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tv   Power Lunch  CNBC  March 3, 2015 1:00pm-3:01pm EST

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inal trade or at least we're in agreement. what do we do about that? citi into the fed stress test next week long. >> pete. >> i like the financials as well. citi being one of them. aal, these airlines are going higher. >> why the tlt? >> everyone is going their own way on it. everyone hates them. i am going to buy them. next week i squash the banks. >> halftime is over. power lunch and the second half of the trading day start right now. >> scott, folks, thanks very much. so much for the nasdaq 5,000. one day wonder there. stocks selling off a bit at this hour. the nasdaq the biggest loser. the dow down triple digits as you see right there. >> well if you are in this market where should you be? growth stocks or value stocks in the u.s. or in yump europe. >> best buy beating earnings estimates and announcing a special dividend. the stock up 50% in the past we're. >> and is the electronics retailer back? is best buy a buy? >> and auto sales taking a little bit of a hit last month.
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is this the sign of a slowdown in auto sales or maybe just related to the weather? >> okay. well, it was really nice while it lasted. stocks selling off this hour. the nasdaq the biggest loser, as ty just said after hitting 5,000 yesterday. the dow is currently down by 101 points, which is off its lows of the day. still down by triple digits. actually now it's down by double. it is seeming to come off those lows as we're literally speaking. the nasdaq is down by 36 points and the s&p 500 is down by 12. as for oil prices let's take a look at how they're doing. over that board. you have wti crude. it's spiking right now by 1.6%. $50.38 a barrel. israeli prime minister benjamin netanyahu speech on capitol hill certainly is one thing that we've been watching in the crude context as you can see brent is also up much more in percentage terms by 2.5%. bertha coombs is at the nasdaq. mary thompson at the nyse. dominik at the nasdaq 100
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laggards. you're next. >> peggy lee sang the song "is that all there is." great song. traders aren't ready to say that's all there is for nasdaq 5,000. today we are seeing a broad decline, though. the big caps are down. apple has come off the lows. that's more of a watch and see if we can get momentum to the up side for the bulls. it's biotech today that is really where you're seeing the pullback. you're seeing it across from where mankind is among the worst performers having been downgraded a sell over at goldman, over concerns about pricing pressure in the wake of gilead's pricing pressure on its hepatitis c drugs, and then on the other side on the flip side, the drug makers are higher. also, seeing positive data on its diet drug. back to you. >> okay. the dow down triple digits as we saw. mary thompson on the floor of the nyse. we do seem to be coming off those lows. what are traders telling you, mary? >> they have no shortage of reasons for why we have seen a
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down day throughout the session. the markets are over extended. there's concerns about earning guidance. the s&p failed to revisit earlier year highs. there's concerns about china growth, and there is concerns about europe. all of this playing into the decline that we are seeing in the wake of a record day. also seeing declines in the transports today led by airlines after delta said that its passenger revenue for february declined because of currency implications and also because of the winter weather. take a look at the airlines to see how they're performing. a contributing factor to the more than 1% decline in transports. where we are seeing strength are the energy stocks. you mentioned earlier, of course energy prices rising. saudi arabia seeing prices for china and the u.s. also our k. kelly having a positive report on oil from a big oil trader andy hall. those are both contributing factors to today's gains. back to you. >> all right, mary. thank you. you know nasdaq back really approaching peak levels though off a little bit today. some of the biggest names in that index are still under performing. dominik has been looking at the
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nasdaq 100 laggards. we've been talking all about the ones that have gotten us to this 5,000 level. back off a little bit today. here are some of the stocks that have really lagged and fell behind here in the overall trade in that march towards 5,000. these are year-to-date numbers, and we look at the nasdaq 100. that is a subset of the naxz composite that are the biggest stocks, the largest capitalization ones. first of all, one of the notable laggards is pacard. those shares have declined 5% year-to-date. you take a look at another one. american airlines, they were such high flyers last year. those airline stocks. well american airlines listed on the nasdaq down about 9% this year. not helping matters much. another one to keep an eye on electric carmaker tesla. of course this is such a nasdaq at least associated name right? electric cars. tesla down 11%. then you look at this one here. mattel, the toymaker down 13%. we know about the problems that they've been having. then of course what you have the biggest underperformer by a
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percentage basis sandisk. some of the big laggards in terms of the overall percentage drops this year. back to you. >> missays pablg district of columbia utility gas station to luf today's intra intraday eyeragses for later on in the show. let's take a bigger picture here, right? jamie, it seems that growth stocks have been taking a bit more of a favor recently but you prefer value. why? >> we work with retirees, and that's typically what you find in the value sector. the lines are blurry these days. if you look at some value sectors like utilities that are way overpriced, so you have to be careful about saying oh you need value or oh you need growth. if you ignore growth companies like microsoft over the past ten years, you would have missed out
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on an enormous amount of dividend flow. i think it's difficult to say you must be in one sector or the other. i think it's a combination of all of it. >> what's your thought on utilities right now? >> i think art makes a good point, but i just think that utilities -- it has a sector that are way overpriced. there's a notable exception in national grid, but beyond that i don't know what will happen in the next six months or next year. that's not really material. because you want the yield, you're paying a lot of money for it. i think that's more material than what happens to the market, you know, a couple of quarters from now. >> understood. kevin, you are more of a growth man.
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>> they're going to be a little less sensitive to changes in interest rates. not to turn this into a def didn't discussion, but we kind of like to play it from that angle and growth is where it's at as far as we're concerned. >> let's change tact. i want to bring up a sunnied byte from our friend jim cramer when he is talking about our bullish views on europe. take a listen. >> if green shoots are no longer green shoots. the plants are coming up. it's like tulips now. i see so much good coming out of europe. i know that you could say, well wait a second how about this? you can peck a country that's not france but, jeez these retail sales numbers are good. >> not just green shoots but a whole plant he is talking about, europe. why don't you leak europe as much as the wraits? >> i think longer-term the wraits is better from a structural point of view. you just kind of look at the way that the united states is brought together. it's more cohesive banking system. i think we have more pro-growth
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kind of policies here more flexibility. labor markets, for example more open to competition. consequently, when you look at growth in the united states just take gdp, for example, it's much more steady and just frankly a better growth over the years, and i don't see any reason for that to change. i think near-term, though there has been a big drop in terms of the value of the euro compared to the dollar. that should give them at least a near terp boost. maybe inflation starts to pick up there a little bit. and the ecb coming on with a little qe couldn't hurt either. that's really more of a short-term play. longer term we like the united states and u.s. dollar. >> okay. sticking right here in the good old us of a. do you agree with cramer? >> well, i think he is right. you know we're starting to see bank lending pick up in the euro zone. i think that's where you get direct injections of cash which that has been long overdue. you also -- this is the month where qe the ecb actually starts. i think we sort of start from position of strength there because you're so far down. if you are making investment
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decisions, you can pick up a low euro environment for companies like siemens and other exporters. the opportunity to buy stocks in a short run here are very good for europe. >> it's a ten-year-long experiment and almost as long as the nasdaq from 5,000. i don't know what the next couple of months will hold but i think if you look at the differential between the u.s. markets and the msci world index it's a mile long. there's some making up to do in the world indexes generally. investors are going to have to pay a lot lower for s&p companies than they would for european equivalent. i tend to think that's a good place to put money these days.
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go and find out more about that at power ty. >> oil prices moving up following a rouzing speech from israeli prime minister benjamin netanyahu in front of u.s. lawmakers in kong. will this change anything with iran regarding their nuclear ambitions? >> well, we're going to have to watch this play out over the next couple of weeks as the negotiations continue but this is exactly what the obama administration had feared tyler. prime minister netanyahu delivered a very forceful well delivered, well crafted speech before the u.s. congress against that nuclear deal. the administration is pursuing the deal. he did it by trying to link the feelings of israel to the emotional concerns and fears of the american people wresh said that the isz is threat was minor
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league compared to -- this is president netanyahu during the speech. >> to defeat isis would be to win the battle but lose the war. we can't let that happen. >> prime minister netanyahu did not lay out much of an alternative except to say the alternative to a bad deal is not war, but a better deal. well, the administration believes it's trying to negotiate the best deal it can, and the question is does that deal get done and if so how effectively has prime minister netanyahu rallied the american public as well as political leaders in the united states against that deal? there is some dispute on capitol hill over whether congress is going to have a role in terms of legislation in response to the deal whether they have to roll back sanctions.
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the administration has tried to not involve congress in that but we'll see whether or not the speechl that the prime minister netanyahu made can rally support enough that they can really throw up the roadblocks. >> that was going to be my question. >> he haven't seen leaders get the multiple standing ovations during the course of a speech in years, if ever. my question is what role does congress have in these negotiations at all. obviously, if it's a treaty it has to go in front of the senate for confirmation. i understand that this is nothing like a treaty. it's an agreement, and i guess congress's role in this would be limited to dealing with sanctions or the repeal. >> yes, but the sanctions might be a significant part of it. i have to tell you, tyler, i've gotten different answers from different legislative aides on capitol hill today about whether congress, in fact, will have a
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role. but if this deal results for its duration in the alleviation of sanctions, congress will have to do that because the sanctions were enacted according to law. i think it's not entirely clear how far-reaching congress's role will be, but congress the political center of the american people and of their elected representatives in the house and senate is not irrelevant to the outcome of this deal. >> absolutely john. great discussion. john harwood reporting there. changing gears a little bit and really talking gears now. many of the world's biggest automakers out with their latest sales figures. ford and toyota's numbers, disappointing, and their shares are reflecting that. as are other automaker shares today. let's go to phil lebeau in chicago for the numbers. as i understand it the numbers weren't so bad. it's that they weren't as good as some of the forecasts thought theshtd be. >> you can blame this on the weather or softer fleet sales.
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those go to government agencies. they were down last month. some would expect. here are the numbers from the different automakers. >> i know about talking with dealers that it slowed down traffic 50% to 60% up in that part of the country. well keep in mind, not only in the northeast was hit hard but also you have those ice storms moving towards the southeastern u.s. the estimated salsz pace most belief it will come in at 6.3 million, but a few have said we could see a drop as low as 16.1 million. what was selling last month? no surprise here. up more than 30%. suv saelz also remain strong. that's part of the rotation
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we're seeing in consumers in the u.s. lower gas prices is convincing people maybe now is the time to buy a crossover or suv. >> they're under pressure today, guys. in part because these february sales have people saying okay was it just one month, which many believe it was. if that's the case then some of the delayed sales because of weather we should see those in march and in april. that at least is the expectation from dealers who i have talked to around the country. guys, back to you. >> all right phil. thank you very much. let's talk about best buy a little bit. those shares higher on this otherwise down day. the company beating earnings estimates and declaring a special dividend. that stock up remarkably 50% over the past one year. is the electronics retailer finally back? is best buy a buy? we'll talk about that and speaking of retailers that have been struggling, target meeting investors today. the company announced a major shakeup to attract younger shoppers. we're live at the meetings next.
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the deal helping the bank shed unwanted assets and focus on wealthier clients. kate spade shares tumbling on down week guidance. the clothing retail are anticipating slowing growth as gross margins continue to fall. those, ty are some of your headlines. mandy, this is the vegariga volcano in chile. it erupted at 3:00 a.m. local time. it was blasting lava and ash. our coordinating producer actually climbed the voluntarily contain wroe. there she is stand ago top the vent at that voluntarily contain wroe. she says it was awesome. we are watching target shares today. that stock not necessarily awesome today. under pressure on this down day, the struggling retail giant
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meeting investors to outline a growth plan and it has already made one bold move. courtney reagan live at the big meeting in new york city. hi courtney. >> hi. that's right target released its fourth quarter earnings. they left a couple of items out. waiting, instead, to speak about them in detail with investors today at the meeting that will take place behind me in about an hour from now. now, in november ceo brian talked to me about grocery and making sure that the assortment is right. specifically as it pertains to organic food. on last week's earning call cornell, again, reiterated food is very important. it drives traffic. also acknowledging the target does have a lot of work to do explaining he has been studying the competitive landscape and knows that changes to the assortment need to be made. while it's today's meeting that won't yet start for about an hour and 15 minutes, reports have been circulating that target will talk about seven key
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categories for growth in food. we expect to hear more as well as potentially cost cuts and more about how they'll fund all these initiativeses. how target will fund all those initiatives going forward. >> thank you very much. >> president of sw retail advisors and oliver chen is retail analyst and managing director at coan. let me start with you. do you buy target at these prices? >> we are excited about it. we like brian cornell. the comp was 3.8, and that was driven by the best traffic in two years. that's a healthy metric. we are excited about today. we think both traffic and pricing growth and digital sales grew 30%. they contributed 1% to the comps. prioritizing on the right
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product, the right omni channel story, it's a new management story, it's also a u.s. economy story with the consumer getting better and lower gas prices. >> so you like it at this price? >> i do. >> all right. stacy, how about you? does target have its mojo back? >> i think it does, and most importantly, i think today we're going to hear from the company that, you know in 2008 they really started rolling out grocery across the board. i think today we'll hear the story and the theme will be we're no longer going to be all things to all people. let wal-mart take the commodity products in some of the grocery space, and let's be differentiated. let's do more in organics. let's do more in apparel from collaborations. let's bring -- let's get our target mojo back from years ago when people were willing to pay a premium whether it was for apparel or for home or for food. i think that will be the story here. >> do you like what you see out of mr. cornell? >> i actually do. you know i think there was -- when he was hired, it was, okay
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well, he didn't really have the apparel or home background, but he has come out and really dug into the company and gone through stores and talked to people in the stores and said where are we missing out? where are we losing your business? where are we losing traction here, and he is also going for things like free shipping over the holidays and lower thresholds on shipping now. he is doing what it takes to get that consumer back. >> let's talk about best buy. i know it's not a stock you can talk about, but you must have some impression on the direction the company has been moving. obviously her core space is electronics, i don't feel but margins are pressed there. the prices keep coming down. this is a company that's got a nice stock run over the past year, but what do you think of its long-term prospects is this. >> well we don't cover best buy, so i can't comment specifically on the stock, but electronics has been seeing growth and interest in innovation. i think, like as the company sticks to its strategies, i
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would say retail at large, there is a big emphasis on bricks plus clicks and featuring how do you compete on-line specifically with mobile. taking it back to target the mobile part of the story is very exciting. it's about 40% of the traffic. that's a blig opportunity for them, and they'll probably discuss their cart wheel app as well and what they're doing on-line with traffic and target. >> they do seem stacy, to be doing a lot of things better than they used to on-line ordering pick up in the store. on-line ordering a mashlg appliance, having it delivered and installed for you. infantries a best buy a couple of weeks ago, and the space devoted, for example, to videos and cd's much compressed over prior wreerz. they seem to be getting their act together. >> they are, absolutely getting their act together, and today they came out and said we're going to restart buybacks. they increased their dif debbed and issued a special dividend. they're doing more things that are shareholder friendly and acknowledging the fact that
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perhaps they're hanging on to way too much cash here. at the end of the day the biggest difference between best buy and target here is that best buy doesn't really control its destiny from a product perspective. it's at the mercy of product cycles and deflation, whereas target actually has an opportunity to control its destiny through collaborations and through product enhancement. if you look at the two stocks i would say target over best buy. >> stacy, oliver thanks very much. >> control your destiny, ty. control your destiny. okay. the fastest growing market in smartphones, and many of the big players are trying to get in. why appear and samsung are not finding it easy to break into this market. you have to stay tuned for more. plus steel stocks getting whacked right now. those stocks done. double digits this year but is the bottom finally in? we'll find out.
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at ally bank no branches equals great rates. 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. >> rick santelli live on the floor of the cme group. if you are looking at treasuries, they're moving higher in yield, lower in price. they're not doing it in a revolutionary aggressive fashion. look at a two-day chart. the right half of that is really tight, and i know that prime minister netanyahu, many people are trying to say that much of the action in equities the down side was attributed to him, but since we had so little buy in treasuries, i doubt it. if you look at february 1st in the year-to-date you see how
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important these levels are, and if we look at the euro and in front of the erb meeting and what may be the biggest dynamic to wake everybody up out of this range, the youro keeps coming back. they can't put that big sale under 112, but it's still hovering at the lowest levels against the greenback since 2003. mandy, back to you. >> thank you very much. check out the steel stocks right now. they are getting crushed at this hour. on a downgrade. the group is down double digits so far in 2015. you can see u.s. steel down 14%. ak steel down 30%. are these names actually near or at a bottom? is there further to go? we'll find out. stick around on "power lunch."
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>> hi everyone. i'm sue herrera, and here's your cnbc news update for this hour. apple sold most number of smartphones around the world in the fourth quarter. overtaking samsung for the first time since 2011. that's according to the research firm gartner. that helped apple report a fourth quarter profit of $18 billion.
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the biggest ever for a public company. ceos in the u.s. are modestly more upbeat about the economy and almost half plan to increase capital spending over the next six months. that's according to the first quarter survey by the business roundtable. united airlines, meanwhile, says it expects nonfuel costs to be down by $800 million by the end of the year as it makes progress towards its goal of cutting costs by $1 billion annually by the year 2017. and in case you didn't know this, today is national pancake day. i hop is celebrating by offering up free pancakes to raise money for charities. in return the company is asking its guests to consider a donation for the children's miracle network hospitals. i hop has raised some $16 million since 2006. that's your cnbc news update for you at this hour. back to you. >> okay. let's take a look at what's going in the markets right now. the selloff does continue today after we hit record highs. the dow and the s&p yesterday and, of course that nice round
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psychological number of 5,000 for the nasdaq. right now the dow is down by 91 points. it is off its lows of the day, but as we can see, not doing particularly well. the nasdaq is the biggest percentage loser. it's down by .7%. oil prices continue to move higher. wti is up we 2%. let's get back to more of the trading action. mary thompson is at the nyse. bertha is following the moves at the nasdaq. swraky is keeping an eye on oil at the nymex, which will close in about one last time from now. mary you're first. >> the biotech stocks under pressure, and that's leading over into this group. technology, which was a winner yesterday on the news that that merger between free scale and
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nxp, the -- they're weaker today, and that's contributing to the decline there. industrials also under pressure and consumer discretionary, which was the strongest performing sector in yesterday's session. now, energy stocks are strong. you might say this is something to do with the gains that we are seeing in oil prices but also the company came out with earnings that were weaker than expected, but have positive comments on its drilling business, saying that quarter of a point actually improved so that's giving lift to its stock today. the rest of them higher as well. of course a number of retailers coming up with their results earlier today. best buy, dividend increase. strong numbers. buy back, all of that contributing to its 1% gain. auto zone stronger than expected results as well. kate spade, a weak outlook and squeeze profit margins. they opened or accelerated store openings and the gap getting an upgrade over at the -- they are up 1.7%. mandy, back to you. >> thank you, mary. let's get straight out to the nasdaq in times square and
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bertha, what are you seeing there? >> you know manneredy, one of the things we're seeing say rotation. yesterday's winners today are the big losers. particularly when you talk about chip stocks. you have micron technology getting downgraded today. analysts saying he believes that the estimates are too high on the street and that's having pressure on all of the chips that were yesterday's big winners. they're also seeing some of the stocks coming back. one of the things that we're watching is apple off of the lows. it held its february 20th low today. did not go down below 128.05. that's coming back. that's something to watch. other stocks bucking the trend include media today. they've been beaten down of late with returns about net neutrality. today they're winners, and smeft momentum names are up as well. gopro, and take a look at black bear, which is introducing four new devices in 2015. back to you. >> swraky deangeles. you are rounding out the top three at the nymex. what are we looking at for crude? it seems to be holding to the sipd by 1.6%.
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how much do you think has to did with what netanyahu was saying earlier, on or is it not really core rating? >> it is correlated. that's what i was going to say. take a look at the intraday chart, and you can see we were modestly higher this morning, but we really spiked after netanyahu addressed congress, and he said that this is a bad deal with reference to iran. a very bad deal. we're better off without it. actually, the hopes of a nuclear deal with iran is what sent oil lower yesterday, and that is why we spiked today. also, interesting that we're bucking the trend of a very strong dollar here. back to you. >> thank you very much. steel stocks getting hit hard today. what's weighing down steel and where are the stocks headed from here? dom here to tell us more. >> let's pick up on jackie's strong dollar point. that's part of the story. a kch the steel stocks are getting bebt out of shape. ak steel, u.s. steel. that's because of the commentary out of numura. in a note to clients mnomura
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highlighted both those down grades. their price targets cut for u.s. steel. the new price target is $21 a share. it was $37. a big cut. for a.k. steel the new price target is $4 a share. it was $10. now, they cite two big structural changes to the global steel landscape that will be headwinds in the coming years. first, the strength of the u.s. dollar, like jackie just mentioned, which makes exports of u.s. produced steel price relatively more expensive. second is an overall drop in prices for steel due to a lower raw materials cost as well as lower freight costs. basically, there's a deflationary environment in the steel market. now, analysts believe that profit margins for u.s. integrated steel producers are the most at risk because of these particular industry shifts. these are among some of the reasons they've tab down their estimates and projections for both u.s. steel and ak steel. add those to weaker prices coming out of our big steel producers, like china and russia, and you get a lot of that weakness tyler, for that not so favorable outlook. steel certainly a focus for a
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lot of investors. >> all right. thank you very much. it is the fastest growing smartphone market in asia, and that means every telecom player is trying to get in. our seema is live in barcelona, spain. take it away seema. >> tyler, consider this. there are roughly two billion people around the world that own a smartphone. that number is expected to double. micromax is dominating the player, and we spoke to the ceo, excuse me, the chairman about the growth out there saying their big focus is the millenials and their love for indian film stars and cricket. listen in.
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>> we found three honors. bollywood, music, sports. we've invested relentlessly behind these three. >> now, bollywood and cricket, if anyone knows india, will have a massive appeal to india's younger audience, and micromax from day one has incorporated india's film stars and athlete athletes as a pavr their marnkting strategy and unlike apple and samsung, get this micromax launches about 25 to 30 phones a year. the i wantedian smartphone maker says in india one size does not fit all, and offering a variety of different products is key to their success. tyler and mandy, back to you. >> all right. thank you very much. israeli prime minister benjamin netanyahu warns congress that iran is engageed in a "deadly game of thrones." plus, two of the most infamous blue dresses of all time. more famous. a lot to talk about in the power rundown next.
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legalzoom. legal help is here. merrill lynch analyst and a bank looking at a $50 price target for the data stores. it has been layinging all year long. down about 20% just since january. >> dominik, time for the power rundown. jane wells joins mandy and me. she's in l.a. thunderous applause for israel's prime minister benjamin netanyahu earlier today after he gave a rouzing speech to congress about iran's nuclear ambitions. reactions from the west coast. that's how -- tyler, that's an
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old school speech. there is no teleprompter. that's how speeches used to be made. black and white issues. >> the speech had more references than a -- old and new together. what a speech. iran is also rejected that they stop clear activity for the next ten years, plus when they do say they'll continue talking trying to get some kind of agreement, but certainly there are more than just one, you know stabling out there that is not really happy with that deal. >> very controversial speech. obviously, netanyahu involved in an election in his own country.
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remember monica lewinsky's infamous blue dress. the artist who painteded president bill clinton's official white house portrait said he secretly painted in that dress right into the left-hand side above the majdz there. it's a bluish shadow. do you see it? i guess it's really kind of below the mantle. he wanted to make an illusion he says i guess of the lewinsky affair. mandy. >> apparently he actually had a mannequin there while he was painting and that mannequin was wearing a blue dress so he could get the affect accurately of a shadow with sort of a bluish tinge. if i was the clintons i would be annoyed. >> oh man. kind of? >>co a consideringed to one article i read the artist nelson shanks said that the clintons are annoyed. in fact so annoyed that they asked the national portrait gallery where it's hanging to take it down. apparently the national portrait gallery denies that, but,
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anyway, i think the point is made. annoyance would be the order of the day. >> i am a firm believer in freedom of expression but this is completely inappropriate to do this to the president's official portrait, and not just the dress. look at that pose. what is with that pose? >> the chest it out there. i see a hint of a muffin top going. >> man, that's the old bill clinton. not the new variety of bill clinton. >> speaking of illusion let's talk about that other dress. the one that mandy is wearing right now. come on. >> there is no illusion. >> it'swide white and gold. >> i did a quick change here t wr. >> it looks great on you.
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awesome. what did you see last week jane? white is gold? i saw white and gold? >> i saw white and gold. >> yeah. >> this is blue and black, baby. >> i saw blue and gold. i broke the thing that broke the internet. here's the bottom line on this. as a species, we are over. we have jumped the shark. >> as a species. >> on a glass half full basis, thank you military homeland security, fbi, and cia for making us safe enough that we in america can sit around and have this debate. >> i love it. jane, just to cnbc if i have this conversation, to give a few facts and figures here the sales. >> they're up right. >> roman originals based in the u.k. they said the sales of this particular dress are up 550%. they're back ordered about 2,000. so many people ordered them. >> it's not -- not to out ow the press. it's not a terribly expensive dress. >> it's not a terribly expensive dress.
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in fact, i went to the website, and it was fast. >> are you a fan of size zero. i hate you so much. >> it's one size fits all. >> i hate you so much. >> by the way, did anyone see the picture that was floating around on the internet of the guy who tattooed the blue and black dress on his leg with white and gold question mark also tattooed on the same leg. now, that is what i call class. >> that is beautiful. >> get a life people. >> more intel. >> with google confirming plans for its own wire it is service, we want to know would you switch your wireless carrier? weigh in and your answers next on power lunch. kinda is. it's as crazy as you not rolling over your old 401k. cue the horns... just harness the confidence it took you to win me and call td ameritrade's rollover consultants. they'll help with the hassle by guiding you through the whole process step by step. and they'll even call your old provider. it's easy. even she
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could do it. whatever, janet. for all the confidence you need td ameritrade. you got this.
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florida, with that story. meg. >> we'll tell you why they're on guard here in key west. >> i don't want my people to have -- be bitten or to have mosquitos. it's like hide and seek every day.
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>> on deck for the next hour. with so much talk of bubbles in stocks, we dig into a potential trouble spot in a totally different market. plus, the good the bad, and the down right ugly on this march to nasdaq 5,000, and a helping healthy dash of good news. why the so-called misery index is not living up to its name. thankfully. back to you, guys. sfwroo see you at the top of the hour. we are heading into the spring break season. if you are lucky enough to be heading to warmer climates you may see travel advisories on your way south that you're not familiar with. give us more meg. >> for mosquito-born diseases
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like -- now dnegi fooer. florida saw its first breakout in decades. it usually isn't fatal, but it's been nicknamed break boyne fever. there aren't any treatments on the market for it. here in key west it's the southern-most point in the united states, and it's really on the frontlines to try to control it. the mosquito control experts here are doing everything they can to keep it at bay. >> they've been been tracked before in the united states where are they're working with osi tech to release genetically modified mosquitoes programmed to wipe out their own race. now, it's awaiting fda approval to start a small trial here in a small area of the keys. >> we've actually brought down
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the population in the areas where we've released. 90%. >> now, there has been some local pushback over the plan here. mostly over the genetic modification. key experts and omni tech say it's safe and specifically targets this kind of mosquito. meanwhile, big pharma companies are working on the problem. both santafee and merck are working on vaccines. important as cases around the world have increased 30 fold in the last 50 years. back to you, guys. >> when i was living in singapore, there were multiple outbreaks, and the authorities would regularly come around our houses and spray to try to kill off mosquitoes. that was the way that they did it. you know genetically modified mosquitoes might be a much more effective way of attacking the problem. >> why is it so painful, meg? bone breaking fever? >> well in its most severe forms it's known as hemorrhagic fever, and that can be really bad with bleeding associated with it, but it's just the way the virus works its way through the body. now, not everyone gets that but it can be extremely bad if you do. >> no treatments.
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once you get it you fwot to ride it out? >> that's right. there are -- you can get transfusions and things like that in the hospital but no specific drugs are available for it. santafee has been trying it in areas. this could be a targeted way of taking care of that mosquito population without affecting the rest of the environment. >> meg, thanks very much. we're going to go now to a taped comment by president obama on president netanyahu's speech. >> well, this is going to be the first opportunity that i had to get an expensive debriefing from secretary carter who took a trip last week to afghanistan and other parts of the region giving impressions about how we're planning our drawdown and transition to afghanistan.
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>> on a video conference with our european partners with respect to ukraine. i did have a hands to take a look at the transcript, and as far as i can tell there was nothing new. the prime minister i think, appropriately pointed out that the bond between the united states of america is unbreakable and on that point i thoroughly agree. iran has been a dangerous regime and continues to engage in that they're contrary to the united states, to israel, and to the region. on that we agree. he also pointed out the fact that iran has repeatedly threatened israel and engaged in
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the most venomous of anti-semitic statements. no one can dispute that. on the core issue, which is how do we prevent iran from obtaining a nuclear weapon which would make it far more dangerous and would give it scope for even greater action in the region, it wouldn't offer any viable alternatives. let's be clear about what exactly the central concern should be both for the united states and for israel. i have said since before i became president that one of my primary goals in foreign policy would be preventing iran from getting a nuclear weapon and with the help of congress and our international partners we constructed an extraordinarily effective sanctions regime that pressured iran to come to enable -- to the table to
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negotiate in a serious fashion. they've been negotiating, and during that period iran has, in fact frozen its program, rolled back some of its most dangerous highly enriched uranium, and subjected itself to the kinds of verifications and inspection that is we had not previously seen. >> keep in mind when we shaped that interim deal prime minister netanyahu made almost a precise same speech about how dangerous that deal was going to be, and, yet, over a we're later israeli intelligence officers and in some cases members of the israeli government have to acknowledge that in fact it has kept iran from further pursuing its nuclear program. now, the deal that we are trying
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to negotiate has not been completed would cut off the different pathways for iran to advance its nuclear capabilities. it would roll back some elements of its program. it would insure that it did not have what we call a break-out capacity that was shorter than a year's time and it would subject iran to the most vigorous inspections and verifications regime that is have ever been put in place. the alternative that the prime minister offers is no deal in which case iran will immediately begin once again pursuing its nuclear program accelerate its nuclear program without us having any insight into what they're doing. and without constraint.
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>> it does not have some sense that sanctions will be removed, but it will not have an interest. -- the bottom line is this. we done have an idea. it may be that iran cannot say yes to a good deal. i have repeatedly said that i would rather have no deal than a bad deal. if we're successful negotiating, then, in fact, this will be the best deal possible to prevent iran from obtaining a nuclear weapon. nothing else comes close. sanctions won't do it. even military action would not be as successful as the deal
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that we have put forward. i think it is very important not to be distracted bibi the nature of the iranian regimes ambitions when it comes to territory or terrorism, all issues which we share a concern with israel about and are working consistently with israel on. because we know that if in fact, they obtain aid nuclear weapon, all those problems would be worse. we're staying focused on the central issue here. how do we get iran from getting a nuclear weapon? the path that we proposed if successful by far is the best way to do that. that's demonstratable. presses netanyahu has not offered any kind of viable alternative that would achieve the same verifiable to prevent
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iran from getting a nuclear weapon. i would urge members of congress who were there to you know continue to express their strong support for israel security to continue to express their strong interest in providing the assistance israel needs to repell attacks. i think it's important for members of congress on a bipartisan basis to be unified and pushing back against terrorism in the region. and the destabilizing efforts that iran may have engaged in with our partners. those are all things in which this administration and israel agree. whether it comes to this nuclear deal, let's wait until there's actually a deal on the table that iran has agreed to at which point everybody can evaluate it. you don't have to speculate. what i can guarantee is that if
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it's a deal i signed off on i will be able to prove it's the best way to get iran from having a nuclear weapon and for us to pass up on that potential opportunity would be a great mistake. it's not one that i intend to make and i will take that case to every member of congress once we actually have a deal. sfwroo i'll take one question. sfwroo do you feel like the speech he gave was appropriate? you also talked to other foreign leaders today. did iran come up at all, and is there he any sign of support from your position? >> all the folks on the call today share my position that we should see if we can get this deal done.
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it was not a topic of conversation. with respect to the decision of the speaker to offer up the house chamber two weeks before mr. netanyahu's collection to make this case i think that question should be directed -- as i said it is very important for us not to politicize the relationship between israel and the united states. it's very important for all of us americans to realize that we have a system of government in which foreign policy runs through the executive branch and the president the specific problem that is being debated right now is not whether we trust the iranian regime are
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not, we don't trust them. ist not whether iran engages in destabilizing activities. everybody agrees with that. the central question is how can we stop them from getting a nuclear weapon? and what we know is that if we're able to get a deal not only do we cut off all the various pathways for iran getting a nuclear weapon but we also know that we'll have a verification mechanism and an inspection mechanism where if they cheat and if they engage in a covert program, we are far more likely to see it in time to do something about it. what i also know is if we don't have a deal as prime minister netanyahu suggested, if in fact, he is right that they're not trustworthy, they intend to pursue a covert program and they cheat, we'll be far less aware of it until it is potentially too late. what i also know is that he made
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the same argument before this -- for an interim deal and even as officials in his own government have had to acknowledge that iran has in fact maintained their part of the bargain. what i'm focused on now is solve this problem. i'm not focused on the politics of it. i'm not focused on the fear of it. and my strong suggestion would be that members of congress as they evaluate it stay similarly focused. all right? thank you, guys. >> welcome back to "power lunch," everybody. i'm brian sullivan with melissa lee. you have been listening to the president comment on iran and israeli prime minister benjamin netanyahu's speech before congress. president saying he did not hear the speech directly but he will go back and read the transcript. let's get a recap now and go to washington d.c. with john harwood. john. >> brian, you heard after prime minister netanyahu delivered a speech that was great political
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theater, the president just responds by saying i'm not interested in the theater, i'm not interested in the politics i'm focused on solving the problem. he tried to diminish the impact of what prime minister netanyahu had to say by calling it nothing new, and he said that if he signs off to a deal he will be able to prove to the american people, to israel, and to politician that is it will be the best alternative to prevent iran from getting a nuclear weapon and said it would be a grave mistake on -- for him to pass up such a deal and won't do that. of course we're not going to know that unless there is a deal concluded, and that still is in question in switzerland and we'll find out the next few weeks whether they can aheave it. >> all right, john harwood in washington. john, thank you very much. meantime, folks, welcome back. here's your market setup at 2:00 p.m. eastern time on wall street. the dow down just over 95 points. crude oil back above $50 a barrel. melissa lee, the story remains at the nasdaq, and it appears that that 5,000 mark barely hung
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around long enough for a cup of coffee. >> it seems like it was a flash in the pan, brian. the nasdaq will be away from that 5,000 mark. again, we close above that 5,000 mark for the third time ever in yesterday's session. right now we are at 4,975. down by .6%. take a look at where we are seeing some weakness here. these are stand-outs in terms of drags on the nasdaq. yahoo and alibaba. alibaba of note. this is the lowest level this stock has hit as a publicly traded company. we're to date this stock is down about 21%. we also see some pretty big losers across the biotech index. gilead, cell gene. those are lower. a couple of bright spots. tesla bouncing off the negative bank of america note, and palo alto network out with earnings yesterday. that stock hitting a 52-week high in today's session. >> i do like the good news. that plays into our menu for the rest hour of power lunch. here we go. we are on bubble watch. we'll talk stocks, and also another part of the market that jim cramer this morning said was in the bubble.
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plus, some more good news on a platter. why the so-called misery index may need to sleep with the fishes. plus google entering the wireless war. we have a stealth way to play that and we'll talk about one part of the auto business that is clearly running on high octane. you're watching "power lunch." it is 2:12 here in the east, and we are back right after this. ♪ grind virtually any kind of food waste into an unending source of electrical power for a city? when emerson takes up the challenge it's never been done before simply becomes consider it solved. emerson.
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>> let's reset and recap your markets. coming off its lows, and still downle 2 points to 18,26 o 06. the nasdaq no longer at 5,000. a long short trip that was. certainly we're at 4976. the s&p 500 is down ten points. well despite today's pullback, no question the nasdaq has been hot. it is up 16% over the past year and a stunning 294% from its 2009 lows. let's put that another way. if you put $100 into the nasdaq in early 2009 you would have nearly $400 today. not including dividends without doing anything. of course that's not all been pretty. let's take a page out of clint eastwood's playbook and find the good, the bad, and dare we say, the ugly on this big market run. cue the market. cue dom. dom, you good with this? >> it was one of my favorite westerns of all time. one of my best favorite plays of picks, period. let's start things off with our
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little good bad, ugly with the good stories in the nasdaq. good meaning what analysts think of the stock market. the nasdaq specifically. the folks over at the investment group took a look at the -- wall street analyst advisory recently become more bullish on. had he screen for the biggest increases and the number of -- over the last year. the stocks of materials and auto desks and e-trade financials highlighted. a nov good ratings from analysts. then there's the bad story. the stocks that have taken so much of a beating that some traders look at them as maybe technically oversold. perhaps due for a bit of a pullback and a bit of a bounce here. we asked the folks over at kensho to find stocks that have fallen below the medium term analysts. then how about the ugly? the biggest laggards in the nasdaq 100 so far in 2015 microchip maker, micron we heard about that earlier today on that downgrade. yahoo, sandisk, those three
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stocks, you can see there, have been the worst performers year-to-date in the larger cap nasdaq 100 index. now all the details go to investing. john malloy has put a lot of the the details of this story and others ones on the story. check that out for sure. >> back to you. >> must see. with the lofty levels lots of talk about whether it's overdone. we ask bill gross on power lunch yesterday about the significance of nasdaq 5,000 and whether stocks are in a bubble. take a listen to what he had to say. >> it's a landmark number. i do think it reflects some overvaluation in terms of nasdaq types of stocks. you were talking about apple and i'm not so sure that apple is overvalued. some of the tech stocks that are up 10% or 15% today. i think they're reflective of a little bit of a bubble. >> robert lun wra is with sure vest, wealth management. mark is with januariy montgomery's stock. great to have you with us.
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10% or 15% undervalued. how do you get to that? >> when you look at some of the big names of the nasdaq 100, for example, you look at cisco, intel, apple, microsoft. these stocks are trading at 13 to 14 times next year's earnings. that's far different than what they were trading at in 2000. they were 40 and 50 times earnings. whether you look at the dividend most of these are yielding more than the ten-year. i'm want really finding now and we're looking at doing the research, melissa. >> it seems like you agree that you don't think we are in a bubble either on the nasdaq or markets at large, but your stock picks are more of a defensive bent to it. take a look at the mcdonnell's. that's a turnaround story. what are the catalysts? >> for mcdonald's it's not
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performed particularly well, and we know the reasons. we think there's a turnaround story. there's a now ceo. they're probably going to turn around the menu here in the u.s. and clean it up. reduce the number of items. try to create a more healthy kind of promotional environment around what income donald's sells to invite the millenials into the stores. as a consequence along with the fact that in the meantime time you have a 3% or 4% dividend yield, we think there's upside to that stock. >> you are have two stole solars. both doing well on the announcement of that joint yield co. that's a curious one to me. while you say there's no double this is a stock that's trading at a 47% pe. >> out of the stocks i put up there, melissa, pay celestial is the most expensive. i probably am looking to buy that on a small pullback. when you look at the secular trend of what's going on with healthy eating, mark pointed out with mcdonald's, they're really so much trouble because they
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had, what ten years ago what consumers wanted. what they're looking at today is healthy things like -- if you look at companies like pepsi co coca-cola, they need the top line growth. paid celestial, growing at 20% to 25%. although it's 48 times earnings that's about 25 times next year's earnings. i think it's a great acquisition takeover target. we really like the company a lot. >> stock bubble. what about in corporate bonds. today one of the biggest corporate bond issuance days ever. interest rates are incredibly low. even for, like not the top credit quality, and demand is high. in fact, our own jim cramer this morning really calling this a bubble in the corporate bond market. let's bring in steve smith, co-manager of the five star morning star rated -- global opportunities bond fund. steve, our simple question to you, are we in a corporate bond bubble? >> i don't personally believe
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we're in a corporate bond bubble. the reason is pretty straight forward. >> we think recovery has a long way to go and so it all depends on what the fed is doing. they are mostly interested in growth. europeans are going to go on a bond buying spree. the european governments are only issuing $250 billion. then you have -- you go around the world, and you think about china easing and japan easing, it's really a business cycle call. so just like from 19 -- from 2003 up until 2007 bonds had very low yields relative to treasuries but stayed there because corporate profitability was relatively strong sxets all about cash flow.
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we don't see a bubble in corporate bonds. >> you know, the one thing that worries me, though steve, is that we're seeing companies of -- activists coming out at a rate that is not that much above liborg. it feels like companies of average credit caught with getting what's been reserved for companies of spectacular credit quality. >> well this -- again, if are you talking about the next three to six months or a year to say where are we in the business cycle. what is the cash flow? this is generally what happens medicine way through a business cycle. it will stay with that kind of a background music until the fed really starts to tighten. you really are seeing spreads blow out and that's in the oil sector. oil -- you know oil falls for $60 a barrel and you go look and see what's happening with oil drillers and people like that. i mean they're saying trading at when you would call severe
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recession levels. to me it's more idiocincratic where bonds in general are saying where are we in the business cycle? >> i don't really see that kind of an environment but the corporate bond market in general. >> even though you say we're not in ail bubble your preference right now for your clients is to buy debt outside of the united states. why in. >> well, when we look at the world, the world is global, and have you to just think about it. different countries are at different points in the business cycle. the u.s. is going into the six-year of a recovery some did thes leak brazil have seen tough economic times. they're in a recession. they're raising interest rates. they have 13% bonds and worrying about inflation. unemployment starting to rise. when we look at it from that perspective, there are countries around the globe that actually have attractive interest rates. what we prefer is duration outside the u.s.
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we think, for example brazil which i mentioned, mexico indonesia, countries of that though, have bonds that we think are attractive because in those countries their cpi is really driven by soft commodity prices. corn, wheat, things of that sort. it's coming down. interest rates are relatively high, and so we do think that there is outside the u.s. some interesting bopd markets to buy. >> brazil mexico? >> not necessarily here in the u.s. >> steve, we appreciate your time today on cnbc. have a great day. >> up next another day, another lawmaker brawl. those details and, of course, video coming up. ers. the job jugglers. the up all-nighters. and the ones who turn ideas into action. we've made our passions our life's work. we strive for the moments where we can say, "i did it!" ♪ ♪ we
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plans to choose from based on your needs and budget. sixty-five may get all the attention, but now is a good time to start thinking about how you want things to be. [ male announcer ] go long™. sdmreemplgts another day, another lawmaker brawl caught on tape. this time in ukraine. even worse perhaps than the brawl itself was that this fight was between the head of a party and one of his former deputies. they started swinging. guys in bad haircuts got involved. the session was closed. still ahead, do you think that oil and the stock market are
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related? are they inversely related? we ran the numbers on just how much oil and stocks really correlate. we're going to have the surprising stats for you. speaking of loyal, we are just minutes away from the crude close in new york. we are headed the nymex when "power lunch" always brawl-free returns.
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sue herrera. here's your cnbc news update this hour. president obama commenting on israeli prime minister benjamin netanyahu's speech before congress. said he saw nothing new in that speech, adding he will not sign a bad nuclear deal with iran. up to two months of jury selection a panel of 12 jurors. a bombing suspect. the panel consists of eight men -- opening statements scheduled to begin tomorrow. outrage over uber in belgium. hundreds of cab drivers in brussels snarled traffic all in po toast against the new car service saying competition is unfair. similar po pro-tests have taken place in other european cities. hyundai is recalling more than 200,000 vehicles due to a steering problem. the recall involves elantra
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sedans produced between 2008 and 2010 as well as the 2009 and 2010 elantra touring hatchbacks. that's your update. back to you. zoog thank you very much. well, the oil market set to close for the day. crude oil is holding above $50 a barrel. let's get to jackie d at the new york mercantile exchange. >> good afternoon, brian. wti staying over $50 and brent staying over $60. we did see an intraday spike when netanyahu made his comments about the deal the potential deal with iran being a bad deal. then we came off when president obama made comments that we have to look at the deal if iran agrees to it and then evaluate that deal so the market taking a little kinder note to that. again, still to the up side here and just hovering around the range at the $50 and $60 mark. traders are waiting for a real kalt list to either break out in one direction or the other. back to you. >> all right jackie. thank you very much. which of these statements is true, america? when oil goes up it is good for the stock market. or when oil goes down that is good for the stock market.
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the answer? it's yes to both. we wanted to find the real relationship lately. we went back short-term 20 trading days and, get this oil and the s&p 500 closed up together five times, down together five times, and in the opposite direction ten times. in other words the correlation between oil and stocks is perfectly uncorrelated melissa. >> this is just -- this is all data since february 2nd. this is a fairly small sample size in terms of historically what the relationship is. >> are you throwing water on our sample size? >> i'm just -- >> it's not about the sample size. >> it's how you use the data. >> no it's about the sample size. >> now it's time for "street talk." we look at five stocks and analyst calls. stock number one, marriott, rbc starts coverage with an outperform. says marriott is set to produce out sized organic growth. remember, about 80% of their ebida comes from north america. low dollar risk here melissa. $94 target.
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about 11% up side. >> yeah there's a lot of optimism surrounding the stock, but at the same time there are concerns that perhaps the stock is getting overheated. >> lot of analysts are saying this company also repurchases a lot of shares but it is worth noting the stock is about a double since october of 2013. my first stock, brian, it's raising its estimates 2015. trimming its 2016 estimates because of higher op ex in 2016. results are strong, and they were drivening specifically by lower manufacturing costs per watt and stable average selling prices. the analyst called it a strong low cost leader. speaking of colas vegas with oil, even though there is fundamentally no relationship between the price of oil and solar energy it has traded inversely. >> i think that's sort of just blind trader mentality. maybe it's hedged high frequency traders. who knows? either way, i think you brought up a key point. watch asp's average selling
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prices for solar. that's what youment to watch for. raising lab corp.'s target to $145. that is the highest on the street of any analyst and raising quest diagnostic targets of $28. they did a survey of doctors who expect office visits and, thus, lab testing to accelerate. >> we should note lab corp. had positive earnings a few weeks back. even wrup beat outlook for the year. fundamentally, the stock has bb delivering. next up young brands, baird cutting a strong from a neutral to a market perform. the price target going down though $80 a share. the analysts citing all the china concerns. the company was involved with the food scandal there last summer. that ruld in slumping sales. they then said that things would look up for six to nine months. here we are six to nine months later. >> young has been one of the hottest restaurant stocks lately. about 9% over one month. it's interesting you talk to robert luna. maybe we're seeing a shift.
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mcdo notted's is the best performing restaurant stock on my screen with 30 publicly traded restaurant companies over the past month. a lot of money has been flowing back into mcdonald's. all right, today's under the radar name, chart industries. gtls is the ticker. it's an ohio based maker. equipment for oil and gas. and health care where are things to cut in natural gas prices in china could boost earnings to increase business in china. >> recently the stock has delivered and posted better than expected earnings but it is the momentum of late brian that, could get some -- a little skeptical. it is up 24% in just the past month. >> all right. melissa, thank you. that wraps up another street talk. done. okay. coming up, why the so-called misery index you've heard so much about over the years, may need to go to sleep with the feshz. plus, some delicious i eye candy. all you car lovers out there and absolutely the best photo that you will see all day.
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a bird and a rodent. in flight together. it's, dare i say, beautiful.
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>> 2:39 p.m. take a look at where we stand on the markets. we are off session lows particularly for the s&p 500. ten points above session lows. we are being helped right now by footballs, bank of america, citi, jp morgan hanging in the positive. also, games and energy stocks. the xle is higher by .7%, and take a look at apple. this is also helping, of course the nasdaq composite away from the 5,000 mark, but still, you can see it really trying to make a push into the positive from the session lows hit at about 12:30 p.m. eastern time. it is higher by just about one-tept of a percent. if you judge the u.s. economy based on the so-called misery index.
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>> i don't think so. though in the eisenhower administration, i think they had a recession as well. listen, my problem with the misery index is that it's a stagflation measure and maybe a secular stagnation economy. you look at the unemployment. yes, the unemployment rate has dropped down a lot. you know what is that the best measure of joblessness? should we maybe look at the u6 rate and look at the civilian population employment ratio? you have weak wages. i don't know if the low unemployment rate fully captures what's going on in the labor market, and then you have the inflation bit of it. listen inflation is low. part of it is gas prices, but part is a hangover from the great recession. we had a huge demand shock. i'm not sure that really low inflation is really great for the economy. >> do you think the misery index is overly weighted to low gas prices. >> i think there's a piece of that in there, and then you know when gas prices stabilize,
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you get probably rid of that negative in inflation. >> you find there's been improvement and not as much as you see if you just use the unemployment rate. >> what you see is we're still two points below the average, ought what's wrong with that is the average has been brought up by the huge increase we had in the financial crisis. we have had improvement. not as much as you get from looking at traditional misery index. he is right. this is another way to look at the economy. >> i am going to improve on steve's improvement. >> can't be done. can't be done. >> instead of regular inflation, how about something that's very
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relative to most family. let's say college tuition inflation, which is a lot higher than the regular inflation rate. that's my improvement. >> well, that is good and i think i point you out how people's experience with the inflation rate is very relative to where they are at a point in their life. yol, if you are seniors, that doesn't affect you, but maybe the price of food does affect you more or the price of travel affects you more if you are at a different point. i think that's one way to do it. for those folks who are in the process of saying to their kids to school there's a lot more pain coming from the inflation number than there is for those that aren't. >> i'm in pain. that's me. >> yeah. >> how many kids do you have jimmy? like, six? >> last time i called home i had seven. >> i mean, you do a calculator. if you have a 6-month-old at home unbelievably, and i'm doing the calculations on what -- if he goes to college, the kid better be strong and have a good arm because i'm not sure he is going to be going to college. the prices i'm looking at $75,000 a year, and then we talk about no inflation. i look at health care costs. my parents are getting older. you know i'm worried, and i see
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very real inflation. it's nice the price of gas is down, right? save $50 a month, whatever. that's not going to koirnt the $10,000 more in five years that college is going to cost. >> health care inflation has moderated quite a bit. >> it's still inflationary. >> it's still inflationary and it's still above overall inflation. what you have is you have the good sector which is deflating essentially, and the service sector has been higher than the average and actually pretty stable at a higher level. you don't have a huge inflation problem right now if we could get the unemployment rate down and the broader u6 rate down we would really have less misery. >> if we only focused inflation on one metric steve. the price of grateful dead reunion tickets, the federal reserve would have raised rates to 18%. >> through the roof. >> out of control. >> triple digits right? quadruple digital oits those tickets. >> jim, steve, and a lady with a fan, thank you. >> coming up next google's big entry into the wireless wars.
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sdmroirchlgts if you are on the radio, it is a picture of a wiesel on the back of a wood pecker in the air. this is a real picture. there's a photographer in the u.k. that apparently heard some noise, turned his camera saw this wiesel attack a wood pecker. the wood pecker flew off. apparently it landed. the weasel ran off. earlier i called the weasel a rodent. apparently the weasle is in the same family as the badger and the wolverine. both butt-kicking animals. >> rodents are in the rodentia family and weasles are in the carnivora family because they are carnivores. >> what did you get a point? is this espn? >> sadly, i was the one who pointed out that the weasle was not a rodent. >> the weasle is related to the honey badger. probably the baddest you know what animal on the planet. if i encounter a weasle i'm dead. >> think about that little tiny weasel thought it could attack that wood pecker. one and a half times the size of the thing.
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>> the wood pecker okay had fwaun out and got ep an anvil from acme and gone off a cliff, everything would have been fine. >> that's right. >> all right. google amazing photograph. google announcing plans to get into the wireless wars. the company wants to set up a rather small scale u.s. wireless network, but we've got google getting into the game. let us bring in jennifer senior telecom analyst, wells fargo securities. jennifer our thesis and our afternoon meeting yesterday was could this benefit the tower companies because they would have to build out more towers and more capability. is that bunk or is there something real here? >> i think there's absolutely something real there. i mean and the most simplistic sense, if a new competitor comes in even what's called an nbno or virtual operator status that means there's more antennas on the tower to support more usage, and the tower companies, like american tower crown, sba, are paid on more kind of junk ok the
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towers themselves. >> is your model based on the entry of google or are you just you know forecasting a larger market overall and this is just part of it? >> this is just part of it. there is incremental association. google hasn't confirmed -- they said today in barcelona, they are certainly having talk but no official press release has been put out, so there's nothing in their guidance in our model. that would just be upside. >> i guess the risk would be let's say it gets confirmed and google is talking about partners up with t-mobile and sprint, would there be a net need for new towers or is it the same number of subscribers and really a zero sum game when it came to data transmission? >> you're right. there wouldn't be probably new subscribers because if you think in your own life who doesn't have a wireless phone, but if google got more serious in the wireless arena with advertising behind it remember, they have $58 billion in cash, that would
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drive more usage and for google's model more clicks which is what they want at the heart of it. >> at the same time, jennifer there are parts of the world where not everybody does have a wireless phone, and i'm just wondering where you think are the areas of growth? i know american tower pushed into india a couple years back and was trying to make inroads there. >> right. india is an exciting area but we're more bullish about latin america, especially mexico. you have seen at that time&t enter there. only 60% of the infrastructure is still 3g so not lte which gives it a long runway for growth. >> are these tower companies all built the same or is there one standing out to you as the better investment option? >> they all have very different focuses. we like sba communications and american tower the best but you got to listen to crown. crown has doubled down on the small cell speights andace and has stayed strictly within the u.s.
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you look how much is needed in these metro areas and that's where small cells really come into the conversation. >> jennifer it was a pleasure to have you on. thank you very much. >> thanks for having me. >> is this the best car ever created? fiat chairman thinks so. why ferrari has so much riding on this. i can't talk because i'm staring at the car. we're back after this. ♪ building aircraft, the likes of which the world has never seen. this is what we do. ♪ that's the value of performance. northrop grumman.
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over 20 million kids everyday in our country lack access to healthy food. for the first time american kids are slated to live a shorter life span than their parents. it's a problem that we can turn around and change. revolution foods is a company we started to provide access to healthy affordable, kid-inspired chef-crafted food. we looked at what are the aspects of food that will help set up kids for success? making sure foods are made with high quality ingredients and prepared fresh everyday. our collaboration with citi has helped us really accelerate the expansion of our business in terms of how many communities we can serve. working with citi has also helped to fuel our innovation process and the speed at which we can bring new products into the grocery stores. we are employing 1,000 people across 27 urban areas and today, serve over 1 million meals a week. until every kid has built those life-long eating habits, we'll keep working.
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after falling for a couple months, gasoline prices are moving back higher nationwide. aa a puts the current average at $2.44 but out there in california, the big refinery fire, the switch to the summer blend, you know what's going on prices are up nearly a buck in the past month. they got people tweeting in pictures where they're paying $3.50 a gallon in california. often with some choice language. >> i can imagine. if you're driving around in one of these cars then you probably couldn't care less about gas prices. a true read on the hottest new trends in the luxury auto market. robert frank is looking at the hottest cars at think year's geneva auto show but first breaking news from phil lebeau. >> we have the final sales number from auto data. came in at 16.23 million. that was the pace of sales well below what many on wall street were expecting. they thought it would be closer to 16.5 to 16.7 million.
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february is the slowest month of the year for auto sales. we're going to be talking about luxury with robert frank in a bit. let's take a look at how the luxury name plates did last month. it's a little all over the board. lexus and acura leading the way. that cadillac number that is a brand that is being restructured by gm. it was left to wallow for a number of years. they've got to go back to ground zero. they're in the process of doing that. leasing deals are what was driving all of the luxury sales last month. but remember, january and february, those are really the off-season for luxury dealers. they're not pushing the big marketing campaigns in the first couple of months of the year. that's why when you take a look at shares of daimler benz keep this in mind the really big sales for the luxury market that doesn't kick in until the summer and really in the second half of the year. so that's really the foy cusscus for the luxury market. >> thank you.
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now let's bring in rocketbert frank. when we say fancy cars we're talking -- >> a couple levels above phil's mercedes there. we're going to call it gone in three seconds. the latest weapons in the super car wars unveiled in geneva, faster flashier and far more expensive than ever. let's look at a few. ferrari pulled the covered off the 488. it's a turbo charged update of the 458. it's the lead horse. we asked the ceo whether the company will increase production beyond the 7,200 cars they made last year. it's a huge debate from ferrari. >> the news was you have to sell one car less than the market demand. hard to say what the market demand will be for 2015. >> basically he's saying they're going to keep it about where it was last year. mcclairen unveiled the 675 lt.
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0 to 62 in 2.9 seconds. hard to find anything street legal that beats that time. price of this $345,000. this morning phil showed us the new lambo. 217 miles per hour top speed. that's kind of slow compared to the bugatti. brian, you drove that. they just sold the last one. there it is. the last bugatti they ever produced called la finale. >> that was the one we drove here. was that the video from outside cnbc? >> the blue one. >> usually they were silver. when it pulled up i was like no thanks. i want the silver one. >> lots of people hoping bugatti might release what's coming up next. so such luck. we're probably going to have to wait another year. >> how is the market for these cars? >> it's unstoppable.
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the prices keep going up the technology keeps going up and the demand -- they sell these out before they're even launched. a lot of these cars are already sold out. so there you go. >> thank you for bringing those beautiful pictures to us. >> sure thing. >> spectacular. >> more car talk on "mad money" tonight. jim has an exclusive with the ceo of true car scott painter to talk about luxury but also everyday auto sales. it's national pancake day so ihop is giving away free pancake. cnbc taking full advantage of that this afternoon. cramer will also be speaking with the parent company dine equity ceo julia stewart. melissa, do you have pancakes or hot cars on "fast money" tonight? >> we have neither hot cakes nor hot cars brian, unfortunately. but we have an exclusive with the nasdaq ceo bob greifeld. we call him the landlord but we'll get his take on nasdaq 5,000. check out alibaba, it's $80 a
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share, down by more than 4%. we're going to solve the riddle what going on with baba tonight. >> no hot cakes, you aren't going to solve the griddle. >> i rolled my eyes. >> of course you did. thank you for watching. go to "the closing bell" starts right now. and welcome to "the closing bell," everybody. i'm kelly evans here at the new york stock exchange. and welcome back. >> thank you. i'm bill griffeth. allegedly you closed above nasdaq 5,000 yesterday for first time. >> you missed the big day. it looks like we'll have another day to close above 5,000. >> somebody apparently took a stop watch to it and we were above 5,000 today for about 45 minutes and then it fell below that. we've had this sell-off today on wall street for a number of reasons but we're wondering if we can turn things around. the dow -- the nasdaq right now is down 30 points. the dow was down 150. it's off


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