tv Power Lunch CNBC April 17, 2013 1:00pm-2:00pm EDT
i am short that and steel. give you two in a bonus session. >> lululemon. why not. >> that does it for us. >> we have breaking news in washington, boston and apple falling below $400. ty is off. >> the markets are really taking it on a chin. take a look at the nasdaq really getting beaten up. just above 400 bucks a share. before we dive into that, let's get right to amonday jabbers on capital hill.
>> they have given the all clear from the suspicious package incident incidents. they have that office and that hall way closed down for a little while. they had that area closed off and gave an alert to staffers not to go there. a granular substance that tested positive for rice and also down at the white house they have confirmed that they received a letter at the white house mail processing facilities. >> there was a letter sent to addressed to the president that at a off site mail facility. it was noted to have contained a
suspicious substance and tests were undertaken. the fbi has a lead in that investigation, of course. and has said in its statement that they will be conducting further tests to determine what the nature of the substance is. >> the guys tell me they are still looking into these incidents here. they have given the all clear for staffers to move around and conduct normal business. >> we will get back to you when we get more information on that still developing story. now we go live to scott. a bit earlier on the program you were saying there was more investigator activity near the explosion sites. update us on what you're seeing now. >> sure sue. one sign that boston is coming back to life is the crime scene is shrinking.
she was a graduate student in mathematics and statistics at boston university you can see that there is police activity and we saw a lot of it earlier. the bomb teches who were going through the area almost with a fine tooth comb trying to find any other evidence that they could come up with. it is a final sweep before they start opening more of the area. we don't know. now we're told it wouldn't be
before 2:00 and preseemibly it will be after that. they have recovered very important evidence they include shrapnel from one of the two bomb bombs pieces of the actual pressure cooker was used in at least one of the bombs, potentially both of them. >> pieces of block nylon which could be from a backpack. and also bbs and nails possibly contained in a pressure cooker
device. >> there were batteries, wiring and what looks to be a circuit board. we hope to get some more context on that. >> scott, i know we will come back to you if there are any further developments. >> john fort is at the d mobile conference in san francisco from where he joins us now. i thought we knew this quarter was going to be disappointing. you buy the stock for the product announcements further on in the year.
>> mostly early stage start-ups. talking about their outlook on apple, the platform. people's confidence. >> i see no wayning in the enthusiasm to develop for the platform. more than half of the start-ups that are products that are launching here are on the apple platform. >> one in particular said look, it's still the platform to go for. just because the stock is back to you.
>> you also have to bear in mind that you have a lot of concern. the dollar is higher and tech stocks generally make 40% of their profits in europe. >> saying its margins for the fourth quarter will be weaker than expected. barclays cutting its stock to 28 bucks. including tech, broad come. so a tough day for tech. >> the dough now experiencing its third straight session. remember, monday down 265.
yesterday up 150 and that's where we stand at the moment. >> i don't like what i'm seeing. here is what's the problem. we're in an up market. the stock market trend was to the upside. now we have two days. a monday and a wednesday. 90% of the volume to the downside. two separate days. this is one thing if you get one of them. now you've got questions on whether we're in a trend reversal. it's not settled. guys, look at the sectors here. you can see fairly broad selling going on. defensive names down not as much as energy and materials but still pretty serious hit.
that's your global slow down story. that's really what's motivating things. only ones. look, those are the ones. all those stocks are at new lows. >> he is also a cnbc contributor. we're talking yesterday in your notes today. both of you wrote about this. is this a head and shoulders pattern? that's what we look at. >> you want to see the completion. so the left shoulder was built back in march. and this take back we have been 1540. so you want to see it churn here for a little bit. then it's going to make it lower. it has not had a chance to build
up the shoulder yet. >> on the right shoulder. >> only if it drops more. >> that's exactly right. you have to watch. >> the trend reverses. >> trend reversal that will go on. that's what they're worried about. >> you also pointed out, bob, copper does that worry you? >> you look at the whole complex. the weakness across the board is what worries you. people have been aching for this. so if you're a long term buyer, you're almost salivating. i mean, that's not.
>> i would still think that we will test it a bit lower. >> let's switch to bank of america. keep in mind all of the financials have been hit. b of a is down six and a third%. as trading from fixed income securities and also mortgages fell. the other financials have been dragging down this market as well. almost. j.p. morgan off three and three quarters percent. google reporting service disruptions to some of its popular applications. the company disclosed that on
its website that six out of 13 applications have been having problems. for everyone who is affected we apologize. we know you count on google to work for you and we're working hard to restore normal operations for you. google is down almost 1.5%. >> bucking the trends, mattell trading higher. wow, almost three percent. held by tight cost controls. as for its barbie line, it was down 2%. >> embattled cruise lines making big headlines. plus, different rules for different people on the hill when it comes to trading. more on both of those stories when power lunch returns in two.
up to another 400 million dollars could be spent upgrading another 77 ships. on monday, the billionaire announced that he would voluntarily write a check for over $4 millions to u.s. taxpayers for the cost of the two highest profile marine emergencies. jay rockefeller accused him of blood sucking off the american people for not doing so when carnival pays a poet total tax here.
>> all right. let's go to scott in boston with breaking news. this is reporting by the boston globe which says that authorities have now gotten an image of somebody dropping a bag at the site of the explosion and that could potentially be a suspect. we don't know if there is an identity on that suspect. i want to show you down here some of what's been going on. this is a fire department ladder here but we saw just a short time ago.
the news is the boston globe reporting that authorities have an image of somebody placing a package at the site of the tragic explosion on monday and that could be a suspect. we're following this and we'll keep you posted. >> people are asked if they took video with their mobile phones to turn that in. do we have any idea where that image came from? >> i don't. while i talk, let me show you more of these guys off the roof. there are a lot of people with cell phones and also surveillance cameras, at least three as we reported yesterday
that were trained on the finish line. and they were reporting on those. there also was a fourth camera along the roof. there is no shortage of video. we don't know where it's coming from. if you have any sort of image or information, any sort of pictures, even if you think it's not significant, let us know. and we're looking to confirm independently ourselves and maybe do that shortly, then that bore some fruit. that will be huge for them to follow up on along with the fragments of the bombs that were uncovered from this scene over the last couple of days. >> it has got -- it's an obvious
statement but an important one, none the less. if you have thousands of images by now, if you can pinpoint what you're actually looking for, then you unlock the location at which the suspect may have been seen, where he went, where he was before. you can further direct yourself through immense amount of data. >> exactly right. and that's the beauty of all of this. and the expertise that has all come together to try to find out what has been going on is there are all of these to go for. it's not just your garden variety crime not just because of the magnitude of it but because it had so many witnesses. they may not have realized at the time what they were witnessing. >> this is from our nbc hot
file. authorities investigating the boston marathon bombing have developed some, quote, solid leads, and identified hundreds of people who they are interested in talking with. they are not prepared to characterize those individuals as suspects or witnesses at this time. it is simply too soon to tell. we are zeroing in on some people. they are telling nbc they are focused on video taken in the area closest to the blast. that's senior officials in boston. they also tell us that the team of investigators on the ground is making solid progress and that the forensic exploitation of the bomb fragments is ongoing. so it sounds as though i find what's interesting in this, they say they are interested in talking to a number of people.
>> they suggest that they have this huge plet rah of images. the timing of the bombs so precise with one individual so there would be people that they want to look at and there are a number of ij imagines that they want to sort through. there are some of the images where people are identifiable and some where they are not. maybe it's somebody that was in a position to see something that might be able to help them follow a lead. they are developing harrass more information and enough information. give them that sense of a little
while they have been appealing for people to get in information keep the apture open. keep the leads coming in. >> we're on the case. and here is where we stand. thank you so much. i know you're going to be updating us on the story. we will be covering the story all afternoon. we are also following the sell off in the market. a tough day for the nasdaq with apple and google and every big nasdaq stock you can think of. we'll talk about that straight ahead. plus, the power pitch. >> start-ups give us their 60 second pitch.
>> we give you insight into the fast paced world of venture capital. >> competition here is very fierce. >> i don't understand what they do here that's different. >> do these founders have what it takes? stay tuned to find out. zap technology. departure. hertz gold plus rewards also offers ereturn-- our fastest way to return your car. just note your mileage and zap ! you're outta there ! we'll e-mail your receipt in a flash, too. it's just another way you'll be traveling at the speed of hertz.
bjorn earns unlimited rewards for his small business. take these bags to room 12 please. [ garth ] bjorn's small business earns double miles on every purchase every day. produce delivery. [ bjorn ] just put it on my spark card. [ garth ] why settle for less? ahh, oh! [ garth ] great businesses deserve unlimited rewards. here's your wake up call. [ male announcer ] get the spark business card from capital one and earn unlimited rewards. choose double miles or 2% cash back on every purchase every day. what's in your wallet? [ crows ] now where's the snooze button? >> companies that race against the clock to convince you they
have what it takes to make it big. >> welcome everybody to the power pitch. where start-ups get 60 seconds to make their pitch and then our panel gets a chance to ask questions about the business, the business model. i'll try to give you insight into the dynamic world of entrepreneurship. they left that job to pursue his dream of making privacy mainstream and making money for him and his investors. here's his power pitch. >> lots of websites have your personal information and it's hard to information what information they have, how your information got online. we're trying to make managing your information in an era of lack of privacy online simple. we find your information.
where is it? what is it? what can you do about it? we create a road map for you. then we help you clean up this information. for basic members, it is a free service and we make the discovery of your information easier. we walk you through the process of removing each piece of information that we found. types of information that we find are personal information, things that you're interested in. photos of value and marketing information being sold in private data bases. safe shepherd does all of this to help you have more privacy. >> robert is on the right side of your screen. we get to say our piece. >> over 20 years of technology investment banking. some of his investments include pandora and ancestry.com. let us huddle up.
this is, i think, a hot space. the age of privacy on the internet is only going to get bigger. >> there are very big competitors in this field that have been around for a while and it think it will be harder for a newer younger company. >> it had better be a much greater value proposition. i don't quite understand what they do that's different. >> both of your concerns, obviously and my concern. what are people willing to pay. why don't you go to julie and i's concern first. what would you do to keep winning? you make a product that is incredibly easy to use. >> i think it's interesting that you have a free service that is
intended to get people in the door but i wonder what metrics you have, proof that people are interested in paying for your surface when you do face reputation.com competitor. >> 15% of the members who join us as a free member wind up converting to paying subscriptions which is above almost all other premium businesses. >> are people willing to open up and spend with you to protect their name? >> we actually just raised that from $150 due to demand. >> let's say an embarrassing photo of me is out there on the web. i get that. but if it's an article or blog post or review that slams a doctor or somebody and it's damaging to their reputation and it's inaccurate, how do you
remove it? >> we can automate its removal. we understand the privacy policies and we can automate behind the scenes the opt-out request, the forms, everything that needs to be done. when you can't remove something automatically, that's where a personal privacy consultant advocates on behalf of our member and does everything we can to help our member remove that information. >> do you pay more on top of the regular monthly fee? >> you do. right now it's $250 a month. >> we heard what robert had to say. let's find out if we're in or out. >> i think there's a huge potential market here and i think it's interesting that they are going after the premium model. they are newcomers and there are very established players.
>> reputation.com is very expensive. ten times more expensive. for the mass market, in a diversified portfolio, it is a good risk reward and i'm in. >> i would also be in with jim. now we're realizing that that was too much and i think this model for years to come will be to remove stuff from the web. so for us, the premium model works effectively. we believe at the lower end of the market is yours at the end. thank you very much for joining us on power pitch. thank you to julia and jim and thank you for watching.
we se'll see you next time. >> we want to hear from you. we want you to log on and cast your vote. if you think you have what it takes, contact information can be found. >> another tough day for the metals markets and parts of the commodities complex. the gold market has been heading lower once again today. that's just under a half a percent. it has lost a lot in the last week. copper hitting a 52 week low. it's now down 31%. and right now it is trading down about 3.5%. very critical level of technical support and a lot of people are watching that for an indication
of global growth. palladium is down 2.5%. >> the flip side is treasuries are all fired up. the yield on the tenure heading down towards the low for the yield. rick has it in chicago. >> thanks. yes, the european has really fired up the markets particularly foreign exchange markets as they are in negative territory for the year. it is not a huge move but here we sit below 170 which on monday at 168 was the lowest yield going back. we are hovering in that zone. as i pointed out, if you look at the your versus the dollar it
was at 13180. hovering now at 152.43. >> despite the fact we may have some sort of breakthrough in boston. the dough is down 151 points. the nasdaq is the biggest loser. how far can the tech tumble go. a stock up more than 20%. those after the break. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars.
and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade. omnipotent of opportunity. you know how to mix business... with business. and you...rent from national. because only national lets you choose any car in the aisle. and go. you can even take a full-size or above. and still pay the mid-size price. i could get used to this. [ male announcer ] yes, you could business pro. yes, you could. go national. go like a pro. since aflac is helping with his expenses while he can't work, he can focus on his recovery. he doesn't have to worry so much about his mortgage, groceries, or even gas bills. kick! kick... feel it! feel it! feel it! nice work! ♪ you got it! you got it! yes! aflac's gonna help take care of his expenses. and us...we're gonna get him back in fighting shape.
see what you have seen in the last two days. the commodities base. all the big names in commodity. service to the downside and those stocks all weak here. and again, simon, that's your key to understanding what's going on. there is the global slow down story in a nutshell. you know anything on the upside? multimonth mis here. there is your biggest bond and corporate bonds are moving up today. that's your 20 year plus. those are treasury bonds. >> they are not profitable. >> the stock markets have new highs.
the global slow down is showing up in commodity stock. >> oil has fallen with everything else. so again, a bad day there. down 2 and a third percent. getting hit really quite bad. let's go back to the nasdaq and recap what's happening now. >> we're seeing the nasdaq trade down about 2%. we had intel as well as yahoo! sports with a disappointing streak. the stocks trading in negative territory but here's the real story. apple shares. it took about 14 months to go from 400 to 700.
it's a new york grocer that priced at 14 bucks, opened at 18. strong stock. sue, back over to you. >> as fairway looks to expand, britain's biggest chain is shrinking. they are packing its bags and leaving the united states. saw profits fall for the first time in 20 years. this is a tough business, jane. >> we're going to do a flash back to 2007 when the british
tried to invade the american grocery isle. >> five, four, three, two, one! >> just like the first time they tried it didn't do well. leaving the u.s. saying that parties are not interested in buying. here is the u.s. ceo in 2007. >> how much pressure is there on you to succeed? >> that's a horrible question. we hope we will succeed. we have really worked incredibly hard and planned and studied to see what american consumers want. i mean we have absolutely given it our best shot so i'm comfortable. >> mason has since left and
there will be a billion dollar write-down. >> we have breaking news in boston. we go to scott for the latest on that investigation. >> simon, this coming from the associated press, not ind pendly confirmed but the ap is reporting that according to a law enforcement official, an arrest is imminent and the suspect is to be brought to court. we will put all of this in perspecti perspective. the events are moving fast. more details right after the break. pocket agent app. you can also get a quote and pay your premium with this thing. i thought state farm didn't have all those apps? where did you hear that? the internet. and you believed it? yeah. they can't put anything on the internet that isn't true. where did you hear that? [ both ] the internet. oh look. here comes my date. i met him on the internet. he's a french model. uh, bonjour. [ male announcer ] state farm.
according to the associated press, who has been briefed on the investigation, says a suspect in the boston marathon bombings is about to be arrested. that suspect spoke to the associated press on the condition of anonymity because that official is not authorized to divulge details of the investigation. that official tells the press that the suspect is to be taken into custody by federal marsh l marshalls and take on the a courthouse. scott is up in boston working this story for us. it may be this latest development that caused investigators to push back that fbi news conference which was originally scheduled to fall in our hour at 1:00 p.m. and they have now moved it to 5:00 p.m. >> in the meantime, the nbc network is anxious to say that we are working on
interpretation. what we do know is this. the analysis of the photos have been very productive. they have found what they are looking for. trying to really pin down the identity of people that fit those descriptions at the moment. one or two stand out. that's to say it is too soon in their view to tell whether they are the real deal or merely witnesses to what else may have gone on. one of the leads they are eagerly pursuing. >> as you pointed out earlier in the hour, they have now so many video ij imagines that they have to put together, cull together. some of them are probably clearer than others. there were two device, they are
probably looking for more than one person they are using suspect singular so it will be interesting to see as this investigation continues whether or not they have more than one suspect. >> we are business station. i have to point out what is happening here. look at what is happening in boston. the dough has regained and cut some of its losses. jump back on the initial ap report as a result of that breaking news in boston. we will keep you clearly plugged into exactly what is happening there. we are awaiting a news conference. the timing of this stage is unknown. we think it is at 5:00 p.m. that's a long time from now.
that's an hour -- three hours and 12 minutes. one wonders what else we might achieve in that time. >> let me repeat the ap story that we brought to you just a moment ago. the associated press is citing a law enforcement official who was briefed on the investigation as saying a suspect in the boston marathon bombings is about to be arrested. he says that that arrest is imminent. that official does say that the suspect is to be taken into custody by federal marshalls and taken to a courthouse. scott joining us from boston. obviously a very fluid situation. but it appears as though they have made great progress. >> well, absolutely, sue. some of the best police work in
the world has been going on here and some amazing detective work with a lot of help from the public. we know that the authorities have been asking the public for any cell phone video and any other image. and we know there have been -- there were a lot of cameras on the scene. so they have had a lot to work with. let's keep all of this in perspective. pete williams is saying that video surveillance or the video evidence, that has been very productive as has the forensic evidence involving the bomb fragments which we have been showing you yesterday and today. the pressure cooker bombs that a
lot was remarkably in tact. they were able to look at the ball bearings and shrapnel and look at that. the pieces of the pressure cooker enough to figure out the manufacturer. so they can track it down that way. the hope is what they have wanted all along is to see the image of whoever put down that black bag that contained -- black bags that contained the box. >> if i read this, what i find most fascinating, if you read it quite literally, somebody is about to be arrested for the bombings. the official says the suspect will be taken into custody. it sounds as if they know where this person is. it sounds as if, from what we have, this is not somebody who is necessarily on the run. would you agree?
>> yeah. it is extremely unusual as i looked at that alert if you're anybody in law enforcement, even if it's an anonymous source talk about an arrest being imminent. that's extremely unusual and i don't know how to read between those lines. >> we want to let you know that according to nbc's pete williams, the u.s. attorney's office in boston now says that no arrest has been made. the language is important. as you say it's highly unusual to have a source say something along those lines. >> right. i mean, you know, i know a little about how law enforcement sources work and i know that they wouldn't give up that type of information. i never heard of anybody giving
up that type of information. i don't really want to go too far in interpreting it. it could be that it's a witness. it's identifiable. >> tell me, scott. if we follow with what ap is saying there, they are taken to a courthouse almost immediately, would that, too, be normal practice? >> the normal practice would be that they are brought to the fbi or law enforcement to be placed in custody to be processed and then fairly quickly they would be brought to a courthouse and appear before a judge. bail would be set and the like. but again, to suggest that they would be brought directly to a courthouse is a little unusual but that could be a matter of
semantics. he could be brought to the fbi. i just would caution us and our viewers to be very careful about this and not jump to conclusions. but what we do know and dh is fairly impressive. what we do know is they have made terrific progress in terms of sifting through a huge volume of evidence. you know, video evidence from various sources whether it's cell phones or surveillance cameras. now they're willing to stay that. and usually they have made more progre progress. >> scott, we're going to let you go work on this story. i know you're going to be right at the top of street signs. we're going to turn you loose and let you work the story for us. once again we want to recap the story that the associated press
is reporting. nbc news has not confirmed this independently. we're being very cautious and crediting it to the associated press. the ap says a suspect is about to be arrested. that's according to a law enforcement official briefed on the investigation but that official was not authorized to di vil j the details of the investigation. >> we will take a break and we will be straight back on cnbc. acceler-rental.
at a hertz expressrent kiosk, you can rent a car without a reservation... and without a line. now that's a fast car. it's just another way you'll be traveling at the speed of hertz. how did i know? well, i didn't really. see, i figured low testosterone would decrease my sex drive... but when i started losing energy and became moody... that's when i had an honest conversation with my doctor. we discussed all the symptoms... then he gave me some blood tests. showed it was low t. that's it. it was a number -- not just me.
[ male announcer ] today, men with low t have androgel 1.62% (testosterone gel). the #1 prescribed topical testosterone replacement therapy, increases testosterone when used daily. women and children should avoid contact with application sites. discontinue androgel and call your doctor if you see unexpected signs of early puberty in a child, or signs in a woman, which may include changes in body hair or a large increase in acne, possibly due to accidental exposure. men with breast cancer or who have or might have prostate cancer, and women who are or may become pregnant or are breastfeeding, should not use androgel. serious side effects include worsening of an enlarged prostate, possible increased risk of prostate cancer, lower sperm count, swelling of ankles, feet, or body, enlarged or painful breasts, problems breathing during sleep, and blood clots in the legs. tell your doctor about your medical conditions and medications, especially insulin, corticosteroids, or medicines to decrease blood clotting. so...what do men do when a number's too low? turn it up! [ male announcer ] in a clinical study, over 80% of treated men had their t levels restored to normal.
talk to your doctor about all your symptoms. get the blood tests. change your number. turn it up. androgel 1.62%. >> we have briefly moved to 117 on the associated press report which we're going to recap for you momentarily. with apple and google weighing heavily on the market. >> gold has not been helped by the fact that the finance minister of cyprus seemed to ignite speculation.
gold currently trading at 1376. >> one of the things we're watch ing we want to recap the associated press report that we are independently trying to confirm. it is reported that a law enforcement official is saying that an arrest is imminent. nbc news has not independently confirmed that so we're being cautious with it. scott is working the story up in boston. >> and it's time for street signs. >> we are start the show early today because we are packed. breaking news and moments on the