tv Closing Bell With Maria Bartiromo CNBC July 30, 2013 4:00pm-5:01pm EDT
of the new york stock exchange, getting a big fish for the nasdaq today. they lift at the new york stock exchange for the first time, and mark hurd will be maria's special guest coming up on the second hour of the "closing bell." i'll see you tomorrow. [ bell ringing ] and it is 4:00 on wall street. do you know where your money is? hi, everybody. welcome back to the "closing bell." i'm maria bartiromo on the floor of the new york stock exchange. stocks closing modestly higher. investors remaining cautious ahead of word from the federal reserve tomorrow. that will likely set the tone. let's look at how we're settling out ahead of the fled. we did have selling at the end of the day, which took some wind out of the sails. up about 15 points. nasdaq was the winner. technology getting a bid today, up 17.30, finishing at 3,616.
and the s&p barely positive, at 1,686. we want to get the reaction on the market. amy, good to see you. what's your evaluation of the earnings season so far, and would you be putting money into this market given the backdrop? >> hi, maria, good to see you again. i think a lot of it is wait-and-see, unfortunately, as we go into fmoc tomorrow, payroll's on friday, from an options perspective, about a 1.2% implied move in either direction, on the s&pment but two things we're seeing heading into this market is that you are really seeing the skew pick up in the markets, so fear is increasing again. but more still focused in september, october through this earnings season, and that's still because we likely see fmoc tapering starting then. >> drew, how do you see it? are you expecting anything out of the fed tomorrow? >> we're not expecting much out of the fed tomorrow, and the gdp number is going to come in
relatively around where it was expected at 1%. what we're concerned is it's become the 1% market. we've seen 1% gdp growth. 1.2% revenue growth. 1.7% earnings growth. a lot of these one numbers are in there. so our concern is that earnings don't substantiate the market multiple which has moved out to 18 1/2. so what we're doing in accounts is we're starting to pare back the equity exposure, waiting for the pullback we expect through august and september heading into the fed meeting. and then additionally, we're advising not to abandon your asset allocation. it's very important that investors make sure that they're disciplined in their approach to the financial markets. >> rick, you have a whole host of data this week, gdp, the alphabet soup, the jobs number. what are you expecting? what will be most important, and what are you expecting out of the data? >> not only that, 8:30 eastern, we get the august refunding announcement, and there's already been early word, as everybody has heard, that tax receipts, because we pulled a lot forward, think dividends and the higher tax rate for many,
created some one-time major revenues. so we're going to potentially be issuing less. that has a lot of ramifications, so that will be at 8:30 eastern. the gdp, maria, i know everybody is expecting 1%. i would guess a little bit less. but i think the new calculation and the revisions are going to make this number a little bit hard to actually pin the tail on exactly where the economy is, and i think that the component i would pay most attention to in tomorrow's number on gdp will be the personal consumption. last look, it was 2.6. many believe it will only be about 1.6. and let's not forget, also, the unemployment in the euro zoning a gait, at a historic high, looking for 12.2% again. >> all right. we'll leave it there. thanks, everybody. really appreciate it. we're going to talk right now with mark hurd, or arcle, one of the largest enterprise companies, in one of the most surprising moves in the company's history, partnering with some of the fiercest
competitors. who could have imagined oracle reaching with microsoft and netsuite. mark hurd is the man behind the vision. he joins me now. good to see you, mark. >> thanks for having me. >> fresh from ringing the closing bell here at the nyse. i would not have expected that. why the move from nasdaq to new york in. >> we were excited about what's going on with the exchange. we think they're doing a lot of cool stuff. exciting day for us. >> yeah. is it a marketing -- will you get better marketing here? i mean, what's the -- why the reason new york over nasdaq? >> we just thought that things they were doing here at the exchange were exciting, a good thing for the shareholders and just glad to be a part of it. >> mark, let me ask you about, speaking of shareholders' growth, because a lot of the investors i spoke to today about oracle, knowing you were coming on, they say, look, oracle has been a tough stock recently. bottom line, the company has missed three of the last four quarters. we talked in the past, i guess a year ago when i came to open world, about the difficulty of the sun hardware business. is that still the drag? >> well, listen, we've been in
the middle of transforming the hardware business. i think you've seen that business improve. we're going to do better going into fiscal '14, which we're in now. listen, it's a tough macro out there. as i said on the call, we see the macro being tough. i think now that everybody has reported, maria, our performance is ranked well. we gained share. we're happy about that. clearly, we're going to continue to do that going forward the rest of the year. >> you're right. when you look at what happened at ibm and what happened at some of your other smaller competitors, it's clear there is a macro issue. what can you tell us about europe now? we had a few guests on a moment ago saying europe has bottomed. how do you see it? >> we've done some things in europe, maria, i would say have been good for us. we grew 5% in europe in our quarter, which i think most people would say probably couldn't have happened. we've added salespeople. we've added distribution. i think our execution europe, we've probably been the best performing tech company in europe. and so, we thought this was an opportunity for us to gain share. we've done that.
there's no question the macro's tougher in europe. that said, we've executed very well. we've enjoyed good growth. >> it's not just europe, right? you also have the emerging markets who sort of turned on us at this point. >> yeah. >> what's going on there? >> it's a big -- i think the tech sector has enjoyed good growth over the last decade, the emerging markets. obviously, china's gdp has declined. brazil is in recession. and so, those markets are tougher. listen, we at oracle can't control the macro. we can control what we can control. we've increased our distribution. we're committed to gaining share out in the marketplace. whatever that economy hands us, we're going to do better. >> but for a long time, i feel like you could control it. oracle was in the lead. i mean, for a long time. i'm talking decades, whereas large corporations, they wanted an enterprise player who would handle all of their data. now we're in a different world, we're in big data. and while, you know, we look at the world, we also look at the smaller nimble competitors that want market share and are getting market share from you. how are you going to stay in that lead with these smaller
guys trying to take the big date dark the unstructured data business from you? >> well, listen, maria, we're not losing share. we're gaining share. >> mm-hmm. >> when you get through all of the read-throughs based on what happened in this last quarter, while people may not have liked our numbers, because we were the first to announce, we did better virtually than everybody in the industry. we're gaining. we got a product line that's positioned to win. we have more distribution. you're going to see us continue to gain share. >> how do you specifically capture the business on structured data, the big data? what's your selling point there in terms of why oracle and not a smaller -- >> listen, at the end of the day, you're trying to get data, structured or unstructured, into a way you can use it, in a way i can use it transactionally, and a way i can use it analytically. nobody is better positioned to deal with the breadth and data of that scale than oracle. >> what about the most recent deal, the acme packet? will that add a couple of points to revenue, or is that longer term going to be in the way, a barrier to growth? >> telecommunications has a
couple of different networks. there's a business i.t. network and sort of an i.t. environment that runs the network. everything where we get dial tone and et cetera. we didn't compete in that market. that went around the switch. we now with acme packet have now capabilities that now allow us to compete in that market. it's a brain-new market for us. we get to leverage our existing go-to-market for telcos which is large, and now add a set of capabilities we didn't have before. it will help us grow. >> so when do the headwinds get out of the way? you talk about -- i mean, this is the million-dollar question, right? you have europe. you have emerging markets that are troubled. we know that. when do these barriers get out of the way, and when do you see a real vision in terms of growth picking up at oracle? are you going to miss another quart ir? >> listen, sanford and i use the same quote. we're not economists. i can't predict the economy for you. what i can predict for you is us. our ability to execute. our agent to get things done. you'll see us gain share, you'll see us perform and be -- within
the context of what we're headed, we'll perform real well. >> the last time we spoke, you were very hot on this whole mobility trend. >> yes. >> you have 6 billion mobile phones in the world versus 1 billion pcs. does that basically tell us where things are going in. >> listen, as people run around the planet, these mobile phones you're talking about, they're almost computers. so people now have the ability to go mobily around the world and go get data from our customers, and our customers have to be prepared to allow to engage those customers, to be able to dialogue with them, to sell them, cross-sell to them other products. our job is to -- that mobility -- that mobility secular trend is huge for us in terms of the amount of data it creates and the need for our customers to modernize their applications to go deal with it. so it's a huge opportunity. >> and even though mobility is the word of the day, and that's where everybody knows growth is coming from, there's this huge fight around dell. and the pc business. is the pc business dead? >> you know what, i'm out of prognosticating about the pc
business. i think, listen, the pc business is going to be part of an overall device that people use. i mean, you look at what pcs used to be the primary device people use. today, now, i have a phone, a tablet, i have a pc. my belief to the core is pcs aren't going away, but frankly, you're using them less, therefore, the life of the pc extends. i think pcs will be a part of your ecosystem, but they're going to be other devices that are part of your ecosystem as well. >> are you being asked right now to go run dell by carl icahn? >> i've been very clear that i have no interest in any other job than oracle. i'm at oracle and that's what i'm doing. i'm happy and excited about it. >> we know you're one of the most seasoned executives in technology. has he come to you and asked you? even though you love your job, has he asked you? >> i'm staying here. >> you're going to stay here at oracle? >> yes. >> tell me if the opportunity for oracle in the u.s. or is it international? >> it's global, maria. listen, we've obviously got a
very big u.s. business. i told you earlier about what we've done in europe. we feel now is the right time to expand in europe. we've added a significant number of sales people to our distribution, and we believe western europe, eastern europe, middle east, are attractive markets and we're growing in asia. we look at the market as a global market. we think industries like financial services, communications, retail, healthcare, where we can build things and sell them many times globally, very attractive for providers like us. >> it's attractive, and yet businesses are sitting on cash. you know, we speak to ceos all day long. and while there's maybe $3.5 trillion of cash on balance sheet, they're not putting it to work. what are you seeing in terms of i.t. budgets? are they putting it to work? >> i think when you look at i.t. budgets overall, customers are doing two things at the same time. they're trying to save money. they're trying to innovate at the same time. and most companies are trying to take money they save and reinvest it, if you will, to innovate. so i think people are cautious with their i.t. spending. i think where people are spending money, maria, is when they have projects that have
real return on investment, and those are the ones we can be a part of. we have a portfolio, maria, that can help our customers save money, at the same time as we help them deal with that mobile issue you described. where customers now want to talk to their providers, they want to engage with them mobily, be able to talk to them, buy from them. we can help them on both sides of that equation. and i think it's an amazing opportunity for us. >> as we wrap up here, let me ask you about your own allocation of cash, because over the last several year, you've been much more hot on buying back stock. you got the dividend. are you expecting to raise that dividend again? i mean, it's one of the few dividends in tech land, although people would like to see it higher, obviously. >> i think sanford has been clear about that. we have a threefold strategy. we have a dividend. we bought back stock. we've seen our stock, to your point earlier, being very attractive, based on where it currently sits. and we've bought companies. we were -- maybe we didn't do a theatrical acquisition last year, but we did strategic acquisitions like you described in the communications industry.
so i think we've had a balanced capital strategy, and i think you should expect more of the same. >> is the buyback more important than the dividend? >> we've been opportunistic in the buyback. i think she has been more aggressive. >> mark, great to have you on the program. we hope you come back soon. >> i look forward at the oracle open -- >> i'll see you in september. good to have you on the program. thank you so much. appreciate your time tonight. mark hurd joining us. lots of earnings out this hour. some other biggies out later this week. we'll round up everything for you coming up in the program. then, major disputes on exactly what the impact from the keystone pipeline o would be and how many jobs it would potentially create. coming up, i'll talk with the top canadian official openly disputing president obama's own expectations. then, new charges in the s.a.c. insider trading case. we'll have the very latest developments right here as the case gets more interesting. that and a lot more coming up next on "closing bell." on cnbc. tly riding the dog like it's a small horse is frowned upon in this establishment!
luckily though, ya know, i conceal this bad boy underneath my blanket just so i can get on e-trade. check my investment portfolio, research stocks... wait, why are you taking... oh, i see...solitary. just a man and his thoughts. and a smartphone... with an e-trade app. ♪ nobody knows... [ male announcer ] e-trade. investing unleashed. ♪ [ male announcer ] it's a golden opportunity to discover the heart-pounding exhilaration beyond the engineering. ♪ come to the golden opportunity sales event to experience the precision handling of the lexus performance vehicles, including the gs and all-new is. ♪ this is the pursuit of perfection.
39 cents away from its ipo price of $38, this after the stock gained 6.15% today. so what factors are pushing facebook up to that key resistance level? well, first, today at the company, announced that mobile games publishing, a program to distribute games for small and medium-sized developers. facebook will take a cut out of their gaming revenue in exchange for delivering analytics tools and targeted ads to drive the downloads this. is a key sign of facebook taking steps to diversify its revenue away from advertising. of course, facebook's earnings last wednesday surprised wall street with better-than-expected growth, mobile growth, in particular. the stock up more than 40% since those results. now, those numbers are particularly impressive considering that google's results had surprised to the downside for the quarter. facebook also talked about future revenue streams, including video ads and graph search ads. now, another factor, maria, are reports that facebook could be added to the s&p 500 index,
which would diversify its investor base soon. back over to you. >> ah, that's a very important point, julia. thank you very much. julia boorstin. another up-and-down day for the market, meanwhile. bob pisani, no clear direction today. we saw a lot of stock for sale at the close. >> yeah. >> it may have taken some wind out of the sails, but most of it was pared off, right, the big caps? >> that's right. and normal trading range, about 120 points on the dow, that's pretty typical these days. no real earnings direction still today. a few of the industrials better than expected. everybody thinks mr. bernanke will say very little. there's no press conference tomorrow. just words on the page, so he's going to be very careful. there's the dow. look at this. believe it or not, we're down one point. maria, this is the lowest close in nine days. i know that sounds ridiculous. we've been within 30 points of 15,550 on every single close in the last 10 days. very tight trading range for the dow jones industrials. we got earnings. they're still coming in. they're okay. the industrials had good numbers today.
pitney-bow pitney-bowes, cummins, had better than expected numbers and that's why the industrial sector outperformed everything else. auto parts, goodyear, a terrific number. look at that, up almost 9%, dragged all of the auto parts along with them. the lousy part of the market right now is materials and commodities. you know why. it's this china worries that keep weighing on the market. look at the major commodities. these are commodities themselves, base metals, and again, this is about china. if you look at the u.s. commodity stocks here, the usual suspect, the freeport, billenton, cliffs natural, again, here despite some endorsements, also to the downside today. how about, speaking of commodities, did you see talking about the train wreck that happened today in potash producers, and to put it blut antley, 80% of the potash is controlled by six companies, including the ones listed right here. there's two cartels, one of them members of the cartel, russia producer, decided he wanted to get out. it was like saudi arabia leaving
opec. there's concern the prices are going to drop here. and that's why the stocks are down. so who wins and loses? hey, listen, i'm sorry, but i'll go with the winners here. the losers are the producers and investors, sorry to hear that. consumers and farmers will pay less for fertilizer and hopefully consumers will pay less for food. it's very unusual, maria, that a major cartel has decided to break itself up essentially. i'm for the producers, the consumers here. i think it's good news overall. back to you. >> good analysis there, bob. thank you so much. we had another barrage of earnings hitting wall street after the bell tonight. we'll have the big movers when we come back. then, whose math is right? president obama says the controversial keystone pipeline will create as little as 50 jobs at the end of the day. that sure got canada's attention. now that nation's natural resources minister wants to weigh in, and then, later -- >> get back. >> whoa, whoa! >> easy. >> life getting very real for real housewives of new jersey.
time to have new experiences with a familiar keyboard. to update our status without opening an app. to have all our messages in one place. to browse... and share... faster than ever. ♪ it's time to do everything better than before. the new blackberry q10. it's time. welcome back. more than a fifth of s&p 500 companies post earnings this week. a good chunk of them out after today's close. josh lipton with the lowdown on the big movers and shakers. >> reporter: yeah, maria, a wave of earnings reports after the bell. let's do a quick recap here.
am gen reports 1.89 on revenue of 4.68 billion. the street was looking for 1.74 on revenue of 4.49 billion. as for 2013 guidance, they are saying that revenue will be at the upper end of the range, between 17.8 to 18.2 billion, eps guidance above estimates. moving on, buffalo wild wings reports 88 cents on revenue of 305 million. analysts had been looking here for 79 cents on 304 million. same-store sales, the first four weeks of the third quarter, 1.5% in co-owned restaurants. 1.2% at franchise locations. finally, aflac reports 6.04 billion, versus expectations of 1.51 on 5.83 billion, a beat on the bottom and top. the stock did hit a 52-week high in today's session. maria, back to you. >> thank you, josh. the president raised eyebrows with recent comments
he's made on the long-delayed keystone pipeline. it would bring oil from canada to the u.s. gulf coast. he told "the new york times" this. the most realistic estimates are that this might create maybe 2,000 jobs during the construction of the pipeline, which might take a year or two, and then after that, we're talking about somewhere between 50 and 100 jobs, and in an economy of 150 million working people. canadian natural resources minister joe oliver takes issue with that math, and he jones us from toronto to talk to us about it. good to have you on the program, minister. thank you very much for joining us. >> delighted to be talking to you. >> so you heard the president. basically, he's saying, look, this is an enormous endeavor, and it's only going to create 50 to 100 jobs. what do you say to that? >> well, firstly, i would cite the u.s. state department's conclusion that it would create over 40,000 jobs. but, you know, that's only one part of it. the other part, of course, relates to what basic decision
the united states wants to make about energy independence. the united states can continue to import oil from venezuela, which has over the past five years on five occasions threatened to cut off supply, or it can import more oil from the united states -- from canada, where you're already importing 1 million barrels of oil sands crude from canada. >> right. >> and another couple million of oil from the rest of the country. and canada is a reliable friend, an ally, which is also environmentally responsible. >> well, i'm really glad you brought that point up. i also want to get into at some point -- at some point looking at keystone versus fracking. when you're looking at the u.s. as an energy producer. but let me stay on something you just said, and that is the process of the oil coming to the gulf states. because the president also contends that the oil traveling the pipeline will come from
canada to the gulf coast, but it will be exported, not providing any relief to high u.s. gasoline prices. is that right? does that oil come in and then immediately is exported out? >> well, no, i don't think it would be. and why would it be if venezuela oil coming in, refinded in the huge refineries in the gulf coast, are not exported, why would canadian oil, which displaces it, be exported? i don't follow the logic. some of the oil, which is turned into diesel, is exported because there isn't as much need for diesel in the united states as there is in europe. but we don't see this as primarily a clundwit to export oil from the gulf coast at all. >> so you think the keystone pipeline will create 40,000 jobs. is that your number? >> well, no, that's the state department's number, and we've been relying on that number for sometime. look, you can debate it one way
or the other. but national security issues are raised. there is job creation. there's economic growth that's coming out of this project, and we think it's in the national interests of both our two countries. >> yeah, this is such a he said/she said. if the president's state department -- this is his state department, and you're saying the state department said it's 40,000 jobs and then the president tells "the new york times" it's 50 to 100 jobs. so something's got to give here. it makes no sense. but let me stay on this environmental part of the story, because you just mentioned that. because the quebec government has ordered the rail and fuel companies involved in that devastating train crash that killed 47 people two weeks ago to pay for the cleaning up of the crude oil that spilled into the surrounding lakes. it spilled into the surrounding rivers. what kind of an impact is that going to have on the pipeline and those who say bottom line, it's environmentally unsafe? >> well, look, i don't want to get into a debate between
pipeline transportation and rail transportation in the light of that terrible tragedy. i would just say that pipelines transport 99.996% of the oil safely. and the record for rail is also very high. the truth is we need pipelines to move our oil and the united states has some 2.6 million miles of oil and gas pipelines throughout the country. we're talking here another 865 miles. it's a very small proportion. so we just have to continue to build the infrastructure to move the energy to where it's needed, and canada can help the united states work together to create energy independence for north america. that's something which many presidents have talked about.
now it can happen, and it's good for north america. it's good geopolitically. and it's clearly in the national interests of both of our countries. >> yeah, i think most people would agree to that. but we're still in this -- in this period of no action. so if the president -- what are your plans? if the president does not approve this, and a reasonable amount of time, do you have plans to ship the oil somewhere else? >> well, we're going to be working, as we now are, on the development, the movement of our oil to the west coast and to the east coast. but you see, here's the issue. if we can't transport that amount of additional crude from northern alberta down to the united states, we, of course, will be look for other markets. the asia-pacific market is huge. there's tremendous complementary between the two markets. we're looking to diversify our sources of supply. china and other countries in asia are looking to diversify
their -- we're looking to diversify our marks, they're looking to diversify the source of supply. and clearly, china is very interested in importing our oil. so that's an obvious alternative. another alternative is to move the oil to the east coast, to india, to europe. but the big market, the growing market is in the asia-pacific area, and over 90% of the economic growth over the next 25 years will come from non-oeced countries, so clearly that is the alternative. and that's, in fact, what the state department said. >> right. >> in making the point that there was going to be no incremental increase in greenhouse emissions, they're saying if we can't export to the united states, we're going to export the oil elsewhere. >> sure, sure. well, by the way, that's actually fascinating, where the economic growth is going to come from in the next couple of decades. so the president said he's waiting for a recommendation
from the state department, from secretary of state john kerry. have you or anyone in the canadian government spoken to secretary kerry? >> yes, our minister of foreign affairs, john beard, has spoken to the secretary of state. >> so what's your sense? what's your sense of where he's going? where he's leading? >> i don't want -- i don't want -- i don't want to handicap it. you know, at the end of the day, this is going to be clearly a decision by the president of the united states. >> and so far, we don't have that decision, because we're in waiting mode. the keystone versus fracking in the u.s. any thoughts on the implementation of both and what that could mean for jobs? >> well, the united states, like canada, is extremely fortunate to have discovered a vast amount of oil and natural gas, nonconventional, shale oil and
natural gas, and it's clear this will make an enormous difference to the economy and to the economic well-being of north americans. fracking has been going on in british columbia and in alberta for well over 30 years. there hasn't been a single instance of water contamination during that period. so we consider it pretty safe. on the other hand, canadians who are not as familiar with the process in the east coast -- >> right. >> -- you know, want to do environmental studies to make sure that it is safe, and we're not going to go ahead with any projects that are not safe for canadians or safe for the environment. >> all right. we will leave it there. minister oliver, good to have you on the program. thank you so much. >> thank you very much. >> we'll see you soon. joe oliver joining us, canadian natural resources minister. a new charge connected to the government's s.a.c. insider trading case. details next. and a reality tv couple slapped with 39 counts of fraud. they're out on bail, but they're
facing 30 years behind bars. just ahead, the true story of the day's courtroom drama. and then -- >> my name is marcus lemonis, and i'm here to fix this business. this building looks terrible. >> he made his name and fortune in the rv business. now, he's staking his own money, more than $2 million, on turning around failing businesses. but if they make a profit, he gets a cut. coming up, the star of cnbc's new reality show, "the profit." stick around. we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens, and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.
look, i don't know if you thought this was my first rodeo, but my job is to make money, for myself and for you. i don't get it. they're taking [ bleep ] margin out of your profit. can you not see that? >> who the hell will i sell my cars to? >> dealers. >> these guys are great buyers. they know how to work with people. >> then high them. >> i'd love to hire them. >> why don't you? >> i need them to sell cars too. they're honest guys. they're not dishonest. >> it's not about being honest and dishonest. it's about a fox in the henhouse. >> but they're not the fox. >> if you make your living off of selling cars and the margin between the cars -- >> okay. >> -- buy a car for $10,000. you don't know what the market is, you sell it for 11, they're
selling is for 12. the only reason they're here is they make a spread between you and the next person. >> time out. in your world, maybe that's how it works, okay? but from my world, it's different, okay? this isn't bakersfield, california. this isn't dallas, texas. this isn't chicago. this is new york city, this is my [ bleep ] town, okay? i know what goes on here. and i know my guys. don't tell me about my guys. >> all right. you have until the end of the day. they go or i go. >> and that was just a little taste of "the profit," the new reality series that premiers tonight on cnbc prime at 10:00 p.m. eastern. here now is the show's star, marcus lemonis, also chairman and ceo of camping world. that was -- i really -- that was engaging. that was a good exchange there, marcus. i have to ask you, is that how you are in real life, or is that a shtick for on air? do you act that way at camping world? >> well, as i'm acquiring businesses and i'm putting money
on the table, i expect them to follow my lead, especially when they're days away from closing. so when you are arguing with somebody that's about to close and they're telling you it's not the way it's supposed to be, and i just wrote $1 million check, i'm not interested in having a lot of dialogue about it. >> right. business is tough. you're being portrayed in the program as being pretty aggressive. on their backs. is that what it takes to get things done in the small-business world? >> yeah, it takes tough love. i think, obviously, as you would imagine, the promotions highlight the key drama. but in the show, you'll also see some very soft spots. when you're bringing brothers together, you're dealing with a family business, you're dealing with something that's about to close, it isn't always as aggressive. it's a lesson. it's a lesson in tough love. and for me, it's about three things. people, process, product. i don't ever -- i don't ever veer off that course. if they do, i bring them right back on it. >> tell us about the show. you're putting your own money on the line to do this show. >> it's $2 million of my own money. i go in and try to save six businesses around this country. i end up spending a little more
than $2 million over the course of the season. in fact, in one episode, i lose $200,000, and in a bizarre twist in the last act. >> oh, god, i don't want to see how you act after that. >> it was not good. it was not good. >> the business that we just saw in that exchange, does he get saved, what happens? >> so it's tonight's episode. >> okay. >> it's called car cash, on west 55th. it's been here since 1977. i can tell you it's exciting episode, but i won't tell you how it turns out. >> all right. let me ask you about small business, though, in general. you've seen a lot of -- you know, recoveries and businesses trying to grow and get bigger. what's the biggest mistake, small business makes? >> two mistakes they make, and in this forum, it's not knowing their numbers. i ask them simple questions about the balance sheet, the p&l -- >> how do they not know that? >> i know it, they don't. they're so deep in the weeds and so frantic to survive, and they haven't had the formal training. in the case of these young men, they inherited the business when
the father passed away unexpectedly. literally, in the matter of a flash, these two men are sitting with a business with no cash. >> that's interesting. how do you decide what to invest in? what are your screens that basically give you enthusiasm to invest in one over another? >> so one thing you can count on for sure, if i don't like the people, it doesn't matter how good the product is, it doesn't matter how good the process,i'm out. >> wow. >> to me, business -- >> it's more than just liking them. there are certain characteristics of the -- >> i don't mean like them at dinner. i mean like their business -- their business approach and the way they treat employees and their co-workers. >> okay. >> that for me is a nonstarter. i walked out of one deal that i had $1 million check on the table and the guy couldn't behave. not going to tolerate it. i think in today's day and age, you have to stand for something. the way we treat people should be the foundation of everything we do. >> but the way -- the way you were just talking to that one entrepreneur, you said you called it tough love. >> mm-hmm. >> i mean, he, too, did not understand his business, he did not understand his p&l? >> he did not.
he didn't understand the fact that he was buying cars -- about a $14 million business, so it's small, but not that small in today's day and age. he was buying cars, buys about 1,000 cars a year, and he had wholesalers in between him and the final end user. they were taking about $1.5 million out of his pocket. >> yeah. i love when you pointed that out. that was great. marcus, looking forward to the show tonight. thank you so much. >> thank you so much. >> best of luck with it tonight, marcus lemonis joining us, chairman and ceo of camping world, on tonight. be sure to catch the premier of "the profit" tonight at 10:00 p.m. eastern and pacific here on cnbc with marcus. another domino falls. meanwhile, san francisco-based technology analyst has been socked with criminal and civil charges in the s.a.c. capital insider trading case. we've got those details coming your way next. and go ahead and drink that giant soda. an appellate court hands down a ruling that has big gulp lovers celebrating in the big apple. stay with us. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪
it's just her way. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use
and a 30-tablet free trial. and experience the connectivity of the available lexus enform, including the es and rx. ♪ this is the pursuit of perfection. welcome back. another arrest connected to s.a.c. capital. the hedge fund founded by steven cohen, and scott cohn has the story. >> reporter: we now know the name of another alleged sources of inside information, sadip, a familiar face to cnbc viewers, accused in a criminal complaint of leaking inside information about microsoft and yahoo! in 2009 when he worked for collin stewart in silicon valley, and allegedly leaked that information to s.a.c. capital.
specifically, richard lee who last week became the latest s.a.c. portfolio manager to plead guilty. >> predictably, from virtually the inception of his employment at s.a.c. in 2009, richard lee began to trade on inside information, conduct, as i mentioned, that he pled guilty to two days ago. >> reporter: and in that guilty plea last week, lee admitted receiving information about yahoo! from a sell side analyst, we know that was sadeep, who was allegedly talking to a number of people. the hedge fund reported him to his firm. he did not enter a plea at his initial appearance in california today. he's free on bond, due back in court in new york next week, if prosecutors can persuade him to plead guilty, one more building block in their case of what they call pervasive insider trading at s.a.c., which, of course, maria, has pleaded not guilty. >> an amazing development. scott, thank you very much. we'll keep following that.
scott cohn. in an entirely different kind of court, big sodamakers scoring big today. kayla? >> reporter: maria, new york's notorious ban was defeated, this time by a state supreme court of appeals, and today, the court's opinion determined that the board of health overstepped the boundaries of its lawfully delegated authority and deemed the use of that authority was unconstitutional. the ban sought to outlaw city businesses from selling sugary drinks larger than 16 ounces. that limit becoming a year-long battle between bloomberg and the state's judiciary. the limit was introduced last september and was set to be in effect this march until a state supreme court in march declared the law invalid. in today's decision, the response to the bloomberg administration's first appeal on that decision two months ago. it was a unanimous decision, four judges saying the board of health was acting too much like a legislature. mayor bloomberg responded, today's decision is a temporary setback and we plan to appeal this decision as we continue to fight against the obesity epidemic. the longer this goes, though,
maria the less likely bloomberg could be the rule in place by the time he leaves office. the third and final term ends this year. maria? >> kayla, thank you so much. two we'll housewives of new jersey stars are out on bail after a day in court where they face a 39-count fraud indictment. andrea day with the story. >> reporter: maria, this is reality the couple really doesn't need. they're now facing up to 50 years behind bars if they're convicted on all of the charges. look at the scene outside the courthouse earlier today. >> watch. whoa, whoa! >> whoa, easy. >> come here! [ bleep ]. >> reporter: those joe shoving cameras out of the way. joe and his wife teresa storming into the courthouse early this morning. it was a total mob scene, pushing and shoving, like a scene straight out of their hit show. now, this is a 39-count indictment with apparently a trail of evidence. here's what teresa's attorney has to say. >> they're certainly being prosecuted because of their association with the show. whether that's unfair or not, i
have to leave to you. >> reporter: the reality show star's accused of pumping up their income to get loans before they made it big. teresa even allegedly submitting fake w-2s and paystubs. then, after the show started, prosecutors say they hid just how well they were doing. lying to bankruptcy court and failing to file tax returns. lots of issues to resolve here. this, of course, is just the beginning of a slew of court appearances. the couple due back in court here in newark on august 14th. they were released on $500,000 bond each. maria, i'll send it back to you. >> all right, andrea, thank you very much. andrea day. well, up next, the outcome of the fed's policy meeting could send wall street into a maelstrom tomorrow, or maybe not. we'll tell you what could rock the boat next. stay with us. tdd#: 1-800-345-0 playing this and trading. tdd#: 1-800-345-2550 and the better i am at them, the more i enjoy them. tdd#: 1-800-345-2550 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 really gave my trading a boost. tdd#: 1-800-345-2550 all this with no trade minimums. tdd#: 1-800-345-2550 and only $8.95 a trade. tdd#: 1-800-345-2550 after all, i'm in this to win, right? tdd#: 1-800-345-2550 open a schwab account and learn how you can earn up to 300 tdd#: 1-800-345-2550 commission-free online trades for 6 months tdd#: 1-800-345-2550 with qualifying net deposits. tdd#: 1-800-345-2550 call 1-888-254-2600 today. tdd#: 1-800-345-2550 a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel.
thanks very much for joining us. michael you're up first. what do you want to be prepared for tomorrow, michael? >> great to see you. i think being prepared for cf industries. you're going to see material announcements. with everything that's going on, particularly in light of the pot ash base fertilizer names, what is going on with my troe jenn and pot ash base fertilizers. dan loeb came out with a major investment with cf industries. they have the opportunity to address investors. i think today is going to be a big day for cf industries and generally the fertilizer names. >> vince lowery from revenue shares founder and president. 30 seconds on the clock. what do you want to watch. >> the equity market is going to be looking for top line revenue growth going forward. earnings have been maximized by most companies.
revenue growth has dropped down. that's not enough for the impact to go forward. there is real value in the energy sector based on our valuations as fold closely by the consumer staple sector. we expect numbers to come in around 3% over the next year but unemployment is going to remain sluggish. >> we'll leave it there. darren you're up next. what are you prepared for for tomorrow? >> we're looking for gdp and chicago pmi. balancing out of equities and into the bonds. the numbers are to the tune of 14 to 15 billion dollars. we think that there is another leg higher probably to 1725. >> we'll leave it there. guys, real quick around the horn here. darren kick us off here, good august? >> i actually think we'll have a good august. we've been looking at this 260
level on the ten year yield. i think we're going to fail there and move lower. what we've seen over the last month has been obstructive for equities. i think equities will work higher over the next month. >> vince, what is your thought? >> i think the market is going to roll over here. right now it's trading at $1.53 for every dollar in capital tags. the revenue growth has to come. i think it's rolling over for the rest of the year, not going much higher. >> michael, good august or no? >> we're going to have a great august, normalized pes, low share volume. you're going to see the great rotation of bonds into equities for the remainder of the month of august. >> up next the new powers of eminant domain, what they could mean for cities and housing. stay with us.
naming specific cities, she said detroit will likely be the first to come. business leaders r looking for california for any cracks. richmond seems to be on a path to invoke eminent domain so some can continue to stay in their homes and pay taxes to the city and sell mortgages for less than they are worth. it's an extraordinary move and shows how desperate things are right now. this is not just about moving the borrower into a lower rate mortgage. the borrower will have their negative equity forgiven. the holders would absorb the credit losses. this keeps people in their homes paying the property taxes and that is the whole point. this is a system of the disease of debt that's spread across the country. we don't know how far along that disease has progressed.
it's sure something to watch closely and we will on "closing bell." actually we ended flat today on wall street after a wild ride all day. we had selling taking the impact out of the positive territory. nasdaq was the winner up 17 and the s&p 500 tonight barely positive, up two-thirds of one point. have a great night, everybody. that will do it for us. "fast money" begins right now. >> live from the nasdaq market night in new york city's times square i'm scott wapner with our traders. let's get straight to the big story fast is following this evening. the tale of the taper, tomorrow marking the fed's decision on interest rates and we're getting one step closer to the fall where many believe the beginning of the fed's taper comes into play. listen to what our own steve