tv Power Lunch CNBC July 11, 2013 1:00pm-2:01pm EDT
final trades, josh brown. >> kbe is the way to play. >> fi. >> five pbr. >> steve weiss won the debate. >> two days in a row. it's getting boring. "half time" is over. "power lunch" and the second half of the trading day start now. >> stocks rallying to record territory on the back of ben bernanke's latest comments. but did he really say anything different from what he said on may 22nd about tapering? on that day the markets basically freaked out. a major makeover to tell you about at microsoft. the tech giant restructuring four units now. will we see a new leaner, meaner, more effective microsoft? and if this doesn't move the needle big time, will it be
steve's last hurrah? prices at the pump spiking. how much higher they will go and how to play oil right now. sue is at the nyc. hi, sue. >> ty, good to see you. the comments from chief ben bernanke fueling the market to record levels. he says the economy still needs help and promise to continue to stimulate growth. the dow jones industrial average right now is up 130 points, the s&p up 16 and a third. the nasdaq is up 40% or six points. the dow is down better than one point. it almost doesn't look like a currency chart at all, it looks like a commodity chart. gold has been soaring up nearly 7% since its multi-year lows made just two weeks ago. today up 2.5%. the thinking is the miners will go with that. we now have a 4% gain in gold.
oil is taking a downturn. cnbc market contribute tore and analyst. welcome, guys. we put together a string of comments from mr. bernanke. >> this should be fun. >> that's why we did it. that's why we did it. we started back in may, so let's take a listen to what he said starting may 22nd about tapering all the way up to yesterday. >> if we continue seeking improvement and we have confidence that that is going to be sustained, then we could, in the next few meetings, we could take a step down in our pace of purchases. if the incoming data are broadly consistent with this forecast, the committee currently anticipates it would be appropriate to moderate the pace of purchases later this year. and if the subsequent data
remains broadly aligned with our current expectations for the economy, we would continue to reduce the pace of purchases in major steps through the second half of next year, ending purchases around midyear. >> both sides of the mandate, both the employment side and the inflation side are saying that we need to be more accommodating. a highly accommodating monetary policy is what's needed for the economy. >> let's take a look at the dow since that time. it's had some pretty wild swings since the volatility but caught in a range. if you even that out, it's been flat. so kenny, we posed the question whether or not anybody is actually really listening to what the fed chief has said. because he's been relatively consistent in his comments. >> he's been consistent. that's why you and i keep having this conversation, but what the market hears on any given day is really what's driven it, and we've seen it. the only thing he said different
yesterday was for the foreseeable future, he's going to be there, right? so he made it clear maybe things weren't as rosy as they had been. >> how did we do on the bonds, rick? >> we're going to give this a b. a b as in boy for the 29-year market auction. 13 billion reopened. yield, 3.66. the wri arguably shifting around a little bit, but it looked like 6.67, 6.5, so no matter where you slice it exactly, that's bad news. we equal at 2.26. if you go back to november of '09, you find a lower one in may of '09. that is what the downgrade was. the indirects were solid at a little over 40, directs were solid a little over 16%. dealers took 33.4.
and there was something ben said yesterday that's going to be the new phrase we're all talking about. it's macro prudential. write that one down. >> the market certainly interprets things and parses it on a daily basis. >> you can see mr. bernanke hasn't changed his tune. the market perceives things a little different, and i think what's happening here, the market thinks he has taken the edge off the tapering worries a little bit. remember, you can still go ahead and taper and still be highly accomodative. so the fed can still do both, but he's taken the edge off. that's the way the market is interpreting it. while the stock market hasn't taken a big hit, the emerging stock markets are up big time today. >> obviously, it's not going to happen in september. >> he took that right off the
table, which is why i think you're seeing the reaction today. because that fear of it starting in september, that all these academics were calling for, i think is completely pushed to the back burner. so, therefore, the market is breathing a sigh of relief. >> and to the other issue, something tyler and i feel very passionately about, is the individual investor and the fact they're not participating in this market. for the first time someone? the industry, charles schawab said regulators need to do more to ensure that all professional traders are playing by the same rules as the rest of us. i don't see why it's not front running. >> i don't understand it, either, because i clearly have the same view you do. it's frustrating to be here and watch that happen and have them explain it away as if it's just
market efficiency. i don't think it's market efficiency at all, and i think the system is broken, and i think this conversation is actually happening in d.c. now. >> either the sec are a bunch of foolz fools or there's a reason they're not doing anything, and i think a lot of them at the sec think that for all its flaws, the current system gives people a lot cheaper way to trade in microseconds. >> what difference does it make to the individual investor if you buy something in a peco second. >> that's why only 50% of original investors are competing in the market, less than historically by a wide margin. >> maybe because they got destroyed in the financial crisis. >> there could abe several reasons, but i agree with you a lot of people have a sense they don't understand the market anymore, they feel it's almost
casinolike, and they choose to go over places. certainly it's frustrating for people in the industry to see that happen. as an american, if we don't have vital, robust, healthy markets, it's not good for anybody. >> the market fell after the financial crisis. >> but a lot of people thought we had a financial crisis because the market is rigged. >> and that's probably something they don't understand, right? >> i could go on and on. >> obviously, we could go on and on. >> it wasn't caused by high frequency. >> no, it wasn't. part of it was caused by markets that weren't fair. >> that were created that people didn't understand, including the people that created them. >> that's a whole other topic. a anyway, ty, we are waxing -- >> i basically agree. i think many, many small investors feel that the big rich guys with the big computers are
going to make money either way, and i'm not. and they're ticked off about that. they don't feel good about it. they're applauding over there. i don't know why, but they are. i guess they like the conversation. let's move on to microsoft. let's look at the stock of it, shall we? up 70 cents, about 2%. 45.33 is actually pretty good. the company has announced its first major overhaul in five years. john ford as the details. what have they done and why are they doing it? >> speaking of big rich guys and big computers, we're talking about steve palmer and microsoft. microsoft used to be it when it comes to computing. now there's a couple different trends going on. what balmer has done with this reorganization has tried to bust up the systems at microsoft that have wore on in time. the memo talks about one
microsoft, the implication we weren't one microsoft before. p and l responsibility has been stripped out of the business units. >> that's key here, isn't it, because if i'm protecting my marketing and my p and l, and i am in that silo and that's what matters to me, i may not play nice with somebody that has another silo and another p and l. >> if i'm running windows and pc business is growing, i'm minting money like hand over -- why would i go invent a smartphone that's going to eat into that? it doesn't make any sense. so what balmer says he's going to do now is create these small teams, go out and work across the individual engineering divisions to really spearhead these ideas. it will be at least a year to see if it's working. >> reorganizations rarely move the needle. what moves the needle are better products at better prices.
if they got that, they're going to win a reorg. good to see you, john. >> good to be in the house. the nation's top retailers are out with their latest sales figures and courtney ragan is on the retail beat. hey, court. >> the 5% gain slightly higher than expected, painting a picture of showing at least the beginning of improving consumer spending in the second half of the year. costco slightly outperforming analysts' forecasts with sales at 6 par%, and inflated gasolin prices helped bump up sales. costco's prices, 3.69 a gallon over last year's 3.56. shares are up 2.3%. the retailer had a decent sell-through product at its semi-annual victoria's secret sale which has a positive impact
on margins. investors are also falling into gap today. same-store sales after the bell now. experts are a gain of. those chairs are already up ahead of that report. sue? >> let's take a look at shares in today's if, nevertheless, the market on walmart is up better than 1%. thetsd they are not going to build three stores it had planned after the d.c. passed a living wage bill. it means they have to pay employees overtime in a space of 50,000 feet or more. the lumia 1020 will be sold exclusively through at&t. $200,000, two-year contract.
you see that stock up 3 cents. that's up three-quarters of a percent. t-mobile saying customers going to be able to upgrade phones every six months now. it also put up a family plan that it hopes will lure customers away from its three biggest rivals. sue? >> we're checking on oil prices because it's up 3.5% in the last week or so, but they actually had a much bigger gain. will we see more. we'll talk about that next. as we go to a quick break, here are the top five gainers in the dow today, all with pretty good percentage gains with intel and united technologies gaini ining strength today. ♪
it's higher in today's session about 3 and a quarter percent. raising its dividend to 69 cents a share. bertha coombs has the latest on oil itself. >> well, sue, they are selling the front end of the crude curve here after surging above $107 a barrel, a fresh 15-month high. today is really giving a lot of that back and feeling a lot of pressure. interestingly, this morning, the iea put out its monthly reports and they warned the bulls and said, you should really be alarmed about this move up as you look out to 2014.
the big move up in non opec production. the shale boom is going to outstrip the demand, they say. natural gas today declining as well. the weekly inventory numbers coming in right in line at 80 billion cubic feet at the outside but that has sent natural gas to the downside. back to you. >> thanks, bertha. and despite the drop in oil, oil and gas prices have been up 5% in the past month. how do you play the rise in energy? joining us is fidel gabe. nice to have you back, fidel. >> nice to see you. how are you? >> i'm looking at my notes and you think it's somewhat inflated, is that the case? >> absolutely. the prices should be close to 100. it does not support it adequately except on the $100. we've seen this movie before and we all know how it ends, but we
don't know exactly when. >> so, in other words, you think the premium will be taken out of the oil market, so you would not be going long oil at this point, correct? >> absolutely not, absolutely not. this is the time to sell, not the time to buy. i am not a traitor, i am an investor, and i think people should invest more and more in oil stocks because i think oil stocks are a much lower oil price than what we're seeing now. >> you like occidental petroleum, hess, you like marathon oil as well as murphy oil. i know they have different fundamentals working for them in your opinion, but is there anything they particularly have in common in the environment we find ourselves in? >> they are confident that basically 57% of their production is oil. oil prices are much more practical than their peers that basically have natural gas. i am not as bullish on natural gas.
i think natural gas prices will continue to be depressed for a long period of time. >> how do you address the argument that a lot of bulls out there, even though they're longer term bulls on those stocks, they say they're being boosted primarily by share buybacks and the like. are there other fundamentals behind those companies that will propel them forward? >> there are two companies that have something in common, and that is hess and occidental. both are restructuring. it really has nothing to do with oil and gas prices. they are basically thinking to a different tune, and that is the reconstruction. occidental is going to generate 30 or 40% improvement in the stock evaluation in the next 12 months. so i like the story here. hess is already up by 30-plus percent since the beginning of this year, and now we see the upset potential is just significant. i think they are under value. >> thanks for the advice. we appreciate it. good talking to you again.
>> thank you. >> ty, to you. the world's tech experts are meeting today. julia is speaking to them live. hi, julia. >> hi, ty. about to be joined by one of the earliest venture capitalists to be joined by skype and others. that's coming after the break. so i'm always looking to take them up a notch or two. tdd#: 1-800-345-2550 and schwab really helps me step up my trading. tdd#: 1-800-345-2550 they've now put their most powerful platform, tdd#: 1-800-345-2550 streetsmart edge, in the cloud. tdd#: 1-800-345-2550 so i can use it on the web, where i trade from tdd#: 1-800-345-2550 most of the time. tdd#: 1-800-345-2550 which means i get schwab's most advanced tools tdd#: 1-800-345-2550 on whatever computer i'm on. tdd#: 1-800-345-2550 it's really taken my trading to the next level. tdd#: 1-800-345-2550 i've also got a dedicated team of schwab trading specialists. tdd#: 1-800-345-2550 they helped me set up my platform the way i wanted, tdd#: 1-800-345-2550 from the comfort of my home. tdd#: 1-800-345-2550 and we talked about ideas and strategies, one on one! tdd#: 1-800-345-2550
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almost 70% now. it made its goals in regard to patients moving the blood. the stock is up more than 100% over the past year. ty? >> sue, the world's top meeting moguls and tech titans are meeting out in idaho and that's where our julia broke the news that john malone says he sees time warner cable a buyer of other cable operators in an industry that he thinks is in need of consolidation. julia joins us now with another special guest. julia? >> reporter: thanks so much, tyler, that's right, i'm joined by venture capitalist mike andreesen. thanks for joining us. >> it's good to be here. >> they are recently making billion-dollar acquisitions. is this a bubble? >> i don't think it's a bubble, i think it's a boom. i think consumers love the
internet, i think advertisers are moving on line. a lot of things we were talking about for 15 years is happening in a big way now. >> you said it was a tech suppression because of the market. do you think the market is still broken? >> it's become sort of a two-class market. there are the public companies and the private companies. in general the public companies are going very fast, doing very well. there are a small number of public companies doing very well in tech, but there are much larger companies that should be public and aren't. >> is it a problem they're not public? do you think things need to change with legislation to make it easier for them to go public? >> i think so. we're sort of low with tech ipos. it was regulations that prevented the next big bomb. >> we're trying to work with
people who want to build strong independent companies, but what we tell entrepreneurs is build a for tr fortress before you go public. you have a big patent portfolio, and you really understand everything about your business before you go out. >> what needs to change in that regard? >> i think there are other issues. it's actually been very encouraging to see the crackdown of insider trading over the last few years. it's been a big problem for stocks that get torqued around by various hedge funds. it would be nice to get the market a little more back to normal. >> you've advocated a lot for immigration reform. what do you think about what's happening right now in washington with immigration? >> it's a little depressing at the moment. it looked like we had an incredible amount of steam on immigration but now it looks like it's on the back burner.
there are members of the house that seem to have problems with us. i think it's a pretty clear thing that would be good for economic growth, so i really don't know why people wouldn't be in favor of it. >> what do you think is driving economic growth right now? >> companies are confined by immigrants and those companies have created millions of jobs. so if you want more american high-tech success stories, having immigrants is the easiest and most obvious thing in the world to do. >> what's your take on the future? >> in a 15-year basis, i'm really encouraged. i think silicon valley generally is doing well, so i think it's a very positive time. >> today microsoft realigned its whole business, reorganized around devices and services. are these changes enough? >> it's very representative of the big changes happening in the industry. we have this whole new generation of devices like smartphones and tablets, and we have this whole new generation of services like google and facebook. it's amazing to watch.
it's a very big transformation that microsoft is attempting. >> do you think it will work? >> they have lots of very smart people, they have very strong leadership, they have excellent prospects. >> what's the trend and company you're most interested in right now? >> we're in a couple areas. one is crowd funding. we think there is a whole new phenomenon if you can uncover signals. you know consumers can build products after they get built. there is a mayoral candidate in oakland who is running for office because he was able to crowd fund donations before he made the decision to run. also, we really like what's called collaborative function, so this idea of people sharing cars, people sharing their homes is a very powerful trend. sdplz certainly a trend to watch. sue, back over to you. . thanks, julia.
fascinating conversation. let's head it over to mary for a quick market watch. mary? >> when you look at defense stocks, they are up 29% this year. take a look how these shares are performing, all of it showing strong gains today, again, a defense sector of 29 today and leading the way up more than 2%. sue, back to you. >> let's head back to the nasdaq where we have a good percentage gain in the nasdaq, zima. >> absolutely. ben bernanke helping tech perform. that's helped the nasdaq catch up with the s&p 500. it's now leaving the market after announcing its restructuring plans. amazon hitting a record high. channel advisory announcing their climate sales jumped 30% in june, affirming amazon's
position in the on-line space. sue? >> gold, which has a big gain and prices are closing right now, ber that coombs and the comments from ben bernanke, but when you look at the fourth session now, that it is to the outside. closing here, the final trade coming in at $1279.90. well off the ears. up over 4%, copper also. it helps to see the weaker dollar. what we're seeing in precious melgds is a. that's what caused them to grease this valley. zrp to riblg who canning the.
>> you can clearly see that we did get through the 365 settlement from yesterday even though we didn't get some of the highest yields. if you get a two-day chart of 10s, you'll notice the 10s just isn't as, and if we look at the dollar index, and i've seen the same, it likes lie home pressure and even if we're hovering close to three-year highs, ben bernanke still moves for inflation market. >> they certainly were. the currency. we're holding up very nicely here. >> we are.
rate-sensitive stocks is a big mover today. >> a while ago, george said he thinks a lot of this is short covering. do you agree with that? >> i got angry callers about 5:30 last night about ben bernanke blowing his bonds out. a lot of people had to cover that. i saw that, so i agree with him on that. commodity stocks really leading. of course, they've been beaten up badly. housing-related stocks, best day since i have to go back 2010. emerging markets, oh, my heavens, is there a worse group out there in the last two months. look at these moves in thailand, peru and turkey. these same stocks since may 1st,
and this is with the 4 or 5% gains we had today, so this has really been a mess right now and we've really had a turnaround here. finally, i want wrto mention th banks. you sell on the news going into earnings season. number 2, there is a little yield curve flattening today because mr. bernanke has been speaking. i think that's been influencing the banks as well. >> i think you're probably right. thank you very much, bob. ty, to you. crime and punishment, a brazen -- i love that word -- a brazen medical scam that raked in millions. we'll show you that story. plus, some positive news on the housing recovery. we've got more. that's all coming up next. ever ybody has different investment objectives, ever ideas, goals, appetite for risk. you can't say 'one size fits all'. it doesn't. that's crazy. we're all totally different. ishares core. etf building blocks for your personalized portfolio. find out why 9 out of 10 large professional investors
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it now stands at 31.5 cents a share. tyler, up to you. >> all right, sue, a punishment that investigators say fits the crime. one couple schemed to steal elderly patients' identities amounted to a massive fraud. cnbc's andrea day has the story. >> reporter: you're about to meet a woman who played the role so well, investigators say she deserves an award. they call her mastered at the art of deception. her attorney calls it something else. just listen to this. >> a brazen scheme. >> she was pushy, she was arrogant. >> and so convincing, she conned loads of people, even the government, into buying her story. >> she just went in there boldly and said, i'm a doctor. >> a lie that netted her millions before it was finally brought down. >> the ultimate greed. >> the ultimate greed. >> helene michelle is locked up.
her husband a wanted fugitive. the two pulling off a record-breaking fraud. >> this is one of the most despicable crimes and fraud schemes that i've seen. >> reporter: the crime beginning in suburbia new york where they own a small medical supply company but soon realized they wanted more. they hatched an elaborate scheme, used elderly patients' identities to bill medicare but never provide the services. helene playing the starring role. special agent in charge, tom o'donnell. >> if you look the part and say the right things, you're actually going to get through there. >> reporter: and she did. helene boldly watching into dozens of nursing homes, blowing past security and check forms. >> she stole face sheets which contained all the demographic data you would need on a patient to basically steal their
identity. >> reporter: the scene played out with amazing skill. the two main investigators on the case say helene was unstoppable, making her moves on nights and weekends. >> she held herself out as a doctor. she dressed well and drove a big mercedes. i think she intimidated some of people at these homes that she belonged there. >> reporter: armed with the stolen patient records, she created fake order forms, even forged doctors' signatures all to submit claims for gauze, canes, walkers and expensive creams, billing medicare thousands of dollars every day, and it was pure profit. >> it was overwhelming evidence there was a massive fraud scheme going on. >> reporter: a scheme that went on for four years, growing from a home office to a large industrial space with a handful of employees. the couple billing medicare more than 10 million, raking in 6.5 million, all of it taxpayer money. and they were living large.
2 million for this house in brookville, long island, filled with expensive furniture, luxury cars, handbags and private school tuition for their daughter. helene even posing as a doctor at fashion luncheons, making the society pages and keeping the ads going. we sat down with prosecutors from the u.s. attorneys' office for an exclusive look at the case, and the evidence is stunning. helene focused on this pricey cream called hydrojegel. she claims one 85-year-old woman is so riddleed with deep wounds she needs eight packs of hydragel. but the administrator calls the order mind-boggling saying she is a very physically healthy
woman. in one case she ordered boots for a man who clearly didn't need it. in fact, this patient was a double amputee. he had no legs at all. and she didn't stop there. she orders hydragel for the amputee's knee, thigh and ankle. even when she's audited by medicare, helene fights back. >> someone taught her very well, because she wrote the right things. so when it comes to our system to be audited, it looks legitimate and it's paid. >> reporter: finally one family looked at their statement, shocked at what they find. >> we have no idea what this company is doing and we never received any of this wound care. >> reporter: it doesn't take long before investigators move in on their home in brookville. >> she was hiding in a class et sorks we pulled her out of the closet and arrested her. >> reporter: after years of ripping off taxpayers, the defense argues that someone else is to blame, someone who occupied helene's body.
>> they claimed she had multiple personalities and one of the personalities performed the fraud and not helene. >> the judge didn't buy it. she was convicted and sentenced to 27 years. we tried many times to question helene's attorney about the case, but right now he will only say they're planning an appeal. medicare made a change to its system so now it's easy to catch screa schemes like this one. helene's husband fled the country and is on the government's most-wanted list. back to you. >> what a story. infuriating. let's take a look at the home builders right now. they're ranking higher after bernanke's comments yesterday. we also have some data showing the foreclosure activity has fallen to the lowest level since the end of 2006. >> the good news is the numbers
are falling at the front end, that is, new foreclosures. realtytrac calls them slow. they're on pace to hit about 800,000 foreclosure starts this year down from 1.1 million in 2012, according to realtytrac. now to the other end, that is bank repossessions or the final stage of foreclosure when you lose the house for good. 35,000 in june down from 30% a year ago. 25,000 completed foreclosures a month is considered a normal housing market. back in the fall of 2010, we were seeing over 100,000 a month. so good news there. now, not every state is seeing a drop in activity, though. states that require a judge in the process like new york, new jersey, florida, they are seeing big jumps in foreclosure opti s
auctions. judges there had been slowing the process, creating huge backlogs, but they appear to be moving now as the overall housing market recovers. sue? >> diana, thank you very much. we're going to stay with housing because coming up next, it's the power house! we traveled to the top real estate markets in america. today a rocky mountain high, denver, colorado. find out how much your home buys in this beautiful mile high city coming up next on "power lunch." hey kevin...still eating chalk for heartburn? yeah... try new alka seltzer fruit chews.
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headquarters, and we recently showed you how some stocks were on fire. today we're going to talk about some combinations for a set that's supposedly right for consolidation. also, have you noticed what's happening with oil prices lately? they're also on fire. where is the tipping point for consumers, and look at this, it's a really cool, robotic, digital street sign. street sign, get it? we're going to talk to some entrepreneurs behind me on the couch. they look like they're straight out of college. we're going to talk about this fantastic new gadget. back to you. >> thank you very much. mandy, power house time. this week we are in denver, colorado. larry hotz is a broker associate with the kentwood company. the average closing price, 349,339. in june there were 2700 homes under contract, inventory in june, 97,000 unsold.
how hot is it, larry? >> i'm exhausted, tyler. it's a very hot market. >> it is. have interest rates, the rise in interest rates, affected, dampened, done anything that you can see? >> you know, so far it's a little early to tell because the homes that went under contract haven't worked their way through the pipeline at the old interest rates yet. the real test of the market will be the next 30 days when we start to see how we do with the higher interest rates. >> in the mid 4's as opposed to the high 3's or even high mid 3's. you have some houses to show us today. i love denver. it's one of my favorite cities in the country. our first listing, stapleton area, 3174 ga lena in denver. the taxes, a modest $3,863.
that's what i pay in a month and a half. talk about it. >> this is a beautiful home in stapleton. it's where the old airport used to be. it's a mixture of residential and retail, and even some industrial and commercial space out there. and it's very popular with young people, both singles and families. >> and there is an interesting thing here. this is a solar home in which the house actually gives back to the grid, so, what, the electric company pays you? >> the electrical company pays you every month for the unused electricity that you put back into the grid because you own the solar panels on the house and you're selling the excess electricity back to excel. >> that looks so nice, man. let's move on to 519 south ogden in denver. taxes here even lower.
$2900. i'm ill. $629,000, three bedrooms, 2300 square feet. where is this one, larry? >> this one is in washington park, which is another very popular neighborhood. because we have best parks in the city located just two blocks away from this house. >> tell me a couple other features here. it's all been redone. that's a beautiful kitchen they have there. >> it has a very warm and inviting decor. it's on two floors with an urban courtyard in the backyard for low maintenance. >> that looks so nice, and that's really in town denver. am i right on that, larry? >> that's right, and that is listed by christi owen of our kentwood office. >> good for christi. i hope it sells for her. let's go outside a little bit to castlewood pines. 1248 buffalo ridge, listing for 995.
that's arnd miunder a million o there. look at that. five beds, six baths, 5600 square feet. >> this is one of the nicest homes i've had the pleasure to sell. we just got a contract on it but it is available for backup offers. you can see why it sold. it's only four years old but it shows like it's brand new. with mediterranean decor and features throughout, almost 6,000 square feet of living space on three levels. >> how far out of town is it from downtown? >> it's about 35 minutes door to door into downtown. >> is it west, north? i can't remember. >> it is south. it's down by castle pines. >> i knew it was going to be one of the four, larry. >> that's true. >> look at that beautiful place there. larry hotz, we appreciate you being with us. >> great to be with you, tyler. >> we have to hit the road and head to denver. what a gorgeous place.
which is the best when it comes to on-time arrivals and handling your baggage krebtcorrectly, an which is the worst? >> the question of the day, how much better were on-time arrivals and departures following the sequesters in march? my car. probably the car. cause as you get older you start breaking down. i love my car. i want to take care of it. i have a bad wheel - i must say. my car is running quite well. keep your car healthy with the works. $29.95 or less after $10 mail-in rebate at your participating ford dealer. so you gotta take care of yourself? yes you do. you gotta take care of your baby? oh yeah! vietnam in 1972. [ all ] fort benning, georgia in 1999.
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. tomorrow is a huge day for bank earnings. the street looking for a gain of 93 cents or a profit for wells and a buck 44 profit for gm. our jim cramer is going to sit down with jamie dimon, jp morgan ceo. it's going to be live on "squawk on the street" tomorrow at 10:00 a.m. cramer and dimon. that's a must-see. summer travelers should pack plenty of patience. more flights are running late this year than in 2012.
the department of transportation says only about 79.4% of domestic flights arrived on time in may, down from 84% the same month last year. phil labeau is in chicago with more on that. hey, phil. >> i get a lot of questions about what airlines tend to do the best, and when you look at the may numbers this is year to date as well. hawaiian led the industry with an on-time rate of 92.4% followed by frontier and delta. american eagle had the poorest performance and then you had frontier and mesa. 79.4% of all flights in the month of may were on time. that's down from a year ago but an increase over april, because remember, you had the sequester delays with the air traffic controllers in april, so there was a bit of a rebound in the month of may. what about mishandled bags? complaints were up in the month of may. 2.96 bags per every 1,000 passengers were mishandled.
that was a slight increase compared to where it was a year ago. and quickly, i want to take a look at the airline index, because the airline stocks, generally speaking, they've been holding up even though we've seen oil prices moving higher, in part because we really haven't seen that reflected in a dramatic spike in jet fuel prices. there you see tarmac delays, five of them greater than three hours in the month of may. those are your numbers in terms of on-time arrivals and departures in the month of may. tyler and sue, back to you. >> thank you very much, phil labeau. it's a strong triple digit market day to the upside. the big winner this hour coming up next. my mantra?
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certain extent of 58 points. the winner of today's trading session, intel, walt disney, advanced micro, lennar and randgold. "street signs" begins now. usually we talk about tough love, the car, not the band. it's a good opening for our show today, folks, because everything is on the move today. stocks are soaring. many are calling it the bernanke rally. maybe it is, but we're going to show you how it could be simpler than that. gold is on the way up, oil back down. the dollar back up again. and a country that is addicted to debt, we've got a guest with three points
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