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tv   Power Lunch  CNBC  October 27, 2014 1:00pm-2:01pm EDT

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>> you can put that on the list for however many years. >> it went back up to 20. short it again. >> let's do final trades. >> long marathon refineries. >> long street timber. >> long tether. >> have a great rest of the day. good afternoon, everybody. welcome to "power lunch." we will begin with a developing story, news about the ebola outbreak. now a five-year-old boy under observation in new york city after he returned home from guinea over the weekend is prompting ebola concerns. meanwhile, a furs held in quarantine in new jersey hospital, in a new jersey hospital, will be allowed to go home. sue is at the new york stock exchange. we will get to her in a moment. first, outside beliveau hospital in new york city is meg. >> reporter: hey, tyler. that's right.
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we know a child was transported here last night, this morning, developed a fever and now he is being tested for ebola. we are told preliminary results from that test should be available in 12 hours. we hope to hear something sooner. we will bring you the details as we get them later. dr. craig spencer is if treatment here. he is in serious by stable condition. we know he has received a anti-viral therapy and though we know that his disease is progressing into a more difficult course, he is participating as a doctor in his own treatment decisions. as you mentioned, the nurse who had been quarantined, casey kaci hickox is being discharged today after she tested negative for ebola and has been symptom free for 48 hours. she will go back to maine, still, to be under a quarantine
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order. now. this is enhanced quarantine restrictions put if place. recently, a spokesman for the u.n. secretary general putting on a statement saying he is concerned about the recent restrictions and quote returning health workers are exceptional people giving of themselves for humanity. they should not be accepted through restrictions based on science. back to you. >> mech, tirrell, thank you on that debate as it heats up. ebola is one of the many questions we intend to pose to texas governor rick perry. he will joins first on cnbc on "power lunch" with the chief of toyota, that's because the ground breaker takes place at toyota's headquarters in plano. oil collapsing, prices falling below $80 a barrel. goldman sachs slashing its 2015 oil price forecast.
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so is oil's big drop necessarily a good thing for america or does it have some sort of side effects that might not be so good? and should you be boying the beaten down energy stocks right now? under loved health care? are there any? health care sector on a tear. second best performer of the 84. but there are apparently some lack ards in th lagards that yo want to put on your list. sue. >> reporter: hi, stocks are posting poddest losses to start out this new trading week. energy, you mentioned it, among the biggest losers. telecom, though, is among the top performers. the dow jones industrial average is down about 12 points on the trading session. ap ap is down 3.5. the nasdaq is holding with a gain of about a point, a point-and-a-half. the russell 2,000 is trading down about 4 points. but the oil market is what
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everybody down here including what our captain is watching, oil collapsing. west texas immediate crude falling below $80 a barrel, hitting the lowest level since june of 2012. prices have plunged 20% in the last few months. goldman sachs is slashing to $75 a barrel, giving us the most bearish outlook on the street s. the loss a good thing or a bad this inc.? steve liesman has answers for you. steve, you first. >> sue, thanks. there will be some pain in the u.s. economy from lower oil prices. more now than ever because of the production boom, overall, lower oil prices will be a help to the average joe worker. but it could hurt the average joe investor. here's the reason. this has been a historic oil boom that's come as a result of technology and machines, but less so jobs. rbc in a research report points out since the end of the recession, employment in the oil business is up a solid 34%.
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oil production up 265%. that tells the story of massive productivity gains as fracking and new horizontal drilling technologies boost output with far fewer rough necks and ricks in the field. the result the so-called shut-in costs for wells to become unprofitable. it's low. it has a break even price of $80 or higher according to international agency. some regions are taking on less future investment if prices stay down or some shutter production. those effects will be overwhelmed by the upside on oil prices, especially for companies who use energy and especially on consumers who have more money in their pockets just as the holiday season rolls around. so capital has made the bulk of the.from the boom, not labor. so capital will be hurt most by the price line. so i think they will tell us about that. >> let's move to domenic chu now on how oil drop is being played
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out in the energy sector. those leading the losses in today's trading. >> the conventional wisdom is lower gas prices will help the consumers. take a look at some of the energy stocks, the big ones that have taken the biggest hit. the energy session s&p 500 down nearly 2% off session lows right now. as we scroll ahead, though, take a look. since over the time being, since june we will call it. right. this is the sector etf that attracts the energy index. down about 16% since oil's peak ifdown. so the overall sector is down 16% and ten take a look at this. because as we move forward with our story, you take a look at the other big names, some taking the biggest hits. look at neighbor's industries, which lost about 37% of the market vau. some of the oil periphery companies, the ones that drill the ones that are in services, are taking a big hit. neighbors is one of those. the biggest hit has been taken by at least one other company in the index. that right there you can see is
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noble coverings. again, ancillary to the oil and gas sector. down 32%. but there have been companies that have held up relatively well during this recent downdraft. first of all, take a look at tesoro. a refining company, is actually up 8.5%. there have been deals involved. they put up tear stock price a little bit. the single best performing stock in the energy sector since oil highs back if june, it's kinder morgan. remember, this is a company full of master limited part ferships and other things, all trying to get together in a massive merger. the expected shareholder's meeting sometime next month to approve or disapprove that merger. kmi is doing relatively well. if you look at exxon mobile. even that is only down about 10% since oil's peak. so much better than the overall sector remember back over to you. >> domenic, thank you very much. another commodity is plunging. it would be copper. prices are down 10%.
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there is a mysterious trade going on right now a. single boyer has snapped up more than half the copper held in the london metal exchange warehouses, giving it control over a crucial source of supply and raising concerns about potential tire prices. kate kelly here to shed some light on this mystery in the copper world. >> it is a fascinating mystery. it's unlikely we will get firm answers. all this information is anonymously held. it is an amazing thing in commodities, a single market snaps up the physical supply almost inevitably resulting in jacked up prices. the question that always ensues, is, is the holder earning money at the same and if so is it a squeeze? in this case, eight sources are telling the "wall street journal" not it's a squeeze necessarily, they believe the identifyer of the buyer is a london dedicated. t it isn't commenting. the founders have made headlines before. last year they managed to make
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more than 50% returns red kite on a fresh in call. at the time, red kite co-founder david lily said a three-year downtrend was ending and copper would be moving higher presumably this year. yet it's done much the opposite is far, slumping 10% as tyler mentioned through today. i've spend e spent some time with lily and his co-founder michael farmer. they have historically been in the mine financing business. although, that unit split off from them, their trading business if 2013 and lily and farmer focus primarily now on tear red kite metals and compass funds in london. which ran about $2.3 billion as of january. they are deeply religious christians. i once attended a mid-day service with lily. we debated theology over sandwiches. farmer, who started his career at the london metal exchange is now treasureer of the british conservative party and timer reportedly has given more than
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5.9 million pourngsdz got an appearage as of late. that's a controversy. they have an influence that extends beyond the world. >> interesting players, interesting individuals. >> they really are. the way they've developed their these cea theses. they include looking at air-conditioning sales because that's one indicator of where supply and demand are and, of course the mining business gives them another window or at least in the past it has on where the commodity might be moving. >> i heard you into ed to go to london. >> absolutely. we have another story coming. in the field. >> sue, down to you. >> tanks, guys. the brazilian stockmarket tanking after the president was re-elected by the narrowest margins in three decades. 51% of the votes over a pro-business challenger. our michelle ka bruce so cabrera on the fallout on brazil. >> an incredibly negative
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reaction from investors to leftist president. take a look at the most actively trading etf, getting hit hard today on heavy volume. in fact, trading was heavy before the market opened. some of the biggest brazilian companies that shared the trades on the new york stock exchange also sharply lower. the oil giant off by double digits in percentage terms. mining company vale lower along with brazil bank and the challenger is much more kren centrist and pro business. back to you. >> from fears about brazil to fears about europe's biggest economy, german business confidence slumping in october, widely followed ifo index, falling to its lowest level in two years. the drop comes on the heels of data, showing sharp decline in germany's key industrial sector.
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the german stockmarket slightly lower today. there you see it down about one-tenth of 1% so far. year-to-date down about 7%. sue. here from home ties to housing. a big miss on home sales. we have some of the details on that. hi, don't that. >> reporter: hi, sue. you know, it's right. the september did not pull in the buyers as we expected. signed contracts to buy existing homes or pending sales yet to close were flat from august up to 0.3%. that i are up, though, 1% from a year ago. realtors are still blaming tight credit for the reason why sales didn't close. 15% of realtors says because the buyers could not secure mortgage. these numbers are from september. r, just before rates went below 4%. realtors are hoping october will be better. we know those low rates did nothing to infuse mortgage makes. in fact, those applications have been falling all month.
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now, another report from red bin shows sellers are taking it hard. they say it's a good time to sell, sell from 52% to tlif% in q3 and they asked potential sellers why they're waiting? 59% said they're waiting to get the best price for their home. over a third said they're not selling because there is nothing out there to boy. we have more online toyota is gearing up for a new headquarters deep in the heart of texas. phil lebeau is there and also texas governor rick perry. hi, phil. >> hi, sue. a big day here in texas as toyota has announced officially, but today they officially mark the beginning of moving to texas. what's in store for toyota and ba does texas believe toyota is seeing that other auto makers should consider? we'll talk with the governor of texas as well as the head of
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welcome back to "power lunch." the dow jones industrial average may be a few percentage points away from record highs. there are six dow components that hit record levels, home depot, united health, procter & gamble and 3m hitting historic
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highs. back over to you. >> you know, it's so interesting, the way the market is behaving. we saw the industrial average go from a negative 12 to a positive 6. the mood is a little better today. but everybody is watching oil. when it broke 80 the market started to turn down, once again, they're starting to talk about the equation down here. >> it's interesting overall. because as we watch what's happening with the energy sector, we know there are some oil jievenlts exxon, mobile and chevron have extremely high waiting in the industrial average. for that reason, if you want to watch what's happening there. if you look at the rest of the overall market, there are certain parts showing signs of strength. there are some strategists that believe we can have some record highs, even before the holidays rom around this time. so it will be curious to see whether or not that last correction that, i can't call eight correction, a that was holdback will hold fast for whether or not we see record highs again before the year is
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out. >> all right. thank you. toyota as you know is breaking ground on its new national headquarters in plano, texas. why texas? and what does that mean for the state and the auto maker? phil lebeau is there. phil, over to you. >> thank you very much, too. i am joined by governor perry and jim lents. and i'll start with you, governor, why texas? why do you believe you are successful in bringing toyota to the u.s. headquarters here? >> this has been going on a little more than a decade. some people refer to this as the texas miracle. the economic environment that we find ourselves in. it's not a miracle a. miracle is something you can't explain. we can explain this. it's about tax policy, regulatory policy, legal policies and educational policies that create a skilled work force. then we let people like jim have the freedom to go do what they do best which is go create jobs. that is a blueprint that will
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work anywhere in this country. >> jim, did they start in on you as soon as you opened up that plant? how about moving the whole headquarters here? >> no, but, frankly. >> the next day. >> a couple days later. but as we decided that california wasn't going to work as a u.s. headquarters, because it's too far from manufacturing, we looked at every major city across the country. when you take a look at it from the employee's point of view, quality of life. you look at it from the business point of view, can i tell you, there is for the better place than texas. >>. >> will you have approximately 4,000 people in the plano area. are you in the mix of the texada recall. it brought up the question, these are high humidity states should be having their airbags replaced. why not do a nationwide recall? >> based on the research we have done and the work that texada
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has done, it is showing the issue is in high humidity areas some we want to make sure we focus all of our resources and our dealers resources on doing that where it's prevalent today. that's the most high humidity areas. >> there will be people in northern states, who will say, i'm not perfect. how do i have confidence this airbag will work? what do you say to them? >> i think they better trust them. they better understand we research a lot of things going on. if we see any instances, we will obviously do what is most important for our customers. that's keeping safe in our cars. >> governor perry, within they made the announcement today, you followed up on the state and said, look, bringing corporations here is going to be a top priority for your administration. you have been successful in that regard. a few months ago, when they were looking at texas, you didn't win that contest. did you not go far enough in luring tesla here?
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>> we're not going to win them all. from time to time north carolina beats us out. alabama beats us out. the good news is that the business climate in this country is being improved by states competing against each other, so listen, i wish it would have been me calling up the governor in nevada and telling him, you know, i wish you couldn't have gotten -- >> did you ever say to elon muck, you bring the gigafactory here i guarantee, can you sell wage. you won't have to have a dealership. >> we had that conversation my position is i think you have to be competitive. the conversation i did have with elon is they announced they will open spacex in south tvenlths it wasn't like we got completely skunked. >> that's true. i want to shift gears and talk about what is happening are the ebola virus. you know other states are saying
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if you are a health care doctor practicing in west africa, when you come over to the united states, you will be quarantined or away from the general population for 21 days. have you thought after what everything that happened with the case here in dallas, have you thought about substituting a similar move? >> we actually already have that process in place. our health commissioner is the one actually in charge of that dr. david leahy. he did an excellent job. each state is different. they make up either the governor pay have the authority or a health official in our case in texas. he has the ability, which he did of being able to put people under an order to keep them relatively restricted into their movement. >> did the cdc drop the ball if advance of the case of mr. duncan, when the comes, it will come like a storm and you need to be prepared? >> there was an interesting one
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of the major networks had a program on last night where they talked to the dallas nurses that were working with presbyterian who by the way did a very, very good job under incredibly difficult circumstances, but there was real -- and i say deserved criticism of the cdc to change the rules in the middle of the game t. preparation wasn't done i think. i think we should have been spending more money in this country on ways to create vaccines, create treatments and, you know, that's happening now in an expedited way. i think it's late in coming. >> one last question for you, former governor jeb bush, i don't know if you saw the news this morning, any indication he will likely be running for president. what are your thoughts there when you hear that? >> i hope people will focus on the next ten, 11 days, electing men and women to the u.s. senate that share this pro-business, pro-job creation that jim lance and rick perry have is most
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exhibit important. 2016 will take care of itself. >> next summer for you? >> in the future some time, i will make a decision whether i will try that again. >> still thinking about it? >> oh, absolutely and prepared. >> governor perry and jim lentz on a big day here in plano. toyota is bringing a headquarters here, 4,000 jobs coming to the plano area. >> fascinating conversation. thanks, very much. jersey's bet on sports gambleing. delayed. what's is next step here? >> just before, new jersey was about to open, a federal judge said, hold on, a lot will be happening with this space over the next several weeks. we will bring you the details separate ahead on power hundred. .
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an unprecedented program arting busithat partners businesses with universities across the state. for better access to talent, cutting edge research, and state of the art facilities. and you pay no taxes for ten years. from biotech in brooklyn, to next gen energy in binghamton, to manufacturing in buffalo... startup-ny has new businesses popping up across the state. see how startup-ny can help your business grow at . >> welcome back to "power lunch." the telecom sector is up by a third of a percent up now by 1% led by verizon, front of theeer communications and century link as well. these ones pay dividends. so, sue, the telecom stocks
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outside standouts in today's trade. over to you. >> thank you very much. steve ballmer paid $2 been but could get half back with a tax writeoff. it sounds like a good investment, if that's the case? >> critics never questioned that $2 billion price tag as too defensive. within i spoke to ballmer last month. he told me the clippers were going to prove a very smart investment. >> can the clippers make money? yes. can they make more money than own other team in the nba? yes, it should be in the upper echelon, maybe the lakers, the knicks. we're a big market. you have more opportunity than in a milwaukee or a smaller market. we will make good. >> reporter: but there is another reason ballmer pay have spent so much money on the clippers. he stand to gain as much as $1
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billion in tax benefits over the next 50 years as a result of this purchase. the credits can be claimed under a special feature of the tack code, covering sports teams. forbes executive editor who specializes in sports business says these tax credits can be a big reason why billionaires are fans of buying sports teams. ballmer's colleague, paul allen, who bought the seattle seahawks and the trail blazers, the ceo of tipco, then again, if the ft analysis is accurate, it's hard to see how 1 billion in tax credits impacts ballmer. after all, remember, according to forbes, he is worth $22 billion. but the value of sports franchises is skyrocketing. as long's these sweetheart tax breaks exist, expect to see more billion fairs trolling for those supports trophies. tyler, back to you. >> all right. thank you very much. if you bet sports gambling in new jersey wouldn't be so simple? you won.
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take the point here. the judge made the late call just before it was to go into effect. morgan brennan on the case. >> tyler, racetrack plans, the first boss in peak wagers after governor christie repealed sports betting on casinos and racetracks. that was put on hold after a federal judge granted major sports leagues a temporary restraining order on brown's irreparable harm. that means a lawsuit against a state to keep betting bans will now proceed. sports betting is illegal, according to federal law. in all but four grandfathered states, nevada, delaware, oregon and montana and of those, only one, nevada actually takes wagers on individual gains at sports books, so new jersey would become the sec. st. officials argue this is needed to help the declining gaming industry, particularly atlanta city, they cost thousands of jobs, but analysts
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say based on nevada and to a more limited extent, delaware, sports betting would do little to drum up significant revenue and given the federal ban, racetracks which have been hit hard and don't have the overhead of casinos are more likely to invest in these sports books than casinos. still, snait state senator raymond lesniak says new jersey will keep fighting and take this to the third circuit court of appeals if needed. so this battle is only getting started in a sense. >> so if, theoretically, i wanted to put a wageer on the reds and cowboys, i still got to go to las vegas? >> you still got to go to las vegas. >> thanks. let's check in on interest rates with this market seesawing back and forth, hucking the hugging lean. the yield on the two-year note you see there, the ten year is what everybody down here is watching. it's at 2.62%, keeping an eye on
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oil. that's it for today's bond report. you are up to date on the yield curve. >> so, thank you. more words over artificial intelligence in 140 characters, why rite aid said no to apple and paying for preseason games. that's next on the power rundown. we want you to weigh in. should season ticketholders be forced to pay for pre-season games as a part of their packages? go to back in two. tdd# 1-800-345-2550 [ male announcer ] your love for trading never stops, tdd# 1-800-345-2550 even on the go. tdd# 1-800-345-2550 open a schwab account, and you could earn tdd# 1-800-345-2550 300 commission-free online trades. tdd# 1-800-345-2550 so when a market move affects one of your positions, tdd# 1-800-345-2550 schwab can help you decide what to do. tdd# 1-800-345-2550 with tools like free live-streaming cnbc tv tdd# 1-800-345-2550 that give you the latest financial news and trends. tdd# 1-800-345-2550 and bubble charts and price charts that let you see exactly tdd# 1-800-345-2550 how market activity is affecting your positions.
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. power run down, wells in is in the house. >> chu. >> game on. >> all right. elon musk and mark andreessen made theirs in the tech world. how smart it has gotten, speech technician, they think computers might be the devil. there they are. arguing, talking, pick a side here. jails, since you are in town, you go first.
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>> andreessen, this is weird, this muck paranoia tony stark kind of '50s horror movie of his. i don't know where that's coming from. we have the bomb for 70 years. it hasn't been used since we dropped it two times. i'm not that worried about it. andreessen jokes when they get together he might be more afraid. >> it's more dangerous tan nukes. >> where did this come from, from such a progressive futuristic guy. i don't get it. >> i know i'm wrong, i've watched terminator 2 and 3 and everything else. when you have a computer controlling something important, computers by their very nature malfunction from time to time. >> you know what, 30 years ago yesterday, "terrible nator" came out. >> is that right, 1984? >> how creepy was that. 1984. >> wow. getting odd.
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following rite aid's lead, cvs is blocking apple pay. they tell us they are in the process of evaluating payment for customers. hoy big a blow is this at all? >> i use my version of that at a cvs two weeks ago. softcard. >> that happens to be the one on my phone. >> here's the thing, if you are a retailer, it behooves you to accept as many different kind of payment as you possibly can. it opens up your customer base. what you have to be concerned about is whether or not this will have an impact on other payments, processing type companies, maybe a visa, maybe a castercard t. real sense here, mary thompson did a great story earlier today, you have a lot of people out there who use these nfc,field communication systems. most people still use visa and mastercard and traditional payments. >> there is an interesting
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article in forbes, follow the money, perhaps wal-mart put the pressure on cvs and rite aid to not use apple pay. they have their own consortium led proprietary. i feel maybe i'll have apple pay. we can live with more than one. >> i gather am i mistaken, they may be a part of that one store? >> they are. >> to develop their own system? >> so is target. target show the accepting apple pay. >> the owner of the phoenix sundays called out the owner of san antonio spurs for sending a skeleton team to a pre-season matchup. they want to rest their key players until the regular season. given how expensive tickets are, should sports teams bundle pre-season games into their ticket plans? viewers have vote and vote now. jane, what down here? >> the nfl teams do it. >> instead of doing that, get rid of pre-season? can we agree, it's a waste of
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time t. fact that they need to warm up to the regular season? they're professionals, they're practicing all summer long. >> that's an interesting point. >> and it shortens the season. these guys complain they have too many games. >> i want a longer season. part of what pre-season does. >> you want a lodgeer season? >> oh, man. >> i get the idea that pre-season is different than everything else, right. >> it sucks. >> you can change the checks of tekts. you can say, because of this, we'll give a discount for the face value of ticket for pre-seasons, maybe we'll make it up by jacking up the fares by 10%. you can get the revenue. not just as much as pre-season. >> they were a promise to gifts to sundays fans. i haven't been able to find out whether it's a gift. >> a ticket to an upcoming game? >> the owner of the sundays. that's interesting, do away with pre-season. >> get to it. >> why not get in the draft.
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it doesn't do anything? >> i like the draft. i don't like lousy pre-season games, they suck. >> bundleing pre-season games into their ticket face. there you go, 34% say yes, 66% say for the. sue, down to you. >> i'm with dom. i love a longer season. stocks down slightly, oil prices and concerns about europe way on the market. might we get some clarity from this week's fed meeting? the stockmarket tragedyist. he joins us now. good to see you, welcome back. >> it's good to be here. >> let's talk first of all about whether or not you think we're at a turning point in this market. some people do because they think the fed is going to take back accommodations. others disagree. they don't think the fed will take it back as early as 2016. what do you think? >> i think we're at a pile stone, we had a good run in the equity market. we got to a point where they're moving faster than the under
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lying earnings can support and the fed is recognizing the fact that at some point if you extrapolate this run out long enough, you will have a situation where perhaps they will be forced to move faster than the other vibe might be inclined based on employment and information. i think the feds need to tap lightly and they will need to end qe and by pushing out the expectation for eventual interest rate increases. >> let's take a look at what sectors you like. you like large cap tech. is that evaluation play or something else? >> i think it's two things. no. 1 it is a valuation play. the large techs are slow even if you priced if fairly low growth rates. beyond that, they're also tied what is going on overseas. and the softness we have seen if europe the softness in europe, emerging marks, have given us
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these very low valuations. so i think as that turns if 2015, 2016, the capital spending continues to improve, can you get some lift there. >> are you expecting anything quickly from the fed that will move the marks either way? >> reporter: no, i don't, i think the fed stated their expectations, they're moving away from qe. i think they will maintain the considerable time language, kind of push off the expectation for rate increases so you get a slower, more gradual liftoff. that would be what they look to engineer on wednesday. >> kevin, good to see you again, thank you. >> thank you for having me. >> he has one of the best resumes in retail, william sonoma, pottery barn, urban outfitters, also david yerman jewelers. now these taken all of that experience an put it into
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investing. an industry retail changing rapidly as retailers battle for every possible dollar. the state of the business from the ultimate insider coming up. courtney reagan has the interview today from the retail sector only on power lunch. the dow down about 5.5 points. just take a closer look. it works how you want to work. with a fidelity investment professional... or managing your investments on your own. helping you find new ways to plan for retirement. and save on taxes where you can. so you can invest in the life that you want today. tap into the full power of your fidelity greenline. call or come in today for a free one-on-one review.
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. >> welcome back to power wlunch. prices of crude oil dropped to their lowest level. when oil prices drop, take a look at the airline stocks, delta, alaskan airlines higher on the day a nice boone for the airline stocks. >> all right. thank you very much. diamond offshore the latest to feel the pinch of the prices. downgraded at goldman sachs to sell, worsening fundamental also. a big day for brazil, not only
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in election, also a takeover to accept brazil's bid of $14.50 in a deal at about $752 million. from banana buyouts, valiant pharmaceuticals announces in a letter to allergan it is enkriegs its bid to $200 per share. >> thank you. amazon workers in germany on streak again. the union there is in a long-running battle, a wage battle with the online retailer. workers-at-least four logistics centers will be off the job through wednesday's late shift. amazon shares are down 27% this year, trading up a buck at 288. it's rare a ceo and insider becomes a straight investor. courtney reagan has a man that led some of the best known
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brands in the industry, now all he does is pick winners, plus, we want to hear from you. will you vis eight mall before christmas? courtney, over to you. >> thank you so much. i am here with glen, the former ceo of urban outfitters. now he is the ceo and chairman of a private equity firm to invest in consumer companies, thank you so much for being with us today, glen. you give an interesting talk in there. let's start out with an opening ceremony. it's your big investment that we are aware of. that's the company partnered with intel, how did you know that that was a winner? what did you look for in making that space? what can that inform about your future decisions? >> i have known and admired car line and humberto for years. if anybody is going to reinvent the space of retail, i think it's them. >> so what are you looking for right now?
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are there certain companies you say that will win today's consumer? >> we believe that we're in a time of change and we think that there is a lot of saneness out there. we are looking for people breaking through that saneness. we are looking for creative people and to really support them in achieving their vision. >> torey burke, you are an early fan, what stood out to you in what she was doing from her business and are there other torey birch's behind her? in there torey is a one in a million. she's a friend. i remember the first time i met her. i called up berkshire and said here's the next ralph lauren. there is something about torey, she is who she says she is. she lives the life that people read about she believes in it. she's authentic. to answer your question, yes,
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there is the next torey birch. i haven't met her, i'm looking. >> absolutely. >> you spoke about head wind and tail winds in this space, can they help inform your decisions or perhaps our investors decisions, what are some of the head winds and tail winds going into the holiday season? >> i think it's how we are all living today. we are spending more on health and wellness and beauty. i think there is a mismatch of supply and demand and when that happens, things become devalued. like clothing, for example. food is interesting, it's an easy way to feel luxurious, not a lot of money. >> those are all good answers. one final wrap-up, going into the holiday season, how is that consumer feeling? >> i think the consumer is feeling okay. i think it's the retailers, they're feeling a lack of
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confidence. i think if people focus on their north star and really focus on making an emotional connection with the examiner, they'd be okay. >> i think tyler has the results from our poll. we'll get glen to put a take on it. >> yes, courtney, it looks like the vote says 54% said they will not go to a mall before christmas. 48% say yes. it's very close. about awf about half-and-half. reaction? sample the polls say 54% of people will not go to a mall before christmas. does that worry you about brick and mortar? >> i am complete a doubt believer in brick and mortar. i think people haven't made it as compelling. my challenge is make it compelling and people will come and there are plenty of examples of people who have done that. >> thank you so much. we really appreciate you helping us. we will follow your future progress, retailers making
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compelling arguments for the consumers. sue, back to you. >> thank you so much. the health care sector has been on a tear this year, but there are some lagers in the group should you be betting on those stocks to bounce back? we have the sectornonmics. the health care down 17 points. can you start tomorrow? yes sir. alright. let's share the news tomorrow. today we failrly busy. tomorrow we're booked solid. we close on the house tomorrow. i want one of these opened up. because tomorow we go live... it's a day full of promise. and often, that day arrives by train. big day today? even bigger one tomorrow. when csx trains move forward, so does the rest of the economy. csx. how tomorrow moves. tigers, both of you. tigers? don't be modest. i see how you've been investing.
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setting long term goals. diversifying. dip! you got our attention. we did? of course. you're type e* well, i have been researching retirement strategies. well that's what type e*s do. welcome home. taking control of your retirement? e*trade gives you the tools and resources to get it right. are you type e*? sometimes they just drop in. always obvious. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.
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i'm just looking over the company bills.up? is that what we pay for internet? yup. dsl is about 90 bucks a month. that's funny, for that price with comcast business, i think you get like 50 megabits. wow that's fast. personally, i prefer a slow internet. there is something about the sweet meditative glow of a loading website. don't listen to the naysayer. switch to comcast business today
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and get 50 megabits per second for $89.95. comcast business. built for business. . >> health care sect ore overall on a bits of a tear this year. there are some laquers. so should investors put the stocks on your buy list? >> leg heck on the s&p sector heating a historic high today. it's edging out utilities to make the best gainer of the sector. it's the fourth straight year, so the lagers, it looks like especially ugly ducklings. if analysts are right, they could become flaunts. st. jude medical hit a high last week after disappointing guidance, down 3% year-to-date. analysts see it going to $70 if
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they're right. sfierz down over 5% the worst performer in the s&p 500 pharmaceutical index. it is down 5% year-to-day. analysts say the upside on that one is 17% if you take a look at that price target. big caps overall, life sciences and toul tools are the biggest lagers this year adulent is the worst in that group after announcing last week it was getting out of nuclear mried. it's down 6% 84-to-date. the street price target remains $64, if they're right, analysts imply they're 20% we'll be back. >> thank you very much. let's go over just across the way where mandy has been waiting
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very patiently to tell us what itself coming up on "street signs." . >> a number of companies are scrambling to come up with a treatment or a vaccine for ebola. one company has developed a vaccine candidate. also on the show, remember jeopardy, we have invited him back on the show to tell us how he is navigating those markets. the top of the hour, join us on "street signs." we return right after the brake.
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welcome back to "power lunch." off their sex lows, traders are expecting what could be a volatile move. they are pricing a move of nearly 13% up or down after those numbers come out. stay tuned to "the "closing bell"" as dick costolo sits down to talk social media, an interview ewon't want to mus. >> must see tv, you are right. let's get an update on the
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market. the dow jones industrial mark everyone is waiting on the feds. the s&p 500 is down 4. the russell 2,000 is off 4 points. with rewaiting for wednesday, ty that will do it for with the power lunch." >> "street signs" starts now. >> lower gas prices help you, could they crush the economic recovery? hi, everybody, we will hit it from every angle. plus, the ceo of the company working fast to beat ebola. >> even with the dow being flat, no fewer than six dow components earlier on today. it sinks to its lowest.


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