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tv   Power Lunch  CNBC  July 26, 2013 1:00pm-2:01pm EDT

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>> reversion to the mean, when you get away from it, got to come back sdwh pete, final trade in. >> kr financial. >> steve weiss? >> citi long. >> murph? >> buy citi and hi to my kids. >> jon? >> t2 interactive. >> have a great weekend. see you on the other side. "power" starts right now. "halftime" is over. "power lunch" and the second half of the trading day starts right now. >> indeed it does, and we're halfway through earnings season with half to go, of course, but with things looking better than many thought we're going to the next earnings season so you can start planning your strategy right now. steve's stuff. if the government wins big against s.a.c.'s steve cohen what kind of assets might they seize, and he has an awful lot of them and how to slay the psycho boss what. to do to protect yourself and take revenge. all of that is straight ahead
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but first downtown to the nyse where my partner tyler is. ty? >> the market has kind of blunted some of those early losses today, and the dow industrials, nevertheless, remain down, about 83 points or about half a percentage point. the s&p 500 is off about seven. the nasdaq down six and change. the russell 2000 coming off of a record high. down about .75%. bob pisani, thanks very much for the pizza for lunch. it was really, really good. >> taking care of it. >> serving "power lunch" here. >> in the gym later on today. >> what's going on? >> the important thing here is we're running out of a little steam. i don't think people are particularly worried about it. take a look at the dow industrials. japan had some problem, down in japan, and the we only had issues in china so you could see about 10:30 we dropped the markets. the imf came out with a report critical of the federal reserve saying if they are not careful we could have a spike in interest rates if they don't communicate clearly enough what they are going to be doing so there's a call for more transparency. drop the market a little bit and
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you can see that he's coming back. china cutting production capacity for a number of companies out there, ordering the production capacity. any time that happens you get a little concern about commodities and copper weak today and some of these big materials today, iron ore and aluminum companies on the weak side. finally we're running out of steam. halfway through earnings season and, tieler, things started turning around wednesday morning when caterpillar came out with the long-term sort of reduction in their guidance for the full year, and the market hasn't been quite the same since that, so i think that's part of the issue, but overall i want to point out, tyler, you'll talk about third quarter. look, so far, we're up 5.1% for the estimates on the s&p. it was 6% july 1st. that's down, but it's not down nearly as much, and it's come in prior quarters during the same period, so the bottom line is right now second half of the year, a lot of earnings guidance is holding up pretty well. caterpillar was a serious disappointment, sort of went against the grain of what we're doing here. >> the third quart their we're looking at.
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second quarter a sluggish quarter in terms of earnings really, 2%. >> well, according to s.a.p. capital iq up 4.5% for the second quarter. >> let's bring in kenny polcari. >> penzarella salad and mix it with the pisani pizza. you know, to bob's point a couple moments ago, seems like the s&p 500 is stuck in a trading range, 1670, 1700, why and what could change it? >> listen, i think we've had the massive move up and bob said it's exhaustion. the market ran ahead in front of the earnings. what they expected was going to be the earnings and now it's just tight. the market is well ahead of where the economy should be and people should know that. the market is churning allowing for the fundamentals to catch up or the market will come back to where the fundamentals should be. the fed meeting on wednesday. no one expects it will change in terms of interest rates, but everyone will be listening closely to the discussion or the
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tone of whether or not ben bernanke is going to be any clearer. >> and whether they will be more transparent in light of this. >> let's hope they are. we're not expecting much from the fed next week to do any kind of major policy change. he's going to need to have a press conference to explain things and that's why no one is expecting things. >> i don't know how much more transparent he can be quite honestly. i get. >> i get what he's saying. >> but the market hears what they want to hear and everyone, you know, throws a temper tantrum and he sends every fed governor out to say well, you misunderstood. >> the imf this morning said a premature exit could spike ten-year yields 125 basis points above where they are now, and that was the sort of line that got a lot of traders attention. >> we all know that. everyone is concerned about how they are going to edge and are they going to be able to exit in such a way so they don't cause major disruption and that's clear, and we all know that. i think the market is trying to churn and figure out, and they will be very patient and wait to see how it turns out. >> let's turn uptown and spring in seema mody who has been
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talking a little bit to some folks up there about the earnings outlook for the next quarter. bob just referenced it. what are you hearing and what are you seeing? >> similar to what bob was saying. on average the street is expecting a pickup in earnings grows taller to 6.6% in the third quarter. if you want to know for q-4, nearly 12% and that data according to thompson reuters, analysts are banking on a pickup in the u.s. economy, tyler, not expected to boost a man but it will improve consumer and business confidence which they say will likely lead to a jump in corporate and i.t. spending. keep in mind some of these technology companies are delivering strong earnings growth during a time when i.t. spending is still at a multi-year low. once we see those levels rise, imagine what could happen to margins then. >> is josh lipton with us, or did he move on? >> he's not with us. i thought maybe he was going to be with us for a perspective here. seema, thank you very much. welcome to the kellerhers,
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welcomes a lot younger than you do. sue, back to you. >> thanks very much. in federal court steven cohen's hedge fund s.a.c. capital advisers pleading not guilty to insider trading charges. mr. cohen did not personally appear in court but did sign the documents. so how good is the case against s.a.c. capital? can the government get all of steven cohen's money? matt goldstein is the editor in charge of wall street investigations at reuters and sal wiseburg is a former federal prosecutor. nice to have you both here, gentlemen. the question how much the government can take from mr. cohen, what are you wagering? >> if they can convict him they can take anything they trace toil legal proceeds and not a penny more. >> all right. mr. cohen apparently has been very smart with his money. he has a lot of asset. he has a lot of artwork and in some cases reportedly he's borrowed against it. isn't it going to be difficult for them, saul, to trace some of the money, or not? maybe not.
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>> it may be difficult, but that's why they added a paragraph that said substitute assets which basically allows them if they can't separate clean money from dirty money it allows them to take something in substitution, but before they take something in substitution they have to say this is the amount of money they got from illegal proceeds. >> right, right. matt, let me turn to you. i want to show you a quote. i talked to several people last night, many in the hedge fund business, but a source high up in the hedge fund world told me yesterday afternoon that in his opinion the only way a hedge fund makes money on wall street is by having that edge, but it's a fine line between having an edge and having insider non-public information, so speak to me about the future of information-gathering on wall street in light of s.a.c. >> s.a.c. is a bit of a dinosaur in some extent, the model they put together. it was already sort of kwateng out of vogue on the street because of quantitative trading
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and computer-driven trading on hft. i don't think you'll see a hedge fund the size of s.a.c. with so many people out there gathering information from expert network firms and channel checks. a lot of that, ever since galleon, has already gone the way. even the s.a.c. talked about how they sort of moved away from expert network firms. so i think we're not going to see a kind of firm like s.a.c. going forward and i think, you know, much more, if you talk to some hedge fund managers, they will even tell you about -- the s.a.c. they talk about they did fundamental research but it was often what they could get for a given quarter in terms of earnings, not a long held conviction on any particular stock. >> saul, why s.a.c.? they could have picked a large number of hedge funds that are out there, but the government has been trying to get s.a.c. for such a long time, why? why s.a.c.? >> well, they obviously believe that the company was permeated by insider trading fraud. it's not every hedge fund that
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has six individuals plead guilty. that's why the criminal case against the company is going to be pretty much a slam dunk. these cases are very difficult to defend at the company level because of -- because of long-standing criminal law and corporate liability, but it's clear they didn't have enough -- they felt they didn't have enough to go against steve cohen individually. >> all preet bharara yesterday seemed to open the door to further indimctments, and many believe that will be see it cohen. do you agree or not agree? >> the fact she's been looking at the company for a long time and didn't indict him. it looks like that indictment was originally drafted to include cohen, and they just didn't have the guts to go after him. now, i suppose if cohen is silly enough to testify at the trial against the corporation, that certainly could open him up to potential liability if the government says he testified falsely, so any -- anything can happen, but if they were going to indied him, they would have
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done it already. >> matt, speak to me about the counterparties that s.a.c. does business with, the large banks that s.a.c. does business with. now that this indictment is handed down, is there a reputational risk for those companies still doing business with s.a.c. capital, or does -- you know, everybody deserves their day in court. can they continue to do business with s.a.c. capital and not have their reputation risked in. >> someone at a bank joked to me innocent until proven guilty. i think some of the banks will probably stop doing business with s.a.c. maybe for the reputational issue. the counterparty risk isn't great, not like a long-term capital management, a huge unwind. some of the money is cohen's and they could exist with very little leverage if they wanted to. >> because they needs the banks to put leverage in place. >> right, right, but, at the same time, you know, s.a.c. with all its trading generates a lot
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of commissions. that's important to the street, particularly at this time. i think a lot is going to assume the firm will be around in some capacity, whether it's a family of course, so -- and if a big firm leaves, a smaller firm might come in to take its place so i don't think you're going to see a big rush of firms moving away from them, at least at this point. i mean, clearly if he had been indicted it would have been a totally different story. >> saul, do you agree with that? >> i really -- i really just don't know enough about the business aspect of it. i don't know whether or not they will survive a conviction of the company. i just know that all the government has to prove here is that these employees have already pled guilty were acting within the scope of their employment and were trying to aid, intended to aid the company in any way, and that's a very easy thing to prove. >> gentlemen, thank you very much. appreciate it. >> thank you. still ahead, just how much money does steve cohen have and how are his assets broken down,
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from art to magnificent properties he has in various parts of the world? our wealth editor robert frank takes a look coming up in the next half hour. ty? >> despite today's selloff, which is rather significant, and despite losing money in the second quarter, amazon continues to be a standout gainer. look at the move there. jeffries repeated a buy rating and raised its price target to $350 from $330. applauding its better than expected operating income margin. the stock, amazon, up 20% over the past three months. one company's setback is another's gain. vertex plummeting on safety concerns regarding its experimental hepatitis "c" drug. the fda stopped testing because of high levels of liver enzymes which helped push rival gilad sciences higher, rbc, saying it removes a short-term competitive overhang from the company. sue? >> well, you won't believe what's coming out about the driver of that spanish train that derailed in that horrible
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accident yesterday. well, see what reporter have found out about him from his facebook page. that still ahead. first though, larry summers versus janet yellin. the white house says no decision on the fed chief will be made until the fall, but that certainly is not stopping the speculation. steve liesman is on the case, right, steve? >> thanks, sue. we're getting a good read on the handicapping based on a brand new cnbc survey. the numbers first on "power lunch" right after the break.
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i have the drug-maker posting better than expected results after strong sales of its arthritis treatment raising the low end of its forecast. the company was spawned from abbott labs earlier this year and the stock so far this year, up 30%, sue. >> ty, the white house saying that president obama likely will not name fed chairman ben bernanke's replacement until the fall, but the battle for that seat is on. next week cnbc released its next fed survey, but we're getting a sneak peek on one topic in particular. it's the summers versus yellin fight. the bets are being placed >> reporter: bets are being placed and the results were so overwhemg ov overwhelming that we didn't want.
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70% of the participants believe obama will pick janet yellin to place current chairman ben bernanke and just 25% say it will be the former treasury secretary larry summers. yellin also beat summers when we asked participants who the president should nominate with half picking yellin and 12.5% saying he should reappoint bernanke and we asked the street what the most important qualities were for a fed chairman and these are the top five categories, monetary policy expertise, ability to manage a financial crisis, good communication skills, respect for markets and concern about inflation, and what you'll see now is that yell in is seen better than summers in four of the top five categories. do you have the graphics? >> right now. >> there it is right there. monetary policy and yellin beat
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summers in seven of the categories with summers getting better marks on respect for markets. concern about unemployment, wall street gives yellen much higher grades than summers. >> is this also an indication that wall street or the people that we surveyed do not want a change in the current, you know, monetary policy because summers, if things improve, might be willing to push back against the street a little bit as he's been known to do. >> right, whereas miss yellen seems to be more in line with mr. bernanke. >> i don't think the street would see a dramatic change from either cath candidate what you might be getting at the street in general prefers no change or known quantity to an unknown quantity. i think yellin has been there for a lot and i think she would tend to be more of the known quantity. what's interesting is if a person had a chance to be -- to
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beat that person, it would be larry summers because he's also known by the street. yellen, and what's interesting to me were the two categories, monetary policy expertise and how much janet is seen as being better than suppers on the issue of unemployment. >> going to be an interesting fall to say the least. have a great weekend. ty, down to you. >> do you have a psychotic boss or business colleague? just saying. we'll tell you how to get revenge and stay out of trouble at the same time, but, first, the power pitch. >> coming up, power pitch, startups give us their 60-second pitch. >> hi, i'm henry wine garden. >> and we give you insight into the fast-paced world of venture capital. >> how can food change in the ever changing landscape? >> do these founders have what it takes? >> are you in or out on fooducate. >> stay tuned to find out.
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and so too is the summer event. now get an incredible offer on the powerful c250 sport sedan. but hurry before this opportunity...disappears. the mercedes-benz summer event ends july 31st. time now for a series the power pitch where entrepreneurs get a chance to prove they have cha it takes to become the next big thing. >> i'm mandy drury, a and this is "the power pitch." founders have 60 seconds to make their pitch and our panel will dig into the business model giving you inside access. henry weingarten is the founder and ceo of fooducate, a startup
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that wants to help you make better food choices. this is his power pitch. >> hi. i'm hemi wey ingarten, i'm the ceo and founder of fooducate. a few years ago we brought a glow in the dark yogurt for the three little kids and i was shocked when i read the ingredient list. our goal is to help you make better choices by using your smartphone. we have an iphone app an android app, it was apple's best health app of the year. scan a barcode in a supermarket and we show you a letter grade, a, b, c or d, and we even offer you healthier options. people are now making better choices for them and their
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family and our app is generating revenue in various ways through partnerships in the health care industry and healthy brands. in short you can say that fooducate is the best thing since sliced whole wheat bread. >> hemi is on the right side of your screen, and he can't react to our comment just yet so on our panel today is marcus samuelson, an award winning restauranteur and best known for winning continue sue of bravo "top chef masters" and he owns and operates several restaurants around the world. we have dr. brad wineburg, the founder of blue care health. he previously co-founded shapeup.com, a website that helps you become healthier and to lose weight. great to have you on the show. let's huddle up. marcus, what are your thoughts on this, first of all in. >> whoever can come up with an easy way for us to learn and instant, you know, find out more information about how to eat
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better i think it could be really, really good. how do you make money on that? that's a little bit trickier, i think. >> what do you think, brad? >> i think it sounds like a very talented team. a founder that started a company that's been successful before so that's compelling from the start. many companies have tried to create solutions and then failed so that's going to be i think the key point for hemi to address how he's going to either partner up with groceries like guiding stars have done or figure out how to create a business model with the great information that they have already seemed to have built. >> so hemi, now, you're in the hot seat. we're going to ask you a few questions. marcus, do you have a question for hemi in. >> the food climate is changing so quickly. what was healthy for us yesterday is found out today that's not healthy anymore. how can fooducate change the
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ever changing landscape of information? >> our algorithms for rating products are based on the latest evidence from scientific community, and fooducate does accommodate steady growth based on the things you want to take care of for your body and family. eventually when we expand globally it will be for other types of foods and dietary customs. >> brad, do you have a question. >> if you had to choose one way to make money, through groceries or licensing to wellness companies or directly to consumers, if you had to choose just one, what do you think your best opportunity is? >> we tried all of the above, and i think what it looks like right now is the winning opportunity is working with the health care industry. food is something that has not really been touched upon seriously by employers and by health plans. >> hemi, there are several competing applications out there that do rate the health of
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products so how do you differentiate yourself from them in. >> we've been able to build a database of over 200,000 products so far. it's by part largest and most expansive upc nutrition database in the u.s. today. it's so big that we're actually getting other companies calling us to license the data from us. >> okay, guys. you've heard what hemi has to say. are you in or out on fooducate? marcus, what's your verdict? >> you know, i'm in. it's such a big first for better choices in terms of food and how to find it with technology. whoever comes up with a product that is easy for the consumer to understand and use, i think a lot of people want to be around that. however, long term i think it need to be narrowed down, focused and simplified. >> you're in. sounds like a cautious in and brad what, but, in or out?
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>> they need to focus on a specific custom segment, that being insurers or wellness providers and providing their data on a licensed basis but if they can customer on one customer segment, i'm in. >> i do like the idea that this gives alternative brand name products and caters specifically for each country you're in and they also have the largest database of products in this particular sector, so i think i'm in as well. hemi, you get the last word, how do you feel? >> thank you all for your vote of confidence and let's get fooducated. >> hemi weingarten for joining us and a big thanks for marcus and brad, and that is today's "power pitch." >> you heard what the panel had to say but we want to hear what you have to say. are you in or out or fooducate? tweet your thoughts with the #power pitch or vote in the poll at powerpitch.cnbc.com.
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time for a market flash and over to josh lipton. hey, josh, we are watching micron falling hard and q3 man demand may be lower than expected. analysts i talked to also say samsung is suggesting high end saturation and concerns about the demand side and sandisk down more than 12%. tieler, over to you. >> let's talk about gold. the price is closing and jackie deangelis is tracking the action over at nymex. >> traders are saying the market is skittish when it comes to the metals. buhlon needs a dat list to push it higher. we're watching the prices right now. 1321 so trading under the 1325 resistance level. broke through but didn't have the momentum to move forward. right now just kind of hovering.
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we're seeing gold sellers evening out as the in the money option becomes futures contracts today. will it be data that pushes us forward next week? is it going to be the fed minutes? traders are watching the items. barclays says they believe they are unlikely to maintain and gold is roughly 2% higher on the week with big swings, and in the past month up more than 6%. >> thanks very much. new york stock exchange, bob pisani, right at the start we were weak. weakness in japan and weakness in issues in china. that weighed on the market. take a look at the dow trials and the imf came out and sort of scolding the federal reserve. put up the screen here. they said that the feed needed to be more transparency and improve the transparency and certainly a premature action might spike a 25-basis point move in the bond market.
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take a look at the sectors, a defensive day with consumer discretionary stock and, of course not surprisingly commodities. copper has been weak and energy stocks weak. that happens any time you get china concerns. you get weakness in those sectors so the bottom line is anything we've seen this week, number one, what can move the market down is higher interest rates, concerns about higher rates. secondly any kind of concern about weakness in china also moving the market. have a grade great weekend. >> let's go to the nasdaq and seema mody is there following the big moveers? >> tyler, so many individual stock stories. starting with amazon, shares are staging a comeback after the company reported disappointed earnings last night. that's helping the nasdaq pear losses. starbucks, that's the top performing stock on the ndx, the company reporting a beat on earnings thanks to strong demand overseas. comps up 9% in asia and china and the expanded menu seems to
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bode well. starbucks is firing on all cylinders. we'll have to see if valuation becomes a concern as it trades to a premium on the s&p 500. gilad sciences, a stock hitting a new record high after the company reported results yesterday. on the downside, zynga, its earnings missed street expectations and let's stick with social media. take a look at facebook after its monster run yesterday. today the stock is getting downgraded at argus research to hold the analysts over there citing valuation concerns. tyler, back to you. >> seema, thank you very much. rick santelli tracking the action at the cme. what have you got for us, rick in. >> looking at a two-day chart of tens, a couple of things bounce out. first of all, highly unchanged for today so there's a little bit of trending lower in yields. however, 2.56.5, 2.57 the current trade and still seven
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basis points higher on the week. now, let's shift gears a bit. if you look at the longer term chart, we've hit all the key technical levels, down here the market technical levels, that means equilibrium. that's what the assumption seems to be on the charts on fixed income. higher range but an equilibrium. if we're looking foreign exchange, two-day dollar index, technicals telling us they are heavy. about to test 81.5. a good short and now many think a new equilibrium here. call that home base. last chart, very fascinating. you want to see technicals in action. here's the hyg. if you look at the high bandit 96 and low band at 89. what's the new move? 92.5, exactly where we're trading, a lot of equilibrium technically in the marketplace. back to you, sue. >> objection ricky. thank you very much. the government, as you know, is going after steve cohen's massive personal wealth but what does mr. cohen own and how much
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could he lose? our wealth editor robert frank breaks it all down for us, but first porsche sales are driving forward boosted by an unexpected source apparently. phil lebeau is in chicago. hey, phil. >> reporter: a lot of people think they know the typical porsche driver but do they really. it is changing, unmight be surprised to find out who is getting behind the wheel of a porsche. we'll to you when "power lunch" returns. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade.
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an update now on the tragic train crash in spain which killed 80 passengers, including one american and injured almost 100 people. 30 of those are still in serious concern. the crash, as you can see, was all caught on taped by closed-circuit television cameras. francisco jose garzon was going twice as fast as he alledgedly should have been when the train derailed, but in march of last year garzon reportedly posted a pick you're to his facebook page showing his train's speedometer hitting 125 miles per hour. we should note though, nbc news has not independently confirmed that report and that facebook
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picture has been removed. ty, down to you. >> sue, thank you very much. the fda says it will limit the use of johnson & johnson's anti-fungal medicine because it may cause severe liver and adrenal gland issues. starbucks is moving higher after posting stronger than expected third-quarter earnings and raising its full year forecast. >> sue? >> porsche, the ultimate driving machine usually, they say, it's a wealthy middle-aged people but porsche is changing its pitch a little bit. phil lebeau is in chicago. hi, phil. >> reporter: i like how you say people, wealthy middle-aged peel. typically most people think of the porsche buyer being a middle-aged and wealthy man. look what porsche sales have done over the last four years. no cut that the predominant buyer of porsche still remains the male, the map.
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that's why the sales are up as much as they have been for the last four year. these are all well above what the industry is out there doing in terms of increased sales and over the last four years there's been a growing number of women buying porsches. 15% of porsche u.s. sales are going to females. porsche cayenne is attracting owners who have typically been driving other luxury suvs. >> never thought i'd leave lexus, very easy to drive, but this has an element of fun. it's really hard to explain it. girlfriends want to know why do you love this car so much? it's just fun to drive. you have to drive it. it's comfortable and it's fun to drive. >> we talked with one porsche dealer on the north shore of chicago, and he says that about one out of every four cayennes they sell is going to a woman and has porsche has been expanding its marketing,
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attracting more women, what they have noticed is here is a brand that's no longer exclusively geared towards men. yes, men are primary buyers, but they are expanding the marketing and as a result they are seeing more women come not dealership and one way we're seeing the auto industry shift in a number of directions and this one i'm not surprised about. >> i remember that tony soprano's wife drove one of those. and coming up, details of what see it cohen owns. >> he's worth an estimated $9 billion and he's making a case to take most or all of it, but can they take his mansions and pickled sharks? we'll see what steve has at
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and in today's yahoo! finance question of the day, we asked if the u.s. government wins its case against s.a.c.'s steven cohen, should they take all of his money? 61% of you say they should certainly try. 40% say no, but a major fine would be warranted. 9% say i don't think he's guilty. let's see what's coming up on "street signs." >> thank you very much. used to be granite countertops and stainless steel appliances for your homes. no more. the guys from "flipping boston" are here with the three new things you have to do to raise the value of your house. we'll hit so many stock stories. have a big panel, calling it the five wise guys, well, four and a half. you can decide for yourself.
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plus, a guess that comes on with three names are the most undervalued in the market. two of them i've never heard of. very interesting guys. all coming up on essigns. >> all right. we'll see you at 2:00. s.a.c. capital pleading not guilty in federal court. steve cohen was not there. wealth editor robert frank is here to tell us what kind of assets mr. frank has, from the art he has and homes he's purchased in various places. >> the government is seeking any and all assets of cohen's hedge funds which could be as much as $10 million which could be threatened if the government succeeds. he could be exonerated or settle and remain in place.
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he owns two beach homes in the hamptons and this penthouse duplex in manhattan. his main estate is this 35,000 square foot mansion said to be well worth over $20 million. cohen's wealth is mainly in his art collection. dealers telling me it could be worth well over $1 billion and he bought this picasso in november for $150 million and paid $137 million for this piece and perhaps his best known piece is the pickled shark. the dame i don't know hearst piece and that he lent to the museum of art back in 2007. if he put this money into a trust before the investigation they could be protected but given how long they have been investigating, very unlikely. >> interesting to see how this
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all unfolds. >> thank you. >> do you have a horrible boss? a story to tell perhaps. remember bill lundberg from the move "office space?" >> i'm also going to need you to go ahead and come in on sunday, too, okay? >> tales of psycho bosses and how to get your revenge and when coming up next. [ male announcer ] you've reached the age where giving up isn't who you are. ♪ this is the age of knowing how to make things happen. so, why let erectile dysfunction get in your way? talk to your doctor about viagra. 20 million men already have. ask your doctor if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain; it may cause an unsafe drop in blood pressure. side effects include headache, flushing, upset stomach, and abnormal vision. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. stop taking viagra and call your doctor right away if you experience a sudden decrease or loss in vision or hearing. this is the age of taking action. viagra. talk to your doctor.
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well, we've all had a horrible boss or two in our lifetime but how do you deal with them? allison lynn wrote a great article on cnbc.com this morning on this very topic. the psycho boss. i mean, there's a difference between having a horrible boss and having a psycho boss, right? >> yes, definitely. i mean, there are a lot of bad bosses, and most of us probably have a bad boss but the psycho boss is kind of this, you know, actual clinically psychopathic person. >> and how do you deal with that as an employee? what are your options to stay sane yourself and, two, survive? >> well, you know, i think if you have a really bad boss, a mean boss and there are tools. there's books out there, but if you have a truly psychopathic boss, really the only option is
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to quit and people are pathological liars, just horrible people. >> right. >> and the other thing is they are really good at charming the superiors so they will get everybody to believe that they are right and you're wrong and it's so unhealthy. >> give us an example, for instance, of what you found when you did your research. >> okay. well, you know, we heard from hundreds of readers and people had really devastating things to say. one reader told us about a boss that she had who would bat a wiffle ball at her employers and she said she had a really great swing. many times i'm sure my head would be missing had i not gotten underneath my desk. that's the kind of crazy stuff we were hearing. >> if somebody does something like that, you have legal rights. >> absolutely. >> i mean, that's abuse. >> yeah. you know, what wpeople didn't f claim. they kind of lived with it and people get used to it.
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hey, it's normal for jane to bat a wiffle ball at me and it's not until they get out of it that a week later they are health and psyche gets better. you know, you realize that was a redysfunctional environment. >> that's when you file the lawsuit. >> hopefully it is, right, or at least get a better job because you don't want to be working in that environment. >> really a very interesting article. allison, thank you so much. >> we want to hear from you. do you have a story about a horrible psych pathic boss? tell us about it on our facebook page, facebook.com/powerlunch. ty, over to you. >> all right, sue. power rundown time. john pisani and john carney. let's start with the psycho bosses. bob, among the many psycho bosses you've had at cnbc, which one was the worse? >> thank you. can i get up now and leave? i think it's a great story. managing people is a completely separate skill set and most people aren't very good at it. i'd say yes to everybody, be a
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terrible manager. we've seen all of us, the effects of bad management. i think it's a story, a major human resource problem in the united states. human resources has to do a better job of doing this. >> am i a good boss or what? >> you're a wonderful boss. >> john carney, how do you deal with a psycho boss, man? >> john? >> if everybody is quitting, you might have to think maybe there's bad management. i think not enough companies really pay attention to the happiness of their employees, that's really important to how your company be successful. >> i think that's really true. if the employees are happy and engaged, the products will be good and the customers will be happy and engaged and you can find people who care about them and want to make them better workers. >> absolutely. >> that's not obvious. >> the investment group is buying back 2.3 billion worth of
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act vision stock, how are they paying and why are they buying in? what do we know about this, john carney? >> it's a tremendous amount of money. they are borrowing a lot of it against the company so there's going to be a lot of leverage in this thing, and it is -- i mean, look, people believe in the future of gaming. this is the new movie studio of the this is how people are entertained so, you know, they obviously have a very bullish look at this. >> well, they got 5.8 billion that it's going to cost them. they will put up 1.2 billion in cash and have some friends, chinese game-maker and they are going to take on 4.6 billion in debt. tyler, looks like they got bank of america and jpmorgan to finance the deal. look, i think it's a great idea for the company to be independent. do they really need vifnd? >> that doesn't make any sense at all, having this as part of a conglomeration, rubs it out as an independent company.
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>> and vivendi better, too. vivendi wants to get right back into the pure media business and as they were, of course, years ago, a partner. >> i would like to take a look at this credit agreement. i want to see what kind of covenants you have to put in there to lever up a video game company this much. not a lot of hard assets you can go after if they default on the debt so what have you got? >> it's the cash flow. it will take four years to pay it off, something like that. it's the cash flow. >> it's very talent dependant. when you run money to gm, they have a factory somewhere. these are a bunch of smart guys. >> from the art imitates life department, rumors have been spreading that the newest edition of monopoly is not going to have a jail space breathe. easy, folks, hasbro has debunkd the lies. jail does exist, but players no longer have to wait three turns to get out. can you just pay a fine and get out of jail.
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bob, this sounds like what an awful lot of companies do to avoid or executives do. >> there's a joke here somewhere. but what's most interesting about this, you can apparently play -- i hadn't play the new one, but you play it in 30 minutes and there's, of course, coca-cola, an xbox in it. remember the old shoe and the top hat, now an xbox and a mcdonald's thing, coca-cola, a brand name you can play with, and -- and pieces, xbox controller. there's a mcdonald's fries order and a coca-cola bott. that's kind of fun. >> do not collect $200, john carney. >> anybody can play tradition a.m. monopoly in half an hour. play the game well. my brothers and i are big monopoly players, play in half an hour, 45 minutes and the game is done, play with all the rules, we go to jail, but i do think they are making the game more realistic. what kind of monopolist goes to jail these days?
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>> i knew there was a joke there. >> i don't know how you play that game in half an hour but you are an amazing individual so i believe it. >> big moves after the break, plus a very popular stock up big today despite quarterly numbers that left a lot to be desired. we're back in two. ilable lexus , including the es and rx. ♪ this is the pursuit of perfection. i'm a careful investor. when you do what i do, you think about risk.
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let's take a look at the markets right now. 53 points lower on the dow industrials, but, of course, it was much lower earlier in the day. get a chart of the day. it's been basically higher after hitting its lows about an hour into the trading. now let's look at tale of two stocks. expedia out with disappointing earnings, down 25%. amazon, not just out with disappointing earnings, they had a loss and it was a surprise, but amazon up 24% year to date. a tail of two tech stocks. sue? >> indeed. thanks so much for joining us. you have a great weekend. ty, i'll see you on monday. >> absolutely. >> and as we look here at the s&p 500, it's down about 3 and the nasdaq composite down 1.61 and the industrials down 53. >> keep your eye on the ten-year yield. >> i can't see the ten-year
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yield. we can pull up a chart of it, but the numbers are worth watching. the s&p 500, maybe breaking quite a good stretch of weeks in the black. there's the ten-year, 2.56. sue, have a great weekend. >> you, too, ty. see you on monday, everybody. that does it for us on "power lunch." >> and "street signs" begins right now. the week ending with a wimper as the dow drops even as the consumer picks up but get ready, folks. you won't believe everything coming your way next week. we're going to let you know what you can ignore completely and what you absolutely have to pay to. what three things you can do to raise the value of your home. wicked good ideas that probably aren't what you think from the guys of "flipping boston" and an investor brings along three st

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