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tv   Power Lunch  CNBC  May 20, 2014 1:00pm-2:01pm EDT

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you would need multiple cameras. >> chef was the bear on target. we'll see what the earnings produce, and then of course courtney's interview tomorrow. final trades, give me some tickers. epi, namaste. have a great rest of the day, "power lunch" starts now. halftime is over, the second of your trading today begin -- >> i'm going to wear a go pro all day one day soon. gm, another major recall. we have all new details, plus trouble in the house. we're talking about housing, diana olick, a big new report why the housing market is in the state it is right now. eurozone. remember the european economic crisis, the piigs? just when you think the problem had got away, there's new evidence the old problems are reemerging from the old
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continent. retailing remodeling, invest for success, this is a sector under fire today. staples, urban outfitters, tjx, best buy, l brands, all getting whacked today. we'll talk to a person who believes he's the retail investor of our tile. first, though, to sue at the nyse. >> we are down triple digits, but we are going to start with a major recall announced by gm just a short time ago. shares are down -- almost 2.5% right now. in the last three months, the stock is down more than 7.5%. last trade on gm is 3352. phil lebeau joins us live from washington with details on the latest real. >> sue, it's a series of recalls from general motors. in total they come to 2.42 million vehicles. again, four separate recalls,
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two large ones and two smallers ones, all together a total of nine models are recalled or impacted by this recall. the years being built between 2004 and 2015. one recall in particular, for the cadillac escalade. general motors has stopped sales on 2015 versions of the escalade. they are also warnings driver -- they called the owners, about 240 of those owners, and they've told them, do not drive this until we fix an air bag issue for the passenger side of the vehicle. that's for the cadillac escalade. a stop sale warning going tots oranges and people considering that vehicle. all together, general motors has now announced 29 recalls, totalling 13.6 million vehicles. they also took another charge of $200 million -- additional $200 million for the second quarter of this year. charges all together, 1.7 billion. that's for this year, a total of $400 million in the second
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quarter and 1.3 billion from the first quarter. take a look at shares. once the recall was announced offer recalls announced this morning, you saw the stock coming under pressure. the bottom line is this, tyler and sue. we don't know if this is an all-time record for one automaker, but it's pretty darn close. i wouldn't be surprised if we see a few more. they have essentially taken the attitude anything close to a recall, get it out. they're flushing out the bad news. >> my car was one of those recalls for a side air bag issue. remember, everybody, a reairing of "failure to recall" there cannot be a more timely documentary than this one, folks. that airs once again this evening at 7:00 p.m. eastern time. i hope you all will catch it. federal reserve basic of new york phil dudley,ed head of it, and steve liesman has the text
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and is on the case. >> a bit of news to think about, talking about the exit strategy, saying really the opposite of what the market believed here. they may not allow the balance sheet to shrink better raising. the thinking was then the fed would consume in with higher rates. dudley saying that could create too much tightening, more than the fed wants. and the fed should prioritize or focus on raising rates first rather than shrinking the balance sheet. that's not policy, that's just his idea. he's also saying that rates will remain lower longer term for three reasons. headwinds from the recession continue, aging of the population lowers the overall growth rate, and bank regulations lowering the amount of lending. expect the longer-term rate below the historical average. on the current timing of the economy, he says rates could lift off and could be pulled
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forward in case of tightening, says dudley, depending on the financial market response. we had charles plosser out earlier, both guys with relative upbeat comments, very different ideas. too slow on the taper, dudley saying, we'll have to wait and see. and this notion here of the idea that the fed is not necessarily going to let the balance sheet wind down, even while it raises rates, it turns the ideas of the market on its head, at least for the moment until the fed comes out and explains. >> steve, thank you very much. almost one in five homeowners with a mortgage is still under water. that means they owe more than their house is worth, but the number are even worse for the most affordable homes. that is having a big impact on the entire housing industry. diana olick has the details in washington. diana? >> reporter:ty her, the number
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of underwater borrowers is coming down, but the problem isn't over, not by a long shot. we're seeing a huge disparity between the haves and have-nots. according to a new report from zillow, it's just under 19%, but when you break it down by home value, in the lowest priced tier, one third of all borrowers are under water. go to the middle tier, 18% are under water, and then in the homes priced above $300k, the rate dropped to just 10%. the trouble is we need the lower-priced homes on the market. we need that for the first-time home buyers, but if you can't pay off the mortgage, you can't afford to sell it and put it on the market. adding to that is effective negative equity, or when you have less than 20% equity. well over a third of all
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borrowers are in a negative equity position. now, the numbers obviously vary market to market. so we have made a very cool interactive map on cnbc.com. you can scroll over your local market, so you want to check that out on the realty check page. really negative equity is keeping inventory on the market very low, keeping home sellers in place and keeping us from having a far more robust housing recovery. >> diana, thank you very much. susan walker is professor of real estate and finance at the university of pennsylvania, joins us frequently. susan, welcome back. implts thank you. >> she seems to be describing something i would call housing lock. is that what's taking place? >> that's a good expression. we certainly have lock-in for a substantial number of homeowners who would like to be sellers, but are not, which means the
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buyers can't get in at that price level, which they could afford. >> what this says to me is that the injury done in the middle of the last decade was so severe that we are still unwinding it in the middle of this decade. how long does this take? >> yes, that is of course is what is the surprise, this is the long-lasting gift of the housing boom and housing bust. we still have the impact of the deleverages of households still from too much debt, in particularly that low-income group in terms of homeowners, the bottom third are really feeling this still. it's still a serious problem. that holds up the entire housing recovery, makes it lower than it otherwise would be, instead of adding to the economic growth it's headwinds. >> how many roughly, very quickly, susan, how many of they
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underwater homes were mortgages that were sold to borrowers who shouldn't have ever taken them, and how many were bought about the borrowers, knowing they doesn't have much of a prayer to do it? who is responsible here? >> it is the legacy of 2007-2008, but we've got both sides responsible. we have lenders lending loans that certainly couldn't have been paid in a reasonable expectations, and borrowers that should have been looking more towards that are probably ability rather than hoping that prices would continue to go up. so there's responsibility that goes around to all the parties. >> it sure does. susan, the scars are deep. i get we're still healing. how do investors playhousing right now? the major stocks have been getting hit this year. there you see them all down, looking at the multidecimal
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returns there. dominic chu has about four names to watch. >> xhp, it tracks the home builders, we often talk about it. but again hold builders themselves don't make up the bulk. so think lowe's, home depot, william sonoma, those kinds of homes as well. >> but they are around this whole idea of creating or building -- >> one reason why you always need to know what the had ecis in your etf. >> exactly right. here are some names that aren't necessarily home builders, but notable in terms of their performance to the up side. usg, warren buffett owns a third of this company, drywall. >> wallboard. >> ceilings, this stock against is up about 5% year to date, and it's doing pretty decently, so it's a standout above the home-building industry as a whole. check out this one as well. again not a homebuilder.
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helen of troy. >> she trades publicly? >> you know what these guys are? you you this oxo, the tongs and slotted spoons with the rubber handles. oxo is a company that falls under helen of troy, also big consumer brands like brawn water filters, all helen of troy. they're up about 20% year to date. >> she's good. >> check out these ones. this is masco, delta faucets, everything, but look at the last quarter of that screen. you're starting to see a nice up move, so maybe swinging toward the up side. finally at name that is a traditional homebuilder, this is pulte group, again down 10%, but look at the right-hand side of the screen, maybe a butt of an up turn, so four stocks possibly to watch. >> thank you, dom. >> you got it. sue, down to you. the dow is at its low point
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of the day, some coming after mr. dudley's remarks that we were total about a short while ago. the s&p is off 11.46, the nasdaq is down about 27 points. take a look at some of these names. staples, urban outfitters, almost 7% loss for tjx companies, bebuy, l brands also on the list. they're all getting hammered. bob pisani is here to talk about what they're calling the retail wreck. >> the bottom lines, they all disappointed, but all of them either missed, other they're guiding lower for the second quarter. that's really why they're down here. staples guided lower, they're trying to remake that business, dick's guided lower, talking about golf and hunting week. tjx, second quarter is lower
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than consensus. home depot, they missed, but reiterated the full-year guidance, so not dropping the guidance is why that stock is up. what's going on? lots of misses, and it's not the weather anymore. stop that to talk about the weather, and it's not company specific. there's just a little less money. people are still buys electronics, games, still buying entertainment, just not that interested in apparel right now. >> bob, thank you very much. soits a great day to have david berman of berman capital with us, one of the most respected voices on the american consumer. he's with courtney reagan. >> david, when you were last with ugh in august, you talked about a paradigm shift. you still believe that even after today's report? >> absolutely. you know, that's what's so strange about the time we're living in right now.
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normally retailers week, that means consumer is weak, but that's not happening. it's a whole paradigm shift. people are spinning in other areas, particularly in the internet. it looks like consumers weak, because retail is weak, but it's not. >> you pay particular attention to samsung, apple and amazon. what's your theory there? >> we compile the numbers for every -- we have all the numbers from home depot, down to walmart, and then we get the numbers from apple, samsung and ebay, and we've got to obviously take out the u.s. numbers, and take out any foreman exchange. what we found is when we came here in august, when you have samsung, apple and amazon, the total sales of all those companies and compared it to the sales growth in america, it was 50% of the sales growth. this quarter, the last quarter, reduction was down about -- but that's without ebay.
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if you include ebay it's about 50%, so half -- >> we're buying, but sending on the cell phone bills or usable the tablets to shop? >> that's interesting to mention. we don't even include the cost of using the cell phone. yeah, we don't include that cost. and that's even higher. because you think about how much each person spends on the cell phone bill, that's that's even bigger. so really people are spending in other ways, spending more time on social media, which is taking away time from shopping in the mall. >> do you own apple, samsung and amazon? are those your favor shifts? >> well, what we do is we -- we like apple, we like apple. we think they're coming with a new cycle coming up.
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and we love amazon. it's hard to value amazon and really to come up with a price for them is difficult. they're not going away. this is like the new walmart, the walmart of our generation. you know, they are just doing everything right. their sales are growing much higher than the reported numbers, 222%, 23%, including offshore, doesn't include the third-matter, you know, the third-party sellers. if you include the third-party sellers -- on a -- >> bob pisani here, good to see you again here. i get your point about the consumer spending elsewhere. what do you do with these other stocks? i mean, staples, tjx, cato disappointing, these aren't company specific. what do you do with those companies lowering that i guidance? they're not seeing the necessary sales. we're in a secular decline of
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the retail, we really are. if you go and look at the companies you mentioned, most all of them have a ton of stock at a higher price. it's like they don't seem to understand what's going on. they also don't mention too much that the internet is hurting them, possibly because -- in most cases, not all cases, for example, home depot is somewhat immune to that -- the whole aparity sector, the apparel -- the nifb torrie and apparel was extremely high, and because of that, a lot of the companies like tj max and urban are missing numbers. it's not the only thing at all. the weather was taken into account by analysts. >> in picking up your point, what does it tell you about the teen and the missy retailers in particular? >> what we found is the inventories across the entire american companies was fine, october? the long-term trend was fine,
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but that's because tifs really good with the electronics and home improvements, but we dug deeper, it was really bad in the missy and teen sector. the inventories are way out of control. what that means, that's bad for everybody in that group. we think in the next week or two, you'll be hearing from all of these retailers, we think you're going to get, again, we say this two quarters ago, we're going to get horrible numbers again. >> just to finish up, you mentioned some companies you think are running well, many athletic names. >> people seem to be wanting to do a bit of athletics, there's always somebody coming you could, nike seems to be doing well, but it's hard to necessarily buy these companies, they're so expensive. companies like, you know that are still doing well, a new one would be skechers. another one would be, you know,
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everybody loves columbia sportswear, so there are quite a knew good names. and, of course, underarmour is one of the best. their sales growth is 36%. and of course the p.e. is high, but they're one of the winners as well. they're more brand names, not really competing against the internet. it's not really, you know, a retailers per se. footlocker, for example i think will report this week. >> they are a retailer. >> we'll watch that one closely. you've given us a lot to chew on, as we go through the rest of the retail season. thank you, david. >> thank you for having me on. i appreciate it. thank you very much. let's go back up to e.c., dom any chu has a market flash. >> check out what's happening with astrazeneca, when the
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company rejected pfizer's latest and last offer of $118 billion. today the company's 12th biggest shareholder, schroeder's voiced its disapproval, urging the company to get back to the bargaining table, but fidelity disagrees, so even the shareholders senior divided on this particular deal. you can see they're you will about 2% on the day. back over to you. >> he was at the table during nearly every key negotiation at the height of the financial crisis. michelle caruso-cabrera getting a rare interview with the biggest name in private equity. >> chris flowers is his name. he made a lot of money in japan. what he said today about japan was, frankly not so encouraging. we're going to tell you what he said about this popular market, and also talk about emerging signs in the eurozone about
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whether that crisis could be coming back. more "power lunch" in two minutes.
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welcome back to "power lunch." we want to draw your attention to what's happening with dow jones industrial average. hitting just above session lows, just off the session lows, almost a percent to the down side. leading the way lower are big names like caterpillar, saying the machinery sales fell 13% for the three months ending in april from the same time last year.
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also at&t, united tech nolgts, nike, walmart rounding out the bottom five, if that's what you want to call it, tyler. something to keep an eye on. >> thank you very much. you think our markets are volatile. check on you japan's nikkei, a wild ride down 13% year to date. look at the main japan etf, ewj, it's down almost 9%. last year that etf was up 23%. michelle caruso-cabrera is speaking with the investing titan chris flowers in a rare interview. >> he became famous in the world of private equity, as famous as one can become, when he did a successful investment in a japanese basic. he netted at least personally perhaps as much as a billion, at least half a billion. he seemed to be the perfect
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person to ask about prime minister abe's herculean efforts to turn around the japanese economic. his response was not encourag g encouraging. >> here's what i would say about abe-onomics. i've been there a hundred times, and the more i go, the more i realize people don't know what's going on. this is a political question, this is a question of remarkable people, who have shown before that they can pull up their socks and get it together, will do it this time. i don't think it's capable of nonpolitical analysis. >> i find it incredible when you say you don't know what's going on there. what do you mean? >> i find it an opage place, and i don't think i'm alone in that. i went to one of the most senior people in one of the biggest
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companies, and asked who do you work with on political matters? and he said, nobody. nobody? that's my point. >> that being said, he's extremely positive about his investment in the japan, when he's been with 15 years now. >> steve liesman is going to talk with us a bit about why bond yields are starting to piigs nations, port gan, italy, ireland, greece and spain. >> they put a floor underneath some of the problems. there's more to come in terms of the yield. i think the big story, if you take a step back and look at what happened with yields -- >> they came down a lot. >> very far. michelle was beside herself in her concern that they have fallen too low. they came back up 20, 30 basis points. i don't think it's over. i think what's happening is there's now almost full anticipation that the ecb is
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going to do something next month and maybe now is a time that if earp long these things, you made a lot of money, you came back, and you're right, they haven't solved these problems, they still fester. >> we looked at the yield on the portugal bond there. i mean, it fell down to, what, 345 on a ten-year and now it's 360, something like that? but 3.45 on a -- yeah, there it is. and now 397, those yields are lower than we ever would have expected a few years ago, right? michelle? >> yeah. absolutely. they're still at absolute low levels, for sure. when you look at the one-week charts, tyler, all those yields made a decisive move. >> what's driving it? >> two things happened. the gdp data was worse than expected. remember, if your economy sunday growing, you don't have as much tax revenue. it's harder to pay back all the
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debt you have incurred. the second thing that's going on, european parliament elections are going on. that's the parliament for the whole continent, not the individual countries. what we're finding is there is a drift in voters away from the parties that favor the european union to parties that don't favor the european union. that's a really big problem. >> michelle, i guess i kind of disagree. let me say for the record. every morning she would come in and say, steve, did you see those low rates? i don't hear either of those reasons, a real reason for rates to rise. i don't know that there's any real concern that thinks piigs nation or any nations will not pay their debt in the first place, and second of all, weaker growth is an issue i would think -- i guess i see more profit-taking out there. >> because you live in a country where we have had incredibly aggressive action from the federal reserve in the face of weak data. >> but we're going to get
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aggressive -- we're going to get action next month. are you not sure about that? >> it's aggressive for them. >> i think we'll have access that we haven't seen before from the ecb. for them it's aggressive, but it's not going to be considered aggressive enough for a lot of people. >> thank you, michelle, steve, appreciate that. as always. sue, down to you. >> i think michelle is right on this one. stocks taking a hit. take a look, down 130 points on the dow. s&p is down 12.3. we're getting the traders ease perspective, coming up next in two minutes' time. we're moving our company to new york state. the numbers are impressive. over 400,000 new private sector jobs... making new york state number two in the nation in new private sector job creation...
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welcome back to "power lunch." check out shares of allergan. the pharmaceutical saying tell not make an all-cash bit, saying it would improve the $47 billion offer for the maker of botox. it plans to announce the new bid on may 28th. shares up about a% and a half, allergan doing even better, up about 3%. we have a lot of volatility. once again, palladium is, however, up better than a percent. some fractional gains in the silver market, and a bit of a los in platinum, so you're up to date on that. let's check a check on the markets. kenny polcari is with us, it
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seems after dudley comments we were down, but then it took at leg down. >> it fueled that argument, because people realize, according to him, anyway, he's not necessarily wait waiting for the economy to improvement significantly before he suggests we should start raising rates. so the market is quite concerned about that, right? it fully expects we're going to end questie, then we're going t wait. >> it took the market off-guard. >> it cause them by surprise. also it's a holiday week, volume is very, very low, so therefore the moves will be more exaggerated as a result. so i wouldn't read too, too much into it, but be aware that that's what's going on behind the scenes. transports are down, and you know, the ten-year yield is sitting right at the 2.5% level. >> i think that continues to tell you that investors are in fact nervous about a slowing
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economy, and it's that flight to safety, right? whether or not they're earning any real money, they would rather be safe than not. >> and speaking of the economy, the retail numbers we saw this morning were horrible. >> not so good. >> they were really bad. that goes to the consumer not spending. >> and goes right to the argument, this conversation that you and i have been having about where are we really? what does the economy really feel like? if you speak to joe q. public, you get a very different feel about what people are thinking versus just looking at the government report. it's a very different tone. >> it is. >> absolutely. >> businesses on main street -- kenny, thank you very much. appreciate it. back to dom. sue, another down day to for the russell 2000, speaking about ways to gauge sentiment, currently down about almost 2%, the index is approaching correction territory, down more than 9% since it hit a record high. 10% is the -- among the
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laggards, cato, also or bits, stage stores, cal aware, and intercept pharmaceuticals, so a tough day overall. maybe it doesn't boat well for the future. back over to you. >> dominic, we're going to beef up the market coverage as stocks take a turn. right now the do you is off 133 points, s&p off 12 points, nasdaq composite down three quarters percent. and the russell down about 2%. the ten-year, there's the ten-year yield at 2.51. more power when we return in two minutes. she keeps you on your toes.
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welcome back to "power lunch." like we told you before the break, stocks have taken a turn to the down side. the s&p 500 just floating off its session lows right now, down about almost 0.7 of a%. the big laggards are the retailers, of course. all lower today on weaker earnings reports. best buy and petsmart are rounding out the bottom five, to retailers very much in focus. >> thank you so much, dom. word day that memorial salon kettering cancer center in new
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york has received a $100 million gift from henry cravis and his wife. he's a billionaire private equity investor, and that money will be put to very good work. stocks stumbling today, the stumble right now is triple digits to the down side. bob pisani will be with us in a few minutes and lynn tannenbaum, with an alternative asset manager with 4.6 billion under management joins me as well. good to see you. thanks so much for coming. we have a triple-digit decline in the market. i know you take a broncer and longer-term view, but what do you make of the markets right snow? >> i think the whole idea of weather-receipted slowness, you saw california -- california actually was slowing, even though the weather on the east coast is hitting, so i wonder whether this is not really coming up. it's nice when you take the punch bowl away, what happens?
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it takes time for it to hit the economy. as that comes out of the business -- out of the country, rather, you'll see more slowness. ty is in the conversation, too. ty? >> i wanted to ask you about the punch bowl and interest rates, so on and so forth. i am perplexed by the way investors react to every twitch that bill dudley or that mr. plosser, or mr. bullard remarks, they make comments about interest rates. we know several things. we know the fed is taking the stimulus out of the system. we expect that process will be done by the end of this year. we know, don't we, that sometime, sometime in the future, probably 2015, maybe around now, maybe a little later, next year, that interest rates may start to rise. so why does everybody react so harshly and violently when we
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get one more comment that says fundamentally that? >> you know what's even more amazing, you see investors pull out at the wrong time. you're sigh negative outflows, first time in a year and a half. i mean fifth street, we invest primarily in floating rate corporate debt. the whole idea is interest rates will go up, i try to fix my liabilities, float my assets. i issued a $250 million bond, triple b-minus rated at 5%. that same bond is trading at 4%. the demand for fixed rate, i'm surprised. i was a happy seller at 5. >> i bet you were. >> how about floating rate bank debt. i've had a lot of questions about the etf, the bkln is the symbol to that, they essentially invest in bank debt,ual it's hard to sell. if the market moves down, it's tougher to move out, but people have been buying them to protect against the rise in rates. >> i think you have to protect
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against the rice in rates. you have to think it's going to happen. think about it as an interest rate increase all right. you effectively have negative interest rates. now we're maybe negative 0.7, as it crosses zero, interest rates go up. what worries me about the market is we have -- the retail sales comments today were just terrible. >> i saw that. >> we have -- plosser is a bit of a hawk, but -- raising rates sooner, not a good com bin for a rising stock market. that's my worry. >> what gives is what you're saying. why do it? and i hate to say it and maybe i shouldn't, but it's an election cycle year. if you're up and obama is out of office in two years and you're in office, when do the democrats really want the slowness?
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it has to be the end of this year or next year, so the economy can rebound. they cycles ha many for a reason and over and over and over again. >> i wanted to turn you to japan. we also want to point out the market is now down 160 points on the trading session and the russell 200 we'll be watching as well, which is now down 2%, just above the 1,000 market on the russell 2000. len, we had chris flowers on the show a bit earlier. he said i don't understand what's going on in japan. if anybody should understand what's going on, you would think chris flowers would. that's a very worrisome statement to me. you also follow japan very closely. what do you make of what's going on in that country? and whether or not they can actually right the ship there? >> he said it was opage and never did understand it. he's been there by his own admission a hundred times. >> that's the scary thing.
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i'm going to tokyo next month. one of our good partners -- i got to know them very well and how they're thinks. the nice thing is they're expanding rapidly in the u.s., going for dollar-denominated assets. i'm seeing them lend a lot, especially to us. >> what about his comment? >> his comment -- well, you have 120 million people going to 90 million. a country in tag nation for a long period of time. 20 you have a lot of issues, right? that are very hard to reconcile. a consumption tax that's kicking in. a qe as a magnitude of 10x, so nobody really knows what the effect does, and i think that's why -- >> we may soon. >> we'll find out. >> i don't know if we want to know. we've got to get the japanese consumer going. without it stagnation. >> you have a decline in population. they basically need to let people into the country. >> they won't. >> and there's your big issue. immigration for japan.
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>> len, fascinating discussion. thanks for joining us. come back again soon. >> thank you for having me. to the bond market, rick santelli tracking the action. >> it's very interesting to following mr. tannenbaum, because the world talks as if it's aa fait accompli. it isn't an interest rate story, it's an equity story. always been an equity story the first five years of the year rates are going up. look what i ratchet up with the dow. rates are going back to the 2 and 5 eray. and yes, dudley's comments added to it. >> they're nervous about equities. it's a holiday week. the last chart, another reason they're nervous about ecity. fighting for its life. 14,000, in the states it's so much easier. just watch, 3921 and the nasdaq.
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that's what you want to watch. trust me, back to you. >> absolutely, you are right. you got a chuckle out of all of us, lassie could have barked and they wouldn't have paid attention anyway. all right. thank you very much. ty, you have to hit the road? >> yeah, i'm going to d.c. for the annual conference, i'll be reporting there all day tomorrow. these folks, stu, are the steward of your mutual fund money, your etf money. 13 trillion dollars in all, and we'll talk with them, men and women alike about the issues facing the industry and the investment hidesens. i'm going to get on the road and catch one of the sessions this afternoon i'll see you back here tomorrow. and safe travels, my dear. >> thanks, sue. still to come, the dow and s&p slipping big over the past week. more on the sudden drop to the markets and we're focusing on the nasdaq. coming up next.
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welcome back to "power lunch." s&p hitting session lows right now, down about 163 points, but let's look at some of the winners in today's trade. those stocks actually bucking the down trend. home depot is one of them, check out oneoak, and devon energy. there's an energy theme there. all safely in the green. anywhere from a person up to 2.5%, so, sue, a nice day for some of the stocks s. >> thank you, dom, very much. in terms of the biggest loser on a percentage basis, you can see the dow is down almost a full%. not far behind it is the s&p 500, but the biggest percentage loser is the nasdaq, down better than 1%. sheila dharmarajan has more. >> traders telling me, look,
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over the past three days we've been trying to push through certainly levels, now you're seeing the quick -- investors are -- that's over to scott rid her, but if you look at the nasdaq since april, we've basically been range-bound, talking about the nervousness that some people are feeling about the economy. we haven't been able to break out of any of these ranges. of course, a lot of talk about what's happening with small caps. heading near that correction territory. of course, a lot of people look at that very closely, particularly when it comes to nasdaq trends as well. there are some winners to talk about, though, it's not all about doom and gloom here. take a look at netflix, that stock is hanging on to gains after a positive note from the folks over add topaka. they say it's really the international story of netflix that's under-appreciated. >> thank you, sheila. it is super tuesday. six states are holding primaries
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welcome back to "power lunch." the dow industrials are hitting fresh session los.
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now at a three-week low. now leading the way lower, again caterpillar, at&t and boeing, ge, also visa as well. in fact there are only currently just about two dow components on the up side. those are home depot and procter & gamble. sue, decidedly down day so far. back over to you. >> absolutely. dom, thank you. six states are holding primaries today. it's super tuesday, with control of the senate on the line. so what are the key issues and how are democrats and republicans using them to motivate their base to vote this year? cnbc's washington correspond john harwood breaks it all down for us. hi, john. >> hi, sue. in the fall of election years, congress has a tradition of running down the capitol steps, leaving want and hitting the campaign trail. this year they don't need to do that, because this year washington is the campaign trail. republicans agree on this much -- there's little chance of
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new laws on any of the big issues they're talking about. they're talking about driving -- so for democrats, president obama calls for raising the minimum wage. >> a wage you can live on implts he does it because nine and ten democrats are in favor. senator chuck schumer hammers republicans on immigration -- >> the house has failed to do anything -- >> reporter: because 7 in 10 democrats want legal stat fuss for those already here. and leader nancy pelosi demands action on equal pay for women, because most democrats want new legal guarantees. for the opposing team. john boehner whacks away at obamacare, because 3 out of 4 republicans believe it could be fixed. congressman trey gowdy will direct a new benghazi committee, because 7 in 10 republicans think we haven't found the truth. darrell issa keeps his sometimes
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chaotic i.r.s. investigation going -- >> you're all free to leave, we've adjourned. >> reporter: because 7 in 10 believe that the white house told the i.r.s. to target conservatives. this is what makes everyone hate washington. at the moment, sue, republicans appear more motivated to punish democrats than the other way around. >> we will see. the results will be in. thanks, john, very much. let's see what's coming up next on "street signs." >> hey there, sue, yet another recall on general motors. is there something seriously wrong? or is not a preemptive mood. would you buy a surface pro 3? microsoft certainly hopes you will. and we'll bring you marco andretti. it will start in about two minutes' time on "street signs." make sure you join us, after the break.
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e financial noise financial noise
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financial noise financial noise dow down now, transports down 108, the s&p 500 is down 17. nasdaq composite, that's the worth performance in some two
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weeks down more than a full percent. the winners are the inverse etf cuss to tell you about. d.a.g. shorts the dow. the short on the s&p is up about half a percent, and if you bet big with leverages etfs, you're doing well. that's it for "power lunch." "street signs" begins right now. the crisis continues to grow at general motors. it is now recalling another 2.4 million cars. that's your top story today, folks, and we continue our investigation into what is going on at gm. that, plus on the accelerating stock sell-off. the real tail that retail can tell us about the american economy is really doing? and marco andretti to stops by, about why he may be the man to beat. >> and the dow dropping to a five-week low,

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