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tv   Power Lunch  CNBC  January 17, 2013 1:00pm-2:00pm EST

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>> it was highlighted on jim's show, ruckus. >> simon. >> intel. ahead of the earnings. >> big doc. >> amarin. somebody bought a lot of calls that expire tomorrow. 8.5 strike. >> the markets pulling just a bit back off its best levels of the day but we're still looking at a dow that's up 80 or so points. 85. about to 88. up six out of the last seven sessions. many, many new s&p 52 week highs today about 76 as we speak right now. give you some of the names. comcast is up there. lowe's. carmax. cvs. marathon. noble. got a lot of them. johnson & johnson. we talked about that one today. 3m. union pacific. adt. how about tech names? e-bay. lots going on. that want does it for us.
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"fast money" will pick up the ball as well. follow me on twitter @scottwapner.cnbc. scott thank you very much. big bank earnings. boa, citi getting a bit of a whacking. a number of index hitting new highs. scott ran down an awful lot of those new highs. how to get in. where to get in. when to get in. we'll talk about that this hour. of course one of the big stories turbulence for boeing, regulators grounding the plane. how long will it take to get boeing to get this plane back in the skies. ceos, business ceos want to raise the retirement age to 70. saying it will save billions in social security and medicare
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spending. is it a good idea or are
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mike corbath. a long road lay ahead. they called results lackluster and they were worried expenses are still too high. citi cfo were worried legal costs will stay elevated around 3 billion. bank of america eked out a small profit beating by a penny. it had widely telegraphed a number of charges stemming from a settlement with fannie mae. the bank continued to boost its capital buffers. both banks saw net interest margins rise largely due to paying down more expensive debt. what investors really want is return on tangible equity. they called this the key metric for citi going forward. for the year, jmp calls it 2.5%. considering that metric for jpmorgan and wells fargo is consistently above 10%, it's no surprise to see today's tradeoff. they're using any excuse to take
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their profits. simon? >> kayla, for the moment, thank you. meanwhile, we should mention that black rock says its fourth quarter profit boosted. the world's largest money manager earned $694 million or $3.93 a share. that easily beats what wall street was expecting. the stock is gaining, what, 20% since november currently trading at 852 week high. on a programming note, do be aware that black rock ceo larry fink will be live on "closing bell" at 3:00 eastern. now importantly several market indices are hitting new highs today. the s&p 500, as you'll be aware, at five-year highs. the dow transports are at an all-time high. so is the russell 2,000 small cap index and the s&p midcap 400 is also at an all-time high. let's bring in kenny pulcari
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director of floor operations for yield securities. for the last four trading sessions the market went nowhere. today we're up 88 points on the dow and we could break potentially to a triple digit gain. what does that all add up to? >> it's interesting you've said it. ever since we rallied back up to 1475 the market has been challenging and testing this 2012 high. every time it tested it it backed off. at some point it was going to get the momentum. do we get up and through it, which we have, but will we stay and close above it. technically that will be key, right? >> what about the fact that the market is generally shrugging off the disappointment we've had on the bank earnings to date simply because i guess they've rallied so far. >> listen, they're all taking a step back because these stocks have had such a great move. it was buy and sell the newsrea. by no stretch are any of those
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stocks collapsing on any stretch. the market, you could feel it. the market was building that momentum and needing a reason to go forward. today we had better job numbers. macro numbers. i'm not sure i really believe the housing story. but that is the story that everyone is talking about. >> for the moment, kenny, thank you. back to you. >> simon, thank you. more problems for boeing as you probably heard. the faa grounding all of the dreamliner planes. the stock has been rebounding though off the lows. currently trading as you see there at 74505. it is, nevertheless, about 1/3 of a buck. phil lebeau at o'hare in chicago with the latest. hi, phil. >> hi, tyler. the focus is shifting about when boeing might find a solution to the dreamliner being grounded. here's the latest with what's happening with the faa and with boeing and some of the dream liners around the world. they're working with the faa on a possible solution. we say possible, the idea being
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perhaps to come up with a way of testing some of the lithium ion batteries. we'll have more on that in a little bit. more countries and regions of the world have grounded the 787. the focus is making the lithium iotter to be used inside these planes. the concern for the faa is that there's a fire possibility with the lithium ion batteries. that prompted them to grouped the dreamliners. they're checking those in boston with those from japan and comparing what similarities they might find with those two. by the way, the batteries are made by a japanese firm g. g.s. uwasa. as for shares of boeing, down fractionally today. down 5% since january 7th. for a number of analysts on wall street the question becomes when do you tell the investors this is point where you might want to start nibbling on the stock again? finally we want to take a look
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at these are the six largest airlines or lessors, companies that lease out aircraft, that have orders remaining for the dreamliner. when you look at all of these airlines, tyler, that's about 35% of the outstanding orders for the dreamliner. none of those airlines or those leasing companies like ilfc are changing plans in terms of orders or cutting back on orders for the dreamliner. ty, back to you. >> how many of those planes are in flight right now? none of them at the moment but how many are in service? >> how many have been delivered? >> yes. >> a total of 850 roughly speaking were ordered originally. 798 still need to be built. 50 have been delivered here in the united states. united is the only airline that has a dreamliner. of course, it's not flying it. nobody's really flying the dreamliner right now since they've been grounded obviously. >> thank you very much, phil lebeau. joining us on the phone is phil leak with bbt capital markets. carter, you cut your rating on
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boeing from hold to underweight and did it just today. explain. >> well, the faa's grounding, we felt that the underpinnings of our bhul case that the 787 was well on its way to cash breakout was knocked out. the lack of any clarity of any timing of any eventual fix was too much for us. suh we felt it better to step to the sideline. there is a long list of things that can sort of -- possibilities that can happen and we find a short list of those that become a catalyst for boeing right here. >> how much liability might the company face as airlines come back to them and try and recoup some of the lost revenue that they're going to suffer, some of the costs that they may have to incur? >> well, the good news from boeing is contractually the answer is none. boeing -- aircraft manufacturers will not contract for
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consequential damages. contractually i would argue there is probably zero risk. now as far as good will from the airlines and your customers, that's a different story, and boeing will on a case-by-case basis, you know, reach out to their customers. these are all of the sort of behind-the-door type deals which get done. we feel it could impact margins. >> a cut from on hold to underweight, carl leake, thank you very much. we have news on the hostages and captors in algeria. the reports are that the algerian army is attempting to take control of the site. it's one reason why oil is trading higher at the moment. michelle caruso ka brar row joins us. >> u.s. officials tell nbc news that there are as many as seven americans among the hostages. there may be more. yesterday they were only certain about three. there is deep confusion, almost no clarity, about the algerian
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military attempt to take control of the facility in eastern algeria that simon referenced. neither b.p. or stat oil, nor the u.k. government nor the u.s. government able to provide any clarity about the state of that on peril rags. there are conflicting reports about casualties. b.p. along with other energy companies in the country are moving nonessential employees from algeria. once again, in the last hour the white house strongly condemning the attack on the plant and the white house spokesperson saying president obama is being briefed regularly on the situation. they would not provide any clarity about whether or not there are u.s. drones over algeria at this point. to give you the background, a group connected to al qaeda has claimed responsibility for this attack. they said it is in retaliation for fran's moving into mali. they tried to put a stop to islamic militants trying to take
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over that country. >> michelle, the earlier reports i saw in the associated press, news source, there were multiple fatalities, maybe as many as 35 among the whose stages. that is now an unreliable report, right? >> absolutely. at this point no one at any senior level in any senior government can confirm those numbers for us at this point or those reports. >> michelle, thank you very much. onto the debt ceiling. the deadline approaching so it washington on the verge of killing an economy that many people think is actually experiencing a very nice little rebound? we're going to ask loan ceo jim tisch when "power lunch" returns. ♪
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four days before the inauguration the latest nbc wall street journal poll is out with the breaking news. john harwood in washington. john? >> tyler, we've just got one question. the full poll comes out tonight but this shows you some of the difficulty president obama is going to face with this gun control issue he's pursuing. look at the public image of the national rifle association. it shows you it's a pretty tough target. at three different decision points after tragedies, columbine they had a net negative rating. at the giffords shooting it was better in early 2011 and after newtown it is not much worse, 41% positive, 34% negative.
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that's not bad as they set out to fight what the president is planning to do. when you compare that to the entertainment industry and hollywood, which is a target some republicans are urging to focus on because of the violence in movies and video games, two to one negative for hollywood and the entertainment industry. it grates people on the coast and on the left, not as unpopular as hollywood is. that represents a bit of a hurtle for the president, tyler and simon. >> thank you very much. john. down to you, simon. >> thank you very much, tyler. as the deadline for the debt ceiling draws closer, many observers are worried if an agreement cannot be reached, the economy will be severely damaged. so can washington get its act together and what does it mean for people in business at the moment. joining us on cnbc, jim tisch. welcome to the new york stock
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exchange. >> always good to be here. >> it is a $17 billion group of companies you have. oil and gas, hotels. you're very broad based. what do you see at the moment? what does this rancor in washington mean for you as a businessman? >> well, my view is that the rancor means that the economy just can't get going at full steam. we've been growing at about 2% a year for the past four years and it looks like it's going to continue doing that. and so it's some growth but it's not nearly enough to really release the animal spirits in business men. >> are you investing in a moment? i see you buying hotels and investing in hotels here and there, but do you have major job creating investment underway? >> yes, we do in our parlar businesses. we're expanding in the hotel business because nobody else is expanding so it's giving us opportunities to do that there. we're expanding very extensively
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in the off shore drilling business because of demand for those rigs. the drilling rigs that we're building. but overall we don't see business investing because there isn't the growth in final demand that they need to see in order to make those investments. >> i don't know what your politics are. as a pure problem solver, they need to work out its tactics over the debt ceiling. the community seems divided as to whether it should link spending cuts according to the washington post survey deliberately to that ceiling or not. 48% say yes, 45% of gop members say, no, you shouldn't lipg the two. what would generate the best outcome in your view? >> the problem with trying to do that, to link it to the debt ceiling, the president may call the gop's bluff, in which case social security may not be paid or other things may not be paid. my guess is that debt -- interest on the debt will be paid, but we've seen this movie
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before. we've seen what happens when the government shuts down or even partially shuts down. all you have to do is ask newt gingrich that. it's not good. i think there is a way that the gop can get the president to come in and negotiate and that has to do with a squeser which begins in march. >> the automatic spending cuts which affect discretionary spending as well as the defense department. each of them, they affect 8 to 10% reduction in expenditures. that's really painful to the gop but it's also very painful to the democrats, and i think that the threat of the sequester can get both parties to do what they need to do. that is, they need to sit in the room together and they need to hammer things out. instead of us lurching from one short-term solution to the next, hopefully they can do something that can last more than three or
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six months. it will be good for everyone. it will be especially good for the economy. >> good to see you, mr. tisch. thank you. we're going to go to bert that coombs for a market flash. take it away. >> thanks, tyler. the teen retailer, bmo is out with a flash note saying it looks like the company is finally getting serious to turn things around. they want to focus on the expertise of some of the new management and also to try to capture that teenage mind not with key items, tyler, but the whole outfit. everybody likes to see the whole shebang. >> i like the outfits. lance armstrong revealing all on oprah, including he is manti te'o's girlfriend. how much of a hit will the armstrong brand take? stay with us. lance. ♪
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how could it have taken place when i was taking performance enhancing drugs. it couldn't be any clearer. incidents like that couldn't happen. >> i'll answer any question. i've been a target for that in the last ten years. >> my case, i came out of a live threatening disease. i was on my death bed. do you think i'm going to say,
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okay, doctor, give me everything you've got, i just want to go fast. no way. i would never do that. >> have you ever, ever in the history of this race used performance enhancing drugs? >> absolutely not. never. >> just some of lance armstrong's many denials as the world gears up for his big interview this evening with oprah winfrey. as the ioc officially strips armstrong of his 2000 bronze medal. talk about timing, manti te'o's admission of a fake girlfriend is the hot topic. amid all the scandals and outrage, how much do these two individuals stand to lose right now from crisis expert robby vorhouse. welcome. >> thank you. >> with respect to armstrong, he spent the last 15 to 20 years cashing checks. now he's going to write checks. >> he won't be able to make money as a corporate speaker. he might be able to help the government and other sportsz
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organizations how to look for dopers and how to prevent it, but as far as a professional athlete, as far as someone with a lot of credibility, you won't see him acting as a spokesperson. >> we don't know specifically. he's earned tens of thousands of dollars. could this bankrupt him? >> no. he waited long enough to make this admission that we're supposedly going to hear. he's past anything within the legal ramifications. he's been very smart. he's got a great team in terms of crisis management as far as reputation goes so he knows what he's doing exactly to the letter. >> he's going to spend a lot of time giving depositions and in courtrooms it would seem to me. let's talk about live strong, the charity with which he was affiliated. can that brand endure? >> yes. >> under that name? >> well, it used to be the lance armstrong foundation. they changed it to live strong. i think live strong stands for great stuff in terms of cancer
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research. so that can endure. i mean, yes. the answer is yes. >> if you were advising live strong, would you tell live strong that they ought to make a payment to them? >> no. they're not going to do that. >> why not? >> he this didn't say that we're -- we're supporting lance armstrong. they're supporting cancer research. what they should do now is officially dismiss themselves -- >> but people gave money to that charity because armstrong -- they were inspired by armstrong's heroic comeback and near death experience from test particul -- testicular cancer. >> it's time to move on. >> let's talk about oprah's brand here. oprah has a big interview here. she has had a hard time in the ratings braking through. >> she sure has. >> with this new network. >> yes. >> is this a brand maker for her? >> no, this is a non-event. she's the right person to do this, discovery, own, cycling.
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lance armstrong is going to come on and do this. oprah's audience doesn't care about lance armstrong. she's got bigger fish to friday. >> fry. >> let's talk about another big fish. manti te'o. how much would you say this probably costs him in terms of his draft prospects and the willingness of a professional team to pay him what it would have paid him three weeks ago? >> right, 10 to $20 million some estimates are and now they say that, you know, it's now down possibly 20, 25%. but the issue, ty, is is he telling the truth? was this just an online catfish documentary a couple of years ago movie event or is he lying? and you know, notre dame has gone all in. >> they've gone all in. they have some brand risk here too, don't they. they've just sort of put themselves back at the top echelon's of college football. if this turns out to be a
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disaster, it could damage them. >> it could damage them on so many levels, the program, the school, their reputation. this is a venerable organization that really prides itself on god, country, football. if they put themselves behind him and he's league and they did their investigation and they missed something, it's going to be a hard time. >> are you going to stick around? >> you bet i am. >> we'll have you back at the power rundown. let's go to simon. >> we need to take a break and pay some bills. we'll talk to the ceo of one hot internet company that doesn't want to go public. stay with us. we'll tell you why on cnbc. make it worth watching. introducing the 2013 lexus ls. an entirely new pursuit.
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. welcome back to "power lunch." gold is closing at 1666 after the data we got on jobless claim. the big fall, five-year low. that put pressure on gold prices. we rewound. we're looking at gold prices above 1690. we're keeping our eye on gold and silver etfs after reports that ishare's slv has had its biggest inbe crease in holdings
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in five years. that, of course, a lot of traders looking at the silver and base metals as opposed to gold for 2013. and keep your eye on copper, also benefitting from that positive economics data. simon, over to you. >> sharon, at the nymex. meanwhile, the equity market is heading higher again led by technology. second line financials and, indeed, energy stocks. >> stealth rally let's call it. maybe even a little better than a stealth rally. we're seeing volume a little stronger than it's been in the last few days. four to one advancing to declining stocks. the most important thing is we've got new highs. five year highs on the s&p 500. historic highs. again, s&p midcap, historic highs on the dow transports. that is a breakout by anybody's stretch of the imagination. take a look at the banks. we've had a number of these banks reporting, and the important thing here is there's your earnings growth so far on the s&p, 3.8%. that's a little better than we started the quarter for. still below the historic norms.
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put up the banks. i want to show you we had some of the biggest regionals. bank of america and citigroup, you see they're to the down side. a little more interest in the regionals over the big money center banks. finally, the home builders housing starts, highest number since june of 2008. a lot of it is still multi-family. very heavy multi-family. lennar announced this week they were going to build 6500 multi-units. this is a single family home builder. that's the sign that there is money to be made still in multi-family. >> let me bring in kenny pulcari, director of floor operations for neale securities. at the risk of sending your blood pressure substantially higher, there appears to be a recovery in the housing market. >> you would think and it depends on, i keep saying this, this is why it's so frustrating, housing is very, very regional depending where you are in the country. in the new york metro region, i
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do not see a recovery in the city, not the suburbs. >> did you see a deterioration equally? >> it's not going to melt down, but i absolutely don't see the market any more turning around and taking off the way -- listen, if you're in phoenix and you can buy a condo for 150,000 and good for you, god bless you. they were 75,000 a year ago. everything in new york is 1.2, 1.5, $2.2 million. >> this is an island here. >> a bubble. >> i89s' not the same as the rest of the world. >> exactly my point. >> new york state, let's talk about new york state and new jersey, home sales have been increasing. mortgage refinances very, very strong. this is a clear sign of a movement up. i wouldn't say it's a tremendous rally. >> are you talking about volume of home sales? >> yes. >> i think they are starting to churn with it. that doesn't mean the prices are going up. they were at a level where people started getting -- >> if you look at nationwide numbers including new york state, i think you'll find home
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prices are up over the same period last year. >> so the debate continues. gentleman, we'll leave it there. let's head down to the nasdaq and good day for technology today? >> a lot of good news. buckle up, simon. we're going to go fast. first, semiconductor stocks outperforming the others. taiwan semiconductor had a demand for chips specifically in the smartphone and tablets phase. they're providing a nice lift including but not limited to kay link and cord. that's the top performing stock. putting chip stocks aside for a second, we'll continue to watch apple. also social media, we have our eyes there on facebook. the stock up 1% after announcing a free voice calling app on the iphone. earlier on this week we learned about a partnership between microsoft and facebook. today we actually got some more details. let me just get them to you. microsoft says starting today there will be five times more
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facebook content on that bing side bar and bing will be the only search eng beginning where you can find the search results. if you want to call it simon customize search, that seems to be the big theme in tech this week. back to you. >> seema, thank you very much. the view from the nasdaq. let's head to chicago. 12:35. rick santelli has more from the pits there. hi, rick. >> hi, simon. stocks are up. interest rates are up. it makes sense. they're marching together down main street. will it last forever? at some point higher rates are going to be something they don't like. we're up half a dozen bases points today and breaking through that pattern the next several days. another reason rates might be up, look overseas. they had auctions in europe and they didn't do badly so we're melting away that safety trait. they've broken out to the 160 yield being violated. if we move towards munis, this
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is making a comeback. read a story on munis. there's tax issues we might revis revisit. real quickly, the spreads are starting to widen. maybe that's why businesses really at that point in these markets while the tapping is good. >> thank you, rick. survey monkey. it's a web-based survey company has raised $800 million in debt. one of the largest and one of its newest investors happens to be google. kayla tausch has been following this. >> thank you, dave, for being here. rare east costa peerns to announce this newest round of funding. $800 million. no small amount. more than most spaul public
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companies raise going public. >> we've been working on this for over a year. we decided there's a lot of good reasons to go public. if you need capital, you need equity and if you just need liquidity and you could find that from being private, we said if there's a good way to do it and get liquidity for investors and employees was do that. we brought in new equity and brought in debt. >> raising debt for a private growth-oriented technology company. not something that happens very often. i know you had meetings with those investors. how did that go? >> we had a presentation to the debt market. it went very well. obviously they're not used to companies like ours. we have very high margins. we did -- >> a good thing nkts and we're
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growing pretty rapidly but it's sort of understanding our business model. when i talk about a freebieian model that's not something people are used to. >> you said the first time you were on cnbc and taken it public. situations are different, times are different. what were the lessons of that that may have informed your decision in this case, not to go public at least not now? >> we're never saying we won't go public. there's a cost to doing it and being public and having to manage the company for quarterly earnings and sort of making tradeoffs in long term investments. you don't need the capital, you don't need the public currency to do that, then you're better off staying private until you do need those things.
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>> how much of your personal money, i gather a big slug of it is in? >> yes. this is an interest, very unusual deal. the company is 13 years 0e8d. we bought control from the founder a little less than four years ago. but there is money and i believe this is a great business. we got google and a great match. >> it's been something we've been talking to them for a while. dave lawery is joining our board. i think this is a relatively new thing for them to invest in later stage companies like ours. they can help us grow internationally. we're real excited to work with one of them.
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>> your wife works famously at facebook. i want to come to a party at your house. i think that would be fun. but your early career was involved in digital music. and i wonder what your impressions are of the big players? digital music today from apple to pandora to tsanga. >> there's a lot of great things happening in online music. i think it's -- we've got a ways to go them to be to be biusines. >> one quick final one? >> i know cheryl has a book coming out. she has been so vocal about ee qualikwauquality at home and in workplace? >> they are more true. we have a 50-50 marriage and we work really hard to make sure that we get the right mix of time with our family and time
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with work and it's a -- we work at it. >> bill, thank you for your time 20ds. we appreciate you being here. >> kayla, thoung. >> for those of you just tuning in, welcome to cnbc. here are some of the other big headlines driving the session. he bay on the rise after reporting quarterly results that beat analysts forecast. the mining giant is taking another charge, this time $14 billion on his acquisitions. the stock did get a boost, however, from citi group which lifted shares to buy for neutral. don't react to the news the company says it expects a temporary bumpup in expenses because of its fight with hedge fund manager bill ackman who of course has a very public one
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billion spot. >> intel out with the close. what should you be investing. we'll talk numbers and what you should expect next on cnbc. . with the spark cash card from capital one, >> announcer: the bond report is sponsored by pimco, your bond investment authority. [ garth ]s earns 2% cash back on every purchase, every day! helium delivery. put it on my spark card! [ pop! ] [ garth ] why settle for less? great businesses deserve great rewards! awesome!!! [ male announcer ] the spark business card from capital one. choose unlimited rewards with 2% cash back or double miles on every purchase, every day! what's in your wallet?
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at 1:45, the aflac duck was brought in with multiple lacerations to the wing and a fractured beak. surgery was successful, but he will be in a cast until it is fully healed, possibly several months. so, if the duck isn't able to work, how will he pay for his living expenses? aflac. like his rent and car payments? aflac. what about gas and groceries? aflac. cell phone? aflac, but i doubt he'll be using his phone for quite a while cause like i said, he has a fractured beak. [ male announcer ] send the aflac duck a get-well card at
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welcome back to "power lunch." we've been watching boeing stock all day. shares ticked up. fitch out with a stable outlook on its credit rating, but if this dreamliner situation, the grounding of the dreamliner, the company has to use a lot of cash to sustain itself, if it goes on for several months that could potentially lead to a negative outlook. for now they think boeing can ride this out. >> bertha, thank you very much. the business roundtable wants to raise the retirement age to 70.
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we asked on yahoo, do you think this is a good idea? 34% said yes. 23% say, no, the current retirement age is just fine and 43% say there are better ways to fix the system. let's see what's coming up on "street signs." mandy is here. >> first we had lance armstrong, now it's manti te'o. how do you spot a liar among us. we're going to have a former cia agent on the show to tell us how. we have a guest on from the atlantic who says economics are just dead wrong about how we, the consumer, make choices. and also rev up your motors. well, not quite actually because we're going to test drive the all new, all electric motor bike and it glides ever so quietly. no revving there. it's all the fun. all those things coming up on the show, guys, back to you on
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"power lunch." >> looking forward to it. look at shares of intel over the past six months. the stock has clearly been on a steady decline thanks to the pressure there is on pc sales certainly in the second half of 2012. the chip maker reports, of course, tonight after the bell. john joins us with what investors will be looking for. hi, john. >> simon, a little bit of a bump up since december. i'm going to go against the grain and say look at the pc client group of revenue from intel. that will tell you a lot about intel's most likely trajectory for 2013. they said expect the p.c. business to grow at half the reality. if demand was soft considering intel is ramping up its process. that could make for a challenging q 1. what's likely to move the stock, it's intel's full 2013 numbers.
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then you have the chance of updates on ceo successions since ortoini said he was leaving. and finally mobile world congress. if they have big news, expect them to spill the beans there. the underlying report, what intel will sell for the streets. we're setting up for a strong year so pc members can deliver windows 8. we're positioning surfer chips. we're streaming to 14 nanometers. can they do it? we'll see. >> where are we, john, with all the hype they tried to generate on ultra books and the stuff that microsoft was coming out with? >> well, on ultra books it seems like they are still at that $700 or so price point which is 100
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or 200 over the main season. people are looking for $500 laptops. now they want touch screens. those aren't there. doesn't seem to be selling that well. doesn't need to move the needle. >> thank you very much, john. all the details on closing bell and "fast money." ty, back to you. the comedian roseanne bar said the only reason why i lie is it's too hard to tell the truth. the business of lying in our "power lunch" break.
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"power lunch" after the break.
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after four days of going nowhere, the dow is trending higher by disney, verizon and home depot. time for the power rundown. >> joining us for the rundown, bertha coombs, robby voor house.
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>> forget 66, 67. they want to raise the retirement age to 70. they say that these medicare changes is an easy way to fix e entitlements. do we agree or disagree? >> depends how old you are. if i were 25, i would say absolutely not. if i were 65, i would say, yeah, sure, i can still run a triathlon, let's do it. >> i was on the call. it's not like they were saying let them eat cake. there are big daunting deficits in both of these entitlement projects. 701 the new 65, we're all living longer. even randall stephenson going as far as saying you know at at&t we're actually going to need people to work longer because we're not going to have many people coming up to fill in the ranks. >> my view is on the one hand it's easy for ceos to say go ahead and work until 70. they're not, working in a coal
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mine. on the other hand, when social security began at 1935, full benefits kicked in at 65. we're paying more benefits to more people longer today. boeing, 787 is grounded worldwide. battery issue being investigated. is the faa culpable in this, bertha, or not? >> i'm not sure it's the faa. i'm wondering in terms of the testing of the batteries. that appears to be the major issue that we are seeing and could you really test them? is there a problem with the lithium batteries when you've been flying plaens? >> robby, you're a brand expert here. what would you be telling boeing to do today? and do you think the image of the 787 is so tarnished that it will become like the dc 10s? >> absolutely. what i would be saying to them as i've discussed with other airline clients is these are the times to fix it when it's still on the ground, right?
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you want to fix it before you're in the air and something bad happens. the faa, i think they set the rules. i think boeing wants to get this air ship out, but they want to make sure that it's safe. >> this is early in the life span of this -- >> absolutely. >> -- aircraft. >> it's a gorgeous plane. it's going to ultimately be a wonderful savings to people. it's a good thing. >> let's move on to doping denials. note tore dame shame. it seems lies are the new truth. robby, you heard what roseanne bar said that the truth is so much harder than lying. i think that's maybe true in the short term but in the long run, it's not, it's harder. >> ty, truth is the ultimate spin. truth is the light and whenever there's darkness, whenever there's any kind of lying. you shine the light and it's like the shadows go away and the bugs run for cover. now with technology and so many
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biologiers who have the ava availability to be dealing with it. in my experience most people are honest, truthful, want to do the right thing. >> bertha, thoughts? >> when people lie like that, do they believe it? did he come to believe that he wasn't lying, that it was okay. when you look at what he accomplished, you have to think some of it is the drugs. >> thank you very much. let's take a look at the triple digit gain in the dow. it is higher right now by 106 points at 13,618. so many of the major ba rom terse either at or at or very near or above all-time highs. not just multiyear highs. we'll be right back.
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. . the market is declining here on the floor of the new york stock exchange. the dow is up 110 points. as you can see, the s&p is at a high. some regional financials are leading. these are the -- many of these are all-time highs


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