tv Power Lunch CNBC June 30, 2014 1:00pm-2:01pm EDT
>> microsoft, buying out there. going higher. >> josh brown? >> ford wants 18 so bad. >> quanta services. >> i like apple the next couple of weeks. >> i will see you tonight at 5:00 for more "fast." meantime, "power lunch" starts now. half sometime over, "power lunch" and the second half of the trading day start right now. which big caps are the better caps? s & p 500 and doubt come in with different performances the first half of the year it is a real divergence. the s & p up 6%, which will fare better in the second half of the year? no more needles, one company's giant step forward in eliminating shots. the fda signed off on the technology and investors absolutely love it today. so, what's next? and mood manipulation over at facebook. the social media network's in hot water with some users for messing with their feelings. but we start with the bigger
and better caps. tyler he is a out today. sue down on the floor, the new york stock exchange. over to you. >> thank you, simon. the s & p 500 beating the dow industrials by a long shot so far this year. check out the chart. the s & p 300% better than the dow. investors and traders play these through the etf market. the dia covers the dow stocks and sp kwlchlt, s & p 500. which might fare better in the second half? mike holland is chairman of holland and company and lee part ridge, chief investment officer at salient partners a great team to talk about this mike, let me start with you, if i could. you do not believe the bull run is over, there is more ahead. which of the two indices i talked about do you think might fare better the second half? >> the second half is quite a short period of time. i think the divergence will probably narrow. i think we have had, a few years ago, the big cap stocks so undervalued relative to the rest of the market stocks like intel, microsoft, in fact, so cheap,
they way outperformed, the dow jones -- outperformed the s & p a lot a few years ago, now some reversal of that toward the end of the year, see pretty much in a tie race, could be well they get rid of the divergence. >> would you agree with that, the divergence narrows? >> might bring us up a good point. we would expect the dow to generate nice returns toward the latter half of the year. you really look at what drove the s & p 500, important to know it is a broad-based index, capturing a lot of elements of the economy. one of the things we note is that it's hard to pin the difference on any one theme, other than maybe looking at the new economy stocks versus old economy stocks, like williams versus exxon or green mountain versus proctor and gam bell, so you're capturing that and then this push for a yield dropping some of the returns as well. and just a broader net cast over thesome and p 500. now the reason we think it is going to reverse, we think
quality will come back into affect and stable companies in the dow will start to really realize some of their strides toward the end of the year. >> mike, what would you be adding to the portfolio at this point if you have cash and if you want the search for yield, as lee just mentioned, included in those picks? what do you like? >> some of the fattest yields, sue, are, of all places in technology. heard a second ago, pete najarian talk about microsoft. got intel. stocks like that. apple, huge yields on these, way more than the treasury bonds, treasury notes. in fact, you got very low valuations, give the quality that lee just talked about. >> all right. stay right there. we are going to talk a pause and go to seem mark the nasdaq and the russell 2,000, the stars this month, both up 4%. seema is at the nasdaq. looking at the biggest winners and losers and what to expect going forward. >> that is right. the rebound of social media and internet stocks hedge the nasdaq close out the month with a gain, but you know, it's the russell
2,000 that is really catching the attention of traders now on track for its best monthly performance in 2014. oppenheimer says a couple of drivers here. first, the realization that the index had been oversold after that big drop we saw in small caps earlier this year. second is m and a activity, a catalyst as large caps in tech and pharma have been shopping for smaller cap names add strategic value. third is evidence the economy is improving, looking forward, citi says signs of improving, economic activity set the stage for an earnings pickup, sequentially and year-over-year for the small caps, although they do say that valuation still remains a concern. sue, we have seen this big move in the last monthen the russell 2,000 is only up about 2% for the year, while the nasdaq 100 is up about 7%, thanks to this rebound in tech that we've seen. >> all right, seema, thank you very much, seema. mike, do you expect the naz dang and the russell 2,000 to continue their run as we go further into the summer? i know it's a short timeframe. what do you think?
>> quick answer, sue, is yes. i think the wind is at the back. what's in motion tends to stay in motion and in a situation like this. so i would expect that people -- seema just talked about the m & a thing, up 75% year-over-year globally. i don't think that is going to go away. companies and individuals probably would power this. >> lee, you know, there are those down here who are pointing out the fact we really haven't had a pause in some, what, six, seven quarters now in this market, so, dos that worry you? >> yeah, not really. we keep thinking about the number two, just to kind of simplify things. 2% growth in the overall economy. we are running below 2% inflation. we think the yields are kind of migrating become down to 2% in the term treasury market. and then, we think we will see 2,000 on the s & p 500 before the year's up. when we look at some of the growth stories, i think mike made some good points, we have seen acquirers being rewarded
for acquisitions because the hurdle rate is cash. they are earning zero with cash on the balance sheet, deploying that to multiple companies and bringing it back into the fold so they are getting rewarded by shareholders and shareholders really telling them, take risk now and a much better risk/reward tradeoff than credit s >> certainly is an interesting time. mike, you get the final word. i know you were just in london for the china fund meeting. what did you see there about china and asia and what's the consensus? >> listening to people, sue, on the ground in shanghai and elsewhere is the stability has returned. the slowdown that government engineered was surge is he isful. they are now bringing them out of that. the stocks are reflecting hard land probably. banks over there selling less than 5 times earnings, 5% yield, like 1970s in the u.s. market, so expectations are very low and my guess is that we are gonna get some surprise to the upside the next couple of years in the economy there and in the market.
>> all right, gentlemen, a pleasure. good to see you both. thanks for joining us. >> thank you, sue. bertha coombs now for a market flash. >> hi, sue. international paper getting the bounce today, moving higher after the publication over the weekend. so the stock could rise some 40% the last 12 months due to an improving global economy. it also said the company is turning its attention to returninging more capital to shareholders as a possible stock buyback or higher dividend. the stock currently trading up about 2 1/2%. simon, i know you like paper a lot. even though you're digital, you a still use paper. >> thank you very much, bertha. general motors unveiling how to plans to compensate families of those killed or injured as a result of those defective ignition switches in 2.6 million gm cars. phil lebeau is in washington with that. >> the fund expected to pay out within 90 to 180 days. here were the determinations announced today as far as the plan. its unveiling today has a lot of people saying how many of these
people actually get money and how do they determine that? there's no cap on the settlement awards, could be $5 million, could be $10 million, death victims are guaranteed to get -- families get at least $1 million. injury victims, at least $20,000, we should point out with some injury victims could be 5, 6, 7 million. the claims again will be paid within 90 to 180 days. here is attorney ken feinberg explaining how he will determine what award will go to either victims or their families. >> what did the individual victim, whether the death claim what would that person have made over a lifetime but for this horrible accident? what about non-economic, pain and suffering? the individual cases vary from case to case to case. >> fineberg has done this in other instances in the past has been that about 90% of those who have cases go through the fund, opt-in.
that's what general motors is hoping for. victims' attorneys, however, say the gm fund doesn't go far enough. today, at the press conference, we talked with one mother of a gm recall incident victim. here's what she had to say. >> absolutely it would send a message. you know, if dollars and cents is what gm is focused on before and maybe focused on again in the future, you know, that would send a message never, ever to do this again to anyone else. >> laura christian talking about sending a message by not opting into the fund and instead, taking general motors to court, seeking far greater punitive damages. shares of general motors up fractionally today, but simon and sue, the bottom line is this, this fund is going to be set up and taking claims starting on august 1st and they are hoping that by the end of this year, that they will reserve -- resolve a number of the claims involving these faulty gm ignition switches. >> at the same time, phil, you know, we are reading in the press that still, there are these criminal investigations. >> right. >> presumably, if the feds or
somebody pins a criminal conviction onto general motors, the scale of the compensation that people could receive in open court would be greater. in a sense, they won't know what weather to go what fineberg is offering now or wait the next year to 18 months. >> he is saying is at least meet with him and he will tell you, this is what you would get from the fund. now, he admits that a lot of people will look at that and say, you know what it's not enough. i want to take them to court, make them pay 50 million or $100 million, something outrageous. there's no guarantee that will happen. he believes people should at least meet with him first so he can say, this is what i can i can guarantee you. again, would you give up your right to sue us in the future. >> an important milestone for general motors. thank you very much. the meantime, the latest reengtd health of the housing market today. dinah olick in washington with that. over to you. >> simon, a nice surprise to the upside. we were expecting a small jump in pending home sales, but the realtor's reported 6% month to
month for the pending home sales, these are signed contracts inmaker not closings, so an indicator what kind of closings we will see in june and july. now, all four regions of the country saw gains but the northeast and the west sought biggest jumps month to month. sales are still weaker year-over-year nationwide, but by 5%. the northeast is the only region though not showing an annual drop. but just barely. they were up 0.2% from may of 2013. now the realtors say lower mortgage rates are helping sales. the average rate on the 30-year fixed falling below its year ago level this month for the first time since rates jumped so dramatically last june. rates have been hovering in a very small space for the past year. more likely that an increase in the number of homes for sale up 9% in may year-over-year, according to red fin. that probably sales a bit more. close sales for new and existing homes were higher in may. the realtors are warning the second half of 2014 could be slightly weaker and they are not
expecting 2014 to top 2013. they expect it to be slightly lower. they say that's because that first time home buyer is still on the sidelines, just 27% of buyers in may. should be more up around 40%, simon. >> all right, thank you very much for that review of the housing market. farmer in focus. shares of mankind on a wild ride, dropping more than 10% friday after the fda approved the company's new inhaleable insulin drug, freezer, with a tough label. up 10%. biotech and pharma reporter with us. no more needles? >> that is the thought here with the new drug, approved on monday after rejected twice before. really a long road for mankind. finally getting onto the market. diabetes affects about 26 million americans. that's about 8% of the population with diabetes but analysts saying some of that stock volatility is due to safety concerns, that lane you mentioned, and also concerned about uptick. the safety side, the drug
approved with a black box warning on the lane saying the drug shunt be used in chronic lung diseases like copd and asthma. the company will have to conduct a postmarketing study of the drug's effects on lung cancer. the uptake side, people may remember fizers a ex-zblub bra, thought could be a multibillion dollar drug, ended up pulling it from the market in 2007 when it wasn't used that much by parents there could be some concern there the next question, of course, for mankind, becomes can it find a big pharma partner to market the drug? i spoke with the company's cfo today. he said they are in discussions with potential partners, hired an adviser and they are not gonna launch the drug without that big pharma partner, not going gonna make their own sales force, the big question for mankind a $54 billion market and big players in it, novo nordisk, johnson & johnson, lily, will we see one of those emerge? the big question for the stock. >> thank you very much. appreciate it. the u.s. supreme court ruling today religious exemption
can be claimed from the obamacare mandate. hampton pearson is in washington with the details on that. over to you. >> hi, sue. yeah, another setback for the obama administration. last week, this court saying they overreached on recess appointments. today, had both pro-choice and pro-life demonstrators eagerly anticipating the ruling. another 5-4 decision, the supreme court saying, in essence, the way the obama administration is enforcing the contraceptive coverage parts of obamacare that it violates the 1993 religious freedom restoration act which says that the government frankly can't overburden business's exercise of religion. justice kennedy, part of the majority noting to some degree, the government kind of undercut its own argument because it already made similar accommodations for non-profit religious organizations around the contraceptives issue. the key language from justice samuel alito, who wrote the majority opinion, the
contraceptive mandate applied closely held corporations slight rfra making unnecessary for the court to take the bigger first amendment free speech aspects of this case. just in the last half hour, some reaction from the obama white house, basically saying they believe women's health will be jeopardized by today's ruling you. they are looking into how many women might, in fact, be affected. and the administration is perhaps going to also look at alternative ways to accomplish some of that end. sue, back to you as well. >> hampton, thank you very much. coming up next, a very uncomfortable flight from chicago to l.a. we will show you the pictures from inside the cabin. and what will wall street look like 25 years from now? we will take a trip into the future and it really will amaze you. plus, a giant port shut down approaching and just about everything is going to be affected. jane wells is waiting on the dock of the bay for us. jane? >> hey, sue. yeah you know, on the east
coast, the state of georgia just approved more funding to dredge there they are hoping to grab share. the east coast watching closely to see if the west coast can get its act together. we will have the very latest next. and which companies float the most boats, when "power lunch" continues. can i get my actual credit report... like, the one the bank sees? [ male voice ] sheesh, i feel like i'm being interrogated over here. [ male voice ] she's onto us. dump her. [ pay phone rings ] hello? oh, man. that never gets old. no, it does not. [ female announcer ] not all credit report sites are equal. experian.com members get personalized help and a real credit report. join now at experian.com with enrollment in experian credit tracker. continues.
sit prenatal testing distribution. web bush has a neutral rating in lumme minute nah. the stock moving up more than 4% on the day. a gold first half of the year for stock. take a look. year-to-date, already up 63%. sue? >> bertha, thank you. well, everything is okay, but it was not a fun night to fly united from chicago to l.a. . the plane's emergency slides opened up inside the cabin. someone inside took pictures and sent them over. the plane made an emergency landing in wichita and upon landing, here's what one passenger had to say. >> first thought i had is gosh, i hope there's no one in the restroom, they are not getting out some time. fortunately, flight attendants were the aisles no one in the restroom, just stilled the whole area back up. >> another passenger said amazing how cam everyone was. this happens from time to time it happened on then-candidate barack obama's flight in 2008 and a jetblue flight last year had a similar problem. simon, i hope it never happens
our flights. >> yikes. the drinks trolly, more importantly. deadline day approaching for talks between the international long shore warehouse union and the pacific maritime association f they don't reach a deal tonight, the economy could have a $2.5 billion a day problem or its hands. jane wells has more. >> probably will pass the deadline and for once there's no ratcheting up of rhetoric. why? because there's too much competition right now from canada, mexico, the east coast and soon-to-be wider panama kaneca can canal. they got to get it better. a ship bound for hong kong leaving this morning two massive cargo ships coming in before dawn. both side does talk through mid-july, despite the expiration of the contract. though we could see some slowdowns, things like dock works taking long breaks. but here are the numbers. we are talking about 29 west coast ports, 14,000 dockworkers, 43% of all containerized
imports, activity which the maritime association claims supports directly or indirectly 9 million jobs worth 12.5% of gdp. indirectly, cashiers the walmart. dock workers say their $36 an hour base wages have not kept up with productivity gains. retailers front loading inventory which could be a problem if they end up with too much merchandise stuck on shelves they aren't moving ahead of schedule. looking at the top five importers in the u.s. in terms of teus, stands for 20-foot equivalent units. walmart dwarfs them all. credit swiss says cargo going through 1u7 4% a year following an 11% gain in march, due a recovery after a cold winter delayed things for retailers that trend is continuing. now, looking at the top exporters, involved in a lot of paper recycling, america chong no, ma'am. i find it interesting how different the two lists of companies are, you have raw or
used materials leaving the u.s. and finished retails coming in. i know we know that just sort of interesting to me when i look at it what it says about the world. back to you. >> thank you very much for that, jane. stay with us. bring in analyzer of global shipping supply chains for ch robinson. welcome to the program, shari. >> thank you. >> a lot of farmers, manufacturers, retailers have to be thinking about what are their contingencies here if ultimately, there is some form of actions there was in the past? what do you say to them? broadly what are they? >> well, i think it's -- as everything has been mentioned, we have some time before anything should happen. hopefully, a deal is reached but otherwise, if there's any disruption, there can be some impact into what the supply chain could mean. as we know, currently entry levels to the shelf cbs impacted. the end of the day that might be resulting in us going to the shelves and not having specific
products, especially from the far east. >> you know -- >> and potentially, increments in cost for -- if there's a possible disruption in trying to expedite a lot of the products in. >> jane? >> you know, one of the interesting things i'm hearing and i don't know if shari can address this is obviously, there are alternatives, like rail. what's funny is, well, not funny, fascinating a loft farmers on the west coast will actually ship their goods through the pacific and the suez canal to the midwest and the east. they could transition to rails, but apparently, the rails aren't getting -- aren't expressing much interest now because they are so busy with oil. could there be a bolt neck there because of the shale and everything else going on of trying to get goods to rail? >> yeah, i think you definitely are accurate there. a lot of things going on. as you mentioned earlier, coming out of a very cold winter, there were a lot of issues with the rail in terms of the tracks and
reel now, the excess capacities moving in to potentially avoid the strike. anywhere from locomotive, power, trying the ability to move the products inland is somewhat impacted. i would say while there are a lot of options that you could do between transloading, trucking, moving it on the rail, i would say a lot of the constraints right now at the port itself really depends on how we -- how all this discussion comes out of. >> hope it doesn't come from that for the moment, good to see you. jane i, i know you will stay on top of that story for us down at the port of l.a. sue, back to you. >> simon, what will wall street look like 25 years from now? well, cnbc's bob pisani put together a list of seven trends that will revolutionize stock trading, right now on cnbc.com. here are four of them four,
greater opportunities, think of dozens of different versions of stocks, stock a, shares about, shares c, shares some riskier than others of the same company. crowd source and microinvesting will be big and the layers that stand between investors and capital will disappear, creating a new level of technology and innovation. and what happens when everybody knows everything? well, the cost of doing traditional stock analysis will come down dramatically. the other three changes to expect in the next 25 years coming up next on "power lunch."
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healthy gains for gw pharmaceuticals today, the stocks moving higher after piper jaffray raised the price target $50 to $147 a share based on the company's epilepsy treatment. the stock currently trading up more than 11%. that's healthy bounce there. back to you. >> been quite a year actually so far. even better when you look at that year-to-date. that is a pretty looking chart, simon. >> thank you very much for that. this is new video coming into the newsroom now showing an iraqi army offensive. they are moving against the sunni group, islamic state in iraq and syria. although the group says it wants much more than just iraq and syria, including jordan. today, the group declared its own islamic state in that area. iraq's army says it is making steady gains against the sunni group. sue? >> we will keep following that
story, of course, simon. as cnbc turns 25, the investing landscape has changed a lot in that time, all day on cnbc, we are looking a what the the financial markets will look like 25 years from now. think big data meets fast data. dominic chu explains. >> reporter: to understand fast data, you first have to understand its predecessor, big data. simply put, big data is the collection of countless pieces of information that companies can use to make better decisions, like how an airline analyzes airport scheduling data, weather patterns, fuel costs, passenger weight, employee utilization and tons of other info to plan future operations. the problem is sometimes that data can take days, weeks, months, even years to fully analyze and process. that's where fast data comes in.
think if you could take all that limitless data and make realtime decisions on the fly. for financial markets, it could be making realtime investment decisions factoring in things like manufacturing activity in china, oil output in saudi arabia, crop forecast in eastern europe, election rules in brazil, inflation data in the united states and a million other things. what if realtime analysis could tell you just what to buy or what to sell at that very instant, given the multitude of variables being considered. that's what fast data is and what wall street has to look forward to. so, 25 years from now, it's gonna be amazing. speed is obviously going to be an issue. but all of technology is going to be big. next hour in street signs, we will take a look at the convergence between silicon valley and wall street and will, will wall street eventually migrate toward silicon valley? all that and more go to cnbc.com. sue, a fantastic ride. the market is just a fascinating
screw to see what it is like in 25 years. vnch he good reads on that. thanks, dom. going to join you in a second once again. but bob pisani here with me at post nine. before the break we told that you bob put together a list of seven tlaensd will revolutionize stock trading. we gave you four. bob's here to give us the rest. >> sue, gonna be a wild future. first, digital avatar is my favorite. they are coming. the am of information, all information, but particularly financial information is going to explode. this is going to make investing vastly more complicated. don't worry, you will have a digital avatar able to hunt down opportunities according to your own specifications, like in the movie "her," you will have an assistant, say, hey, charlotte, i'm really worried about thailand, can you adjust my portfolio to lower my exposure? think google partnering with charles schwab, going to be great. another trend, wall street jobs are not gonna go away. a lot of people believe that. no, some jobs will be lost, but we are going to see more demand for market research analysts, management analysts, to help
these companies operate more efficiently and software engineers, computer systems analyst will be essential to manage all these networks. finally, all this massive data crunching, new ways of trading mean one thing, the next great depression could take place in a millisecond. investors are going to become accustomed to significant price moves in very short periods of time. we could have whole cycles of bust, recovery boom and bust, all in a matter of minutes or even seconds. welcome to the future around all of your digital avatars. more on this, go to trader talk.cnbc.com for my seven predictions in 25 years from now. i think we need a lot of versions of kenny polcari online. >> first thing when i walked on the floor. >> more kenny poll carry. >> kenny said i don't want an avatar. >> six versions. >> why don't you want an avatar? >> it's impossible. how is it gonna cook better than me? >> i have had some of your -- >> it is exhausting when you think about the speed at which
the data works, like dom said and you said, of a virginia tars, computers telling us what to do, when to do it, when too go. it is exhausting, say don't worry, your kids and grandchildren will have a job. in fact, the avatar will just replace them, will they not, you follow that same train of thought, the avatar just going to replace everybody. >> if you believe that any kind of intellectual activity can be duplicated on a machine, you can have that worry. i'm not worried that human beings who have capabilities and can interact with each other still not have value added. i don't believe that. >> i can cook. >> you can cook. however, the recipes are one thing. did you see watson's -- ibm watson working on better res cities in had him on today. about 25 years from now. >> the only way -- tough taste it. is watson gonna taste it? >> okay, we are talking about stock trading. all right. dom -- >> i'm talking about cannolis. >> dom, weigh in on this, not the cannolis, but the -- you know, it reminds me of a number
of years ago when we had 4,000 people down here on the floor and it was person-to-person trading and then program trading came in. and that was the thing that everybody said was gonna replace everything and it didn't. i mean, you can argue now that the dark pools and thinks like that have replaced the human element to a certain extent, i would argue it's not been a complete success either. >> well,s here the thing. i mean, you guys are at the new york stock exchange. the intercontinental exchange on the stock exchange, jeffrey spark ka says a place for exchanges, the physical structures because when it comes down to it, yes there are computer bus people will still want to meet and get together because they are still gonna be the basis for how transactions get done in some way, shape or form. so, yes, maybe computers take things over, but the people are always gonna be a part of it and sue, kenny, bob, you guys all know this, traders today are not like traders 25 years ago, traders today require some kind of a degree in computer
programming, maybe even a master's degree in computer science, something like that. can you just imagine what a trade core look like 25 years from now? they may need to really just live and breathe computer programming to become a trader. >> and what happens when your avatar decides to take your portfolio and leave you? i'm leaving you, and i'm taking your pasta sauce with me, by the watch >> and the cannolis. >> always about the food. >> always about the food. thank you all very much. simon, up to you. >> in today's yahoo! finance question of the day, we asked you what you think trading will look like in 25 years. 9% say more transparency, 7% say no free trading. 30% say artificial intelligence or of a tars, 55% no physical trading you floors. 45% think there still will be. interesting. let's have a look at where we are on gold, relatively quiet day, yellen speaks on wednesday, non-farm payroll data on thursday, a day ahead of
schedule. that's where we are, 1322. just up $2 on the session overall. some of the other metals slightly higher as well. health care stocks have been hot for the first half of the year, beat he can the broader markets. will that continue in the second quarter? or will that continue in the second half of the year? plus, is facebook messing with your mood? outrage over what the social media giant has been doing with some news feeds. are you worried about privacy on facebook? go to cnbc.com/votes.
sue? >> bertha, thank you very much. let's check in on interest rates. we have data coming out later this week. it's a holiday-shortened trading week. sometimes that means volatility, sometimes it means people just kind of take a laid back approach to the market. i don't know which one it is, ricky this week. >> when you have jobs, jobs, jobs in a week, i think it is going to be a little more action. if we want to look at different sectors of the curve going into the important wednesday, thursday data points, let look at a one-month chart of fives, flirting with the 163 yield down one basis point, could be closing, depending where the final number is, at the lowest yield since the fifth of this month. let look at ten year. currently trading at 252. yes, kind of been here before. should we sell at these levels? be the lowest yield close since the end of last month. but those yields look high compared to this. jgb government bond ten year hovering around 56 basis points, 14-month low in terms of the close. let's stick with japan. look at the dollar yen. it's flirting with that 101
handle again. dollar is close to the lowest level against the japanese currency since the beginning of february. simon hobbs, back to you. >> mr. rick scan telein chicago, thank you very much. the farm report there from chicago. back to the equity market, a slew of health care stocks new highs today, humana, aetna amongst them, despite fear and uncertainty over obamacare, large cap health care continues to outperform the broader market. but they are slowing. so is now the time to take profits? bertha comes is back with us for advice on that. bertha? >> simon, hard to find bears in the health care area. health care has consistently logged double-digit gains the last couple of years, while the contrarians like brian bell ski thinks it's time for a pause, 'cause he thinks valuations are less attractive with the health care selects spider, all-time highs. much of the gains this year have been driven by volatile buys but
hospitals were the next best performers. the ac a has been a big part of the investment premise for hospitals, more people covered by insurance, they will see more paying patients and write off last bed bad debt. hospitalization volumes have actually not spiked yet but capital fund manager, michael gregory, says gapes for hospitals are in the early innings, he shall specially for mental health in-patient facilities he thinks will outperform the sector when doms to growth. >> behavioral health, off supply/demand balance in the u.s. there is only supply to meet 50% of demand. psych experts tell us that it's optimal to have one facility per 2,000 individuals. in this country, we have one if a facility per 4,900 individuals. >> so he thinks they are going to see more expansion among his picks, universal health services, the nation's largest in-patient health system and acadia, actually negative year-to-date but seed growth expectations having made an
acquisition expected to add. read mother on cnbc.com. >> thank you very much. is facebook messing with your emotions? outrage pointer net. the social giant busted for messing with your news feeds to try to change your mood. what about the privacy issue? is our cnbc live vote question. are you worried about privacy on face book? go to cnbc.com/vote. 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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the nasdaq had a good run, up 4% in june and trading today at the highest level since april of 2000. seema mody following the big movers there, including go pro, the recent and high-flying ipo. hi, seema. >> hi, sue. that's right, after its blockbuster debut on the nasdaq, go pro shares continue to move to the upside, after the wearable action cameramaker popped on its first and second day of trade. back to the overall markets though the nasdaq now on track for its best two-month performance since november, up about 7% over the past two months. momentum, guess what sue, it's back. tesla, one of the biggest gainers on the nasdaq 100, up 17%, biotech dna sequencing player, alumna, online travel from trip adviser, facebook and netflix some of the other notable winners. of course, investors await second quarter results on whether the stocks continue to move to the upside. lastly, just want to point out blackberry, blackberry shares up
about 34% over the past one month thanks to better-than-expected earnings. back to you. >> thank you very much for that. time for the power run down, joining me is natalie morris and john forth in silicon valley. welcome to the program, both of you. kick off with facebook admitting that it allowed scientists to change what 700,000 users saw in their news feeds in order to manipulate their emotional state it would appear, john, if you show people fewer positive words, they write more negatively and vice versa. what did you make of the story? >> well, for the -- in the first point, i don't -- i'm not sure that this is actually seeing this people's emotional states change. it certainly showed people are more likely to post positive-sounding things if they see more positive-sounding things. the main issue for me though is this, when you go onto facebook, you're expecting a relatively objective picture of what your friends and the people you're connected to are posting. you're not expecting to be part
of an experiment t is okay for facebook to do this, think, people opt-in or opt out. the way that they did this though raises some trust issues. >> natalie, what do you say? >> you say it's okay for people to do this you are stwig different things. is it legal? that's gray area. is ittette zmal i don't think some they are legally and you ethically -- they are supposed to tell us when there's an ad in our news feed. they are supposed to tell us that they changed things around so we know that the question is when you agree to their terms of service, are you also giving them informed consent to use me as a lab rat and i don't think that's the case. in fact, i don't think it's even up to me to think that's the case. i think they are gonna have to prove this >> let me phrase it another way to you, john, do you think facebook is manipulating -- do you think manipulating people's emotion and is that a question of privacy as far as you're concerned? >> i don't think it's a question of privacy, but i think it's a big issue for facebook because facebook needs us to trust it. and when it does things like
this without checking in with us ahead of time it raises trust issues. >> we just saw the stock is gaining momentum but why we need to remember this as investors is because vegan was a very costly mistake. they had to come up with a lot of money to settle that. sued over beacon, you got to think they will be sued over this. >> we have a cnbc votes under way over this. are you worried about your pry privacy on facebook? go to cnbc.com/vote. that is under way now. guys, before we go finally, a surveillance-proof phone called the black phone, apparently begins selling today. have you managed to get your hands on one, john? >> why you ask me that, if i got the black phone? why you -- i'm just kidding. >> because you're the technological reporter, jon fortt. >> i got the global phone. >> i think a great idea. i think it's a great idea for a product. it's expensive, but it just shows that people, some segment
of people are really concerned about privacy here. this phone protects it but extreme and expensive way to do it >> i think what we will see from this is what you can do with privacy software. we are gonna see more from the black phone than just this piece of hardware. gonna see this type of software, called private os in other phones, other tweets as well. >> let's lock in the votes we asked you are you worried about your privacy on facebook and, if somebody moves out of the way of the monitor -- >> survey said. >> i think 84, the left they are worried? yes, 84%, quite difficult to tell. we have had the viewer votes, you can see the rules there the bottom of the screen. john, thank you very much. natalie, lovely to meet you. thank you both. >> yeah. >> sue over to you. >> glad i'm not the only one who has trouble reading the mon norse englewood cliffs, simon. you are not alone. the end of an era for one iconic american stock. this tech giant is up 40% the past year. why it is still, by some measures, undervalued. a u.s. luxury retailer has taken
a him. three stocks you need to watch, coming up next. and thank you for your bravery. thank you colonel. thank you daddy. military families are uniquely thankful for many things, the legacy of usaa auto insurance can be one of them. if you're a current or former military member or their family, why it is still, by some and see why 92% of our members plan to stay for life.
highs. the automaker is driving home with aer is veefed quality award for its model s electric sedan. it was named having the highest score in the latest quality index. the stock is trading up about 2% for the first half of the year, quiet momentum player. yahoo! overweight to neutral at piper jaffray. the company's stake in alibaba undervalued at current levels and yahoo! up 2 1/2%. michael coarse the other way, under pressure, down 1 and a third percent. the luxury goodsmaker hiring tiffany's senior vice president as president of senior
operation. the end of an era, kicked out of the dow, now u.s. steel out of the s & p 500. martin marietta materials will replace the struggling pittsburgh-based steelmaker after the markets close tomorrow. u.s. steel will join the midcap 400. nonetheless, in the green. end of the first half, believe it the three biggest winners so far this year and three big winners in today's trading. that's straight ahead. let's see what's coming up on street signs. >> happy monday to you, sue. energy plays for the second half of the year, private sector fix for theville as this the right medicine? i have got david faber joining me as co-host. going to be talking amazon and whether the government will stand in the way of its innovation. some great stories coming up top of the hour. make sure you join us on "street signs." back to you gays on "power lunch" in the meantime. if you have moderate to severe rheumatoid arthritis, like me,
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are always calm during a storm. so if your business deals with the unexpected, hp big data and cloud solutions make sure you always know what's coming - and are ready for it. make it matter. as we take a look at the market, we should note that is a holiday-shortened trading week. the market closes early on thursday, closed on friday, we have jobs data this week as well, as well as other data and because of that, our cash and pending a note, basically, volume is extremely light, kind of sluggish is the word he used, traders try to position themselves. there were some who were saying down here we might get increased
volatility because there's less time to trained at jobs data that comes out on thursday. it is the end of the first half. the biggest winners the s & p 500 so far this year, look at the dow down 16 points. new field exploration, neighbors, industries and forest labs. now, in terms of three wins now, micron technology, dr hornet, which is up almost 3%, micron tech up 5%, 4 and two-thirds, net app, up. the markets are trading on the neutral bias right now. nobody wants to be aggressively long ahead of the holiday weekend or ahead of the jobs data. >> having said that, you melt higher, another record on the s & p. >> absolutely. >> yellen -- janet yellen is speaking this week. so, any extra news that we get or any redefinition of where she is on interest rates, inflation would be key. important for the network now, sue. in the wake of the roaring success last night of amazon
rising, his new documentary, david faber, through popular demand, is going to host the next 60 minutes. >> i heard. >> the next 60 minutes of the network. potentially the shape of things to come for him in the afternoon. who knows, sue. >> you just never know, simon. we will be all be watching, a great documentary that does it for "power lunch." >> yes, "street signs" with david faber begins right now. hello and welcome to street since. the first half of the markets was full of surprises so we try to take the sur praise out of the second half for u amazon getting too big for its boots? well, at least maybe too big for regulators. and dirty rotten millennials? yeah, we have the real dirt on millennials and jobs. yes, we have got david neighborer on the show. wow, that was quite the introduction. >> simon is trying to just -- >> speculation about something in the afternoon? >> causing a lot of problems that have a basis in nothing,