tv Power Lunch CNBC May 8, 2014 1:00pm-2:01pm EDT
>> it's funny because i'm picking the epi and we've never met before. great minds think alike. >> anthony? >> i want to be long exxon mobil. >> doc? >> free scale semiconduct, fsl, i bought it. >> from the playbook, how cohen had a great quarter. the stocks are going to keep moving higher. >> that does it for us. have a great rest of the day. "power" starts now. "halftime" is over. "power lunch" and the second half of the trading day start right now. >> scott, thank you very much. fed chair janet yellen giving markets another boost. her testimony today, investors like what she has to say. the dow and the s&p 500 now positive for the week with those gains from today. are you looking for a bargain? join us. we're going to go stock picking. best value stocks to buy right now. now, the question here is, well, janet is optimistic about the u.s. economy, but the one thing that seems to be troubling her a little bit is housing. what's really going on in housing right now that's causing sales to fall off? you need to hear this one. and taking flight. it's not that easy, folks,
getting a seat using your airline miles. tell me about it. it really isn't. but now some good news for frequent flyers. first, though, let's check in with sue at the nyse. hi, sue. >> hi, ty. day two of yellen's testimony on capitol hill. so far the markets like, once again, what they're hearing. the dow is up 88 points on the trading session. a bounceback for the battered nasdaq, which is up a half percent or about 21 points on the trading day. and we're up 6 3/4 points on the s&p 500. bob pisani, kenny polcari and a cnbc market analyst are with us. it's not changed from yesterday, decidedly, but the market seems to like it just as much as it did yesterday. >> of course they did because what did she say? they're not going away. rates are going to stay low. where else are investors going to go? look where we are. 1885, unable to really break through. we just can't get through it. we see it every time we get here. >> three things are helping the markets.
number one, dovish central banks. not just yellen, but mario draghi out there saying hey, we may lower rates in june. the euro plummeted, that definitely helped them a little bit. >> a little verbal intervention. >> which is what he does. >> absolutely. >> very good retail sales. there's only a handful that report monthly, but those that did were very good. there's clearly a pickup in april sales. they raised their numbers. and finally, sue, look over here. cheetah mobile, a chinese mobile ipo. mobile security ipo. that priced above the range. it is up 5% right now. that's a good sign for alibaba and the ipo market. we've been real worried about that. the ipo market has been falling down the last few weeks as the market slipped. this is a good sign. >> it's traded at a post right next to us. we'll get you a shot of that in just a little bit. >> there's cheetah mobile right there, up 5%. >> what's going to push it through resistance? >> you know, it's going to be very interesting. i'm not really sure what's going to push it through resistance. i think the geopolitical
situation calms down, which we're seeing. that's certainly going to help. you'll see positive news coming out of europe with those markets moving higher. i think it just needs a little push. once it gets through, then we're going straight to 1900 because there's nothing in between and it really does want to test it. i'm not sure, it may not be anything. it just may be an attempt to go through. >> if anything, we're filling the gap, you're right, we're moving towards 1900. >> you can feel that it wants to. >> the good thing here is we've got three positive catalysts today, and the market's holding up very well. >> bob has his fingers crossed. >> below 2.6% in the ten-year. recently that's been bad for the market. not today. >> we'll see how the rest of the trading session goes. thanks, guys. the nasdaq rebounding after a couple of very tough days. right now it's up 25 points. two-thirds of a percent. sheila is following the movers uptown for us. hi, sheila. >> good afternoon, sue. it's been an interesting morning for the nasdaq. we started out steadily climbing higher, rebounding from a couple
of tough days this week. just in the past half hour or so, we have been pairing some of those gains so it's going to be very interesting to see how the index reacts as we head into the close. one of the reasons we are higher on the day is apple. that has been a nice performer, up about 0.4%. we are still below that $600 a share mark, but nonetheless hanging on to gains which is helping push the nasdaq higher. also, have to talk about earnings. we've gotten a lot of earnings from big nasdaq stocks this week. a lot of those so-called momentum names like green mountain coffee, the keurig stock, 21st century fox, priceline, all those stocks are higher. the one notable loser, of course, is tesla. that stock down as much as double digits today on concerns there may be issues with battery production and battery supply. finally want to quickly mention some of the momentum names because we have been seeing them pick up steam in the session. you look at netflix or some of the biotechs or even on the tech side, f5 networks. it seems like a risk mode is back on all helping us hang on
to gains. again, we have lost a little steam inpast 30 minutes or so so it's going to be interesting. >> thank you. we have breaking news in the bond market. right now it's the 30-year bond going off the block today. rick santelli has the results and the demand. what does it look like, ricky? >> reporter: remember, it's 30-year bonds. it's been one of the most productive parts of the yield curve in terms of higher price/lower yield, hovering close to the lowest yield since june. this auction gets a dog minus, "d" minus. this is pretty much your stencil for a rotten auction. so the yield at auction was 3.44. the one issue market was trading 3.41ish -- excuse me, 3.40. so we really traded through this. the bid to cover 2.09, weakest since august of 2011. the indirects are about the only thing that was decent at 40.4.
8.4 on direct. the wkest since march of '13. this yield at auction is the lowest yield for a 30-year at auction since june of '13. so maybe too much of a good thing. it's already had a lot of rally. it seems like investors shied away. maybe a bad move after we see rates come down more. but a dog minus on the last of 69 billion in supply. tyler, back to you. >> a "d" minus from professor santelli. hmm. all right. wow! oh. so yellen giving another boost to the markets. >> he's tough. >> he's a tough grader, man. i am glad i did not go to his class. >> no. i'd fail. >> professor liesman, take it away. >> interesting. so yellen didn't say much that sounded new, tyler, but apparently a repeat of dovish talk at the fed will keep its foot on the accelerator so long as the job market remains weak was enough to bring some buyers of both stocks and bonds into the market. yellen reiterated her concern with the state of the labor market and her commitment to keep policy easy until it
improves. >> our objective in monetary policy is to continue to maintain an accommodative monetary policy for as long as necessary to see recovery of the labor market, to a state -- it's hard to know exactly how to characterize it quantitatively, but what the federal reserve calls maximum employment, or we used to call full employment for short, and in many ways we're far from that. >> far from that. that means there's a ways to go. those comments coming after earlier in the morning mario dr dr draghi, saying he's worried the high level of the euro is pushing down inflation. ty, we looked at the yellen effect. what happens when yellen speaks to stocks? our data team came up with this. there's a lot of volatility.
sometimes it goes down and comes back up. by the way, that includes the march press conference. >> that march press conference where things went down. >> you take that out, you're up about 75 basis points or 0.75%. so let's put it together. a loose fed, an ecb getting looser, some decent earnings today. the retail sales coming better. it's not all a yellen effect. but a lot of things came in line to say you know what? today's not the worst day in the world despite the rain outside to buy some stocks. >> not the worst day in the world? steve, thank you. >> my pleasure. let's go to seema. >> tyler, check out tiffany moving higher. bank of america, merrill lynch raised its price target to $100 from $95 a share. it said higher domestic sales should drive marvin expansion. tiffany shares currently trading higher by 3.8%. sue? >> and you match that little blue box with that dress you're wearing today, seema. thanks so much. stocks rising today on ms. yellen's comments. we were almost up triple digits, then that bond auction took the
market off of its best lows -- best levels of the day. so where's the right message to be found about the markets? is it in stocks, or is it in bonds? jack ablin is chief investment officer at bmo private bank with $66 million under management. jack brewer is ceo of the brewer green and a former nfl player. gentlemen, pleasure to have you with us. >> hello. >> i'm going to start with you, jack, if i could. where do you see the message from the bond market and the stock market taking us? which market has it right? stocks seem to be more optimistic than the bond market is. >> i agree with that. i'm definitely much more bullish on the stock market. i think equities overall will continue to perform well. we have been, though, shifting a little bit into asset classes like gold. also very bullish on emerging market debt, just trying to balance out our portfolios for our clients. >> jack, do you agree? >> well, you know, historically if there's been a divergence between stocks and bonds, i have
to say as a former bond trader myself, that the bond market is usually smarter. but i will say because there's a lot of distortion going on with the fed, with other, you know, huge flows of funds coming from the emerging world, you know, i think the treasury market's a bubble. and so while i'm not expecting, you know, huge levels of inflation, i don't expect massive growth. i do think the trend in interest rates probably ought to be higher. but, you know, stocks are a lot cheaper. so i think they can withstand incrementally higher rates and still move incrementally higher. >> we've got a pair of jacks here in this segment. jack ablin, let me come back to you. what do you make, if anything, with the fact that so many of the so-called momentum stocks have lost their mo? >> yeah. i mean, i like it. i mean, the fact is that investors are paying attention to value. and that is something that confounded me now for the last, you know, probably 16 months or so.
we started underweighting small caps last year, you know, had them run right up in our face. finally now they're getting their comeuppance because i will say while i do think equities are cheap, i think the russell 2000 is probably one of the most expensive markets in the world. i also think the nasdaq probably, you know, and i don't calculate it specifically, but i would probably put that along with it, too. i think there's still a lot of great value in the markets, but some of these go, go companies, some of these go, go sectors have gone too far in one direction, and now they have to come back to earth. >> so jack brewer, let me put that question to you as well. do you still find value in the market, or are there parts of the market you want to be in, have they gotten too expensive? >> i don't think it's so much about the value. i think that, you know, where else are you going to invest today? the stock market i think over time is going to definitely outperform other asset classes. you know, for me, it's about finding the value for now. i think this market is different than any time that we've seen over the last few years.
with interest rates where they are, you know, people really don't have anywhere else to go. so why would you not want to take advantage of some of the great plays in the stock market right now? >> all righty. i guess i'm going to say thank you to the pair of jacks. >> you are. >> jack brewer, you're going to be back in the next half hour. we're going to talk a little football, among other things. folks, thank you very much. and check out the euro. why not? just because i want to. it's backing off highs following the european central bank, mario's draghi's comments. tough for exporters there. michelle caruso-cabrera joins us to explain that and so much more. >> the euro this morning was almost at $1.40, this close when mario draghi did nothing and then he started to talk, and it dropped sharply. so you can see the intraday move here on the euro. why would he be so upset about the euro? it really hurts a recovering economy if your currency is very strong. >> because you can't export.
>> you can't export. >> you lose whatever currency you get. >> now you're spain, you're italy, you're greece, you have done massive budget cuts. you've cut salaries, pensions, done all these things to make your economy more competitive. finally for the first time in years, your exports are rising. and then bam, you get a 10% move in your currency. >> in your currency. >> in less than a year. >> yes, yes, yes. >> and suddenly all that could disappear after all that hard work. that's why he's working so hard for now at least jawbone down the currency. >> i've listened for years and i know you have, too, to american treasury secretaries administrations, a strong dollar is in the great interest of the united states. >> mm-hmm. >> not always. >> no. >> not always. >> and exporters in the united states would say never. you know, they like a weak currency because it makes it easier to sell stuff. to the crisis in ukraine, what's new here? >> so there's different rebel groups in the eastern part of the country. there was supposed to be a big referendum on sunday. some of the rebels have said they're not going to hold the referendum. others say they're going to --
this all comes 24 hours after vladimir putin yesterday, the president of russia, sounded much more dovish about the situation in eastern ukraine. and we're all still trying to figure out -- >> should we believe him? >> -- should we believe him? >> is this tactical or real? >> all the russia watchers i have spoken with say they absolutely believe he is stepping back for now, reasons to be debated. we talked about some of them yesterday about might be trying to hold off sanctions. weekend was too violent. also, we're getting increasing intelligence that maybe he doesn't have as much municipal control in certain parts of eastern ukraine like he did in crimea. so the outcome may not have been as secure as he would have liked when it comes to those referendums which was the precursor to then saying we're going to take crimea. >> is that because the central government in kiev has moved in aggressively against some of those positions that his proxies have taken? >> yeah. "a," that yes, partially, but more likely because there's actually not as much support of
russia as you might have originally thought. it's not as solid as it was in crimea. >> and the other crisis point right now is nigeria. the latest there. >> yes. >> apparently hundreds dead. >> in the northern part. the president of the country, goodlu goodluck jonathan, made a speech. he said they were going to try to do more to find these nearly 200, 300 girls that have gone missing since mid-april. and that's the bottom line. we're waiting to see what exactly happens here. the pledge to do more and waiting to see if there's any kind of issues with the world economic forum. that's a big, big concern. this comes as we got this report, like you said, of another 125 people dead in northern parts of the country. >> and the u.s. apparently sending some assistance but very limited. >> technical assistance. >> technical assistance. law enforcement. >> yes. you know, hostage negotiation, intelligence, et cetera. but fewer than ten military folks. it's not a s.w.a.t. team. >> no, no, no. and nobody -- they were very clear in saying these are not
people who are going to go in and do a rescue mission. >> right, exactly. >> michelle, thank you. sue. ty, let's take a look at the ten-year note because we did get a spike in the move in that market after the results of the auction which, as you know, rick santelli gave a "d" minus to. we're at 2.60%. we had dipped briefly below that level earlier this morning. the dow jones industrial average was up almost 100 points before the auction. right now we're up 82 points. so the market has definitely come off of its best levels after the weak 30-year bond auction. we're going to focus on apple as well. shaking up the tree a bit. the head of north american sales is leaving. so who's taking over and what does that move say about what apple is thinking? plus, monster beverage getting ready to report earnings after the bell. the stock higher right now by just under 2%. but it's down 3% over the past couple of months. so how do you play the stock ahead of the numbers? we'll talk to a top analyst about that when we come back.
welcome back. i'm seema mody. check out dean foods moving lower. the largest cutity full-year outlook after a surprise lost for the first quarter as milk costs reached an all-time high and a severe winter hurt supply. dean foods currently trading down by around 5%. sue? >> thanks rngs se, seema. monster beverage reporting after the bell. take a look at the chart. the stock is up 16% over one year. today it's now up better than 2%
in anticipation of its earnings. mark astrocast covers the stock with an $80 price target. good to see you. welcome. >> thanks for having me. >> tell me what you'd expect in this report. >> sure. we took our numbers down a little bit on monday morning ahead of results basically for weather, for nothing else. we continue to think the company is in really a good position to gain share of a growing category. in the u.s. and overseas. and we think that that outlook's going to remain after the results tonight. >> are you at all worried about liabilities in terms of possible lawsuits, regulations on the sale of some of monster beverage's drinks to anyone under 18? could that have material impact on the stock and on the bottom line or not? >> tonight it's not going to be an issue. i think just generally speaking over the last call at 6 to 12 months, you've seen the regulatory concerns ease coming out of washington. you really haven't heard a whole lot lately. the company had some hearings last summer along with the other
industry folks in front of the senate commerce committee hearing. there was an sthut to medicine workshop put together for the fda talking about caffeine levels. but really of late you've not seen, if the company continues to reiterate its products are safe, our view is the caffeine levels are basically in line with whatever the fda wants to regulate, less than a cup of coffee, as the company likes to talk about. for this quarter there are probably going to be costs surrounding in terms of legal fees and things like that but nothing that's going to impact on a longer-term basis in our view. >> very quickly, international, is that where the growth really -- the potential for continued growth is for the company? >> it is. so that assumes the u.s. continues to grow at a high single to low double-digit rate. from here where you make money is international. our views are the company has about a 5% to 6% share internationally excluding the u.s. with the exclusion. red bull. you're talking about monster in spite of good growth over the last five or six years in international still is one-11th
the size of the market leader. they're really not actually making money either if you say you have close to 40% ebitda margins in the u.s. and they're not making anything internationally, you have $700 milli million, half of that ebitda margin. >> thank you, mark. we'll look forward to the report. >> great. thank you. >> ty, up to you. sue, time for the "power lunch countdown tech edition." josh lipton joins us. first up, apple's head of north american sales leaving. who is it? does it signal anything? why is he or she leaving? >> yeah, tyler, zain roan, the north american sales head is leaving. oversaw sales to companies, schools, carriers. he had not been at apple long, only a couple years. no explanation here of why he left. now, we do know that sales in the america's group last quarter, tyler, grew just 2%, less than europe, greater china and japan. doug beck, he oversaw sales in
japan which ballooned nearly 30% last quarter. he's going to be taking roan's place. >> that person had only been there two years. >> right, very quick departure. spoke to apple. no explanation given right now, tyler, as to why he's exiting. >> maybe not such a great fit or whatever. who knows? apple's rival, samsung, replacing its head of its mobile design team. what's behind that one? >> yeah, that decision, tyler, now, it could have more to do here with the reception that maybe samsung's latest phone has gotten. samsung saying that its mobile design head, he's going to focus now on his role as head of the company's design strategy team. the galaxy s5 received mixed reviews. critics talked about it was good, not great. they discussed its kind of plastic feel. one critic i remember said it was a chevy in a category full of lexuses. statement, s
at the same time, samsung controls 30% of the market. the s4, that was the world's best-selling smartphone model in 2013. so chang can't feel too bad here, tyler. >> and let's move on to once again net neutrality, the phrase that makes my eyes just fall right down, the lids get heavy when i hear it, but it is a big, big issue. more than 100 tech companies including google, amazon, twitter have written to telecom regulators, opposing a new plan that would regulate how internet providers like comcast, the owner of this tv network, manage web traffic. what are those companies saying? >> yes. it's interesting. you have these tech titans now sort of wielding the power of the pen. 100. cans. and it was really -- you mentioned some of them, just a who's who of tech. google, amazon, microsoft, facebook, they penned this letter urging the fcc to support strong net neutrality rules. so basically saying that the fcc's chairman and idea here was
the grave threat to the internet. and these companies don't want to see any rules, tyler, that would let broadband providers sell faster access to companies that can afford it. >> net 2345neutrality right up e with ambien for me. sue. i think you have a lot of company in that, ty. attention all frequent flyers. our phil lebeau has good news to report. >> sue, it is easier to cash in your miles or points for a reward flight. i know you're probably saying yeah, right. prove it. we've got the numbers to prove it when "power lunch" returns. customizable charts, powerful screening tools, and guaranteed one-second trades. and at the center of it all is a surprisingly low price -- just $7.95.
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welcome back. the airlines are asking congress to roll back a federal rule, making them tell passengers up front the full cost of the airfare which includes government taxes and fees. a bill in congress would let airlines return to their old way of doing things, which is to publicize the base airfare. 33 lawmakers have backed the bill. sue, over to you. >> all right, speaking of the airlines, some good news apparently for frequent flyers. that's according to a new report. cnbc's phil lebeau taking flight for us in chicago. prove it to me, phil. prove it. >> i will, sue. you know, this is the annual survey that's done by switch fly where they basically call about 4,300 -- check about 4,300 flights in one particular month, the same month of year, and they say can i get a frequent flyer seat on a particular flight? this is worldwide, not just in the united states. and what they found this year is that there is a greater
percentage of flights where you can cash in rewards for a seat. it's up to 72%. which begs the question, why the improvement? well, for that you can credit those independent bank credit cards that offer frequent flyer miles. >> in the u.s. in particular, the frequent flyer programs are becoming more concerned about competition from bank-issued travel cards. so they want to compete against the travel cards issued by banks. and so this is one way for them to do that is makeheir programs more attractive. >> in other words, if you're an airline, free up a few more seats and people will stick with your program. at least that's the theory. legacy airlines, the larger ones, offer reward seats on about 65% of flights. some a little more, some a little less. the low-cost carriers are offering seats on practically every flight. in fact, 96% according to the switchfly survey. who did the best? same as last year, air berlin and southwest. every single flight that was checked, they had reward seats
available followed by virgin australia, jetblue. let's look at the airline index because the airlines overall, they've been profitable over the last year and a half. and investors in the airlines, well, they have certainly reaped the rewards. tyler and sue, the bottom line is this. about 72% of the time, you should be able to find a seat on the flight you're looking for. of course, it depends on the day. >> 72% you said? >> 72% of the flights checked, there were seats available. >> i'll get back to you on that, phil. all righty. cnbc.com's kelly grant has a story out with the best travel booking tricks that consumers are not using. and you say flexible search sites. whatever they are. are actually the way to go. give us the highlights. >> this is for all the people who can get those free reward seats. there are new sites out, and the basic here is you tell them where you're flying from and vaguely where you want to go. a beach vacation. >> vaguely. >> beach vacation, domestic, just a few quick little parameters and they're going to tell you where the deals are
based on your home airport. and you know, you can find at a pretty easy glance which caribbean island will have the best bargain. >> i want to fly out of newark, i'll go anywhere. >> anywhere. >> just get me out of newark airport. >> a tough call in and of itself, really. >> let's move on to the next one which is that a lot of customers who are part of retailers rewards programs, whether it's gap or nordstrom's don't know the rewards they're entitled to. i count myself in that because i don't know what -- i've got an american express card. they give me all these -- i don't know what i'm entitled to. >> a lot of people don't because retailers have these increasingly complex programs with membership tiers. most people are familiar with it if you're part of an airline program. maybe you're an elite, maybe not. >> oh, i'm elite. >> there you go. then you'll have a much easier time than the rest of us. most people don't know, and that really can have an influence on, you know, whether they're getting the most out of that program. >> how do you find out? >> it's a little difficult for a lot of these retailers, but
you've got to reach out to them and see where you stand on points and figure out if you're not elite, do you go for it? and that's a tough bit of math for consumers. you have to figure out, do you consolidate your spending? >> and spend more at this retailer because then you get up to a bonus level that may get you $100 off coupon or something like that, right? >> exactly. you've got to think about which level you're going for, too, because the top levels are not always the best. >> that's a lot of thinking. >> it is, a lot of math, but you've got to do kelli, i can't. see the full list on how to find better fares on travel on cnbc.com. thanks again. >> thank you. i'm going to go down to sue who's going to send it right on out to that man. >> right to that guy, mr. santelli, yeah, because we had that bond auction which he gave a dog minus to. who's it doing in the aftermarket, ricky? >> reporter: boy, we had a burst of volatility. look at an intraday of 0s. we popped close to 6 basis
points after those auctions but open it up for one year. we're scribbling along the bottom, still close to lowest yields since june. the ten-year popped four basis points, but that's also moderating. year-to-date chart reveals once again the right side of the chart doesn't look like it's going to change the landscape dramatically. and the big talk of the day is the euro and how it got very close to 140. and i understand that. look at the chart. it's around 138.5. but on a two-week chart, what you'll notice is just a week ago tuesday, not even a week and a half ago, we closed at 138.18. so all the markets seem to have some good countertrend movement. but i wouldn't put a whole lot of stock in it yet. let's see how it looks going into the weekend which is always a dicey proposition. back to you. >> rick, thank you very much. big stories in media and housing. our morgan brennan and diana olick are all over the trends. first to morgan in l.a. morgan. >> thanks, ty. so there's one big topic that every media executive is talking about this week. i'll tell you what that is in
just a few minutes. diana? >> reporter: morgan, cash is king in housing today, and that may be a dangerous thing. i'll tell you why coming up next on "power lunch." the city of today's "power house" is the largest metropolitan area in the united states without a zoo. it was named among "forbes'" list of best places for business and careers in 2013. and discount retailer family dollar calls it home. can you name that city? latte or au lait?
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welcome back. check out burger king, around session lows. now, it can't be because the fast food chain is offering burgers for breakfast, can it? the company did say more than r5,000 locations will participate in the burgers for breakfast menu. burger king currently trading down about 0.9%. sue? >> all right, seema, thank you very much. we're up 80 points on the dow jones industrial average. off of our best levels of the day, but not by much. bob pisani joins me right here at post 9. >> up but off the highs. three reasons why we're up today. pay attention. going to move fast here. number one, a very dovish central bank. mario draghi came out this
morning. look at the euro. came out and said hey, we do something in june. we may lower rates in june. the euro fell apart. we had a great warning in europe. also signs of life in retail sales, great numbers in april. same-store sales. "l" brands, victoria's secret, up 8%. great move. costco was better, zumiez. it wasn't just april. the numbers were a little stronger. easter in april would suggest. also we had stability in internet names today. so it's not a rally but groupon, twitter, pandora, linkedin, netflix, all of them a little higher. that stability helping the markets. and finally, sue, doesn't showing for a tech ipo. it's a chinese tech, cheetah mobile. this is ahead of the alibaba thing. they priced at $14. that's the high end of the range. you see they're trading above that right now, up nearly 5%. four reasons why we're up today. >> thank you, bob pisani. all right, there's a slew of
media companies that are reporting their earnings today. and investors are keeping a close eye on these traditional names as the selling continues for some of the new media companies. that have already reported. plus, there are three letters that every media investor should know. they are o-t-t. our morgan breenen is in los angeles to tell us why. hi, morgan. >> over the top, the web-based streaming services that bypass tv, net fliflix, hulu, even the. and now more traditional media giants are jumping in. dish network's developing a product to compete against cable tv. it's already secured disney content in a landmark deal and is trying to enlist other providers. it's a big topic on today's earnings call. at&t is partnering with the chernen group to invest $500 million in its own service and verizon has acquired intel's
online tv technology on cue. so who stands to gain? >> everybody is looking at it, and here's a really interesting and perhaps counterintuitive observation. that your advantage in offering an over-the-top video service is adversely proportional to your size. the smaller you are in the traditional business, the less you have to lose by disrupting it. >> so as netflix and amazon compete with comcast and other cable companies for content providers from disney to 21st century fox are talking about ott to investors on earnings calls. we're likely to hear even more when cbs reports later today. now, ceo les moonves has already said that if they win in the supreme court, cbs will seriously consider its ott options. sue? >> morgan, thank you very much. we'll wait to see what some of those numbers look like. fed chair janet yellen optimistic about the economy but says we need to keep a close watch on housing.
diana olick joins us from washington with some of the reasons why. >> reporter: hi, sue. two reasons, because home prices are soaring, at the same time mortgage credit is locked up tight. how is that possible? cold cash. all cash sales soared to a record 42.7% in q1 of this year, up from just over 19% a year ago, according to a new report from realtytrack. cash makes up nearly two-thirds of the market in much of florida. and take a look at some of the other markets where more than half of the sales are all cash. new york, columbia, south carolina, memphis, detroit, atlanta and las vegas. all right, so who's using all this cash? smaller, individual investors, but the realtors are now saying that downsizing baby boomers are also playing with cash more as well. apparently now that home prices are rising, they're using all that reappearing home equity in their current home to finance a smaller home.
so the vast majority of regular homebuyers need a mortgage. and take a look at this chart. credit availability is in the basement. that's what should really concern the fed chair. yes, cash makes me more competitive, and in today's market where supplies of homes for sale are so low, buyers are doing all they can to get what they want. but that cash is pushing prices beyond what most people can afford. and at some point, that cash may run out. more, of course, onlinereal onlinerealtycheck.cnbc.com. tyler? we all know football is a big business, and tonight that big business is on center stage. the start of the nfl draft. rookies will be making deals very soon for millions of dollars. what's the reality behind the numbers? and how can those players capitalize on the cash? there's a lot less of it for rookies now than there was just a couple of years ago. we'll talk about that and more on "power lunch" right after this. in today's "power house," this city is home to the nation's second largest banking
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all right, folks, "power house" time. we've been giving you hints as to which city we're in this week. i didn't get it when they said it's the only major city without a zoo, but it's charlotte, north carolina. i got it when they went to that second list and it talked about it being the second biggest banking center in the country. daniel is an agent with wilkinson & associates real estate. and we're going to look at some properties today in meyers park. first some stats for the broader charlotte region in march. a very moderate $215,000. median sales price even lower, $172,000, that is up about 2.5% from a year ago, pretty modest. properties are on the market for about 100 days, a little more than three months. there are just under 15,000
homes for sale in the region right now. first listing is at 638 melbourne court in charlotte. new construction. listing, $498,000. taxes, $6400. four bedrooms, three baths, 2800 square feet. what can you tell us about it? >> tyler, this is a gorgeous new construction home, a craftsman style home. has a two-car detached garage, hardwoods on the down, hardwoods on the upstairs also. tile throughout all the bathrooms and granite in all the bathrooms. it has an outstanding kitchen. like i said, granite, huge island. has marble backsplash. this is a phenomenal value. this is an area that is up and coming. this is a real deal at $498,000. these homes were originally built in the 1950s. we're knocking them down. we're building new ones now. >> up and coming in real estate parlance can be code for not such a nice neighborhood. is that true? >> no, it's a good neighborhood. it's a solid neighborhood.
been around since the 1950s. it's closer to town. what we call uptown region here. so it's an outstanding little area. you can walk to the light rail, what we call the blue line here in charlotte. >> right. >> restaurants, shopping. they just proposed this last week in "the charlotte observer" $192 million being spent for a new shopping center around this area, so it's a big area that's going to really take off. >> it's going to blossom. >> yes. >> 1204 princeton avenue. goes for about $600,000, $6400 in taxes. three beds, two baths. 1800 square feet. this is a smaller house for more money. what's so great about it? >> well, one of the things that's great about this home, it's within walking distance to freedom park. which freedom park, as you know, tyler, is an outstanding park here in charlotte. it's really a revered area to live in. this home also comes with a remote-controlled swimming pool and spa.
so from your luxury of your inside of your little home, you can flip on the pool and the spa and enjoy it. heat it up and enjoy it. it's also been completely renovated inside. >> looks very nice. our power house of the week, 2231 hastings, $1.26 million, $13,000 in taxes. i'm dying with envy here. five beds, four baths, two half baths, 5100 square feet. that looks like a nice one, daniel. >> this is an absolutely stunning home inside and out. it's in our mars park area, as you know, tyler, that's a very prestigious neighborhood here in charlotte, well worth the money. dollar per square foot on this home is under what the market normally is. we're real excited about this home. outstanding, hardwoods throughout. third level, has a theater room on the third level. so it's beautiful. a lot of outstanding features in here. granite in the kitchen, granite throughout all the bathrooms. this home was originally built
in 1950. in 2004, it was completely gutted and rebuilt. the present owners took it to even another level. it's an outstanding home in an outstanding neighborhood. zproo that o >> that one looks like it's got some good bones. see you again soon. >> thank you, my friend. you ready for some football is this i hope so because get ready. the nfl draft is tonight. the rookies stand to make a ton of cash, so we have two former nfl players who know exactly what's at stake tonight and how they can help them make the most of their money. we'll talk to both of those gentlemen when we come back. "power lunch" is back in two. five tech stocks with more than a 10%... change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays... that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are
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between people and care. the big day is here, just hours from a with a the nfl draft. big money on the line for owners and especially for players. we have two gentlemen here who know exactly what is at stake and how to capitalize on it. we welcome back jack brewer who played for the vikings, cardinals and giants. we also have corey chavis, founder of draft nasty. he played are to the vikings and cardinals and was in the nfl for 11 seasons. you played together on the vikings, right? >> yes, we did. >> way back when. let's talk about how the draft and the money has changed. you were just telling me, jack,
in a moment ago, that in 2002, david carr, who is or is no longer in the career, made $60 million as the number one pick. tonight whoever that number one pick is will make what? >> probably in the range of $25 million to $28 million. >> why is that? >> because of the collective bargaining agreement. it's changed the way rookies are drafted. a lot of it i think is for the better. a lot of the lower-round guys get more guaranteed money. at the same time, the national football league is definitely making a pretty penny. >> sue, who is one of the world's greatest packer fans -- >> i know, last season -- >> cheesehead. >> -- it was kind of painful, but hope springs eternal. corey, some of these athletes think they're going to play football forever. you played 11 seasons which is a considerably longer period of time than a lot of these guys do. how can you impress upon them the fact that yes, they're very
talented, yes, they're going to make a lot of money, but really their career is kind of fragile. one injury, and you could be out. >> well, you're exactly right. and i think when you really come into -- coming into the nfl, you have to really kind of latch on to a veteran. i thought jack did a good job of that and established himself maybe on special teams. and understand that the money really is year to year. and we were talking a little bit about the history of the money and how it's affected. think about it, in 1967, joe namath signed a contract for $400,000. >> right. >> and how that money has changed. you have to look at it now because of what he talked about, not being necessarily a long career. >> what's the difference between a first round pick who's going to make $15 million, $20 million and a second and a third and a subsequent round pick? what are they going to earn? >> well, even if you go back to 1993, in that year, drew bledsoe was the first overall pick. and he was, like, about a four-year, $14.5 million contract.
you go down to the seventh overall pick just in that draft, which was curtis conway from usc, he was in that three-year, $3.3 million range. so when you look at the draft, even in 2011, cam newton, four years, $22 million. >> are the players getting poorer and the owners getting richer? is that the effect of the cba? you're smiling. >> definitely. i mean -- >> did i nail it? >> you nailed it right on the head. they're great businessmen, so you have to respect them for that. i think the players on their side have to negotiate better contracts. from a business perspective, the owners are winning. >> are you guys going to be there tonight, either of you? >> no, not at all. >> you're not going to be watching. >> a 200-page magazine. >> you rate -- one of your projects now is to rate nfl players for the draft like a kuyper does or mayock. >> there are a lot of different people doing it now. a lot of people are pretty good at it. >> sue? >> who goes first, second and third tonight, either one of
you? >> who do you got? >> i think in some order, khalil mack, jadeveon clowney is probably somebody that could go pretty high, maybe a sammy watkins, greg robinson, some of those names could go pretty early in the draft. >> manziel, where will he end up? >> i think manziel goes 15, 16, 17. i think a lot of people have issues with can he really last. >> size. >> durability. he's a playmaker and incredible to watch. >> but some people say he's not going to get drafted at all. some people say he's not going to get drafted at all. it saves the owners money, and they pick him up after the draft. and they don't deal with controversy. >> you'll probably hear manziel's name tonight. >> that happened to me but that won't happen to him. >> okay. just throwing it out there. >> all right, gentlemen, thank you very much. >> thanks, guys. let's see what's coming up on "street signs," shall we? >> lots of exciting things. nigeria has been touted as a market of opportunit so how did the recent kidnappings affect our view of
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midday. closing 50,000 shares yesterday at $41 a share bringing his stake to more than 60,000 shares. >> thank you very much. that will do it for us. i'll be watching the draft tonight. >> i sure will be, too. the dow is up 64 points, well off our best levels. "street signs" begins right now. well, speaking of sports, even the best athletes run out of steam eventually. so we are asking, is this market run finally done? there may be signs. hi, everybody. plus, what just happened in the bond market that gets a grade of a "d" minus? we propose what some may consider a completely insane solution to help fix the student loan crisis. and $20 million, mandy, can get you a really nice helicopter, so why is the new presidential chopper priced at $1 billion? >> you always ask the right questions, brian. well, i come