait if you own it. talk about a tail of two markets. the dow jones industrial average up 125 points. gold is going in exactly the opposite direction getting hammered all day. it's below the 1600-mark.
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prices closing right now. sharon epperson is tracking the action at the nymex. talk about mass liquidation today. >> mass liquidation of the long positions. it looks like the gold bulls really buckled here after the bernanke testimony really failed to offer any new insights on stimulus. really begs the question of what market participants were waiting to hear because really the fed chairman said basically what he's said all along. no one really thought he was going to stick his neck out and make any major comments on stimulus. the fact remains that what took us above that 1600 level back on friday, the weak jobs data, had given some of the bulls a reason to think that maybe something would happen, it didn't happen. and look what happened to copper as well. we are looking at that rally completely wiped out. remember the last time, sue, china cut its interest rates like this. that was back in 2008 in the midst of the crisis. doesn't say a lot of positive stuff about global industrial demand or the state of the chinese economy. so perhaps that's why that rally fizzled quite fast. >> i think that's understandably
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why it fizzled. thank you very much, sharon. stocks though here are building on yesterday's gains in a very big way. mary thompson joins me on the new york stock exchange floor. you would think that with the downgrade of spain. >> right. >> that those europe worries might take some steam out of this market and they haven't. >> not at all. the markets did fade during bernanke's testimony. i'm not sure his statements were unexpected. that's what traders say. there were no major surprises. still he said the fed will act if needed. he said the effect, if it does act, will be limited. that's a bit of concern and put the ball completely in congress's court saying you need to do something next. once that said, he stops speaking, the markets moved higher. let's look at the s&p 500. it remains hemmed in this 1250, 1230 range we have seen. came close to breaking above 1230 earlier but it's now pulled back. broad base rally we're seeing today led by the materials, the industrials, energy stocks also higher along with financials despite weakness in the broker
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dealers. telecom is the outliar and medicare health care providers -- medicaid health care providers hit because molina's withdrawing guidance about concerns of rising costs in texas. >> and it's down about 30%. >> right. we wanted fo point this out because this group is weaker in an otherwise broad based rally we're seeing. >> thanks, mary. >> sure. >> to the nasdaq and seema mody is following the big movers over there. >> we're in the green but certainly off of our highs after ben bernanke speech. nasdaq pearing gains up about 10%. lululemon reporting a 40% jump in net profit, however q-2 outlook falling short of expectations. that's why the stock is getting hit. it is trading higher above its 200-day moving average. i'll keep it short, sue, sending it back to you. >> thanks a million. appreciate it. to the bond market and how the 10-year is reacting to mr. bernanke's testimony.
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rick santelli at the cme. how are we faring. >> if you put up an intraday 10, you are hard pressed to find out when he started, when he stopped, when spain was downgraded, it's a sta castic sideways day. open for a one-month chart, put everything else aside is that the outlier was the 140 close last friday and that was because of europe anxiety in front of a weekend. but it's normalized if 1.65 is changed normalized two-day dollar index just talking about extending the twist, even if you don't put something behind it still had a pretty permanent damage to the dollar index from some of its best levels from early yesterday. back to you. >> rick, thanks very much. rejoining me are art cashin and kenny. kenny, how much of today's rally might not be linked to bernanke but to janet yellen's comments last night where it was a more overt reference to the need for more monetary stimulus.
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>> janet's the one that came out and basically made it very clear not only she stands ready but there are other governors stand ready to do it. he came out like you said earlier in the program, he can't necessarily go there before the meeting so he's got to play low, but the expectation is a lot of chatter in the market, people have been expecting it, she said it last night. so i think that's the push you're getting. it's almost like they're trying to push them into the corner to force the trade to happen. >> you agree? >> well, let me add one other thing. i do agree, but i think you have to include the fitch downgrade. that pushes spain to the forefront. that means europe has got less time and has got to get there and straighten the wing fence the spanish banks. i think that's the hope you're seeing here. >> how do you play a market like this where if they're forcing the fed. >> right. >> you don't think the monetary stimulus will help -- >> old adage. you can't keep pumping money at it. the market will go higher. no doubt about it. we saw it with qe-1, qe-2, we
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saw it. the minute the fed walks away the market rolls over. i think initially you've got to jump on board, but you have to be very defensive in how you set yourself up. >> what worries you the most right now? it's a dicey week. >> what worries me, continues to be the same thing. europe has got to act and act rapidly before it gets lost to the people in the streets. the atms of athens, the atms of madrid, if you start to get something that resembles a real bank run, then it's out of their hands. >> that is your question. and you're right. we've been talking about europe now for three and a half years. so clearly they can't act very quickly, right? >> exactly. they can't get it together. >> so there's the fear. i do agree. i think they're on the wing fence. they're not going to allow spain to go down. spain is not the one thumbing their nose at the european union. in fact, they've said we need help. greece, on the other hand, is the one that's kind of thumbing their nose. >> right. >> i think that's one that's going to cause more of the problem. >> right.
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what do you do into the close today? stay with this? i'm going to ask you every day. >> a dramatic move over two days, i think you set yourself up and go short. >> very quickly to his earlier point, i was called by a stock loan group. they had their busiest day of short covering in two and a half years. >> wow. >> yesterday. >> so i think late in the day i want to be a little wary and pull back. i think they may start to soften tomorrow. >> there you go. >> you heard it here first. thanks, guys. appreciate it very much. all right, ty, over to you. >> sue, thanks. art just mentioned that spain downgrade, ring fencing the banks over there. today china cutting rates for the first time in four years. greg ip is u.s. economics leader at "the economist" and cnbc contributor. always great to see you. >> hey, tyler. >> let's talk a little bit about china cutting its rates for the first time in four years. the chairman of the federal reserve was asked about europe versus china. it seems he feels europe is a
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much bigger threat to the u.s. economy than china's slowdown is. >> well, i think he's right, tyler. first of all, like the chairman said, the thing about china's slowdown is that it's a deliberatie induced slowdown. officials are worried about inflation and deeply worried that the stimulus in 2008 aggravated some of the balances in the chinese economy. way too much attention not on consumption. they have the ability to speed things up a bit. way more levers than we have here in the united states. they can speed up investment projects. they can reduce reserve ratios. they can lower interest rates like they did today. the question is they don't want to do it too aggressively because they don't want to aggravate some of the pre-existing balances. the point, tyler, is that the chinese probably have things under control. and you just can't say that about the eurozone. i mean, the leaders are still arguing there's no confidence at all that there's anybody in charge who has kind of a pathway to a solution there.
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>> well, they have -- china has, i guess, the advantage of being a unitary system. there's one party. there's no apolitical central bank. it is the political central bank. and europe at the other end is the exact opposite of a unitary system, right? >> yeah. i'll tell you, tyler, nothing screws up policymaking as much as democracy. and the chinese have not had to worry about that that much. now, all that said, let's not be too sanguine about what the chinese can achieve here. hard landings come even in economies that do have all the tools in the hands of like one party as they do there. and the other thing is these things are related. i mean, one of the reasons china's economy is slowing as rapidly as it is is because europe is sump an important market for them. >> today as i listened to the chairman, it sounded like i got tools, i'm ready to use them, but i'm not saying yet. some of his fellow fed members like janet yellen last night as
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a prior guest just mentioned maybe we will put things to work come june 19th or whenever the next meeting is, i think the 19th and 20th, what do you think the odds are the fed is going to do something? and do you think they have anything left that can make a big difference? >> tyler, an interesting parlor game going on. just chatting with other fed watchers about this. this kind of light that seems to have appeared between yellen and bernanke. her speech last night strongly suggested she was inclined to do more. today the chairman much more equivocal. couple of theories, one she is more dovish and signaling a more public desire to move than the chairman is ready to do. i actually find that unlikely. she's very much a team player. and i would be very surprised if she didn't share the gist of what she was going to say with the chairman before she said it last night. what i think is going on is that the new information that the fed has, basically that shocker of
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an unemployment report on friday and the serious ruptures going on in europe, that's pretty new information. they haven't had the time to fully process what that means. and bernanke said as much during the kwa, q & a today. he said, look, employment numbers and staff are wrestling with this right now. given what i heard from yellen last night and the chairman today, i would put the odds they act in two week's time at little over 50%. exactly what they do is the interesting question. >> right. all right, greg, thank you very much. greg ip of the economist. he's learned how to spell favor, favour and labour as well. let's talk about china a little bit. a country you're very familiar with. here is a country that grew and still grows at a very fast rate. they have slowed a little bit. but now it looks like they're taking their foot off the brakes. >> i think they are. and i think there's an interesting reason for that, ty. and i think greg highlighted it. it's europe, not only the united states, but it's europe's slowdown. and analyst e-mailed me this morning, we were talking back
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and forth about china and the rate cut. he said they have to make these moves because if you go through the ports in shanghai and other port cities along the china coast, there is stockpiles of container ships that are in port. they're not shipping out as much. he says he's really never seen it with this kind of a backup. all of those ships in port because nobody's buying their stuff. europe is a huge market for china. it has slowed down dramatically. so chinese exports have slowed down dramatically. i think that's exactly why they've had to make this move. they cut on two key rates. there might be more ahead. >> sue, thank you. now let's take a look at other headlines right now. the two-day rally helping the transports turn slightly positive for the year. southwest airlines, kansas city southern and conway among the leaders there. the dow components disney and at&t, disney at all-time high levels. and at&t trading at levels not seen since june of '08.
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and more turmoil at best buy. the electronic retailer's founder and biggest shareholder, richard schultz, is leaving the board immediately. not in a year as had been planned. he's also exploring options for his 20% plus stake in best buy. take it private? that's some of the speculation. up next on "power lunch," samsung fighting back at apple's plan to block sales of the galaxy smartphone. we're going to tell you what's at stake for both of those big players when we come back.
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fast food pensions are, but desserts are pretty awesome. >> they are. i like the drive-in aspect as well. i'm not much of a fast food guy. i like clyde's up in st. ignes, michigan. we have a special "street signs" coming up today. we are going around the world in 60 stocks. that's right. 60 stocks in 60 minutes. top money managers giving us their big money bets, their best picks from possible big buys to stocks you might want to stay away from. names that could torch your portfolio. jim cramer's here. he's in a patriotic mood. go around in the world in 60 stocks with us. i'm going to name my honey badger stock, one name, tyler and sue, that just doesn't give a -- that's coming up at "street signs." >> see you then. samsung and apple battle heating up today. samsung announced a new ceo of
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its electronics unit. and the south korean tech titan is fighting back the block of the move of a samsung phone sale here in the u.s. jon fortt is in silicon valley going to sort it out for us. >> start with the samsung ceo. bottom line, this is samsung's equivalent of tim cook moving into a more prominent role. he's been running samsung's component business, really the raw materials of samsung's success. he oversees chips, displays, memory, that sort of thing. that profit advantage a lot of innovation. he has a good relationship with apple because apple buys a lot of components from samsung. will this change the dynamic with apple? probably not much. samsung says he'll stay focused on components with this new title and the lee family still has enormous sway over samsung overall. now on to the continuing legal drama between apple and samsung. the galaxy s3 phone scheduled to launch in three weeks from today, i will be shocked if
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apple stops that. the s3 is the most important android phone launch ever because samsung is using the s3 brand globally. has so much of its own technology built-in i can't say much about it yet, but it's a huge deal for mobile. tyler. >> thank you very much, jon. new proof the road to the white house will be paved with money. fund raising figures out today show that mitt romney and the republican party have raised almost $77 million or did so in may. that topped president obama's $60 million. larry kudlow just finishing a major exclusive with house speaker john boehner, he told larry the economy will be issue number one. and the difference between the candidates couldn't be clearer. >> the best selling book on the "new york times" book list today, last two weeks, is called "the amateur" and it's about barack obama. do you think president obama is an amateur when it comes to compromising to leadership to
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making that deal? is he an amateur? >> i don't want to use deracive terms to talk about the president. he's never done anything. he's never created a job. never run a business. you know, he was a professor and a community organizer. and i think that's why his economic policies have not worked. they've not attempted to work with us to change their economic policies. that's why the election in november's going to be a referendum on his handling of the economy. >> and you can see all of larry's interview with speaker boehner tonight at 7:00 p.m. eastern. interesting picture of mr. boehner. we need a new one there. sue. >> i think we do need a new one, ty. that's must-see tv tonight. up next though before that goldman sachs elite inner circle is shrinking. the investment banking giant taking on fewer partners.
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what does it mean for goldman? and perhaps more importantly, is this the base of the new wall street? we'll talk about that when we come back.
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welcome to the world leader in derivatives. welcome to superderivatives. welcome back to "power lunch." brian shactman at the markets
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desk. take a look at tgi, airline parts. they also design them. down 2.5%. carlyle group selling off the rest of its stake in the company. carlyle group up just a touch. it is now a public company. back to you, ty. >> brian, thank you. power rundown time. john carney and cindy per nam here. ceo bob greifeld publicly apologizing for the glitches, is it enough to appease the angry masses? john, $40 million of i'm sorry enough? >> it is nowhere near enough. the people who actually lost money are not happy with this. and if you saw his interview with maria last night, i think it was greifumble. he really did not do a good job. >> what could he have said? >> when asked what do you think about retail investors, he should have said something, he
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said it's not our problem. >> it's not enough. and more importantly he needed to come in with a save and say something. saying i screwed up and i'm going to win your trust back and i didn't hear anything like that. >> two thumbs down. goldman's coveted partner circle is shrinking. reports saying goldman is going to name less than 100 new partners this fall down from 110 last year. cindy, oh, my. i'm so sorry for those guys. >> i know. it's a cross to bear, but someone has to do it. i think it's never a bad thing when you pared masses. it makes them more competitive. >> except where we work, right, john? my mass might be out of here, you know what i'm saying? >> we have goldman sachs with a lot of wall street firms with what they call human capital is really human debt. they cost a lot to keep around. few and fewer are able to keep their weight anymore.
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they cost $500,000 a year just to have in the office. >> let's go to another guy and another bank that ill lis its a ton of energy. taking jamie dimon to task for what he calls reckless bets. at least he's not going for looks saying, he's tall, fit, for a banker, he's nice looking and that head of fluffy white unbankerish hair. you can argue that dimon's single greatest asset is that he did you want look like dick fold. i'm sounding like bruno on "dancing with the stars." john, is he getting a bass because he's cute? >> he's a very, very handsome man. i'll tell you, tyler. that's all we talk about around here. what i really this is -- i do think he's very charismatic and people are a bit more open to hearing him talk about issues than somebody like lloyd blankfein who seems to have negative charisma on air and in any public form. >> cindy, carney gets a break
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every day because he's so dag on good looking, right? >> here's what i think. it never hurts to be hot, but for me as a woman, hot and stupid doesn't cut it. i don't think it cuts it for wall street either. >> he's not stupid. >> no. exactly. so my point is i think why he's gotten the pass is because of things like he's owned it. >> he's candid. >> he came and said, we blew it. the other thing he did is he gave his colleagues a pass on wall street and said just because we're stupid doesn't mean everyone else and i think that's why he got it. >> cindy, john, both of you, cute, handsome and moving up. still ahead, we go around the world in 60 stocks. names you want to buy, sell, short or avoid like the plague. from the most clicked tickers on cnbc.com to hot ipos to cramer's all-american buys. 60 stocks in 60 minutes coming up at 2:00 p.m. today.
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thank you so much, i appreciate it, i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money ? if your bank takes more money than a stranger, you need an ally. ally bank. no nonsense. just people sense. all right. welcome back. dan fitzpatrick, australia cut rates, china cut rates, the europeans may be next. how do you play it? >> real quick, we're going to go -- they've got about 27% exposure to europe. i think that's going to make it a buy if

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