tv Power Lunch CNBC July 29, 2013 1:00pm-2:01pm EDT
>> scott baker? [ no audio ] > . runs across the floor to me. the balloons you see in the air, trial balloons. they have been floated. larry summers, is he still a legitimate contender to take the place of this gentleman, ben bernanke? also today, indictment. s.a.c. capital's steven cohen hosting a big party this weekend. is he sticking it in the government's eye? and a new way to do a lot of things without a lot of people knowing. it's called snapchat. let me get over here, and some
wall street traders are using things to do things they shouldn't be doing. we'll show you how it works today. first though to sue at the nyse. sue? >> good to see you, ty. the market is a little bit on the dunn side through much of today's session, at least so far. right now the dow is down 46 points. the s&p is down 6.75. nasdaq off 12.75, and the broader-based russell 2000 is off 6.25 points on the trading session. let's talk to bob pisani about the market at this point and we've had a big amount of earnings last week. what are you watching most this week? >> the big thing is mr. bernanke on wednesday. a very delicate dance to make sure we're not saying too much because it's got to be all words. no press conference on wednesday, and then, of course, non-form payroll reports on friday so the market is kind of reflecting a little bit of that sort of indecisiveness. you can see the dow, and this looks like friday's chart, a down day on friday but middle of the day drooped down and then
kind of came back and ended in positive territory towards the close. we'll see if that actually happens. a lot of problems in asia. japan's got a mini little meltdown, down 8% in the last few days. japanese stocks are weak and the yen strengthening against the dollar. that's a major problem. you see some of the stocks that are weak here today and china growth is a big issue as well so some of the emerging markets like the eem, big eatiev there, thailand and india, philippines all to the weak side. not a big trend here in the united states a. a little bit of weakness in cyclicals. banks are down. europe had a close on the bottom. barclay's, talk of a recapitalization plan, the european and u.s. banks are weak as well. sectors, energy and financial stocks. you see a bit to the weak side but so is health care as well. not a big, big trend going on there. caterpillar, if you can't dazzle them with the earnings guidance, and there was a lot of disappointment last week, announce a big buyback.
that always helps. they are buying back $1 billion worth of stock from society general. >> accelerated. >>ing to it immediately. one thing to say we'll make a buyback and another to actually do it. we get a lot of buybacks that announce nothing ever happens with them, but that's about 2% of the company. that's not an insignificant, you know, amount. >> the street seems to like it today so that's good. >> thanks, josh. up to josh lipton for a market flash. hey, josh. >> we're keeping an eye here on biogen, reports that synthon has filed a patent for a generic version and up still nearly 50%. sue, back to you. >> on to the next fed chief. the white house says it won't make a decision for the next few months but seem to be floating the name larry summers out there. we're talking about it today with eamon javers and josh boque of "the fiscal times." >> thanks, sue.
>> mr. summers is certainly no stranger to washington, not by a long shot, but he's known as somewhat abrasive sometimes in washington. how do you think this is -- this is all going, this trial balloon that the white house has floated so far anyway? >> well, look, the abrasiveness is larry summers' downside but the upside is his brain, and i'm told by former white house insiders that the president really respect larry summers brain, though he's somewhat mystified by larry summers' behavior so the question is did the trial balloon work or not work in terms of getting larry summers the job, and i think if you talk to some of the former insiders they don't see anything that came out last week as totally damaging to his chances. you saw the letter from senate democrats saying they would prefer janet yellen get the nomination. you saw some information in the "wall street journal" on friday about larry summers consulting with citi and nasdaq and some others. that doesn't seem to be disqualifying, at least to the people that i've been talking to in their political analysis.
they think he survived the first week of the trial balloon process, but we'll wait so see whether more comes out. >> josh, do you agree? i don't think you do agree on this. >> i've heard so many different conspiracy theories and mac nations that this makes "game of thrones" look like "sesame street." on the one hand you've seen a campaign for janet yellen being kickstarted. you had alan blinder on the op-ed pages of the "wall street journal" today talking favorably about her candidacy. what you've not seen thus far is a real reaction from senate republicans. the likes of rand paul and ted cruz are holding their fire on twitter, and we really don't know if whoever obama puts forward can get those 60 votes in the senate yet, around that's the key criteria. can they get 60 votes, and that's going to take at least six republicans. >> do you agree with that, eamon? >> yeah. >> it does come down to who is the best person for the job obviously. >> well, yeah, and comes down to who can get the votes for the job, too, sue.
that's the key. josh is right. it will come down to how many republicans they think they are going to get. they will lose some liberal senators on the left. there's no question about that, and some of those might be some of the people who signed on to this letter that's been circulating supporting yellen, so they were going to lose some of those people anyway perhaps, so the question is how many republicans can they get to make up the difference, and that's where this is going to be fought out. in the center of the political spectrum. they will lose the far right and a lot of right wing republicans as well so they will need some centrist coalition here in the senate and they have to get 60 votes and that's a lot of votes for anything in the senate these days. >> certainly. is that will be the key, you're right. gentlemen, thank you very much. >> up to chicago in terms of the market and what the market wants to see. jeff kilburg is out in chicago for us. the trial balloon with mr. summers' picture on it, if it's right over your head, what nathan landow, shoot it down or let it float? >> reporter: i think we have to realize that this contest for the fed chair, that isn't
america's got talent. we want a boring, continuity from a long-term perspective and i think honestly larry summers put in the volatility index and vix term, about a 35 or 40. highly volatile character where yellen, there's a seamless transition. i think she will continue. i think the market is expecting yellen despite the fact that the administration put out summer balloon. >> thank you. see you again in just a few minutes. ty, up to you. a few hours ago we learned federal reserve chairman ben bernanke can be deposed in a lawsuit filed by american international group's former ceo hank greenberg. greenberg is suing the u.s. government over the terms of the 2008 bailout. he argues that the government was unfair to shareholders, like him, who held stock in the company at the time of the bailout. judge thomas wheeler of the u.s. court of federal claims rejected the government's effort to keep bernanke from being deposed saying the fed chairman was, quote, a central figure in the decision to bail out aig.
meantime, about a fifth of the companies in the s&p 500 report their quarterly results in the coming week, and it's an especially big week for energy companies. most critically, big oil. year to date chevron is up about 16%. conoco phillips up about 12% and exxon mobile up 8%. jackie deangelis is at the nymex, and she has more. hi, jackie. >> reporter: hi, good afternoon, tyler. it's interesting when you look at the s&p 500 large-cap sectors energy up 15% year to date so in line with the figures that you mentioned. not the best performer, not the worst perrer but kind of middle of the road, so a lot of analysts are wondering if the earnings this week will give the sector a jolt it needs to move a little bit forward. starts with anadarko pet crumb. the company expected to report 91 cents a share on $3.5 billion in revenue. analysts looking for how apc is doing in terms of exploration in the gulf. that's what's going to be
driving growth for this company, but the big question is how changes in commodity prices like oil and gas might impact the company's top line as well. now, tuesday we're going to hear from bp. the company beat expectations last quarter helped by two new oil fields and also strong trading profits, but analysts typically strip out the special items. they look for that adjusted profit to be ahead of consequenceus. remember, of course, b.p. is still fighting lawsuits over the deep water horizon accident more than three years ago, recently seeking to halt spill claims as possible misconduct is investigated. a federal judge denied that request and on thursday we'll hear from exxon mobil. expecting eps of $1.90 on 1.5 billion in revenue, think that revenues is down on a percentage, in the teens and still looking for strong eps growth in this country and that, of course, will depend on how margins are trending and how the company is managing its costs.
friday we'll hear from chevron. expectations for $2.90 a share on 56 billion in revenue. both projected lower from the same quarter last year but chevron was able to deliver a really big beat in that last sucked quarter so some analysts are saying it could happen again, and it could move this stock. sue, back to you. >> jackie, thank you very much. three multi-billion dollar deals to tell you about. we begin in the advertising sector. omnicon to combine with francis publishing group in a merger of equals. about t would create the world's largest advertising agency with more than 130,000 employees globally. the company is up 25% this year alone. more about that in a second. first though over to josh lipton for a quick market flash. >> reporter: if you have a look at interpublic, in the green off session highs. does not see a need for a major merger acquisition. following that merger announcement from a pub lift in a statement to reuters, the ceo
is saying there is nothing about scale that makes for better creative ideas or leads to better integration of marketing disciplines. ipg, up more than 4%. sue, back to you. >> thanks, josh. to retail, where shares of saks are moving higher. higher by almost 3.5%, in fact. canada's hudson bay, which also owns lord & taylor, will buy the retailer for $2.9 billion or $16 a share. a 30% premium in may when it reports first surface there. they are up some 50% year to date and elan is also moving higher. the drug-maker to be acquired by u.s. drug-maker for $8.6 billion in cash and stocks which comes to 15.60 a share, a 10% premium. perego plans to become an irish company and it's up about 4%.
>> jeff kilburg back here with us from chicago. cantor fitzgerald downgrading whole foods to buy noting we don't have an incremental catalyst or sufficient basis to raise our targets or estimates. take a look at the three-month charge of whole food markets, up more than 25%. do you agree or disagree here? >> i agree, ty. we call it whole paycheck here in chicago but they have had a sensational run, as you stated in may. went to $44. want to see it come back to around $47, so this is a very prudent call and refreshing to have analysts come out and say this. >> let's go from whole foods, a whop dose products you won't find very often. credit suisse upgrading hormell foods from outperform to neutral. based on two factors. here it is. turkey and pork margin expansion. jeff and the skippy acquisition.
take a look at a one-year chart. shares of hormel up near 50%. love that corn beef hash, jeff. >> got to love some spam with the hormel. i agree with this upgrade as well. we're seeing the meat expansion for sure but the china play, skippy. the most popular plan in my house hold as well as china, so this is the key to more expansion, more products in china. it's going to open up the door for them. this is a company that's paid a dividend since 1928. we see them just double their dividend. we really like this play here, so i do agree. >> the chili is good, too. >> oppenheimer, upgrading cabot oil and grass from outperform to perform noting the reserve and its potential in the marcellus. so far the shares of cabot oil and gas up more than 50%. do you agree or disagree? >> i'm going to agree with the analysts, the cabot oil and gas, focusing on the gas, hit the nail on the head with the
marcellus, observe 200,000 acres in the northeast pennsylvania area. that's the sweet spot. we're seeing natural gas stabilize at the 3.50, $4 level. 52%, 7% per quarter subsequently so we really like this play here. a lot more room to run and they have a great, great piece of property in the marcellus. >> and we give kilburg credit for the idea of the day and that's to turn the choice for the next fed chief into an america's got talent competition. i think howie mandell, mel b. and howard stern really should make the decision here. >> and it would be killer. >> that would be -- killer from kilburg. all right. $136 million in jewels stolen from one of the world's most glamorous hotels in broad daylight over in cannes, france. that's coming up right after the break and kayla tausche with concerns over a new way to communicate. kayla? >> tyler, called snapchat, huge on college xisz and on wall
street. it's a brand new way to share and hide secrets at the same time. see how it works. that's coming up next on "power lunch." announcer: where can an investor be a name and not a number? scottrade. ron: i'm never alone with scottrade. i can always call or stop by my local office. they're nearby and ready to help. so when i have questions, i can talk to someone who knows exactly how i trade. because i don't trade like everybody. i trade like me. that's why i'm with scottrade. announcer: scottrade- proud to be ranked "best overall client experience."
cut their rating to neutral. sue, back to you. >> thanks very much. police over in europe are on the hunt after a masked gunman walked into a hotel in cannes, france, swing $136 million worth of jewelry. it's the third major jewelry theft in that city since may. movie stars at the cannes film festival were targeted just a couple months ago, but this time it happened at the famous carlton hotel on the french riveria. it was home to that alfred hitchcock film "to catch a thief" in 1955 starring carry grant and grace kelly. fortunately no one was hurt. police aren't talking about suspects, but many are pointing to the pink panther gang. yes, there actually was a pink panther gang. last year six thieves broke into a mall in london in broad daylight on motorcycles stealing hundreds of thousands worth of items and rode right out of the mall. the gang has stolen more than $400 million worth of goods over the last several years, and they are accused in a prison break in
switzerland last week. ty, up to you. >> wow, great video there. anthony weiner, you may have heard of him. he probably wishes that snapchat had been discovered a little earlier and he had been aware of it. it's a program that lets you send stuff to another user photographs and then it self-destructs. is that a good thing or bad thing? kayla tausche on the case. >> feel like i need a gavel. luckily anthony weiner has it for this campaign if he chooses to use it, 200,000 self-destructible messages sent every day. more popular than instagram and its biggest fan base wall street, messages ranging from the embarrassing to the excessive, like hampton pool parties but should the fact that the vanishing communications are so hot with the trader set raise regulator eyebrows. jim cramer asked the wall
street's top cop. >> can they get away with it because you don't have the technology to stop it? >> i don't even know what you're talking about. >> priceless look on bharara's face. said law enforcement has done well to scour new technology, e-mails against steve cohen and goldman's fabulous fab. they have been able to adapt e-mail they didn't have a decade ago but they are locking at snapchat. >> i like the phrase, unflattering or compromising selfies. going to show me how this works. >> i can't promise that's what we have on here, but my inprep i had producer took some snapshots earlier today. come into your in box. thanks to curtis for sending one in earlier so here is one that she sent. do we know that guy? >> that's a video. >> you see it counting down at the end and you can also put text on it. >> that would disappear? >> hardly work is more like it. so --
>> and you see it count down and you can't get back on it. if i i try to click it again, i can't reopen it. >> not on here. >> here's the key question. can i defeat the purpose of snapchat? >> you can. a few loopholes, want to do it the colloquial or layman's way, take a picture of your device with another device. >> do a screen grab. >> do a screen grab on that exact same device. that's frowned upon, and it will send the person who sent you a snapchat a message that you tried to do that so you'll fall out of favor with them. >> let's say i'm in real trouble and a prosecutor wants that file, that picture, can they get it? >> you can get pretty much anything with a subpoena and forensic experts have found out where on your device these images get stored. a husband thought a wife was cheating and thought he could prove it by snapchat and turned
out he could. >> the access to that video file disappears, but that file does not. it's still there somewhere. >> it is still there somewhere. >> kayla. >> read the fine print. >> thanks very much. sue, down to you. all right, ty, thank you. in business money talks, as you know, and everything else walks. tomorrow night on cnbc we're premiering a brand new show with that theme constantly in mind. the show is "the profit." here's the deal. >> i'll write you a check and i'm willing to give you $200,000. it allows you to solve the debt that you have. it allows you to put some cash in the business and bring things cute, and it allows you a chance in addition to that to collect an annuity on the brand name and the website forever. $200,000 up front and a licensing partnership going forward is great deal for them. they are really going to benefit. i'll sign up licensees around the country and they will get
mailbox money which means every time a new car cash opens we'll get a new check without having to put up new money or go to work. the catch to the whole deal, i want to be clear, i'm in charge for the next week so what i say goes means that you're not in control. at all. >> and that wasn't even the most dramatic clip. there was a lot of bleeping in the one that we didn't pick for objection reasons. "the profit" premiers here on cnbc tomorrow night at 10:00 earn and pacific and that man, marcus lamoine will be here on set tomorrow on "power lunch," but we'll be in charge. coming up, a terrible, terrible day of flooding in the east and the west. details of who got hit hard and when it's going to dry up. plus, jane, marijuana and an unlikely place. >> reporter: sue, marijuana advocates go to nascar.
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and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. americans from arizona to north carolina, to the jersey shore cleaning up after flooding washed out weekend plans from the west to the east. take a look at this video from arizona. flash flooding there so powerful it washed away a tourist bus carrying 33 people. everyone able to escape. no reports of major injuries. this video is from the jersey shore where several feet of
water rushing into low-lying areas. there were also power problems at philadelphia's airport. that caused delays there for several hours. flooding forcing a state of emergency in central carolina. highways washed out 40 miles northwest of charlotte. power still out for thousands and won't be restored until things dry up. in the midwest. sparks are flying over a marijuana ad at a nascar event. jane wells on the case. jane? >> reporter: tyler, nascar alcohol helps fuel cars, runs in the veins of many fans so at the brickyard 400 at indianapolis speedway, a pro-marijuana group decided to stir the post with this commercial posted on a billboard near the track. >> marijuana, less harmful than alcohol and time to treat it that way. >> reporter: marijuana policy project put the ad up in a state where medical pot remains
illegal hoping over half a million racing fans were see it. >> this is really just a way to get people thinking about it. if a new beer came out that had no calories and didn't cause hangovers and didn't result in poem getting rowdy and potentially violent, it would be welcomed. >> it shocked the hell out of me. >> reporter: mike placed the ads on the billboard and said it s was -- said he had no idea it was about pot. nascar fans took it in stride. >> this is supposed to be a family occasion. >> maybe they should legalize it and tax it and make more money off of that. >> people don't get stupid or anything like that on marijuana, but you see people that can't walk straight or can't even talk right on -- when they are under the influence of alcohol. >> i've never seen a marijuana
smoker swerve, fall, fight or anything else. beer drinkers, fights, fall, throw up, pass out. >> it would give a new meaning to this bud's for you on a decal or logo on a race car but i don't think personally that that's something that nascar wants to be promoting or has a place here in indianapolis. >> reporter: grazzia media solicited the ad and approved its content. grazzia media does not support the use of promoting marijuana or use drugs at a family event. those two statements don't seem to mesh somehow. >> jane, thanks very much. now to josh lipton for a quick market flesh. >> reporter: we're watching ticker hae which makes blood processing automated system and reported first-quarter results that disappointed. the company took its full year sales outlook and one analyst remains encouraged by earnings
leverage. the stock down hard, giving up all its july gains. sue, back to you. >> let's take a look at the gold market. prices are tracking right now and jackie deangelis is trafficking that at the crime "x." they are holding steady, and this is, of course, before the fomc meeting that kicks off tomorrow. the fed will hope off on curbing prices. prices are largely consolidating sideways, according to traders, as the market pauses to digest the three weeks of gains we've seen. been a good month so far in a bad year with patternses of highly daily highs and lows unfolding. i want to take a quick check on the rest of the metals complex before we go. we are seeing an uptrend across the board with platt mum and palladium the best performers today. back to you, sue.
>> thanks, jackie, very much. down here at post 9 on the floor of the new york stock exchange, bob pisani is here. we haven't moved too much since we started "power." still down about 43 points. >> the important thing looks like friday, started weak and went down in the middle of the day and slowly started coming back and surprisingly we ended positive on friday. take a look at the dow. may do that again. didn't think we'd do it on friday. part of the problem is real estate. pending home sales for june came out this morning and that was a bit of a problem and we were at a six-year high. contract signings in june. i'm not sure that the slightly higher rates that we've seeing right now will have a lasting impact on home sales but it has a little effect. japan a problem for eight days, 8% decline in four days and some jackpots stocks are weak and yen weakening. bank stocks weak as well. europe closed right at the lows for the day.
barclay's is talking about -- the implications are that barclay's is reportedly interested in the possible of a new rights issue and raising capital, so the european bakes are a little weak, and our banks are weak as well on that. not a lot of movement on the clear direction of cyclicals versus energy names so energied and financials as well as health care are all down, and i think the caterpillar beginning is -- really blue through the market. the market drooped and didn't recover. today they are doing a dig, dig buyout -- buyout, is the 1.25% move in the stock a big overreaction to that or no? >> down 5% last week and that's a pretty big drop for a company like caterpillar. it's a nice move to the upside today. >> thanks, bob. see you later. uptown now to nasdaq and seema
mody. >> all eyes on fook. the stock at session highs. facebook has gained 32% since reporting a beat on earnings last week. more importantly that spike in mobile revenue growth seems to be getting the street excited. elsewhere take a look at apples, market tech nickses are watching 4.50 and currently trading at 4.47. whole foods getting set to report earnings later this week. seen as a good read on the high-end consumer and take a look at microsoft, getting downgraded at atlantic equities and a deal in the boy tech space. generic drug-maker buying the pharmaceuticals and the, sue, back to you. >> careful, bob, almost fell off the set. let's check the interest rate action with rick santelli at the cme. 2.60% is where we seem to be stuck. >> 2.60 an interesting spot to be stuck in front of jobs and
fed. interday as we tick 2.60 moments ago, the highest yield of the day. if you consider the three-week chart, we are very close to three-week highed yields. now, let's switch gears a bit. let's look at the italian ten-year and look at it year to date. as you see, yields moved up just a bit, but it doesn't look like there's any red flashing warnings. as a matter of fact, italy had a six-month bill auction where they shaved about 30 basis points off of what it was auctioned a month ago. but there are stories about european banks, and their healthiness that is circulated and italian banks are on that list. this is a chart of a $1 dollar in"x"? why is that interesting? because even though it's up a little bit it's come down dramaticity and while some improvement in the end and holding on to the proeme in euro from the difficult detroit
bankruptcy case just got a little more difficult. here's senior correspondent scott cohn. >> reporter: an indication of just how complicated the detroit bankruptcy is and the case is just getting started. detroit has 3.5 billion nun funded pension obligations but a provision in the michigan constitution protects the pensions of public employees. the governor is backing a plan that would reduce pension benefits as part of a massive reorganization of the city's finances. that, of course, has drawn enormous feeting from the retirees and others. snid schneider felt that off, but shooty represents the people of the state and in that role he says he's duty-bound to enforce the state constitutional protection of pension benefits so he'll do both, represent the governor and join the case on
behalf of the pensioners to protect their benefits. he filed formal papers in federal court to do that today saying he's sworn to uphold michigan constitution. the next hearing in federal court in detroit's bankruptcy case is set for friday. tyler? >> very interesting wrinkle. scott, thank you steve cohen's s.a.c. capital was indicted last week, so what was his weekend like? he held a big party ought in not. >> thirst though, the countdown enters its final hours for time warner cable customers. what's the fight here, julia in. >> speaks and showtime viewers are on the best of the street and it may result in less subscribers for millions of cable subscribers y.this fight is so important for everyone in the biz coming up in "power lunch." weekdays are for rising to the challenge. they're the days to take care of business.
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sinclair's stock has risen nearly 140% this year. in other broadcasting news, time warner cable's public negotiations over its contract with cbs, including showtime, is down to the wire. cnbc's julia boorstin covering the story for us from l.a. julia? >> tyler, in just three and a half hours, time warner, cable and cbs econtract expires and several distributors could lose access to cbs and showtime. they are fighting over the retransmission fees that time warner pays cbs. the broadcaster looking for $2 per subscriber, twice what's paid and time warner cable says cbs is demanding an unreasonable price hike. at stake is access to hit shows including "under the dome" and "radon van" and this battle is about more than that. it speaks to the core of the television business. cbs and other broadcasters believe they have the leverage. their channels draw the most viewers and they believe they can make the cable companies pay
a lot more than they are now for content they used to get for free. cbs generated about $250 million in retransmission revenue last year. analysts expect that number to quadruple by 2016. analyst scott weibel says these fees are increasingly valuable industry wide saying they will bring in $5.7 billion by 2017. time warner cable and other pay tv providers want to keep it down to avoid having to raise prices to consumers. it looks like these are going to be very last-minute negotiations. back over to you. >> seeing these kinds of stories many times before involving fox and oh, how do they usually resolve? >> well, it's usually some sort of compromise. i mean, the issue here is that cbs has leverage in that they have the content that people
want. time warner cable doesn't want to pay them more, but they will to pay them some percentage more. the question is how much more. nobody wins if the channels get pulled off air. cbs fans are frustrated and time warner fans are from us trade, but they do have to reach some sort of compromise and i have to tell you, cbs has never pulled its channels off the air but sounds like they are willing to if they need to make a pointed a also grow their profits. >> julia boorstin reporting for us. sue? >> reporter: amazon.com is adding jobs. the world's largest retailer saying it will hire 7 0u positions in 13 states. 0,000 of those will be part-time at its distribution centers and the remaining 2000 will be in the customer service business. president obama is expected to visit an amazon warehouse in chattanooga, tennessee tomorrow.
shares of amazon rising 22% this year but they are down 1.75% though in today's trading. it has been another bloody few days throughout parts of egypt. the muslim brotherhood has been fighting the army and more secular egyptians after the ouster of mohamed morsi despie pleas from the obama administration for calm. more demonstrations are expected. more now from live in cairo. over to you. >> reporter: good afternoon, sue. yeah, in fact, the situation around egypt remains somewhat tense. right now as they have been every night the supporters of ousted president mohamed morsi have been engaged in a sit-in protest but as they have over the past several days they take the marches to various government locations and other parts of the city and that's where the clashes intend to happen, supporters of the military or the milt themselves. people are brace is themselves
like another one could occur when the marches get under way in the next few hours though. catherine ashton, the eu foreign policy advisers is here. they will try to prevent what many people here believe will be a bloody crackdown. the police and military have suggested they will break it up at some point, and many people here are holding their breaths, hoping that situation does not lead to more death on the streets of egypt. sue? >> thank you so much. we appreciate it, and we hope that it's peaceful as well. all right. let's send it over to josh lipton for a quick market flash. >> have a look at tesla hitting a new all-time high today. this as bmw introduced its own all electric car. you heard our own phil lebeau reporting on that earlier today. tesla now up some 25% in the past month, up nearly 300% so far this year.
tyler, back to you. >> all right, josh. still seems that steve cohen is in the partying mood days after s.a.c. capital was indicted, the billionai billionaire had a party at his vacation home. including the es and rx. ♪ this is the pursuit of perfection. and i have a massive heart attack right in my driveway. the doctor put me on a bayer aspirin regimen. [ male announcer ] be sure to talk to your doctor before you begin an aspirin regimen. go talk to your doctor. you're not indestructible anymore.
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coming up on "street signs," what's the most single important thing this week in a week with a lot of important things in it? we'll get three stock picks from a five-star fund manager and phil lebeau and i will try to stuff ourselves in the new bmw. if phil and i can fit into that all-electric car you know it's roomy. back to you on "power lunch." >> thanks very much. we'll be watching "street signs" at the top of the hour. the indictment of steven cohen's hedge fund s.a.c. capital didn't stop him from throwing a huge party at his
estate in east hampton over the weekend. cnbc's kate kelly is here with the story, though she wasn't there for the party, i don't take it. >> reporter: sorry to say i was not in attendance, but, you know, call it unfortunate timing, i guess, tyler. steve cohen saturday night's party which was weeks if not more in the planning went ahead as scheduled with among other things a their 2,000 fresh tuna order from a local caterer. his event was formally connected to a nearby ovarian cancer benefit earlier in the afternoon where he bought a table and attends. wasn't clear if he attended but he and his wife alex hosted some of the participants at his home afterwards. he has a history of charitable involvement and is closely involved with the robinhood anti-poverty dinner in manhattan, a board member of that organization as well as a recent donor to one of nyu hospital's research program to benefit veteranses but the hampton party came at a bad time coming days after his hedge fund s.a.c. capital has been
indicted. s.a.c. capital pled not guilty and they are trying to hammer out an agreement that allows them to ring fencing from a large part of liability. they are trading as they speak but they want more clarity for the parties. it isn't clear exactly what the details will be and i'm told there isn't a first draft in place at least as of this morning. a lot is riding on whether s.a.c. can provide the assurances, and you would think cohen would want to avoid even the appearance of defiance or disrespect to the public at a time like this. >> well, yes and no. as you recall, when he paid that $600 million fine some months ago, he very promptly went out and paid several hundred million dollars, didn't he, for a painting? >> he bought this painting from steve wynn and around this time he bought a house in the hamptons not far from the home where the party. is he's a private citizen and has the wealth to do it so there's certainly a school of thought you should go ahead, but
at the same time when you're in such a delicate circumstance. >> the optics. >> with the government, exactly and the government is trying to make a point we need an even playing field for everybody, the little guy and the big guy, and to act like the big guy at a time like this may not be helpful. >> on the other hand, hey, i'm innocent until proven guilty and these are the government's allegations and i dispute them. >> fair enough. >> he had a nice little party. >> reporter: yes, he did. >> sue, down to you. >> thank you both. a slap for two of the biggest money-makers on radio. that's coming up next. and an a-bomb for a-rod. he may be about to be called out for two seasons.
it is power rundown time. bob pisani and jane wells playing along with us. michael dell saying he's planning on staying at the company he founded even if his buyout attempt fails. you know, i can't think that that would be very pleasant for him. it certainly would be, i would think, rather awkward, jane, what do you think? >> the company is his baby but isn't this vote also a proxy on his leadership and if he stays? >> yes. i know it's really not like this bub makes me think of the san
diego mayor who won't leave and is going to get two weeks of intensive behavior therapy and i know it hasn't anything to do with this. >> how is he going to stay anyhow, other kind of management that come in. he said i will not support the kind of recapitalization and sale of assets that some shareholders are suggesting. how is he possibly going to stay given what the new ownership might want? >> i think it's wishful thinking and don't think it would work out at all. media, cumulus media planning to drop rush limbaugh and sean hannity, couplious, the secretary largest radio broadcasting in the country. this one took me by surprise. >> i've been hearing about this from my radio friends that cumulus is probably going to try to use the sandra fluke incident as a reason to drop two very expensive shows but the shows they are trying to create which it will own, huckabee and geralda have not done what you will. say what you will about rush,
he's the most successful broadcaster in radio history and losing him for wabc in new york, that will hurt. >> that's why i was surprised. >> at first glance this does not seem political because they couldn't agree on a price. that's what it looks like. lou dickey, the ceo of cumulus came out and implied rush limbaugh was responsible for a decline in the ratings because of the remarks he made about sandra fluke, the georgetown law student so there's a little bit of personal overlay about this that i think is going on. >> all right. >> i think it's an excuse for money. >> it's always about money, jane. not -- there's ego involved, too. >> according to reports major league baseball is offering alex rodriguez a deal. he can accept a deal to sit out rest of the 2013 and 2014 seasons without pay and then return in 2015, but if he doesn't accept, the mlb will pursue a lifetime suspension. bob, go first. >> well, i don't know what choice the guy's got. if it's true that mlb has
hundreds of e-mails, as they seem to be implying, implicating him using steroids, i don't see what alternative he's got. he's got to take a deal. he'll get suspended, but from what i understand he'll be able to collect the rest of the salary, that $60 million that's owed him, lifetime suspension, he doesn't get to collect it. >> he's on the dl already. why do these deals, the threats always come down when a player's best money-making days are behind him, a lifetime ban on ryan braun, that would scare players. >> depressing. >> thank you both, appreciate it. >> coming up, when we come back on "power lunch," a stock that is up 36%. we'll name some names in just a couple minutes. weekdays are for rising to the challenge.
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swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial. welcome back to "power lunch." i'm josh lipton. we're watching synta pharmaceuticals surging on after news on the trials valuing its breast cancer treatment were positive. that stock is up about 37% right now. sue, back to you. >> thank you so much. markets right now are to the downside. they really haven't moved all
that much. they are kind of hugging that negative 47-point move on the dow jones industrial average. s&p is down 6. nasdaq is down 12 on the trading session. so, ty, we'll see whether or not they can pull it back into the green by the end of the day. >> i guess there's a lot of waiting for the fed which begins its meeting and we'll find out what they do, if anything, on wednesday. that does it for this edition of "power lunch." >> "street signs" begins right now. a sleepy summer week? don't you bet on it. a huge week is here as one key housing stat surprises to the upside, and we wait on the fed. let's make a deal. big mergers stealing the headlines. we'll look for clues as to who may get the next urge to merge, and one one of those deals may leave a modern day mat man like don draper into tears. stock picks for you from a five-star fund manager, and bmw rolling out an all-electric car. the i3 is here. we'll go outside and