tv Street Signs CNBC November 13, 2014 2:00pm-3:01pm EST
now down less than 0.5%. it's a consolidation do you heen on the floor of the nyse. >> absolutely. and what a comparison with yesterday where we were watching that amazing drama taking place just a few blocks from where you are. that will do it for a relatively calm edition of "power lunch." >> all right. "street signs" starts right now. see you tomorrow. ♪ so it is another record high for stocks as low gas prices send shoppers to the stores. welcome to "street signs," everybody. we'll get more on that. plus the most positive economic indicator you probably never heard of. why congress seems to have finally gotten a clue. and a stock market stat that you've got to hear twice to believe, mandy. >> maybe even three times. >> a lady. we may be off our highs, but before that happened, as you said, record highs for the dow and s&p. however, let me really show you where the action is happening. wti crude hitting a three-year
low, helping sectors like airlines with the dow transports there also cracking new highs earlier. brent, look at that, down 2.5% to 78.42 at four-year lows. and nat gas is already down, brian, 11% from monday. today alone down 4%. >> good news at the pump. also good news for walmart. in fact, a very big day for walmart because the retail juggernaut posted its first u.s. same-store sales boost in nearly two years. courtney reagan is here now. courtney, what is your biggest one or two takeaways from walmart's quarter? >> i think that the walmart quarter, the message was sort of this cautious positivity. there were things that were good and bad. walmart beat analysts' estimates on both the top and bottom lines, reporting $1.15 a share. u.s. same-store sales did gain 0.5%. that's the first positive comp in seven quarters, but traffic fell for a third straight quarter. e-commerce sales grew 21%, also a good sign. walmart's u.s. ceo says that traffic trend is improving,
adding the company suspects it's probably the benefit of lower gas prices. according to chief financial officer charles holley, it's hard to know exactly how big that benefit really is. the world's largest retailer guiding q4 earnings in a range below consensus. walmart u.s. ceo greg foreign, again, says he is cautiously optimistic about the holiday quarter, a phrase he used several times in conversations today, saying that walmart shares are trading at an all-time high, but again, we still have to be careful about what's going forward in the quarter because remember, they guided in a range below the consensus. so i'm a little confused about the walmart highs today. in the stock market. >> thank you very much, courtney. let's look at this chart on the back of all that because walmart versus gasoline futures is certainly something worth looking at. look at that. walmart, up 10%. down 25%. let's dig in deeper into how much lower gas prices mean for customers such as those who shop at walmart. joining us now, chief u.s.
economist at deutsche bank. a moment ago courtney was saying it's very hard to know exactly how much of a lift consumers get from lower gas prices. tell us how much exactly it's helping us. for every 1 cent change in gasoline prices, how much is that worth in dollars to consumer cash flow? >> $1 billion, mandy. $1 billion. so in other words, because the energy complex all moves very closely together, you know, so goes oil, so goes natural gas, utility costs, prices at the pump. for every 1 penny you save on gas, it's worth a billion. if gasoline prices fell $1, that would be like $100 billion improvement in household cash flow. about three-quarters to almost a full point on annual gdp. it's a huge number. this is very stimulative to the u.s. consumer and makes me very upbeat on growth especially the retail sector. >> but the drag, joe, from the oil industry which has been a large part of the creation and economic reconstruction story of
america, will that balance it out in the negative way? or is it still a net positive? >> we looked at it, brian. it's still a net positive. so as you know, the energy sector is very capital intensive. if oil prices were even to move down a bit further, you're only going to lose about one-tenth at most, 0.2 on gdp because of capital spending being significantly weaker. there is a slide-off set, brian, but not very much. again, i still stand by what i said. this oil and gas move is very positive for the u.s. consumer. it's 70% of gdp. >> so going to the holiday season, lower gasoline prices are certainly one factor that's going to help. but how much will iphone 6 sales help retail sales in the holiday season overall? >> i estimated, mandy, that if you go back and look at all the other iphone releases, you might be worth a couple of tenths on retail sales which is actually a pretty big number. it's not going to have an overall impact on gdp. however, to the extent people are buying these items which are discretionary, they're not
cheap. that tells me that the consumer is more upbeat than what some of the other data suggests. we're seeing it, in fact, in consumer sentiment, job and income prospects are at the highest they've been at in the cycle. so to me, this is all part of an underlying theme of things getting better, the economy healing, the labor market improving. >> let's stick to that story, joe, because i know we in the media love that all-important jobs number. >> i hate it. >> you know what? me, too. and i knew you were smart. >> it always gets revised. >> it always gets revised. >> yelled at by "squawk box" so it's all important. that aside, i like to look at the jolt survey, the job opening labor turnover survey, just starting to get attention the last few months. it showed job openings at about 1 million over the last year and separations. people quitting their jobs rose. i think that's a good thing because it means you have the confidence to find another job or you've got enough money now that you can retire. do you look at this? and what are you seeing and what
is this telling you? >> i look at it mainly because chairman yellen looks at it and it's telling me all the things which you just mentioned which is the labor market is improving. the quits rate is at 2% which may not seem like a lot, but it's its highest level since the spring of '08. so that does suggest people are becoming more confident. and let's face it, brian, we look every week at jobless claims. they were up slightly today. but the trend has been moving sharply lower. we're still well under 300,000. if there are fewer layoffs, we know the job market's better. so to me, jolts is just icing on the cake. we're going to have, by the way, the best year of hiring since 1999. >> what does it all mean for wages? because obviously if you've got higher employee turnover, you might have to raise wages if you're the employer to retain talent. >> eventually we're going to get to higher wages, mandy. what i've observed is the wage story is always later cycle. meaning that by the time the wages have started to trend higher, that's when rates really have to start moving up.
my guess is with unemployment likely to be below 5% next year, given the current trend, we're already down almost 1.5 points in the last 12 months. so if we're under 5% next year, hard for me to think we're not going to get wage pressure. >> i hope you're right. in fact, i've got a beer bet with zach karabell that personal growth will grow 2% between now and next year. >> i take the over with you as well. >> fantastic. it's good for america. >> you should be so confident you should be upgrading it to a verve as opposed to a bottle of beer. >> what's that? >> like a really nice champagne brand. >> is that what you guys bathe in at home? >> yeah, i bathe in that. >> thank you. >> thank you. more analysis and insight now. michael -- i just totally threw you you shouunder the bus right. >> you totally did. >> he's got a buy rating on walmart, $83 target price. welcome. it's a good quarter. the stock is up. but the stock is also now at your price target. so are you telling clients, eh, you made all your money you can
in walmart, or are you thinking about raising your price target? >> well, so we still have a very bullish view on target -- on walmart. and we think that this is just the beginning. as was mentioned in your setup piece, this was the first time that comps in the u.s. were positive since the fourth quarter of 2012. so we think that this can continue. and so we have a buy rating on walmart, and we're sticking with it. >> we are you sticking with it? because to brian's original point, you've reached the original price target, and yours is 83? >> well, our price target is under review, as we mentioned in our note this morning. we think that, again, this is just the beginning. they're making both investments and taking initiatives that are impact positively impacting their results. and they're certainly benefiting from an external environment. we think that this is just the beginning, and that's going to continue and that will drive the stock. >> can you clear up the mystery that courtney reagan kind of threw out there, which is that
it wasn't a great forecast from walmart. wall street tends to be forward looking. so why is the stock up so much today? >> the stock is up a lot today because expectations were low. we're starting to see signs of progress. and they had already brought down their sales guidance a few weeks ago. so it wasn't a surprise that they brought down their earnings guidance. i think there's a lot of cautious optimism out there for the fourth quarter and the holiday. and this is a good base to only reinforce that optimism. >> how much are margins going to continue to be the sacrificial lamb and at what coast to walmart? everybody is going to be discounting. >> it will. it will be a heavily promotional environment. that, i think, is within the market's expectations at this point. but it was a heavily promotional environment last year. and there were also some variables that led to some very challenging circumstances. i think it's going to be better this year. and i think walmart's going to
be a prime beneficiary of that. and so we should see that flow through to pretty good performance in the fourth quarter. >> michael lasser, appreciate you coming on the program. thanks very much. see you again. all right. "shrek," monopoly and a head scratcher of a deal all in the same story. we're going to dig into this hasbro dreamworks thing. plus, why warren buffett is betting big on batteries. do stick with us here on cnbc's "street signs."
riddle time. what do "shrek," mr. potato head and the game monopoly all have in common? julia boorstin is here with the answer. riddle me this. what's the answer? >> mandy, those characters could all join forces because hasbro is in talks to buy dreamworks animation. this is the toymaker and studio, both looks to cash in on their brands across platforms. now, this merger, if it happens, would bring movie and toy production for both brands in house replacing the need for licensing deals. dreamworks animation stock gains today speak to how much this deal could benefit dreamworks animation which has big brands like "shrek" and "how to train your dragon" but recently has struggled with uneven performance and has had to do
writedowns. before today's gains in the stock, the stock was down 29% over the past 12 months. to diversify away from the risky movie business, ceo jeffrey katzenberg has struck a big content deal with netflix, expanded into digital content by buying awesomeness tv and teamed up with the chinese government to build a theme park and a movie studio in china. now, hasbro has become a force in entertainment. its movies have grossed some $1.5 billion in the u.s., $3.7 billion worldwide with the hit "transformers" and "g.i. joe" franchises both produced with paramount. but its "battleship" film bombed in 2012 and it sold some of its tv joint venture to discovery after that channel failed to compete. one big question is what buying dreamworks animation would mean for hasbro's valuable licensing deal with dreamworks animation's biggest rival, disney. hasbro makes marvel and "star wars" toys and is getting
disney's valuable princess franchise in 2016. we'll have to see if the two can reach a deal. katzenberg has been shopping the studio since talks with softbank has fallen through a couple months ago. it's unclear if there are other bidders. brian? >> thank you very much. another big deal to tell you about today as well, kind of a merger thursday. berkshire hathaway is buying the duracell battery business from procter & gamble. let's get reaction from a longtime -- longtime procter & gamble shareholder, carl beckman from cincinnati. he is an individual investor, has owned p&g for about 50 years making his debut because he's a regular guy. he's not some professional money manager. welcome to the program. we'll be nice to you. nicer than we are to herb greenberg anyway. what do you think of this deal? >> well, it started. i have been disappointed in procter & gamble. they've been divesting brands for the past number of years, and duracell batteries is one of their big brands.
>> yeah, and they're going to be -- sorry, keep on going. >> when you sell off parts of an automobile, you can make money, but in the end, you don't have an automobile anymore. and that's one thing that has concerned a number of people here in the cincinnati, ohio, area. we've been discussing this. the brands that p&g has sold off before such as folgers, jif, crisco, pringles, they're making money. they haven't gone away. and when i attended the shareholders meeting last month, i brought this matter up to chairman a.g.lafley and the board of directors. i have some concerns about p&g selling off their brands. >> mm-hmm. >> i certainly hope that this isn't going to be a fire sale or a break-up of the company. p&g, it's estimated that they may be selling off 100 brands, longtime, fine products.
>> yeah, that's right. >> no, mandy, please, ladies first. >> i was going to say, just to give a little background for our viewers, i believe they'll be divesting or selling off 50% of their brands over the next year or two to be left with about 70 to 80 brands in their stable. but when you spoke out, carl, what was the response they gave you, and were you satisfied? >> well, the media picked up on it, and chairman lafley assured me that this was not a break-up of the company and that it would not be a fire sale. so it remains to be seen as to whether or not this is good for the shareholders and good for the company. as we get down the road and the analysts are able to look back and connect the dots in this matter, we will see who profited from selling off of these brands. a lot of the shareholders were worried or concerned to see if they were going to be getting anything out of this. such as shares of stock in duracell or any of the other brands that were sold off.
now, my better half is going to be pretty upset if she's not able to get ahold of her procter & gamble pan thtene shampoo. one of the things i've noticed in the past when p&g has sold off brands is that they tend to disappear from the distribution channels and they are not readily available in the stores. >> but i will say this, carl. i will say this. you've owned the stock for a long time. 20 years ago, this was about a $16 stock. it's an $88 stock today. i know you're not happy with the direction of the company, but you have to be pleased with how the stock has done, or do you feel like it would have done better under a different strategy? or will do better? >> yes, i'm very pleased at where the stock price is today. no complaints there. i also thank the board of directors and chairman lafley for the dividend checks. there are a number of people who are relying on those dividend checks, as you know, with the
banks not paying very much in terms of interest for cds. so yes, we are happy with that. but i still have some concerns that i was disappointed that in the shareholders meeting, we had a number of executives there, a number of those executives make multimillion-dollar salaries, and none of them were able to figure out how to make a buck off of good products such as duracell. >> well, carl, thank you very much. >> there has been no short -- thank you. >> carl, are you in cincinnati? >> yes, i am, the queen city of the midwest. >> could you please send us some skyline chili? help us out. >> and some graters ice cream also. >> thanks very much, carl. >> p&g shares up 9.5% year to year, up 44% over the past five years. done pretty well. let's bring in herb greenberg who's been patiently sitting here and listening to all this, thestreet.com's herb greenberg, no less. >> who was saying earlier that i
don't look at him when he talks. >> there you go. >> so go. talk. talk. >> why you actually said it was a bad thing that he looks down at his computer. >> if you really look at the battery business, you understand why they're getting rid of the business. it's been a slow ice melter of a business. but for warren buffett and berkshire hathaway, what a wonderful deal. it's such -- the way that it's a stock swap, it's tax sufficient. plus what he's getting is tremendous cash flow because when you take a look, p&g doesn't tell you this, but when you take a look at what energizer says, which is spinning out its battery business and breaks out much more information, spectrum brands which owns rayovac, all they talk about is cash flow, cash flow. that may not work for procter & gamble, but for berkshire -- >> first off, i know there's rayovac, but this is really a duopoly. more things we use has them. it's a recurring revenue model.
it's not sexy. it's exactly warren buffett. >> you say more things, we use, but actually the use has been going down. and the price wars. it's commodity -- it's a very big commodity. in fact, rayovac has told people on their earnings calls that say you know, we have a product that's less expensive than anybody else's and lasts as long. but because it's rayovac, it doesn't get the energizer or the duracell premium in the marketplace. >> before the split of energizer next year, is there any possibility that, you know, someone's going to shine the light on them in terms of an acquisition? >> it's a great question, mandy, because you have to -- because you have to think -- >> what's up with you guys and the pens -- >> it makes them look smarter. >> i already have the glasses. i have the glasses. i needed something else. i think the issue is does this get someone to look at the energizer battery business before the split -- the spinout occurs. we've seen this before. the company's going to go public and then somebody comes along and takes a look at.
that's something to think about. as i wrote on real money. >> as a mother of small boys, i am the perfect battery customer. i have a bucket this big at home of batteries because every single toy -- >> that's why you were wrong with what you just said earlier. use is going down. you're wrong because you don't have kids. >> no, no, no. for my wireless mouse, my mac mouse, i constantly replace them. when i get rechargeables, i realize they don't last more than a week or so. >> no, i gave up on rechargeables. >> okay. thank you. >> from the silver top talking about the copper top. great segment, buddy. >> you're the best. >> a silver fox. >> he really is. we are about to show you one chart that shows congress may have just given uber a big stamp of approval maybe without even noticing it. plus, a stock market stat that you've got to hear to believe. it might make you jump. >> say wow? oh, jump. >> the song. >> yeah, i'm listening. later on, a sunshine soaring in the cybersecurity space. try saying that three times fast. we're going to be right back.
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there you go, a scaffold ensconced capitol hill which is appropriate for our next story because where that is, congress appears to be pretty comfy with uber. a new study from hamilton play strategy shows that congressional campaign committees used more ubers than taxis. growing calls to regulate uber, did they just give their de facto stamp of approval to the car service? let's bring in cnbc contributor, his firm worked up that new report. and before we get into the meat of the matter and the questions and everything else, we've got eamon javers here, too. for full disclosure, was this a report you guys were paid to do? we just want to make sure we know where you stand. >> no, not at all. we get to do reports on things that interest us. but no client interest.
>> find out they took in about 100 million times over the last month. that's going to happen. you know it will. >> yeah. of course, they should know that going in that all of these records are public. at least on the campaign side and the fec reports. my colleague, tom kise, who did the work on this, really terrific report that because you could see the data and the huge jump over 2012. and there were maybe about 100 rides and up to 2,800 rides in the past cycle. so i think what's interesting, brian, is the policy implication going forward. what are the views on these issues surrounding the sharing economy and peer-to-peer networks. >> yeah, absolutely. what do you think the implications are? if you've got the regulators or would-be regulators also being customers of these sharing-economy economies like lyft and uber and others, lots of ride-sharing companies out there, what does it mean? >> we don't know what their views are on other things like air b&b, for example, and other
industries. if we use this as sort of a proxy for the views of public officials, we have to think that, you know, they're voting for, you know, to be pro-innovation in this industry in ways that can benefit consumers. i think that's the way we have to interpret this. if they're using it and they like it -- and look, all of us in d.c., this is really no secret, right? this is the thing. boy, congress are just like us, you know? >> right. >> all of us -- >> almost just like us. >> we have a substantial taxi service. >> let's go to eamon "escalade" javers who is joining us now. eamon, this is one of those rare times where actually congresspeople may know what they're talking about. >> absolutely. >> situations where the people on capitol hill who normally travel from private jet to whatever may actually interact with, you know, the rest of us who are increasingly using uber instead of buying a car. >> there is no question this is very good news for uber because companies and brands are
desperate to get their products into the hands of members of congress. they love it when members with touch and feel the product and use it and start to love it. i remember when blackberry exploded on capitol hill after 9/11 well before sort of portable e-mail got into the hands of most americans. members of congress were using it and fiercely loyal to that service very early on. google, for example, has sent trainers up to capitol hill to train google analytics and tell members of congress how they can use that product to benefit their own re-election. the effort to get those products into the hands of the members is because it just generates these good feelings across the hill for those products. and then when they come back up for the legislative ask, they know that members of congress know this product and think well about it. and that's what's happening with uber. >> just quickly, tony, do we know what the taxi lobby is saying about this or specifically about the report? they're certainly to strangers to political giving, are they? >> no, they're not at all. of course, most of the rules that impact, you know, this industry is at the local level. so we are thinking of this as
more as a proxy for what, you know, local officials and state legislators think about this as well. but, look, these are fiercely fought battles. uber hired david plouffe recently, former obama administration official to help with some of these battles. they're going to go in all of these jurisdictions for some time. i think we know what they want. >> we've got to get to the oil. it's kind of like "street signs." you don't think about it, you don't think you need it, once you use it, you're hooked. >> i think about "street signs" all the time. >> me, too. escalade javers, thank you. tony, appreciate it. >> eamon is our new team mascot. >> love that guy. oil is really sliding big time into the close. we've got multiyear lows here for crude, for brent. let's get to jackie live at the nymex. >> hi, mandy. we're seeing the selling price intensify into the close. we're looking at wti well under $75 a barrel. the lowest levels that we've seen since september of 2010.
brent hitting four-year lows today, now under $79 a barrel. despite that bullish report that we got from the department of energy this morning, we did see more selling pressure towards the end of the day. a couple of reasons for that, the first would be, of course, opec not making any moves to talk about supply cuts. no one's really expecting that out of the meeting later this month. and also, u.s. oil production as reported by the department of energy, 9 million barrels a day on a weekly figure for the first time that we've seen that, actually, on an adjusted basis since march of 1986. so this is really significant. to give you context for that 9 million barrels a day number, take a look at what saudis producing is a daily basis, 9.6 million. and we are getting very close to their production. supply here in the united states in very good shape. that's one of the reasons we're seeing these prices decline. at this point, of course, everyone is asking have we hit the bottom? a lot of times when we see so many bears in a trade, traders get nervous and they want to try to buy on dips here.
we do have francisco blatche of bank of america telling cnbc he does think that this is the bottom. he was one of the bears out on the street. some traders feeling the same way. but, you know, of course, it could potentially go lower from here. one more thing i want to mention is that u.s. gas prices, $2.94 forecast for 2015 for the retail gas price from the energy department. this is a 44 cent increase from where they were just last month. so if there's any indication there, we could see more price pressure. back to you. >> jackie deangelis. five big stocks we're talking about. plus, trader reaction to oil's big slide. and as promised, that stock market statistic that is guaranteed to blow your mind or your money back. we're back after this.
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the ultimate arena for business. hour after hour of diving deep, touching base, and putting ducks in rows. the only problem with conference calls: eventually they have to end. unless you have the comcast business voiceedge mobile app. it lets you switch seamlessly from your desk phone to your mobile with no interruptions. i've never felt so alive. get the future of phone and the phones are free. comcast business. built for business. welcome back to "street signs." check out shares of kimberly-clark, the is authorizing up to a $5 billion program for repurchasing stock. that's around 40 million shares at current values. the stock is currently up by about .5%. adding to that list of companies putting billions to work buying back stock. back over to you guys. >> thank you very much, dom. time for something we do every day at this time. "street talk," hitting the
analysts calls and stocks you need to know about today. and the first one is goldman sachs, upgrading sandisk to a buy. you see it reflected in the stock. >> and the target now at goldman is 106 up from 87. so they see about 13% upside in sandisk. simply put, they think operating margins are going to come in stronger than wall street expects. >> jpmorgan raising medtronic estimates and reiterating it as its top pick. >> up by 1.1%. their target at jpmorgan goes to 82. so about 18% upside. said organic growth likely to come in as the strongest since late 2009. they're bullish on mdt. >> and nomura starting linux with a buy. >> l-i-i, price target of $100. you can see still bullish on lennox. >> they do home heating, air con. >> there you go. >> moving to retail, american eagle starting as an underperform at clsa. >> fancy way to really say sell. it's underperform.
target price is $13. stock's at $13.60. so if you see stock going to a level that is below where it currently is, come to your own conclusions. american eagle, oddly, one of the better performing of the teen retailers, up about 6% this month. nearly every other teen retailer down this month. >> didn't you also make the point yesterday along with courtney reagan that over the past month, retailers that have really stuck out are those that kind of stunk earlier on, right? >> there you go. >> like sears. your under the radar name is cross america partners. what do they do? >> they're about a $750 million market cap company and they are a gasoline distributor. maybe low prices means people are going to drive more. upgrading it to a buy. they bumped their target up to 43. the stock's at 34. so about $9 of upside. here's what's interesting. capl is the ticker. they pay 6.5% dividend as well. i don't know how we missed this one. shame on us. >> shame. now we go to "talking numbers." that is our daily look at a stock from a fundamental and
technical perspective. today let us talk viacom. oppenheimer on the technicals, david seeburg on the fundamentals. ari, first to you. viacom technically, buy, sell, hold? >> we would not buy it here. and here's the reason why. although the stock is oversold, it is oversold in a weak trend. so we see this as a neutralizing signal. first thing, when i look at the chart, the $60 mark comes up. that is a very important retracement of the stock's big gains from 2011. so this is where we would expect to see a base begin to form. however, i'd rather buy stocks that are oversold with a much stronger trend. we can see viacom has a falling 200-day moving average. and what this tells me is if we get a little bit of a pop here, i think it's going to have a lot of troubles pushing through $78. that was its prior breakdown point. now i think that's going to be resistant. if you get a move to that upper $70 level, i'd be looking to sell the stock there. >> what about you, david, from the fundamental perspective? ari was saying he would
definitely not buy the stock at these levels. what would you be doing with it? >> well, i like the trade from 72 to 78 if that panned out, so i am a buyer here. i think at the current levels, the industry and competitive concerns are priced in. so i see it trade to 80 bucks. why do i like it? i think that, you know, the industry issues from the standpoint of dollars going from, you know, media to digital, you know, priced in here, i think that, you know, the dismal ratings, again, priced in. and i think that you're looking at a stock that's trading at a massive discount to its peers. they're lapping basically three years of no growth. and i think that a slight shift in fundamental here, you can have the stock actually trade quite a bit higher. i'm looking at 72 bucks a share. i think it's a great trade. even if you assume a 13.5 multiple on this thing, you've got it to 80 bucks. i like it here and i do disagree with ari on this one. i think we get a little moneymaker on our hands. >> a little moneymaker. more optimistic from the fundamental point of view. thank you very much. be sure to check out the online
edition of "talking numbers" in partnership with yahoo! finance. we also have some breaking news now. dominic chu, what have you got? >> here's what we've got. ibm ceo jenny romedi has now been given membership to augusta national golf club. that is, of course, one of the most prestigious golf clubs in america and host to one of the four major golf tournaments each year, the masters held in augusta. the ceo of ibm has accepted this particular membership to join the ranks of augusta national golf club. so she would be the next in a long line of ibm ceos who have previously been granted membership there. and of course, she's the third female member of that establishment. darla moore, a south carolina businesswoman, as well as former secretary of state condoleezza rice are both members of augusta national. brian, mandy, a big day for gin ginni rometty.
a stock you've got to hear to believe and it may make you a bit nervous. it is finally coming up next. plus, you've seen them. you might have even used them. those tablets in the middle of tables and restaurants. personally, i kind of think they kill dinner conversation. i've also got the photos to prove it. stay with us. [ male announcer ] your love for trading never stops. so if you get a trade idea about, say, organic food stocks, schwab can help. with a trading specialist just a tap away. what's on your mind, lisa? i'd like to talk about a trade idea. let's hear it. [ male announcer ] see how schwab can help light a way forward. so you can make your move, wherever you are. and start working on your next big idea. ♪ and start working on your next big idea. who would have thought masterthree cheese lasagna would go with chocolate cake and ceviche?
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crude tumbling into the close and settling at a four-year low. let's get more on this four-year low with john kilduff, founder of again capital and a cnbc contributor. i really felt as if there was a bit of a slide into the close. anything in particular that spurred this or just as sort of an amalgamation as all of the bearish forces we've been talking about? >> it's more of the same, mandy, but there is definitely fuel for the fire today. we had the kurdish regional government cut a deal with baghdad to increase their exports. we have a report that north sea
oil is going to surge 11.5% higher in december. and we just keep, you know, and the u.s. oil production surging above 9.9 million barrels a day here for the first time in almost 30 years. oil is coming at this market left, right and center. >> is it going to kill the u.s. shale boom? >> i don't think so, brian. i think they're going to prove to be a lot more resilient than people thought. although if prices do continue to fall down into the 50s, that's when it will really bite. but i think until then, they're going to hang in there. and no, i think a lot of this production is here to stay for quite some time. >> how much of this slide was precipitated, john, by yesterday when the saudi arabian oil minister finally broke his silence and really didn't come out swinging, really didn't come out with any strong statements to support any indication they're going to back a production cut and basically just said, it's not us that sets the price. it's the market. >> that's right. that was a big catalyst, mandy. he came out and left us so
bewildered. what he didn't say was that they were prepared to cut and to stabilize the market. and that's what this market's doing for the cartel right now. they're forcing prices lower to induce a production response from them. and they're going to just torture opec until they do something, and we'll have, of course, the greatly focused on -- one of the most important opec meetings on thanksgiving day in years. >> i'm not going to throw water on it, john. it's a big story. i love paying less at the pump. we're at $40 a barrel six years ago. we've been at below 70 multiple times in the last -- what is it? >> i think it's different this time, brian, because this time it's being driven by an increase in supply. an oversupply to the global market. in the past it was really generated by the financial crisis and economic slowdowns. while we have a little bit of that this time around, the oil just keeps coming at us. the numbers keep going up everywhere you look. higher exports, record exports, post-war for iraq, you know,
some countries like nigeria and even qatar being unable to sell their oil, it appears, to any takers because they're being against other members of opec and even u.s. supplies that are heading from alaska to south korea, in particular. so the whole order of things is being upended here. >> market share wars. thank you very much, john kilduff, always good to talk to you, sir. all right. so we promised it and we have been for a while. the stat you've got to hear to believe. here it is. listen closely because it sounds complex. and it kind of is but it's cool also. you know that stocks have been strong lately, right? we know that. but do you know just how strong they've been? get this. according to jonathan krinski of mkm partners, the s&p 500 has closed above its five-day moving average for 19 consecutive trading days. today would be the 20th day if we do it. to repeat, basically for four weeks of trading since the october 15 lows, the s&p 500 has gone up without a break and been
above a short-term moving average. why do we care? we care because this is only happened, according to krinski, three times in the past 20-plus years. it's basically all the data they got. it could be more than that. incredible. here's the bad fuse, though. according to krinski as well, a few other times it has happened, a somewhat significant selloff has taken place just after it. >> so if we pay attention to that, it would bode very badly for the market, if you believe technical analysis. not everybody does. for those who do adhere to that, i guess they're a little bit concerned right now. >> yeah. this is not even technical analysis. >> it's a stat. >> it's just a stat. like three times -- whenever someone says this has only happened three times in two decades, you've got my ears. >> absolutely. >> and that's a lot. >> okay. >> i left you the door open. there you go. walk right in. >> but i'm not mean. >> all right. on deck, our sunshine stock of the day. >> plus, another insulting comment from the architect of obamacare directed at the american people.
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today's stock is signer arc software, soaring today on strong other-than-expected earnings and revenue for the third quarter, its maiden report as a public company. the signer security provider ipo'd in september, up about 160% since then. you know what, we have got someone who was heavily involved in signer security, our good friend of show, robert her joe vick, shark tank guys, joining us tomorrow and basically calling all this hacking inside the space new cold war. he profits from hacking. >> also a beard. >> leaks good with a beard. >> kind of does. >> you know what it is mow investment ber, maybe shave the bottom and keep the top. does obamacare cover foot in the mouth dissneeze another controversial comment from jonathan gruber who reportedly is one of the architects to of the law is.coulding to light now, eamon javers joining us to explain once again and i would imagine on capitol hill, nancy pelosi said she had never heard
of the guy, even though she referenced him in a speech in 2009. i would imagine the democrats are going as far away from mr. gruber as they can. a police cal headache for democrats. jonathan gruber is an myth economist and consultant for the obama administration on the development and writing of obamacare, the law itself. conservative media outlet's and others surfaced old videos from last year about gruber talking about how they built the obamacare law in academic settings and panels. in each case, he uses embarrassing choices of phrase that you don't hear politics talking about here in washington and one, he even references the stupidity of the voter. allegedly helped democrats pass part of obamacare. listen to this bite here, the second one of these that has surfaced this week, also embarrassing for the democrats. this is jonathan gruber speaking in an academic setting last
year. >> we just tax the insurance companies they pass on higher prices that offsets the tax break we get, ends up being the same thing, a very clever, you know, basic exploitation of the lack of economic understanding of the american voter. >> republicans shall as you can understand have pounced on this, gruber apologized on msnbc for these comments but because he made these comments on video at lectures last year, democrats don't know how many other comments are out there. this could be one of those stories that trickles out there for a while, people find and isolate the sound bites from comments he made a year or more ago. this could go on a couple more days at least. >> certainly very awkward. thank you very much. well it is a new trend in restaurants, tablet computers stuck to the middle of the table, maybe even to the side, coming up, i'm going to be asking the ceo of a company that makes them to respond to some of my personal qualms about these tablets.
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several years and competitive position. they are going to assign this unsolicited about b minus rating. they say that the stable outlook for the company, assigning a stable outlook reflect the expectation that twitter will experience very strong growth and not encounter a significant increase in competitive pressure. brian, man dirk the bottom line here is twitter initially rated junk status, bb minus by s & p, unsolicited action, guys, over to you. >> stock down 4 1/2%. guy, bring up an intradate chart of twtr that would be spectacular. low, weakening all day on twitter. hard to say this will be bring the stock down. the stock has been going down all the day. the question is to twitter, why do you have debt in the first place, asset-like corporation, not building a factory, not buying another company theoretically yet and equity ani yet. herb green berg has been on this show many, many times talking
about twitter. he is the biggest twitter user of them all, loves the product, always on twitter, check it is first thing in the morning when he gets up but so many concerns about twitterer as a business. >> 44% people of love never do anything. we are in the i can't, we are self-promotional, that's what we do, why we like it. the average american, people tried out, couldn't understand it left it. how about, this the average target price on twitter is $52.30 there are 35 analysts who cover twitter why? >> also a valuation question. essentially, using it like a wire service, maybe it should be therefore valued more like a wire service as posed to a social media high-growth kind of stock. >> here is the question, twitter
analysts out there what do you do about the target price, bring them down or defending to the something >> herb's ears must have been burning, i believe he is going to be talking on this subject on "closing bell", a very fine show about to start in ten seconds and tablet story, makers of presto tablets, restaurant ordering tablets, tomorrow, the ceo will talk us to. >> "closing bell", now. welcome to the "closing bell," i'm kelly evans here at the new york stock exchange. >> i'll simon hobs in for bill griffeth. markets struggling to get to sea level, hit the final hour of trading, also following these stories today. hasbro sinking, dream works soaring on word the toymaker is trying to buy the movie studio for a huge premium. why do hasbro shareholders hate the idea? we will take a closer look. >> and blackberry shares, many while, also sharply higher today. the company shifting gears from vi
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