tv Power Lunch CNBC September 13, 2013 1:00pm-2:01pm EDT
next few weeks. >> joseph. >> sold to you on that one. >> big buyer. >> mark fisher your final thought on oil? >> leave our viewers with a final thought. >> 95, 125, every time 95 buy it, every time 125 get out. >> good to see you. be well. "power lunch" starts now. >> halftime is over. "power lunch" and the second half of the trading day starts right now. >> thank you very much. a new survey on american attitudes on the economy, five years after the financial crisis. it is out and guess what? americans really, i mean they really hate wall street. why and what might wall street do to improve their image? also today, two terrible stories, the first that awful fire on the just rebuilt new jersey boardwalk. seaside heights area. ripped away by superstorm sandy and now the fire burns the new version, the rebuilt version to the ground. just what they didn't need. and out in colorado the raging
floodwaters get even worse. we're going to be live on the scene of both of those developing stories. and, a fight for the ages, perhaps. floyd mayweather back in the ring tomorrow night. one man is going to win. two cable companies will also claim victory as well as a lot of side players. this is a big fight with big money on the line. we'll take you inside this hour on "power lunch." first, though, let's check in with sue at the nyse. >> good to see you. we start with the utter dislike throughout america for all things wall street. that's despite the fact that 401(k)s are near record highs as the stock market is also near all-time high levels. since the market hit bottom in 2009, the dow is up 135%, the s&p up 149%. the nasdaq up 192%. all the indices more than doubling or tripling since march of '09. john harwood has more on this nbc news/"wall street journal" poll live in washington for us.
john, over to you. >> sue, i think one of the reasons is, that those gains are not evenly distributed throughout the population. they say time heals all wounds but maybe we need more time. five years after the financial crisis you can look at this nbc/"wall street journal" poll and see wall street is still in the dog house. only 14% have positive views of wall street firms. 42% have negative views. if you asked them about one of the biggest players on wall street, jpmorgan chase, in controversy lately, 14% at positive views, 30% negative. and the reason is, the people have really been affected by this crisis. it hits home with so many people in this country when we asked, were you much affected by the wall street crisis, by the housing and mortgage crisis, you get a 52% majority saying yes. that is down only slightly from what it was five years ago at this time, sue. people are still feeling the pinch and the rise if their 401(k)s may help a little bit but they are going to need more
widely distributed gains before they're feeling better. >> those are stunning poll results, john. the white house took great pains to shoot down reports in japanese press yesterday about an announcement on a fed chief and floated the name larry summers in that report. your reporting says something different about when the president might nominate a new fed chief. >> my reporting says that larry summers remains the expected choice of the people that i talk to who are people not inside the room with the president making the decision but people who know a lot of those people. people in the outer circle of the team obama. but what i've been told firmly from a source familiar with the white house timing on this, it will not come next week. earlier in the day i mentioned one source's expectation that the appointment would be made next week this source familiar with the white house timing now says it will not be next week, sue. >> all right. john harwood, thank you very much. appreciate it. ty, up to you. >> all right, sue.
sunday marks five years since the lehman brother collapse, a crisis not seen since the great depression. are we any safer? bill rogers a former chief economyist for and rana is a times editor and wrote this week's cover story which i'm eagerly awaiting at home "how wall street won" five years after the crash, it could all happen again. rana, we have a statement from the treasury department responding to your article. let me read it for you in the fall of 2008 our economy faced challenges on a scale not seen since the great depression. the federal government took actions to affect the economy and reform a broken out dated system. i'm still reading here. >> i take this as great compliment, by the way. >> the notion that these reforms are somehow a myth as rana suggested in her september 23 story is wrong. in the 12 seconds we have left
in this segment, how would you like to respond to that. >> let me just say, in a way, i actually think the treasury is agreeing with my story because what they're saying is that yes, we had to do a bailout of the banks, we had to save the financial system from this catastrophe, and i'm agreeing with that but what i'm saying is while we've done a great job of bailing out the banks we have not done a good job of restructuring the underlying core of the financial system to make it safer over the long haul. if you read my story you'll find out more why. >> this bill would come as a surprise to a lot of people, rana's thesis, i'm not sure i disagree at all on it, the idea that after all of the rule making, all of the dodd/frank stuff, that we're not necessarily safer and that, in fact, while the next big tumble might come from a different source, the next big tumble could, indeed, and may very well come, what do you say? >> well, for me, you know, the big picture is that over several decades, we have been pulling back on what i call our human
priority investments, investments in education, training, investments in infrastructure, investments in social insurance, and so yes, we are still on that precipice if we get knocked in the wrong way there are many families on main street that could be impacted for a generation. >> sue, jump in here. >> i want to put a question to rana because i did read the article on my way to the exchange and i think one of the reasons that most americans hate wall street is because we haven't fixed the system. we're trying to fix the system to a certain extent. but we still have high frequency trading, the flash crashes, still all of those things that reflect poorly on wall street to main street. but i noted that you had five things in the article you said we need to do to really change the system and to me, number five, is the one that perhaps is the most important and perhaps the most difficult to do and that is to reboot the culture of finance. how are we going to do it?
it is so engrained down here on the floor of the new york stock exchange and elsewhere. >> yeah. i think that you are hit on the most important point in this story. there is this disconnect, psychically, and in the real world, between wall street and main street. we forget that banks were set up to serve the real economy. and they have become unmoored from the real economy. credit to small businesses, for example, still tighter than it should be. you have trading continuing on, banks making record profits but making most of that doing a high frequency trading, the riskier and more profitable operations, rather than this plain vanilla lending. that's why main street doesn't understand this disconnect. >> and yet we read this morning that jpmorgan chase is going to add 5,000 people in regulatory compliance, going to spend billions of dollars to do it. i mean, i don't know, you know, how do you get to the bottom of this and i guess, john harwood in our previous piece, bill,
brought up the idea that one reason main street dislikes wall street so much is that the -- that the fruits of the recovery have not gone to main street. >> right. >> they've gone to wall street. >> it's even bigger than the fruits of the recovery. we've had several decades of -- and you've talked about this on your show, about how we've seen a wedge between productivity of workers and the wages in which they're taking home. and, you know, from my standpoint, the camp i live in, there's been a great big disconnect in terms of the role of institutions and unions to bargain for their workers and grow the work place. our inability to raise the minimum wage in important times to help not just teenagers but help people who are raising families, you know, make ends meet. when i was working on the obama campaign -- not campaign but the transition team before this collapse, our big folk focus was basically to recover some of the loss to turf with regard to
worker safety and fairness in the works place. >> we will talk about a move in california where they're going to presumably raise the minimum wage to $10 an hour out there. there are certain states that are moving to raise them. debatable. a hot point as you well know, some people say raising the minimum wage hurts people at the lower end of the economy because then people don't hire as many of them. but anyhow, we have to leave that discussion here. you want to jump in. i thank you very much, professor, for coming in. rana, look forward to your article in "time." >> it's a good read. >> thank you. >> that will be secretary lou from trer treasury on line two for you, rana. >> happy to take the call. >> sue? >> i'm sure. absolutely. stocks higher today, but wow, it has been an amazing week for stocks. three triple digit days on the dow to the up side. it's up almost 3% this week alone. but as you know, gold is a different story. the huge loser on the week, the precious metal on track for its
worst week since june down 5% this week. what can investors expect as we go into the fed meeting next week? a news conference from ben bernanke as well. joining me on the floor bob pisani and at the nymex for the gold trade is paul sax, principle trader. i'm going to starts with you, an extremely strong week. some days were lighter volume than others. >> yeah. >> however, you can't argue with a 3% move to the upside. >> three things motivating it, syria, china economic news, as well as lower interest rates in the middle of the week. let's call it a 2% week. put up the chart here, you'll see all the indices up about 2% on the week. i think the main problem the markets rain out of a little steam in the middle of the week and most of the gains in the earlier part of the week. the economic numbers today, not particularly, retail sales and michigan sentiment numbers weren't great. we're still up on the day. see overall, good. the global markets also did very well. not just here in the u.s., but
china and japan, germany, only brazil on the downside. >> paul, different story for the gold market. what is the gold trade telling you right now about the future for the precious metal? >> well, thanks for having me. we are, i'm sorry to tell you, smack dab right now in the middle of our new trading range, 1180 to 1420. i myself am not so focused on the fomc meeting. i do believe they will initiate the taper, maybe 10 to 15 billion. i'm concentrating on the debt ceiling debate. if you remember it was the debt crisis in europe and downgrade of the u.s. coincident with gold price at 1900 and higher. so that is more interesting to me. the only thing i'll say i don't like to make short-term predictions in terms of price, but if we get below 1283 and spend a little value there, spend a little bit of time there, it's highly likely we're going to visit the bottom end of the range, maybe 1180 and see
what we can find beneath there. >> paul, thank you very much. have a great weekend. bob, see you later. all right. ty, up to you. >> thank you very much. a look at intel which has been moving higher by 69 cents, 2332 the quote right now. jeffrey upgrading the chipmaker to buy or says in this prompter to buy buy from hold and upping its price target to $30 a share and the company is poised to gain market share in sub500 tablets. stock up about 12% for the year. and safeway gaining ground as well. closing in on a 52-week high. credit suisse upgrading the supermarket to neutral. where it sits right now. that's a big move for safeway. look at that up almost 8% today, 2.01. the firm thinks the company can reduce its share count by 40% in the coming months using the proceeds from the sale of its
canadian business. sue? >> there are three huge names in the world of business telling cnbc what they think today and there's no need to call a financial adviser today. just stay tuned. we'll give you all you need to know. plus, the fire that literally has broken new jersey's heart. a horrible story after rebuilding from superstorm sandy. fire burns all those hopes and dreams right into the ground down the shore. plus a live report from colorado as the rivers and creeks run wild there. hundreds of people have been evacuatedp. the university in boulder had to be closed yesterday. we have all of those stories straight ahead as "power lunch" continues.
welcome back to "power lunch." shares of vie ro pharma are surging on a story from bloomberg that rare drug disease maker that one is said to have hired goldman sacks to explore a possible sale. this report says european drugmakers are said to be interested. this could be the latest in a string of acquisitions by bigger drug companies. shore up their product pipelines. viropharma trading at its highest level since 2001. a former treasury secretary, bank ceo and hedge fund manager walk into a bar. miley cyrus -- just kidding. no joke. we had the trio minus miley on squawk box to reflect on the financial crisis and also to talk about today's big issues. mary thompson on what they had to say. >> it was interesting tv, tyler.
one helped save the financial system during the crisis the second resents the fact that his bank had to take t.a.r.p. money and the third made money. hank paulson, former wells fargo ceo dix kovacevich and mark of avenue capital reflecting on the crisis and ricks out there today. paulson's concerns include the adjustment to a higher rate environment and need to reform immigration, tax code and core of mortgage market. >> we need to fix fannie and freddie, shadow banking markets and the biggest thing that is not getting enough attention is we've got five regulators all competing with each other, falling all over themselves dysfunction. >> for former wells fargo ceo hated the t.a.r.p. program paulson pushed during the crisis. today to fan of the federal reserve's bond buying program. for him it can't end soon enough. >> they have to taper now.
the price has already been paid. it's built into the market today. it would be shocking to the market if they do not taper. so they have to taper. and the amount is not relevant. do something. >> in 2008, avenue capital's lazry says too much leverage posed the biggest risk in the u.s. today he says the big risks lie overseas. >> the real risk is much more in europe. i think you don't really have risk that much here in the united states. i think our banks are fine. i think in europe much more of a sovereign risk and that risk is still there. >> so interesting listening. >> kovacevich said we didn't need to take that money you rammed down our throat. we were in better shape than the other guys. what would paulson say to him? >> that would be interesting. i would like to see that response, but kovaevich said this was a liquidity problem. paulson would maintain listen,
we are in a better place now because of the actions we took. he repeatedly says that. and the fact that, you know, we've been able to have the growth that we've had over the past couple years is reflective of the actions that he took. and ben bernanke and geithner, give them all credit during the financial crisis. but paulson would turn and say we did the right thing. that's what his -- -- >> he would say we had to do this. >> it was a systemic issue. >> and it worked. >> you were big enough whether you were in extremist the way some of the other institutions were, we needed to shore you up as well and i guess that would be the argument, kovacevich disagrees. mary, thanks very much. sue, to you. >> ty, fires and flooding, two developing stories we continue to follow right now. three days of heavy rain triggering flash floods in northern colorado killing at least three people. officials warning that number could go higher. but we begin with our scott kohn in seaside heights, new jersey where a devastating fire wiped
out businesses and the boardwalk just trying to recover from hurricane sandy. scott, it really, it doesn't seem like it can get any worse for new jersey and for the shore residents at this point. >> it's hard to imagine that, sue. this is really, really awful. the fire is now contained, but the work is going to go on for days. take a look at what they're still doing here. they're going to be pouring water on this fire to -- or what's left of it, to extinguish hot spots, make sure it doesn't flare up again, and it's literally going to take days before they can be done with that and get in there and try to figure out exactly what happened. but what we do know is that the boardwalk here in seaside park is completely gone according to governor chris christie. a fire that behaved more like a forest fire, whipped by 30-mile-an-hour winds, hopping from building to building. igniting the tar roofs on fire. some 30 structures. and just as they were trying to get back up and running here,
business was down but they were hoping to get some of it back in the rest of september and even into october. >> we fought broken equipment all summer and what we lost from the storm. and business was down two-thirds. and just getting up and running again. june 1st, first day, and now this. >> lost a couple amusement booths on the boardwalk and says that after being flooded by sandy and now losing the booths to fire, it's a strange sense of deja vu. >> you know, what is the insurance cover? if not, grants, loans, as far as the townships starting to file permits right away, we learned that. do it right away no matter what. just to get the process rolling. >> reporter: it will be some time before we have a dollar figure on all of this, but we do know that it could have been a whole lot worse. coming up next hour on "street
signs," we will show you the tough choices they made and the extraordinary effort they undertook to keep the fire from spreading further along the boardwalk. sue, back to you. >> all right. scott, thank you so much. and now to colorado and the terrible flooding there. nbc's leann greg is live in boulder for us. leann, over to you. >> reporter: hi, sue. finally some sunshine. much awaited, more rain is expected this afternoon, but not like before. even though the rain is subsiding the problems have not. take a look behind me. this kind of flash flooding is not only in the boulder area, but all across the denver metro area. and this neighborhood, for example, the runoff from the mountains, the streams are still swollen, along with the creeks and the rivers, so that will take a long time for that to subside. the flooding is expected within the next couple of days. it will continue and the cleanup will not be able to progress in earnest until these waters subside. still a concern about the safety
of bridges and some of the roads because of the saturated soil. some cars that might pass over them, will they be able to withstand in this unprecedented rain event. also today, there's a focus on the people who have been evacuated. 4,000 yesterday from boulder. last night there was some concern about a huge debris field raging down the mountain and it was headed for the city of boulder. it dissipated luckily right before it hit boulder, but that was a concern and those are the types of things emergency managers are dealing with. today, the national guard is helping with people in the town of lions literally cut off from the outside world because were impassable. boats are going in along with military vehicles to try and rescue people, give them humanitarian aid, and set up some shelters. these are the scenes all across the state of colorado, to the south, all the way to colorado springs, throughout denver, and to boulder. so a lot of cleanup ahead.
this will take days, possibly even weeks before things return to normal. sue? >> leann, thank you very much. we appreciate it and wish everybody our best. >> what kind of an investor are you? are you a planner, pro grast nater, or an avoider? your answer will impact your retirement. that straight ahead. plus turning into the biggest prize father, floyd mayweather facing mexico's saul alvarez. the winners and losers in the huge money-making event and the stocks that are hoping for a knockout. when we continue. my mantra?
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increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. ask your doctor about the only underarm low t treatment, axiron. in boxing floyd mayweather and mexico's saul alvarez will face off tomorrow night in las vegas. super welterweight championship of the world. a fight off the canvas between hbo and showtime. dominic, there is a lot of money at stake here. this is one of the biggest of all times. >> it is. >> certainly is. >> billing it huge. here's the reason why. this is being billed as quote/unquote the one, golden boy promotions promoting the fight expects this matchup between floyd money mayweather and saul alvarez will go down in the history books. both money and kanell lo are members of golden boy stable of fighters but not just about the men in the ring, it's about the company's producing, televising this fight.
mayweather made huge waves this year ending his relationship with time warner's hbo and moving to cbs's showtime. the get was a huge win for showtime which has played second fiddle for most part to hbo and boxing. showtime hoping this fight draws a record number of viewers. historically speaking the biggest pay per view boxing event of all time was the 2007 fight where mayweather beat oscar de la hoya. it drew an estimated 2.4 million buys on pay per view. second place to the '97 fight between tyson and holyfield and that's been -- >> this fight is a huge fight. i mean, it's truly unbelievable. you have two guys that's undefeated, that's at the top of the sport. when you bring the two together nothing but an explosion, excitement. >> we spoke to him and it's not just about the pay per view golden boy ceo richard shaffer thinks we could see $300 million of economic impact around the
fight. sure, i mean the biggest chunk of that will come by the 65 to $75 being charged to watch per view on pay per view, but the city of las vegas could see about $100 million in added tourism from the event. it's not just, though, las vegas seeing this cash winfall. >> you can imagine the implications it has throughout the united states in all of these thousands of bars and restaurants, the consumption there or the people at home buying. the economic impact of a floyd mayweather fight is certainly in line with what you would see on the super bowl. >> so tyler, boxing fans all over are hoping that this turns into an epic, epic fight. >> any irony at all here that showtime has taken this fight from hbo and it was just a few weeks ago that cbs and showtime were fighting time warner over the cable karm of thocarriage oe networks. >> poet it actually. >> so many different dynamics when it comes to sports and
broadcasting. that's the big deal. with cable networks an content always going to be this tug of war. >> i thought the fight was going to be mayweather and pacquiao. pacquiao lost so that took it away. >> take a look at this, huge paydays. mayweather guaranteed $41 million for fighting in this fight alone. that excludes any cut of pay per view revenues. we'll see if this breaks the old record of, again, this is interesting, mayweather beating oscar de la hoya, de la hoya took open $53 million. >> i might watch it in a bar. >> good enough. thanks very much. >> that sounds like a good idea. down to you. >> take a look at the biggest paydays they make more than cable angsers that's for sure. gold prices closing. sharon epperson tracks the action at the nymex. it's been a tough week. >> tough week. a lot of glitter going on for the gold market. gold prices at a five-week low closing right now above the 1300 announced level, but just barely above that mark. we are watching prices that have
fallen precipitously throughout the week. a lot of traders say it's technical selling, looking ahead, preemptive selling ahead of the fomc meeting next week. the slide is not only in gold but silver as well which has fallen sharply and one of the worst performing commodities all week long. back to you. >> all right. thank you very much. down here at post 9 on the floor of the nyse up about 70 points. not a bad way to end the week that has seen significant percentage gains in the major indices. bob pisani, going out on a high note. >> much of the gains earlier in the week but here a little bit of a move to the upside. the s&p 500, eight of nine sessions we have moved to the upside so far. it's been a nic move here. we're up about 3% on the month. maybe a little bit less than that. couple sectors that are moving today, some of the electronic retailers up, data indicating we're getting growth in video game sales. they stalled out there for the longest time. up about 1% in august after a year of contractions. see the retailers on the upside.
this is very interesting. remember the podash cartel fell apart a month and a half ago. the biggest holder of the russian part of that cartel may be selling his interests. if that is the case, that cartel may be getting back together again, moving those potash stocks. home builders great week, lower rates helped some of the home building stocks. this is the first time this week that i'm aware of that they're to the downside. >> bob, have a good weekend. >> you too. >> see you on monday. all right. uptown to the nasdaq where sheila -- i promise by the end of this week i'll get your last name correct, but following the big movers up there for us. >> pretty close. here at the nasdaq a flat day overall. the standout mover being intel, popping more than 2.5% after the upgrade from jeffreys. despite the quiest er absion wht a week for the tech heavy index. the nasdaq hitting a 13-year
high. movables pandora, after a new ceo announcement and netflix hitting a record high. since then the stock has come back a little bit on some valuation concerns. speaking of concerns, there doesn't seem to be a whole lot of concern when it comes to the future of nasdaq ceo bob grifeld. "the wall street journal" reporting he has the full support of the board despite snafus and glitches we have seen this year. quiet day at the nasdaq but the index set to now have a third week of gains. sue, back to you. >> all right. sheila, thanks so much. to the bond market now and the interest rate scenario where rick santelli is tracking the action at the cme and not only the interest rates but also currencies this week have been actively traded. >> you know, they have. except for when it comes to the final closing bell and that's kind of the point. i'm going to show you three weekly charts and pay most attention to the scaling and also not so much to today's action because we haven't closed yet. these are closing charts.
first five year. for the entire week five year closed between 170 and 176 yield. it's high yield, was a week ago yesterday at 185. ten year, 291, to 296. its high yield close was the day before the employment report. at 299. dollar index, this one is amazing. yes there's been volatility, all closes this week, not including today, not closed yet within a third of a cent. seems as though we're going nowhere quickly, but rates remain mostly elevated. sue, tyler, back to you. >> all right. thank you very much. more than 200 million active users, 5700 tweets per second, most of them from our friend darren rowvel, more than 500 tweets a day, twitter plans to go public. no one is sure how much money the social media giant really makes. we wi will twitter be a good place for average investors or a rough ride like facebook has had up until the last couple weeks.
we'll be back to tackle that one. twitter by the numbers. nascar is ab.out excitement but tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. that's why we partnered with hp to build the new nascar fan and media engagement center. hp's technology helps us turn millions of tweets, posts and stories into real-time business insights that help nascar win with our fans. does it end after you've expanded your business?? after your company's gone public? and the capital's been invested? or when your company's bought another? is it over after you've given back? you never stop achieving.
most highly anticipated tech debuts since facebook's last year. yesterday's announcement via twitter, of course, was concise and to the point, quote, we've confidentially submitted an s 1 to the s.e.c. for a planned ipo. this tweet does not constitute an offer of any securities for sale. end quote. insight from ipo desk top president frances and social media backer andy, lead investor in zynga, daily candy and thrill list. welcome, nice to have you here. >> thanks for having us. >> thank you. >> frances,let me start with you. how do you think this is going to go and what is twitter trying to accomplish other than raising cash here? is it chasing social media performance or is it all about advertising and mon netization. >> it's both of that. they have an impendble position in the marketplace. i think they want to be seen as a leader in the space, that they're the only kind of pure social networking company. they don't do banner ads. they have the backing of the
bcs. i think they're expecting a billion dollars next year and it's possible in revenue they could come at 20 times that figure. what's interesting compared to facebook, is goldman led a group of people that sold $10 billion on the facebook ip which is two-thirds of it and they're leading here. goldman is never known for leaving money on the table. i don't -- i think it will pop -- it will pop like all the other social networking stocks. the question is how long should people hold it. the fact that facebookers can -- >> okay. let me just get to andy, because you've been in this space, you were telling me, for some 15 years. >> yes. >> after facebook ipoed and didn't go well and the stock got crushed you made a prediction. >> i was on air about four days after the ipo of facebook and everyone was singing the down story of facebook and i made it just obvious that my perspective was facebook's important to the consumers and every time you have a relationship, a deep relationship with the consumer and it's good for a brand to be
involved as well, that there's going to be a huge business there. it's beautiful today to see i think facebook is up over its ipo price. >> yeah. >> at 45 today. >> yes. >> i wish i had bought more of the stock when i made the prediction. >> tell me what you expect from twitter and what their game plan is, kind of the same question i just put to francis. >> for twitter the same thing. twitter has an extremely loyal following. 200 million active users. these are important people, people in the media industry, finance industry, and brands are actually able to reach these consumers and the way they're reaching them is in a trusted voice. twitter has allowed us to choose who our influencers are. back in the day you could choose "the wall street journal" or "the new york times" and that's who was going to influence your decision. i can choose which friends will feed me the news, the cur raters on my part. >> i would argue also that the consumer that uses facebook, while important to advertisers, perhaps is a less important consumer than the twitter user.
they tend to be a more sophisticated consumer from all the research that i've read. >> i completely agree with you. >> if that makes mem more valuable for -- them more valuable to advertisers. >> twitter with 200 million, look at who the users are and how often they're checking their twitter accounts. you're following the news, update every minute on what's going on with current situations around the world or your friend's opinions. the user based as you mention ready the media folks, the trend setters or the ininfluentialals of our community. if you want reach them with a trusted voice it's a fantastic proposition for advertisers as well. >> would you buy the stock on an ipo and do you have an interest? >> i'm fairly certain that if goldman pulls this off the right way and doesn't flood the market, that it will initially out of the gate be a short-term success and who knows what it will do medium term. twitter is here for a long time.
long-term financial bet. twitter is important, it touches the consumer in a valuable way and i would do that. >> francis, want to weigh in on that before we have to wrap it up. >> sure. i think twitter will come at a high valuation, seem overpriced, grow into the valuation and over time they will do just great. >> all right. on that note, andy, francis, thank you very much. andy, we should get you back on the day they would go public. >> love to see what happens and if i have another prediction. >> now you're on the hook. >> called inside hook, so there you go. >> there you go. thank you so much. don't miss cnbc's documentary, twitter revolution, only on cnbc. ty? >> all right. here's a very important question, what kind of investor are you? how your answer will have a major impact on your retirement coming up. talk about cheap seats, you won't believe what happened when united airlines' website, you got to stick around to hear the details on this. an amazing story. what are you up to? oh, juiagrthis accident
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are you a planner, pro grast nater or avoider when it comes to your retirement? sharon epperson looking at how your answer will have a big impact on how your savings fair. hi. >> you know most americans aren't prepared for retirement. when you look at the numbers, only 42% say they're on track for retirement and believe they're planners, according to a recent survey by pnc financial group. the majority aren't ready. more than a third call themselves procrastinators. recognizing they need to plan, but they've been putting it off. and about a quarter are avoiders. where they're admitting they need to do something in terms of their retirement, but they're completely behind in their planning. so what is the result? well, procrastinators and avoiders, their retirement age is around 68 on average. that's about two years later than the planners who say they will be able to retire at 66. now more than half of the avoiders and the procrastinators
also said that they expect to retire later than they previously planned. but here's the reality. changes at your employer and unexpected illness may force you to retire earlier than you had planned. more than half of those surveyed by pnc who were leading the work force at age 70 or under, they did so before they had actually planned to retire. so what this tells you is that yes, you need to establish financial habits that are very sound early on, but also, envisioning a career and lifestyle you will enjoy into your 60s and beyond may be another way to go. >> all right. >> which one are you? >> i'm a procrastinator. >> had to put you on the spot, my friend. >> you know it. sharon epperson, thank you very much. talk about flying the friendly skies. not going to believe what happened on united airlines' website yet. well, it's amazing. we're going to come back in 30 seconds to tell you. stick around.
coming up on the friday edition of "street signs," i'm a fan of the food truck. what about a soup truck. a closet on wheels and parked out the front here. nifty things to give you the perfectly made custom suit. gold suffering its worst week since june. twitter, the big story of the day. we are asking if there is a bubble forming in social media. all those things and more on this friday edition. see you top of the hour. >> i saw that truck in the front. it looked nifty.
>> jump inside and have a look around. you'll be amazed. >> mobile shopping i love it. see you at 2:00. >> okay. >> all right. dozens of jetblue airways flights are being delayed after a computer glitch limited the airline's ability to dispatch its planes. the system was restored by 10:30 a.m. eastern time but you know what that means. the airline warned delays would persist throughout the day. that is not good news. but for about 15 minutes on thursday, passengers making reservations on the united airlines website must have thought they hit the lottery. nbc's kerry sanders explains. >> reporter: united used to be known as the friendly skies airline, but thirst thursday they were the unbelievably friendly airline thanks to a computer glitch, giving away tickets for the price of a latte. >> i don't know if this is real or if i'm dreaming. >> she wasn't dreaming. but she was on the right website at the right time. someone at united apparently entered wrong fare information into their system. the result, on a lot of routes,
the price of a ticket was $0. plus fees, of course. >> so i went and looked and thought of the most expensive place i could think of. hawaii came to mind and i checked it out and found two tickets round trip for $15. >> reporter: any other time two tickets would be $1,714. and it was the same story all over the country. no matter where you were flying from. a flight to orlando just $3.20. to washington, d.c., just 5 bucks. las vegas, $6.40. boston and los angeles, both just $10. >> i was afraid to put my credit card number in at first but then i was like i'm going to do it. >> reporter: the news took off on social media. one post read, this can't stick, but just in case, i've booked 14 and counting. the glitch lasted about 15 minutes. before it was corrected. united isn't saying whether it
will honor the tickets, just we are in the process of evaluating this and as always, we will do what is appropriate. but for now, hopes are sky high. >> it was real. i got my confirmation so thank you, united. >> reporter: kerry sanders, nbc news, miami. >> yikes. that's a tough situation. all right. here's how the airlines are faring. all up better than 1% today. california, approving raising the minimum wage limit to 10 buck an hour. good or bad for the economy. and get this, did you know google co-founders larry page and sergi brin were getting a jet fueled perk from the government for the private planes. no more of that. why were they getting it in the first place? nicole kidman's collision with the paparazzi. the power rundown is next.
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time for the power rundown. cnbc's dominic chew and seema mody. larry page and sergey brin going to have to dish out extra cash to use their jets. the defense department and nasa are cutting off giving discounted jet fuel to the billionaires. do a lot of work with the government. page and brin may have exceeded the terms of the 2007 contract by using fuel for nongovernment flights. iowa senator charles grassley seeking an audit of the arrangement. when you get below the surface this sounds crazy they were getting discounted jet fuel but i suppose there was a reason. >> i don't know. steve and i we talk about this and we say to ourselves there are instances where the government subsidizes certain
things. it has to be used for what it's intended for. rocket propulsion experiments or building products maybe that's a good thing. if the story is true and chuck grassley does find out there were perhaps not as many official uses that could be different. >> a report that claims larry page, founder of google, perhaps used one of his jets to attend a family wedding in croatia. not only a question if google warrants this discounted fuel but abusing the privilege. >> used for business or pleasure or business pleasure. >> it could be suspect. it may not be. let's be honest these guys can afford their own jet fuel if they did want to. >> you think. >> i think. >> i don't know about that. >> all right. california about to pass a minimum wage bill. $10 an hour and the yahoo! finance question of the day. we asked whether it's a good idea. 36% say yes, the wage needs to be higher. 41% say no, it's a job killer. 23% say it should depend on what the industry is. seema, any views here?
>> i think if this means that we will see more individuals putting more money back into the economy, then maybe it's a good things. we are at a growth rate of around 2.5%. let's get excited when we get to a gdp of 4 or 5%. >> a national minimum wage and state by state you can adjust that. >> which is a good thing. >> i suppose it should be if you buy into the idea of a minimum wage why shouldn't it be different state by state. >> cost of living are different in new york city than in the middle of the midwest in places like in stainless steel or y. l. this minimum wage increase is going to allow people to either get more jobs that pay better, or restrict employers from actually hiring people because it costs more? that's the ongoing debate. does it add to jobs, kill jobs, because with a very act of raising it some people say, the arguments are, it keeps people from -- >> one of the states that was truly impacted by the housing bubble. they're still in recovery mode. >> let's move on to something a
little different. nicole kidman struck by a pap raz zo riding his bike outside the carlisle hotel in new york city. there's gaga. >> there's gaga. >> the actress reportedly threatened to press charges. we have an image of the paparazzi there and miss kidman. i think she was minorly hurt and turned to him and said are you okay. i know the paparazzi chase you all the time. >> oh, right. >> i think you're more used to that than i am. >> according to some of the hollywood blogs i was reading this morning, perhaps some all press is good press as they say. apparently because of this confrontation that she had with the paparazzi, now many of the blogs are realizing she just got this new sleek bob. perhaps it worked in her favor. >> i don't know. i think that you could press charges if you want to, but you also got to understand these people are part of your brand, right. they do create this cache. it may be annoying for some of them. i don't have a problem with paparazzi following me around. >> i tell you, somebody hit me,
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positive day, some whippers on the day. safeway, and intel, and the dow is up 72 points. ty, it's been a good week. >> closing out a very good week for the dow and the other indexes. that will do it for "power lunch." have a great weekend, everybody. >> "street signs" begins now. today may be friday the 13th but next week could spook the market as the fed may make a big move. an all-star lineup to help you navigate it and what your best financial move is right now. if it glitters it's probably not gold. the metal sinking again. will it ever turn back around. plus, is anyone really going to buy the $550, quote, lower priced iphone. does a twitter ipo signal maybe the top of