tv Power Lunch CNBC January 22, 2013 1:00pm-2:00pm EST
it's time for final trades. joey? >> the more negative tweets i get about financials, the more conviction i have. regions financials, the proof is in the earnings report today. stay long. >> mike murphy? >> facebook. i think you can buy the stock here going into the earnings for next week. the set up here, under $31 a share. the next move on facebook has to take out the 32.50 level. i'm still looking for facebook to trade $38 a share this year. >> j.p.? >> johnson and johnson, you are getting a little bit of a gift. this is a 3% yielder, it's on the cusp of breaking out of a ten-year trading range it's been stuck beneath. the story is just beginning with the new ceo, restructuring, fine juf spinoffs. >> and the doctor? >> apg, that will accelerate.
certainly the call volume has accelerated today. over 11,000 have already traded halfway through the day. that's way over open interest. so i jumped in here. >> that does it for us. see you tomorrow. "power lunch" starts now. >> "half time" is over, "power lunch" and the second half of the trading day starts now. scott, thank you very much. it's the biggest day for earnings so far this year. big names reporting all day long. we heard from some of them. that could tell us a lot about which way the market is heading. verizon, ibm, j & j, google and travelers all on tap. so is the gop about to cave on a debt ceiling deal? we may know a lot more soon.
there's a plan floating around washington, stop lawmakers pay if there's no solution on the debt ceiling by the deadline day. and this guy, he's teed off, the golfer phil michakelson tee off over his taxes. and he's not going to take it anymore, or is he? sue herera is live at the new york stock exchange. >> earnings are front and center with j & j, dupont, travelers all out with results. more on them in a few minutes. let's get you ahead of the curve. google is getting ready to report its latest results after the bell. fears about an ad revenue and major focus on those shares. google right now is down 3 bucks on the trading session. john is in silicon valley with what investor s need to know ahead of the numbers. >> couple of important themes this quarter, mobile and mobile.
mobile's impacted on the core business. as more people do searches from mobile devices, google's revenue has been coming down. it's more than likely this trend will continue as smartphone and tablet sales spike. cbc could come down 11%. it was down 15% last quarter. then we have the nexus 7 and nexts 10 tablets. in q3, some analysts estimate google sold around 100 million tablets. and then you have motorola, and i am hearing the mobile phones are not selling that well. last quarter they had $1 billion in losses, a negative margin of 28%. with the more stable set top box getting spin out, investors want to know the end game for
motorola. >> thanks, john. ibm is out with q4 numbers after the bell today, three hours from now. the stock hit a bit of a peak in october, down 6% since then. today a fractional move to the upside. the street is looking for a gain of $5.25 a share. revenue expectations at 29.1 billion in q3, revenue hit 24.7 billion. keep an eye on ibm. the stock has been flat over the past quarter. >> the earnings ball is going to roll into jeff kilburg's court. jeff, welcome. first up, johnson & johnson. higher sales lifting that company to a better than expected fourth quarter profit, but they missed on full-year
earnings expect tagszatioexpect. there they are, at 72.75, down about 48 cents. what do you think here? >> well, this is exciting. j & j has not been exciting. it's been sideways for the last decade. we're seeing them sit on some nice cash. seeing them deal with the way they had recalls in the various manufacturing plant upgrades. right now we're positioning to be long in the stock. there's a selloff of some vertical to j & j. i think johnson and johnson continues to go higher. >> travelers beating the street. earning 72 cents a share. the estimate was for 14 cents a share. you would call that a beat, wouldn't you, despite some losses from superstorm sandy. shares fresh 52-week high. up more than $2 at 78.49.
do we like travelers at this price? >> we do. if you like this price, you could potentially sell some puts, that allows you to collected premium and come in lower. the ceo has done a great job. you look at this low interest rate environment, he's honing the prices. that's why they'll do better in the future. >> on to verizon, fourth quarter loss, missed expectations, seeing strong subscriber growth, but impact from super storm sandy and pension costs hurting that phone carrier. herb greenberg was on the earnings call this morning and pointed out that as we get more and more platforms in the mix there will be competition, subsidy reduction as there was in the basic phone history in the ecosystem. that sounds not so hot there, jeff. what do you think of verizon.
>> verizon has spent a lot of their network, the fios network. so verizon, short-term you will havae agn opportunity to buy ha here. verizon are moving forward. they're diversified. it would be nice to see stated and local governments address the pension plans the way they did. >> absolutely. we'll check in with you later. it's a big week for the defense industry as well, lockheed martin and northrup grumman report this week. jane is here for a preview. >> reporter: across the board for pretty much defense company, analysts are expecting a drop in earnings year over year, but jason gersky says don't expected
to see a fiscal cliff impact. >> on the contrary, there's an opportunity for rates to out-perform expectations. that's because the d.o.d. was trying to get as many contracts done in the fourth quarter in anticipation of sequester potentially being implemented in early january. >> he and others expect flat demand from the defense department, but international growth looks good, international sales have higher margins. gursky likes lockheed martin and ratheon for their patriot systems which could be big in any iran/israel conflict. and he expects these companies to have 8% to 12% returns. will that continue? one other thing, two of these defense companies have brand new ceos, both women. lockheed martin and general dynamics. back to you. >> coming into office at a difficult time. the defense stocks keep going up
despite the fact we know there are government spending cuts ahead. >> i know. they've been doing great. a few reasons. any sequestration would effect future contracts, not current contracts, unless the federal government wants to pay for breaking contracts, but they also continue to show good bookings, especially internationally and putting out cash. i'm not putting bowing in this group because there's so many issues with the 787 there. >> that's wise. >> research in motion moving higher. that stock up $1.54. a nearly 10% move. the ceo says the smartphone maker may consider strategic alliances with other companies. the stock is up 154% in the past six months on optimism over the launch of its blackberry 10, which the company will unveil a week from tomorrow. sue? >> to the markets now, where we have the dow, nasdaq and s&p 500
all in positive territory. many of the indices flirting with five-year highs. that's an interesting situation, i fatalked to a number of trades who say this market has put in a rationality put, which basically means despite the fact that the bank of japan is declaring a currency war on a number of other currencies out there, you can see the move do the down side there, it doesn't seem to matter to this market. one of the reasons why is the move to the upside in the s&p and the move to the upside in the dow is confirmed by the dow transports which are up today by almost a full percent. if you are a dow theorist, you need that confirmation. kansas city southern beat on the bottom line. to bertha coombs now.
>> freeportmcmoran came in ahead of expectations, revenues ahead of expectations, and it also said on the call that controversial $9 billion deal for the two energy companies sthash that it will not be put to a shareholder vote and they expect the deal to close in the second quarter. sales of existing homes down in the recent month? what does that say about the health of the housing market now? diana is in washington, d.c. hi. >> tyler, the story is what you are not seeing on this street behind me, that's a for sale sign. home sales are falling because the number of homes for sale are falling. we're now at 1.82 million homes on the market, that's down 22% from a year ago. at the current sales pace, that's a 4.4 month supply.
the lowest since may of 2005. in raw numbers we have not seen this few homes for sale in over a decade. 2.7 million borrowers are still underwater on their mortgages, investors have also eaten up most of the distressed properties. and builders, while they are ramping up, they are still at less than half the starts they were during the housing boom that low supply is pushing housing prices up higher than expected and faster than expected. prices are up 7.7% year over year, and prices are rising faster more than income and employment. the realtors are warning this is
not a healthy market when you see it based on lack of supply and not growth. we have more on this on cnbc.com. house republicans are giving up their fight to tie the debt ceiling to spending cuts. will that make a deal easier? what does it mean for your taxes? one influential congressman will join us and give us answers. ♪
boeing shareholders. shares are still under pressure. it's becoming clear the quick fix that boeing had been hoping for over its 787 dreamliner problems is becoming much less likely. fill lebeau has the latest on this. not a good situation at all for boeing. >> it's tricky. they still don'tfor the two inc. they have to peel back the onion further. i have had people saying what are they doing at boeing? are they working with the ntsb? a lot of it is centered around the everett factory, where the dreamliner is built they are out there doing tests, working in teams. i'm told it's hundreds of employees working on this 787 problem. they're not in one central location, but spread out throughout the boeing facility. boeing is tapping a number of
areas for expertise. as for the ceo, he is involved frequently in the updates going on within the company. he's taking part in daily meetings on the latest findings. this is the biggest test of his ten year and ceo of boeing. what are we seeing in terms of the investigations involving government agencies? investigators are talking with suppliers, some in japan, some in arizona and england. there are suppliers around the world. the jtsb and ntsb are pursuing two different theories. as you look at shares of boeing which are under pressure, the jtsb says the ana plane did receive an overcharge, the battery. the ntsb in boston says, no, that didn't happen. there was not an overcharge involved there. you have a bit of a disconnect. there that's one of many things they're trying to resolve now. >> i was going to ask you about
a timeline, but it doesn't sound like that is at all possible if things are going in two different directions. >> you can't get a timeline for when the grounding will be lifted until you know what happened. once you have that, you can say, what's the solution? is it a software or manufacturering solution? that's what you have to identify first. >> phil lebeau, thank you very much. >> the markets are at or near multi-year highs across the board and secondly are republicans backing off? we' one gop member of congress will explain what's going on in washington next. quicken. ♪ to help you not just to stay alive... but feel alive. the new c class is no exception. it's a mercedes-benz through and through. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services.
washington, house lawmakers getting read to raise the debt ceiling. speaker boehner is expected to give a news conference later toda today. >> there are a lot of deadlines in washington for investors to keep track of, they each carry their own risk. let me walk you through what we are expecting. starting tomorrow on wednesday, the house republicans say they're going to have a vote to extend the debt ceiling. they say they will raise the $16.4 trillion cap enough to extend the debt ceiling to mid-may. on march 1st, you have the sequester, when the spending cuts will kick in. about $85 billion of cuts
automatically to defense and domestic spending. the risk there is a drag to the gdp. on the 27th, current law on the government funding runs out that forces a drama over a continuing resolution, or you face the risk of a government shut down. on april 15th, that's the date by which the house would force congress to pass a budget or see their pay cut. the risk there, of course, is members of congress might have to go quite some time without a paycheck. tyler? >> thank you very much, eamonn. the gop originally wanted to tie the debt limit raise to spending cuts. so are republicans backing down as some in their own party say or is it just a shift in tactics? scott garrett is back with us, a republican from new jersey and vice chair of the house budget committee. welcome back. great to see you again. >> good to be back with you. >> happy new year. >> there are some people
including senator rand paul of kentucky who say that at your conference last week in williamsburg you retreated on the debt ceiling issue. is that a fair characterization? if so, was it a change of heart or a change of tactics? >> i didn't hear rand's comment as far as that is concerned. i think what the gop house conference is concerned about is how do we get forward during the next couple of months with an administration who just yesterday said he has a bold agenda going forward for the future. in order to have an agenda whether you're president of the united states or the ceo or cfo, you have to have a budget. we're saying the same thing the american public is saying to the senate, give us your budget if you want us to then go forward and continuously raise the debt limit. >> so you feel that this vote
tomorrow will pass the house what do you expect the senate will do? they haven't been able to pass a budget in four years. >> there's a story that came out, i don't know how true this is, that senator schumer said democr democratic senators have been secretly planning on doing a budget for a long time. that's good and also coincidental that they were secretly doing a budget an we never knew anything about it. as soon as we link their pay to getting a budget done, magically it seems the senate may be talking about doing a budget now. >> then that would be good. >> it would be great. >> we're looking at that debt clock over there. the time you gave an answer the debt goes up about 300,000, $400,000. longer-term, what would your prescription be on how to get the country on a much better posture fiscally? >> the ultimate goal is to get a better posture so we can have job creation, people can go back
to work, we can have the prosperity we had prior to this administration. you do that by starting with a budget and dealing with the problems here, which is everybody wants to spend your money, borrow more money. we'll address the sequester. a lot of us think let that go into effect. that will set us a bias line number. next thing to deal with is the cr. we had a bugdget in the house o representatives, and then deal with entitlements. even the president of the united states says we have to tackle them. he just has been unwilling to do it. maybe now in his new term he'll be able to reach across the aisle and work with us. >> a couple of things are of interest in your answer there. one is the sequester. many people, whether democrats or republicans, abhore the idea of a sequester, that's a big issue in districts represented
by republicans or democrats. you said you favored letting the sequester go into effect. >> i think you have to be willing to let the sequester go into effect. there are better ways to deal with it than this across the board cuts. congress has never been able to implement the right ones. we did the fiscal cliff lifting. i voted no on that even there it was rife with gimmicks and really false numbers where we pulled in revenue from the future and counted it as far as dealing with the sequester now. we can't continue on this way. >> congressman garrett, great to see you again. >> thank you very much. the dow transports hitting new highs. is it time to get back into the game if you haven't done so already? some advice on how to do it the right way coming up. and phil mickelson now says he should have kept his comments
about his 60% tax rate to himself. one reason why? maybe his math doesn't add up. we'll question, drive home that question. ♪ you know my heart burns for you... ♪ i'm up next, but now i'm singing the heartburn blues. hold on, prilosec isn't for fast relief. cue up alka-seltzer. it stops heartburn fast. ♪ oh what a relief it is!
let's check in on the gold market. sharon is there tracking the action for us. hi. >> the gold close has prices above 1690 an ounce, which is a key technical level. there's a lot of resistance at that level and the psychological level of 1700 as well. we are looking at gold prices confronted by a sentiment shift a bit in the marketplace with investment firms cutting back on price forecasts for 2013. the latest, citi did so yesterday. they are saying they see gold prices, forecasting 1675 an ounce. they say trying to get to that 1800 level and the inability to do so over an extended period of
time has weakened the bullish case for gold. there's a different story for the platinum group of metals. that's where the strength is. platinum itself is actually up about 10% year to date. it is the leader among the metals. we are looking at platinum, again, citi boosted its target for platinum to $1700 an ounce. looking at palladium to be around 1775 an ounce. yet another investment firm saying it has changed the metals market. what you need to look at is the platinum group metals, industrial metal component helping that side of the precious metal group as opposed to the pure play for gold. thank you very much. >> sure. to the trading action. courtney reagan is here with me. what are you watching? >> sharon mentioned the 1700 level for gold. 1500 is what we're watching on the s&p 500. we're getting closer. the mixed market here with two
and a half hours to trade, sideways action so far. but the dow transports versus the dow industrials. again, the dow transports hitting another historic high. outperforming the dow industrials as has been the pattern for the past month or so kansas city southern and union pacific hitting historic highs. kansas city southern beating the street on top and bottom lines. the airlines outperforming since the november 16th low. delta among the gainers again today after matching estimates. southwest higher, too. it is announcing this $40 charge. you can guarantee you're one of the first 15 on board the plane. us airways also up nearly 2%. some deals going on in the health care space, wellcare looking to buy, and health
stocks getting a lift from the obama care. so gains across the board in health care. >> thanks, courtny. shares of microsoft are slumping, the last trade on microsoft, let's look at the chart, down about a third of a percent to 27.15. that's well off of the lows of the day. this after david faber reported that the company was in negotiations to invest between 1 billion and $3 billion in a buyout of dell, in the form of mezzanine financing. dell had a run up on david's reporting last week. it's still up better than 2%, almost 2.5% now at $13.15. to the nasdaq, where the focus is on tech. we have the big movers there this week with seema mody.
>> research in motion shares are rallying, trading at $17.50. within social media facebook shares are outperforming. a lot of positive commentary out of a couple of analysts. topega capital saying we tested the graph search for facebook. other tech movers we're watching, google getting set to report earnings tonight. apple on tap for tomorrow, trading flat at the moment, and amgen reporting earnings tomorrow. shares higher lightly ahead of that report. and medivation is higher. johnson and johnson showed an increase in sales, and the market is taking this as a bullish signal for medivation to
gain share from j & j in the prostate cancer market. bertha bertha coomb is back more on apple. >> apple say they think that samsung has disrupted the situation for apple. android is gaining. nonetheless they think with all of these things, which is helping to attract a strong user base, they don't believe apple is out of the game and headed south. we'll learn tomorrow. they still say apple needs to defend it's growth story. >> bertha, thank you very much. let's check in on the bond market which is getting competition today from stocks. the bond market also waiting to see what some surveys later this week will show us. right now looking at the curve, the ten-year note is yielding 1.83%. the 30-year has stubbornly been
above the 3% level. that's what traders are starting to focus on, not starting but have been focusing on the last couple of months. the longer end of the yield curve. they have been watching consumer sentiment which has not been improving and they have been watching washington closer, they say there are fiscal issues out there that are not solved and that's something the bond market is watching. the bank of japan will not put in the stimulus plans until the beginning of next year fully. they will phase it in. a lot of bond traders thought they would be more aggressionive and put the lion's share of that stimulus in effect. that's a look at your bond market report today. it's 22 days, just 22 days into the new year, the s&p is already up more than 4%. so the question is is it time to get back in the game?
it would have been better to get back in the game late last year? clint works with institutional clients in 40 states, he's jp turner's director of national sales. welcome. >> thank you. >> when your clients say, hey, i want to start moving some money back into the equity markets or into risk assets more generally, right now what do you tell them? >> well, it's funny, because we get that question a lot. whether the markets are at highs or lows, the question boils down to first they need to assess are they a trader or an investor. if you're an investor -- don't confuse the micro with the macro. there are always good opportunities for individual companies. you have to drill down to that specific homework. that's what we focus on. there are always good opportunities as long as you look at the specifics of that company. >> so if i were positioned lake
effect snowi positioned defensively, i'm a middle aged guy with a balanced portfolio, and i want to take a risk what kinds of assets would you urge me to sell and what kind to buy? >> it's hard to give specific answers like that without knowing that investor in detail. you will look at the risk management i don't like to say get out of this sector. when do you thu you do that, yo troops. 2008 was a bad year for stocks, but some stocks made gains, significant gains, and they ranged the gamut of industries, even financials. i wouldn't say sell one seblgter and buy another sector, you need to look at the specifics of that company. there's always good opportunities out there. you have to look for them. >> let me try to probe that question one more time. where do you see the greatest opportunities right now, in whatever market you choose, you
name it, and where do you seat greatest risk? >> we see great opportunities still in the equity markets. doing your homework and finding those names. good businesses are not always good stocks. you have to look at perception and the forecast, if you will, as well as the business going on in that company. we are seeing plenty of opportunities in the equities markets. >> u.s. blue chips, small caps? what? >> in u.s. equity markets. i always prefer to stay in the mid cap arena, regardless of market conditions. small caps, mid caps, large caps, there are good opportunities in there. you have to be careful not to get caught up in the labels. i hear too many people saying now is a time to look at blue chip dividend stocks. when do you that, you eliminate the majority of stocks on the market. that's why i don't want to say one particular sector or one capitalization, there's opportunities in all of those. the equity markets, there are a
lot of opportunities now on valuation and growth. i would caution people, i like to look at names where i can find growth that has not been bid up. you don't want to pick a stock trading above normal pe averages. >> do you have one of those in mind? >> again, i won't give specifics. we need to harness that towards each investor. the same thing looking at mutual funds or equities, you need to harness that to your risk parameters and what you're comfortable with. we continually use a lot of the same managers we've used for many years because these are active managers who have shown the ability to manage all types of markets. >> clint, thank you very much. >> thank you. happy new year to you and your viewers. let's recap some other big headlines driving today's session. krispy kreme doughnuts are rising following positive
comments from jim cramer on "mad money" friday night. arena pharmaceutical falling after european regulators issued a list of concerns with its weight loss drug. and at&t agreeing to acquire atlantic tele network's retail operations in the u.s. for about $80 million. when we continue, phil mickelson is apologizing for his tirade on high income taxes, in which he said he would make drastic changes in lieu of paying 62% of his income to the government. was his math correct? we'll add it up for you when we come back. i have a cold, and i took nyquil, but i'm still stubbed up. [ male announcer ] truth is, nyquil doesn't unstuff your nose. what? [ male announcer ] alka-seltzer plus liquid gels speeds relief to your worst cold symptoms plus has a decongestant for your stuffy nose. thanks. that's the cold truth!
we'll dig in on the latest of that story. and what is on your shopping list? we'll ask herb greenberg and rocky, and golfer phil mickelson is not happy. he might regret talking about t but he's not higher about higher federal and california state taxes. so we asked simply does he have a point? all those things coming up at the top of the hour. "street signs" is the name of the show. back to you on "power lunch." the big buzz in the golfing world is phil mickelson backtracking a bit saying he should have kept his opinions to himself on taxes. he claims his 62% tax rate was making him think about making drastic changes, a little fuzzy on what those changes plight have been. brian schactman is here with the latest and our wealth editor robert frank. never has so much masculinity and manliness been in this newsroom since the day 50 cent
walked through. >> he is studly than me. the one time phil mickelson is unhappy shooting in the low 60s. >> good in golf, not in taxes. >> after a 37th place finish at humana challenge in california where he pocketed 22,400 before taxes, phil said i happen knob that zone that is targeted federally and by the state. it doesn't work for me right now. so i have to make some changes. those could include leaving california for one. it has that 13% income tax rate. you can leave the country, or he could leave the game entirely. this is a guy worth at least 150 million. he made almost 50 million last year. only 4 million of that from playing golf. the rest was endorsement money, perhaps that's why he's backtracking. in a statement to cnbc he said i don't have a definitive plan at this time. like everyone else i want to
make decisions best for my future and family. adding finances and taxes are a personal matter and i should not have made my opinions on them public. i apologize to those i have upset or insulted and assure you i intend not to let it happen again. he will address the media tomorrow. >> the farmer's open, on one of his ohm courses. >> torrey pines in san diego. >> robert frank, you have been doing digging, looking at what the tax numbers are. does he pay anything close 2062%? to 62%? >> we don't know what he is paying, but if he is paying 62%, he probably needs a new accountant. we start with the federal income tax, 39.6% for top earners. california income tax at 13.3%. medicare and medicaid, 2%.
health care tax, 0.9%, self employment taxes, 15.3%, that's only on the first $113,000 in income, he earns a lot more than that. 2.9% after that. that's the real rate. local taxes for when he wins a tournament, 1%. you add all that up, the highest possible rate he could pay is 59% to 60%. but he's not paying that, here's why. let's look at some basic planning. i deduct your state taxes from your federal. you deduct your golf expenses, business expenses, do some retirement planning. probably has some investment income, aside from his ordinary income, and you have mortgage deductions. some basic tax planning thing. he's probably paying, let's get the number here, more on the order of around 50% to 52%,
that's being very conservative. the top paid americans when you look at the irs code, the highest paid 400 earners and millionaires are paying around 20%, that's the average for most millionaire earners. between 20% and 50%, not 62% or 63%. >> what we can tell of his income, his income mostly derives from tournament wings or endorsement income. it's not investment income, which is how the wealthy people typically lower their rated. >> he's correct, he's the guy getting hit. you're talking about people who earn a lot of money in ordinary income, they are the ones getting hit. he's like a lot of rich guys, especially in california now who are saying maybe this is -- >> move to florida, right? >> he probably has a point but he still will be taking home $25 million. someone with such a great image in golf t doesn't send the right
message. >> many are accusing him of being a whiner about this. >> also probably inaccurate about his number. >> guys, thank you very much. appreciate it. may we all shoot 62 one day. one more big story from california, famous dodger is making a comeback. jane wells, only in l.a. jane? >> more than 43 years after leaving the team, sandy koufax is returning to the dodgers. i'm telling you, these guys from chicago came in and bought the dodgers and things are happening. sandy koufax will be an adviser to dodgers chairman mark walter. he will attend a portion of spring training and consult with the team throughout the year. koufax retired with the dodgers, with the dodgers his entire career, including four no-hitters. he has been reclusive the following decades, rarely seen at any dodgers events. now he's back saying i'm
delighted to be back with the dodgers. he says some of my most cherished memories come at stager stadium. >> we wish him all the success in the world. great story. should companies be able to restrict how much their employees speak out on facebook and twitter? it may not be legal. we'll discuss that next. ♪ ♪ [ male announcer ] it was designed to escape the ordinary. it feels like it can escape gravity. ♪ the 2013 c-class coupe.
♪ starting at $37,800. ♪ and his new boss told him two things -- cook what you love, and save your money. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef before opening a restaurant specializing in fish and game from the great northwest. he'll start investing early, he'll find some good people to help guide him, and he'll set money aside from his first day of work
>> i can't blame anyone escaping a 75% tax rate. i would love to see sarkozy in buttoned-up london. could you see him ogling kate middleton? >> the british press would love it. john? >> i think there will be more of this. and i think we will see push back, some of the higher tax governments in europe say we need tax harmization. that won't happen, but we'll see a push for it. >> topic number two, this involves our poll. we asked all of you out there via yahoo! finance should companies be allowed to limit what employees say about them on social media sites? 18% of you said yes, it's meant to protected the company and employees. 21% said, no, workers have the right to speak freely online. 61% said employees need to use commonsense when talking online. this reminds me, you know, we
don't gather around the water cooler anymore. we gather in social media sites. isn't the same thing? >> the entire premise of should companies try to stop you from doing this is wrong. what companies should do, is not just say use common sense, they should help employees understand the right way to use social media, a way that doesn't undermine the integrity of the company or seem restrictive on their own employees. take a positive approach to building out a strategy and how to deal with this new universe instead of no, stop, don't do it. >> you get more flies with honey than vinegar. right, cindy? >> i want to say that, but i have to tell you i would love to see companies -- i think they have the right to protect their reputation, we represent them. more importantly, i would love to see companies reprimand or fire people for posting i had corn flakes this morning or i won a golden flute playing
farmville. i saw your post this morning, john. >> all right. finally, rupert murdoch may have killed his web newspaper, the daily, but his laid off staff got the last word with a touching video that we came across. take a listen. ♪ so long ♪ farewell? we put up a fight ♪ ♪ i hate to go ♪ i'll miss this pretty sighte ♪ ♪ so long farewell ♪ i'll miss this lovely crew ♪ for you and you ♪ a shirt in daily blue >> very clever. very good humor but pretty sad, cindy, i think. >> i have to say, i looked at this video. while it was well produced, my feeling was the daily was supposed to be edgy and they
went with the von trapp kids song? if they want to show edge, tagging rupert murdoch's office, pho photo copying their behinds or something like that. >> john? >> i think news corp. managed to create a close-knit start-up atmosphere within their corporation. these people loved their jobs, they loved their product. that's something that every big media corporation should aspire to make happen. good for them. >> i thought it was a clever use of kind of a difficult situation for all of them. thanks, guys. >> there's a good time to lip-sync and sometimes not. >> sometimes there's not. that's for another "rundown." coming up in the next hour, a disappointing quarter for one casual dining operator. when "power lunch" returns, we're here on cnbc with a check of the markets. convention. drown it out. introducing the all-new 2013 lexus ls f sport.
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