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

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watching. he was uninjured. quickly regains consciousness, actually smiles when it's all done, shakes his buddy's hand. the worst trade of the guys who run in who don't even run in to see if he's okay. that does it for us. "power lunch" starts now. halftime is over. the second half of the trading day -- indeed it does. welcome to "power lunch." markets hitting new all-time highs. we're on dow's 17,000 watch. we're just about 40 points or so away. different story for wall street's so-called fear index, the sixth plunging to a seven-year low. is complacency a worry, or perhaps not? how to invest in a market like this?
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we're not bluffing. there have been some big changes at the department of justice. tyler is on vacation. simon is my partner. >> yeah, the monumental approach heading towards 17,000. now 46 points away. sarah eisen is joining us on the floor of the new york stock exchange with more details. >> we're on dow's 17,000 watch. certainly if you look at the action today of what is driving the gains in the dow jones industrial average, and we are it looks like less than 40 points away here. caterpillar is the biggest -- merck had been a big gainer. it's a milestone, a psychological number, and it
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represents the steady climb that we have seen both in the dow and the s&p 500. we're heading for six straight sessions of gains. there is the dow jones industrial average over one year. last time we saw the big number, that was 16,000, was november 2013. so talk about seven months. interestingly enough, simon, seven months before that is when we saw the 15,000 left. the point is you're rising 1,000 points every seven months, therefore you could rise another thousand point by january, sue, which would be a gain of almost 6% for january, if you kept up the pace, though that's a huge question. back to you. >> it sure is, but you never know in this market especially. thank you sarah and simon. after a rough couple months, the russell 2000 has been staging a comeback. the russell small-cap index is up 2% this week, up 6% over the past month. seema mody is looking at what's driving the rebound for us.
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>> hi, sue. that's right. after trading near correction territory, the russell 2000 has been staging a major comeback, outperforming the s&p 500 and the nasdaq over the past one month, so what's driving this rebound? well, market participants i spoke to track the russell as well as small-cap stocks, a drop in price earlier this year is being seen by some as a good buying opportunity many of the stocks are on mistically identix, and open table being acquired by priceline. we also screened for stocks in the russell 200 that had gained momentum and still trading at an attractive average. blooming brands, and supervalu,
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though an analyst was cautious, saying it's still in the early innings of the turnaround strategy. >> i spot to an fort folio manager and he said the rally is overextended, in that you may see investors start to take money off the table. >> seema, thank you. so as stocks hit new all-time highs, the fear index interestingly is hitting seven-year lows, down about 23% so far this year, jim iuorio is here. many would say it's a broken indicator. >> i don't think it's a broken indicator. and that any time there would be a significant correction or weakness in the stock market, it
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would be met with more central bank accommodate, but the second part is people don't consider this as much. the lack of safe yield everywhere has created this culture of options selling, depressing the price of option, in order to enhance the yield fort folio. i think it's an amazing opportunity for people to replicate the long position in stocks. it's like renting instead of buying stocks. that's what i'm doing now. >> interesting. okay, jim, thank you very much. jim iuorio there. with the market flash, here's morgan. >> check on the carmax. vehicle unit sales rising nearly 10% income from the company's auto finance business rote 8.7%, the stock currently trading up about 18%. auto nation also higher, goldman sachs upgrades the car retailer based on a strong growth
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outlook. auto nation trading up as well about 3%. simon and sue, back to you. >> the dow and s&p hitting new intraday highs, and rebound in the small caps. sounds good if you're bullish. joining us you are two fund managers who say u.s. manufacturing is coming back. they're bullish on industrials. eric marshall is co-portfolio manage of the fire-and ron sloan is chief investment officer of invesco's global core equity team. happy friday. let me start with you, eric, if i can't. if manufacturing is coming back, that certainly does bode well. those those who say, though, that this market is fairly valued, maybe a little bit overvalued, are you still finding places to put cash to work? >> you know when the markets near a 52-week high, i think it's important to for him cuss on valuations, and we're out there talking to a lot of companies. you can still find pockets of
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opportunity, but it's important i think to do active stock selection. within the industrials group, we like thing likes capstone paper. they're seeing very good pricing power in cardboard and those types of packaging materials. trinity industries, which makes railcars, as well as u.s. concrete. we see a real pickup in nonresidential commercial construction which would be a good for a lot of those basic materials companies out there. >> i understand you're bullish on energy and oil. is it based on other fundamentals than the oil situation? >> no, i think the gee on political situation maybe has some impact, but we became overweighted in the whole energy patch beginning last fall. we subscribe to the nothing that look, if the fed is successful and we get higher nominal
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growth, energy will be right in the middle of that. the argument, the bearish argument about there are missing barrels of oil, they're not being counted, whatever, we think that's largely a buvg. we think there is no hiding place for oil barrels. we do a great job of measuring supply wore probably undermeshing even internal and u.s. developed -- so i think there's a fundamental we saw it move up sharply. that's a worry to some. we know the fed wants some inflation there everywhere, but is it too much at this point? >> well, i think it's really a
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function of improving demand out there. so eventually, you know, inflation will start to work its way into the system. i think right now it's still very measurable. i think that's why you want to focus on companies that have good pricing power in their underlying business. tess hodges fund, we're also very bullish on the domestic energy market. we see that as a real advantage and we see that as kind of the second coming of the american industrial revolution. we haven't measured earnings growth or revenue growth outside
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of price increases. i don't expect we'll get back to that. i think the fed wants 2% to 4% inflation. beyond that is another story, but up to that, i think we're okay. >> pleasure to have you with us. >> thank you. simon, down to you. >> let me pick up that theme. billionaire investor cowrote an op-ed in this morning's "wall street journal," saying the bond buying is holding back the, and in particular he believes small businesses. he says, quote, the country needs an exit from 2% growth to 2% growth trap, as he calls it. there are no shortuss through fed engineered balance sheet wealth creation. the sooner and more predictably thefold exits its extraordinary monetary accommodation, he says the sooner business can get back to business and labor can get back to work. is he right or is she wrong? our own steve liesman thinks he's wrong. steve, why? >> i want to give them an incomplete and suggest make there's a logical fallacy, in
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that they say because fed policy is easy, and business investment alone, one must be causing the other, but when i look at the data, and by the way, both the dreckmiller who wrote the piece with kevin -- then i see business investment ticking up as a result or in response to quantitative easing. true, it's been uneven, it's been not as high or as strong as what people would have liked. then if you look at -- what is the best way to raise business investment? that's to raise asset prices. i looked at over the last 30 years, there's a 90% correlation right there between rising stock prices and rising investment. the notion that raising stock prices is hurting investment. that seems to be -- beg a little explanation from the two of them, who obviously are smart guys. one of the things i want to show you guys, ipos they have been booming, if that's true, i don't know that they have much of a
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point. year to date 60% growth in ipos, 2013 the best year in a decade, up 73%, those are jobs that are created as a result of that. this is according to renaissance capital. i think there maybe be some kind of connection there, but i think they have to provide some evidence and refute this idea that fed qe seems to comes in response to low business investment and business investment needs to pick up in the wake of it. >> it's a hot debate. steve, thank you very much. steve liesman back there. >> he will be pardon of cnbc's fourth annual delivers alpha conference, this year on wednesday july 16th in new york city, where the top players in the investor community, politics and the economy get together to tack the critical issues facing investors today, and the likes of sue and i turn up for cocktails at the end. >> yes indeed we do, simon. thank you very much. our michelle caruso-cabrera is still in northern iraq for us once again today. it's been another day filled
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with very heavy fighting. over to you, michelle. >> we'll have those details coming up on "power lunch." also, the biggest threat to iraq's unity may not be the sunni terror group. i'll show you one thing that baghdad is reay afraid of, coming up next in two minutes. just take a closer look. it works how you want to work. with a fidelity investment professional... or managing your investments on your own. helping you find new ways to plan for retirement. and save on taxes where you can. so you can invest in the life that you want today. tap into the full power of your fidelity greenline. call or come in today for a free one-on-one review.
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check out starbucks. they're raying prices. next week customers can also expect to pay $1 more in packaged coffee it sells. trading down just about 1%. simon, back to you. >> 51 points away from dow's 17,000, despite the fact that fierce fighting continues today between rebel sunnis and iraq, government forces over the company's oil infrastructure. of course secretary of state john kerry is heading to iraq now one day after president obama said he would send in now 300 military advisers in addition to the 275 that are guarding the embassies. our chief international correspondent michelle caruso-cabrera is live in northern iraq with more. michelle? >> we focused so much on whether or not iraq could be ripped apart by the civil war. there's another big issue out there, simon. it could be that iraq's unity isn't the greatest threat to iraq's unity isn't necessarily i.s.i.s., but it could be this. take a look.
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we are showing all refinery capable of processing 100,000 barrels of crude owl per day. what's key about it, it's locate indeed kurdistan. the refinery is emblematic to kurdistan's push to have the own oil industry in defiance of the -- kurdistan is a semiautonomous region of iraq, and the kurds have long dreamed of their own independent country, but to be dependent they need money. beneath them 45 billion barrel, to drill for and export their own oil. she say they would share the revenue with, but baghdad would have none of it. they won't even let them use the pipeline that iraq has to turkey. so what did kurdistan do? it built its own pipeline completely bypassing iraq proper and directly connecting to the port in turkey. he loaded up a tanker, it made
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front page news here in kurdistan. the headline i'm showing you reads kurdistan will now have its own economy. they have since loded up two more tankers, but here's the problem. because the oil is disputed and the central government of baghdad is threatening to sue people who buy it, they've really struggled to find a buyer, that is until today. reuters reports that one of those tankers is going to dock in israel tomorrow, and finally at least 1 million barrels of crude oil will be unloaded. there's still two more tankers floating out there. when i spoke with the minister of foreign affairs earlier this week, i asked if the oil would finally get sold, because many consider it disputed and potentially illegal. >> it could be sold and there is no legal dispute. we are determined to go down that road and that would be and in age in the history of the kurdish people.
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we are legitimate in the region. whatever we do here is legal and constitutional. >> reporter: so why is the presence of oil, a refinery a threat to iraqi unity? because a lot of experts say this could be the moment where kurdistan finally says we are going to go independent. we have the money and now maybe they have the leverage to tell baghdad we're going to go. the kurdistan government says, who us? no, we would never do such a thing, but when you read the newspapers here, they publish maps like this, the new iraq, and they divide the country up, and by the way, they show kurdistan bigger than it is right now. here's the second one from a newspaper earlier this week. this is a really key issue. guys, back to you. >> it really is, michelle. whenever there's opportunity like that or big change like that, we wonder if there's publicly traded companies trying to take advantage of the situation. >> so for a long time, the
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majors were afraid to do anything here, because the baghdad government said they would debt blacklisted, then exxon got a exploration license, so several companies, and then if you want add pure kurdistan play there are two that trade in europe. dno, and also genel, founded by, guess who? tony hayward? remember he was running bp back during the spill in the gulf of mexi mexico. >> michelle, thank you. appreciate it very much. let's pick up on that with our next guest, who ran the kriismt aeis cia's operation . it's a pleasure to have you on "power lunch." >> a pleasure to be here. >> i'm going to go right to michelle's report, because i think it plays into what you think might be the desired
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outcome. which would be perhaps separate states in iraq? >> i think we are watching the dissolution of iraq right now. the kurds have kirkuk. the kurds have oil. it will be difficult for the central government to reassert its authority. so de facto we have a kurdish state. the big problem the kurds will face is the reaction. we're watching in the sunni heartland pretty much go its own way. it will remain to be seen in the next few days whether the central government can launch an offensive that can recapture it, but again de facto we have a sunni heartland that's almost independent. >> but would the obama administration be able to accept that if instead we did end up with various stakes within iraq? >> i think one of the things we have to worry about is what the regional players will accept. the u.s. has limited influence in the kurdish north, more important slid is what the
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iranians or turks will accept. if they are comfortable with comfortable with a kurdish state, there's very little what the u.s. can do. >> what should president obama do at this point? we heard his news conference. he is sending in 300 green berets. do you approve of his approach having spent so much time in that region? >> i think we should have a very measured approach. u.s. policy too often is ready/fire/aim. i think we need to figure out what the outcome should be. the outcome we want in iraq will dictate the course of action. i think moving steadily is a good idea. the problem is there is no military solution to what's happening in iraq. it will be a political solution. the existing government, malaki is at least 50% of the problem. just as importantly, if malaki is removed, what is going to succeed him? who is going to be in power? >> who comes next? >> yeah. >> what about engaging iran?
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good idea or bad idea? >> i think it's a very practical idea. iran is a major player in iraq. iran has had a great deal of influence. it's it qods force in iran for years. not to engage iran on the iraq issue would be foolish. we would be heading in a different course and potentially run into conflicts that will hamper or ability. >> sir, thank you so much for joining us. we appreciate it. >> you're welcome. >> as this continues, i know you'll be back >> thank you very much. a pleasure. we are watching another hot spot. just a short time ago ukraine's new president ordered its forces to cease fire for one week. it would be the first step? a more permanent peace deal. we will watch that care in i. sue, ahead of the show online pocker, the stakes are high. that story is next. plus in housing, the rental market is alive and well.
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diana olick is in washington. diana? >> investors who turn their noses up at all this last year, well, they missed the boat. we'll tell you how to play the apartment sector now, coming up next on "power lunch." type 2 ds millions of us. and for many, it's a struggle to keep your a1c down. so imagine -- what if there was a new class of medicine that works differently to lower blood sugar? imagine...loving your numbers. introducing once-daily invokana®. it's the first of a new kind of prescription medicine that's used along with diet and exercise to lower blood sugar in adults with type 2 diabetes. invokana® is a once-daily pill that works around the clock to help lower a1c. here's how. the kidneys allow sugar to be absorbed back into the body.
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welcome back. check out medtronic, the medical device maker said in a regulatory filing it was victim to a cyberattack last year. they concluded the intrusion-day-old breach any of spaces where it spored data. simon, back to you. >> morgan, thank you. the rental market is alive and well. apartment occupancy is at the highest level in six years. investors, they're taking notice. diana olick is live at a construction site in washington. diana? >> reporter: well, simon, look up into any apartment unit above you. the odds are the fill. this as thousands of units like this are coming online.
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up nearly 20% year to day it was the strongest in 16 months. no surprise, the surge in demand is fueling new start upto make the experience ever smoother. cites and app.s put listings in yours hand, let you pay your rent and get stuff fixed while you're at it. a new one called swaps launches out of beta later this month. it's not they brand-new buildings getting all the love. apartment occupancy is surging everywhere, was more people are
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moving to more class b apartments. these are perhaps not in the best location, but certainly come in as a lower render. >> sue? >> thanks, diana very much. gold had a huge day and prices are closing right now. jackie deangelis is tracking the amount. >> reporter: gold pretty much flat on the day after that big spike higher, $42. some traders say this is profit taking today and a bit of wait-and-see. yesterday's move was a little surprising to them. we brow through some key resistance leaves, lost some steam, but to close out the week, gold is up still more than 3%. for the month a little less than 2%. while some are saying it was inflation yesterday that fueled the move higher, others are saying it was funds, reallocating their assets and some safe haven buying. i'm here with tommy vitiello, and i want to ask you, what do you think the most important factor is yesterday in the move?
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>> well, it was a perfect storm. we had a market structure where a lot of people were short into last month they got short below the 1260 left. a lot of people got hurt, they're expecting it to make a new low. once that failed, it start to do rally and creep higher. it wasn't very strong rally, and it started to creep higher. once above 1280, you saw a lot of shorts covering, a lot of it was the catalyst of yellen's speech. she spoke more dovish in terms of inflation. >> are you surprised by what we're seeing how it leveled off? >> i think a lot of yesterday was short covering. it's not very significant, but a lot of it was matched, so people got out of their shorts, some new longs added, but there was a lot of physical selling, mostly selling.
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so. >> tommy, thank you so much. simon, back over to you. >> jackie thank you very much. from missing profit estimates, coming in in line, those numbers have, which it's classifies as a discontinued operation, but the soon to be sold chain. activist investor carl icahn is demanding that family dollar put itself up for sale. and molson cooupgraded. we're about 50 some odd points from dow's 17,000, so where is that money coming from? well, in the early part of the session it was coming out of bond market. right now we have the ten-year yielding with a you're topodate
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on the bond market and interest rates, simon. >> well, the markets are extremely interesting at this point. we are 64 points away from dow's 17,000. 69 companies in the s&p 500 are making all-time highs. it's been a great week. this week we've risen on the s&p 1.3%. can you imagine if that happened every 52 weeks of the year? so will another week -- will next week be ate great week? we'll look at how the traders are positioning themselves, next. tomorrow marks the official day of summer. we'll look at the stocks that outperform the market during the hottest -- or the hottest three months of the year. the results may surprise you. we want to hear from you as well. go vote, ♪
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welcome back to "power lunch." check out nu corp, the steel maker forecast a rice, but likely at the low end of the previous outlook, this after an outage in a new facility in louisiana. sue, back to you. >> morgan, thank you. the major archeses are ending on a strong note this week. the dow is on a -- the first six-day wins streak. s&p 500 also on track for six consecutive days of gains. down 23% this year. >> let's bring in kenny polcari and dom chu. the vehicles is up 3.5% as we approach the 17,000 market. >> it's interesting.
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>> when we talk about the vix, it's very rare when we hear people -- only because it's such a volatile index, it is hard to peg one particular moment. what i will say is that it does give some this idea there may be xlazancy in the market. when you see this left of inactivity, the options market, which is what the vix is basically telling you, is where the options market things you'll here morened and more investors talking about ways to hedge their vote -- when the vix is this low on a relative basis, that means that protection, insurance if you will, on your portfolio, is downright cheap. that may be a theme you see developing. >> kenny, weigh in on that, if you will. 17,000 is that big round number,
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but it's a number the bulls will make a run at. >> i don't expect it's going to be balloon falling from the ceilings and bells and whistles. i think they'll make a run at it, it's going to hit some resistance and the market will back off a bit. look at the chart on the dow or the s&p. it's just a straight line up. almost parabolic. >> no real pull backs. >> so therefore, like we say, it's the most hated rally ever, but at some point it's going to hit some resistance and people will start to think about where are we based on fundamentals, versus what the market -- versus what the fundamentals are telling us. >> gentlemen, thank you. good to see you, as always. simon, down to you. >> sue, online poker has frozen out for most of this country for a while. as casinos -- brick and mortar operators consolidate and fold, as we saw with atlantic city's
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revel, in this is -- it seems like it's only a matter of time before things go all in on online poker, but powerful road blocks remain like representative jason chaff its, who thinks having a casino on your smartphone is limp aa bad idea and calling for a nationwide ban. meanwhile, tom russell,s casino backed from a coalition, is pushing for online. if you're watching this at home, your opinion counts, go to, and let us know -- should online poker in america be made legal? i6r7b8g9s let me kick off with you. we should men, of course, as things stand, things have changed over the last couple years, because the doj is reinterpreting laws, and essentially making it possible to reintroduce online poker in senior states. why are you joining us with
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senator graham? >> well, for more than 50 years the wire act prohibited the transfer of money for the purposes of gambling over wight. for the obama administration to just unilaterally and in one small document a day and a half before christmas to say, no, they misplaced this comma, we do believe that the internet is not wires, and you can transfer money over the internet for gambling purposes, we think is wrong. if you're for gambling and you want it on the internet, come to congress and pass a bill, but let's not have one person in the bowels of the department of justice try to change it unilaterally. >> tom, why do you disagree with that view? >> first off, we have gambling over the internet right now. there's an estimated $40 billion worldwide market. 10% of that is coming out of
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america the reality is its illegal to -- so we need to recognize the reality. there is gambling online in america. it's just going to the offshore markets, many of which are very unsafe. they lack any consumer protections. they lack protections to stop minors from gaming. frankly they lack protection against fraud and they're not run by licensed operators. so we look at the future, we need to be focused to make what makes interneat gaming safe and frankly locking in a national ban that essentially pushes that entire 10% of the global market into these offshore markets? we don't think that's the best public policy for us going forward. >> we should remind people at home you can vote on this in real time. by logging on to what is fascinating -- what adding extra detail to the
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debate is that you are both backed by different parts of the gaming industry. in fact, you can't argue, and some do, there's a bitter civil war within the gaming industry. tom, sthat's also part of the picture, is it not, chasen? >> it's a bit irrelevant in my case. in the state of utah, we have no gambling. we don't want there to suddenly be gambling with 13-year-olds with app.s on their phone gambling. it is illegal to gamble over the internet with this is offshore sites. if you do believe that gambling over the internet is the right thing to do, come to congress, make your case and pass your bill. just don't have one person make that decision and don't tell me
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it's prevalent and people are getting around the law anyway, so let's make it legal. there is a process in this country. that's to go to congress and make this happen. i don't think putting an app. on everybody's smartphone so 13-year-olds can gamble is the right thing. >> tom russell how defoal about your opponent -- it is process through congress to reverse the law? >> well, number one, i think it's unfortunate, though i think it's good to focus on what congressman chafe its pointed out. all we're asking for is that states have the opportunity to make the decision what's right for them. >> exactly. that's why the one person should not just change the because. what the obama administration is doing is going to force gambling into the state of utah. that's not right. >> that's not the case at all, congressman. >> this is a states rights issue, and that's why restoring
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america's wire act is the right piece of legislation. >> that is absolutely not the right path forward. you talk about people in new jersey, people in delaware, nevada, other states that have offered online products through the lotteries, you will go to people in new jersey and say the consumers protections that you have put in place, the legal fair options that you have put in place for online gaming are going to be taken away and those folks already fobbed on to the black market again. >> it is clearly a heated debate. we thank you for your time. you have exposed a lot of the issues which cut very deeply for a lot of people. tom russell, and congress mast jason chaffitz, thank you. the results of the viewer vote, should online poker be legal in this country? you can see that 65% say yes, and 35%, which address up to
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100, which is good, say no. it's great to see it moving in real time. >> i think it's fantastic, and we thank the viewers for coming in and making their opinions heard. i think it will be interesting to see how this all plays out. the saferguards that they put in place for minors, because one you do get it on a mobile device, i think that makes it difficult. i'm not saying i disagree. i'm just saying -- >> there are many things in this country that are available for adults, and we have -- we don't stop the adults from having it. >> i think that's really true, simon. you know it's summer. we have summer sizzlers, and new details about what an apple i watch may look like. >> the stock that is outperform. that's in just a few minutes. get ready to vote. josh, over to you.
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>> morgan appear cooling launches its own smart watch as early as october. we'll talk about some of the possible features, when "power lunch" continues. ♪ [ female announcer ] we love our smartphones. and now telcos using hp big data solutions are feeling the love, too. by offering things like on-the-spot data upgrades -- an idea that reduced overcharge complaints by 98%. no matter how fast your business needs to adapt, if hp big data solutions can keep wireless customers smiling, imagine what they can do for yours. make it matter. i make a lot of purchases foand i get ass.t they can do lot in returnurs. with ink plus from chase. like 50,000 bonus points when i spent $5,000 in the first 3 months after i opened my account. and i earn 5 times the rewards on internet,
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our morgan brennan is looking at the stocks that -- when the hottest three months of the year. we want to hear from you. are you buying stocks this summer she tried to say. over to you, morgan? we all know the mantra sell in may and go amp. >> call them summer sizzlers. we look at the ruzle 1000. apple has gained every one of
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past five summers, a number of analysts still rate this a buy, up about 2% so far. so take a look at lion's gait. the gearing up for the next "hunger games" come fall. travel and leisure do well. priceline averaging a 26% return this time of year, and expedia, a 14% return. and that just got an analyst upgrade. also gaming stocks like wynn, that's averaged 13% this time of year. two beverage companies, quons laze brands has offered a heady 20%, and keurig green mountain
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has jumped as average of 17% -- the summer. let's look at the percentage. 47% said definitely. wow, no is changing rapidly. 26% said no, and basically 27 said only if the market falls a bit. morgan, i guess they're looking for the pull back that hasn't really come in this market. >> looks like. >> different colored straps, new details on what apple's new iwatch may look like and when it will be released. simon, if you're interested in buying apple smart watch, you might be in luck. apple reportedly close to launching a watch as it competes with wearables such as google and samsung.
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idc estimates that global sales of wearables will triple this year to more than 19 million units. reuters now reporting that mass production of an apple watch will start in july. the watch will measure 2 1/2 inches diagonally, and perform some functions independently. with feel of the products release. the "wall street journal" also weighing in, saying that apple is planning multimall versions of a smart watch. though the journal says that shipments of the watch estimate the total between 10 and 15 units by the end of this year. there is a lot of excitement and interest about as apple watch, though not everybody is convinced it would be a smart move. >> i'm not a big fan of the smart watch. i think it looks kind of dorky, and not that big of a deal to
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look at your phone. looking at the watch, you know, is the same as looking at the phone. >> of course, we still don't know the specs of this device. the app. partners are all open questions. one former apple executive did tell me if apple does launch a watch then the tech titan would officially be in the jewelry business. the watch has to be an accessory the consumers are proud to wear. >> i would great with that, josh. thank you very much. coffee prices are plunging over the past few weeks, but if you take a longer view, it's one of this years as hottest commodity. jane wells, with what it means for the big java names. sorry to interrupt. >> that's my tenth cup of the day. i was up early on quake. it should be good news, you know, starbucks, dunkin', right? we'll have more after the break.
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that's why i always choose the fastest intern.r slow. the fastest printer. the fastest lunch. turkey club. the fastest pencil sharpener. the fastest elevator. the fastest speed dial. the fastest office plant. so why wouldn't i choose the fastest wifi? i would. switch to comcast business internet and get the fastest wifi included. comcast business. built for business. coffee prices dropping 5% over the past month, but still one of the year's biggest commodity gainers. jane wells is in l.a. with more. >> hey, simon, it's been an interesting story. dunkin' donuts says it's not a
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big deal, but starbucks is raising prices. first, as it turns out a drought in brazil, the largest producer of arabica beans has jumped. one analyst say demand in china is growing. more are switching from tea to coffee. starbucks next week will raise prices on some drinks for the first time in a year. >> i was doing five times a week, but cut it down to three. >> why is that? >> just saves money. >> coffee prices changing is not affecting my. >> i'm not going to cut back on it as long as it's good. >> need it, gets me going all day. >> what's the alternative? >> what is it? well, you know, red bull starbucks will raise prices 8% on its packening aed coffee to bring prices back up. bernstein says the latest
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nielsen numbers shows starbucks is losing a little share on packaged coffee on store shelves. thank you, jane. that's it for "power lunch." thank you, simon. "street signs" is next. indeed it is. coming up, humanitarian crisis prompting very serious calls for immigration reform. we'll dale bite. we thought it could never happen, but why america has reached the peak of all you can eat. and guns and goals. more after this break.
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welcome to winning streak friday on "street signs." we're in the midst of what could be a six-day winning streak for the dow. more of that slow meltup. but the southern u.s. borders are in the middle of a meltdown. vice president joe biden is in central america now, trying to discourage the rush, and guns, gold and processed cheese? all the things that make america great are all making market news today as well. we'll have the goods for


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