Transcripts For CNBC Power Lunch 20130820

Millionaire lawmakers in congress are getting even richer. An you guess who the richest member of congress is . Think about it. Well tell you later this hour. Sue is off today. Simon hobbs is in at the new york stock exchange. Hi, simon. Hi, tyler. Weve broken the fourday losing streak. It may be low volumes or summer action. Well take a gain of 54 points on the dow. Retailers are a clear focus. Best buy is up. Urban outfitters which trades on the has tanasdaq is helping to that higher. The reits are doing well today. A lot of focus is overseas. With the emerging markets, stocks there taking a beating and the currency selling off sharply because of the concerns of fed tapering and where that will run the currencies and trades. Lets bring in bob and ken. Director of oneal securities and cnbc market analysts. Before we get into the emerging markets, you were worried last night we lost the 50 Day Moving Average on the s p. By regained that. Were hitting our head right on it. Its acting as resistance right now. It was supporting the way down. Its going to be resistance on the way up. We havent folk poked through i gone through it with decisi decisivenedecisiv decisiveness. Were in the 1625 range. The range has gotten lower, as a result of the losses we had for 9 of 11 sessions. The day is still wruyoung. Its only 1 00. The market could end in a different place. The u. S. Looks like a look at the crummy gain. 6 on the s p 500. You know this is the best day for the s p since august 1st, believe it or not . Thats how rotten the month of august has been. What does that say . It doesnt say a lot. Pointing out, suddenly now we look more attractive. Europe closed rather weve been able to weather it for the moment. This could be a dead cat bounce off this move weve had over the last five, six days with the market down, down, down. We could be bouncing, hitting our head here and trying to sunny disposition. We have to leave it there, unfortunately. Take it lets drill down exactly on those emerging markets and bring in Michelle Carusocabrera who has more detail. Michelle . Go ahead. Hello. Tossed beautifully to you. Theres nothing more i could say, michelle, to set it up for you on the emerging market. Wouldnt you love to see the indonesian charts right now . Ive been waiting all morning for this. Were going to roll through a couple of emerging markets. This are almost frontier markets, some of them. Youre going to see them sharply declining over the last couple days for fears of rising Interest Rates. This is bombay, for example. Why on earth if the u. S. Federal reserve, its changing Monetary Policy with the United States, to overseas markets sell off . Theyre setting policy for us, not for them, right . The bottom line, tyler, i know you know this, when our Interest Rates rise, guess what, everybody elses has to as well because were still considered the best credit risk in the world despite hemming and hawing about the deficit, et cetera, et cetera, still were the best credit risk out there. Though were not aaa anymore. Big deal. When our Interest Rates go up 1 , everybody elses has to go up as well. What happens when Interest Rates rise in a country . It restricts credit, et cetera, es. You see emerging markets sell off. Take a look at the chart of the u. S. Dollar versus the indian currency. The u. S. Dollar getting much, much stronger. The indian currency getting much, much weaker. When you start to worry about an emerging Market Selling off and youre a hedge fund, you start selling your assets. When you sell the assets, what do they give you in india . R rupees. You go to the local bank and you can buy a tata. You cant you go to your local bank in india and need dollars. Everybody and their mother is doing that, right . Its the tsunami of the local currency approaching the banks, india, indonesia, all these. They start to see their currency sell off. We have to worry about whether or not theres Systemic Risk caused by this in other parts of the world like in the late 90s. Unlikely. Things are different now. Back then, currencies were fixed so when deevaluations happened, they were overnight, bam, and exa exactly. Now we can see movement overtime. You have to hand it to you. She tells a good story. Lets check out how some of those popular ways of trading emerging markets etfs are. Hi, simon. Were seeing a slight rebound in some of the emerging market etfs. Keep in mind these exchangetraded funds which are a popular financial instrument used by investors who wan to get exposure to International Stocks are vastly underperforming Global Markets this year, and over the last month india has become the biggest loser as the one top emerging market deals with a slowing growth rate and weakening currency michelle just highlighted. Now theres fear if the fed scales back on monetary support and raises Interest Rate, investors will take money out of highyielding bonds in india. The other big worry is the indian rupee which continues to depreciate against the dollar overnight hitting an alltime low. In order for india to comeback, analysts say the government needs to implement policies that promote economic reform, though experts say this might be too little, too late, and there might be a certain level of hesitancy from indias Prime Minister since the general election is fastly approaching, so theres a fear of shaking things up too much at this point. Ill take it, seema. Emerging market fears. What does it mean for the u. S. . Is your money better off now in the u. S. Dee spite the tapering everybody figures is around the bend . More than 200 billion worth of investment advise from Northern Trust chief Investment Officer. Well have that for you a little bit later. Meanwhile, two retail companies, one that is in trouble and one that was. But isnt. Out with earnings. Jcpenney reporting a loss of 1. 16, wider than expected but not as wide as some had feared. Wider than expected but not as wide as some had feared. Best buy, given up for dead last year and is now at a twoyear high in the stock market, look at that. Continuing its turnaround. 32 cents a share profit in the Second Quarter, and the Second Quarter is not usually their best quarter, folks. Easily beating street forecasts. Courtney reagan who talked with best buys ceo is here with more. Mr. Jolie has done a very pretty job, hasnt he . Thats true. Isnt that fun to say . Well, so much for that retail blood bat bloodbath. Wasnt quite so bad. The retailers in the midst of turnarounds reporting results today. Jcpenney, the bad, jcpenney missing on earnings, revenue, samestore sales plus poor consumer reaction to the Home Department. That was hugely cash intensive and big drag on the comps. Good, improving sales each month of the quarter in store and online. Encouraging back to school sales. Better cash levels than some analysts expected. Commentary that Supplier Relationships are, quote, strong. The interesting. Jcpenney restaging the Home Department now by category based on poor consumer response to those shops. And bringing back its tiered Loyalty Program and private brand inventory. Best buy turning out a strong Quarterly Report thanks to cost cutting. Slightly stronger than expected sales. Online sales up 10. 5 . The retailer Revamps Stores and invests in price programs. I talked to the ceo on the phone and he said he worries less about measuring the temperature of the consumer and focuses on providing competitive offers and services. He told me the transformation, quote, a journey and what keeps me up at night is being able to continue on our progress and ratio. Defining what to do is not that hard, its doing it thats the hard part. Absolutely. Making it happen. Thats where the rubber meets the road. Courtney, thank you very much. Thank you. Lets continue the conversation on j krrcpenney an best buy. Is this a turnaround for best buy . Is there real hope for jcpenney or is it destined to be an also ran or maybe even worse . Mary ebner is with retail il analytics. Mary, let me start with you. Take them both in turn. What has courtney gave us some idea. What, from where you set has best buy and huebert jolie done so far . They paralleled the genius bar that apple has and have the great information bar and have their geeks who are willing to help and can step up the service there as well. Theyve also done some nice shops and done good partnerships within the stores. They actually look very good for back to school. The challenge is going to be doing more with these exclusive partnerships so they help launch with the respective brands and staying ahead of all the digital technology. So thats the first one. All right. Lets turn to jcpenney. What do they keep doing wrong and what do they need to do right . So what they need to do right is similar to what the new Management Team is actually doing. And something that theyre very good at. Number one, they need to increase their penetration of private label brands to the total so they have no competitors in that space. And they are certainly doing that. Second of all, going into holiday, they need to have a key item strategy and this Management Team and merchant team, again, will know how to do that. Then third they need to offer compelling value and show the high low differences in pricing and, again, we think for the short term that they should be good on all three fronts going forward. So we think that theyll actually they have the potential to outperform their dismal numbers from last year. The question is what happens once this get in the arena back with people like discounters and kohls who stole market share from them during their demise . Mary, thats a wonderful prescription. Kudos to best buy on both stores. Let me turn to jeff killberg and ask you, do you think potentially jcpenney has hit its lows and potentially big capital p potentially, that this company two years from now could be best buy . I. E. , a company thats turned around in a major way . Well, ty, first and foremost, i do think it hit its lows. It is quite a different animal than best buy is. This is more of a retail focus on getting back to basics. One thing i like here, we just saw kyle bass, a very sophisticated poised investor come in and take a big bite. We saw the stock take another leg up today. I really think jcpenney is finding a bottom, but for those prudent investors like us here in chicago, we want to utilize the acronym jcp and just trade options. So just calls please is the way to call the upside. It gives you an opportunity to hop on. Jcpenney has to focus on their cash, having the liquidity and cash by the end of the year. They have to get back from injuries. Theyre still healing from a blown out acl, ty. Up nearly 6 today, so maybe the bottom has been hit there. Who knows. Lets turn very quickly, jeff, to best buy. That stock is up, what, 180 in the past year or so, if my numbers are correct. Is it too pricey now to buy . You know, its a fantastic we talked about this on power lunch last november when trading in the low teens. We really liked it here. Its gone too far, too fast. Its a great company. They did what they said they were going to do. Just like facebook, they executed on their strategic plan. I want to buy it but its got to be in the mid 20s. This is too rich of a price in the mid 30s. Mary, thank you for being with us. Good to have you with us. Great prescriptions there for those companies. Jeff, thank you very much. Dominic chu now, Retail Stocks on the move. We begin with home depot, Home Improvement retailer posting better than expected secondquarter earnings and sales and raised its gings for the full year as the Housing Market improves. Also, Urban Outfitters higher. The teen apparel retailer reporting Second Quarter earnings that beat street estimates helped by fewer discounts and higher profit margins. Positive results from tjx, the owner of t. J. Maxx and marshalls chains. It upped its 2013 guidance which is bucking a trend of weak results from those discount off price retailers. On the flip side, Dicks Sporting Goods hurt by what it says was a sluggish consumer environment. And barns noble also lower after the founder, Leonard Riggio and chairman suspended plans to buy the retail assets, the bookstores if you will. A deeper quarterly last than expected. Finally, light in the box getting creamed. The retailer lowered its guidance on weak sales of its wedding and prom dresses. The company went public in june at 9 pb. 50. Those shares weaker, simon. Big moves today. Dominic, thank you for that. Ahead on the show, shares of netflix jumping on a new content deal. Well tell you exactly what it means for the company. Plus its the best performing Airline Stock you never have heard. Phil lebeau talking to the companys president about the expansion plans. Simon, Pay Attention to this report because theyre flying into the new york city area. Going east and profits going higher. Well tell you all about it when power lunch returns. Its the best performing Airline Stock that you probably never heard of. Allegiant up 36 in the past year alone. And more than doubling over the last two years. Right now, you can see it trades at 95. 10. Another slight gain on the day. The day that it unveils new expansion plans. Cnbcs phil lebeau has been speaking with the ceo objeaboutt theyre up to. This expansion is targeting the eastern, northeastern part of the United States. Fresh territory for allegiant. Heres what the Company Announced today. Adding. 18 new destinations including in those new destinations will be flights into the new york city metro area for the first time. Were talking about flying in to long island as well as Stuart International in the southern hudson valley. Two airports that the president of allegiant says should attract customers from the outskirts of new york city. I dont expect thoseimarily people, lets say, driving north from manhattan, but i think we offer a very low price point, far less expensive than most other alternatives. People who are cost conscious will drive a good distance to get on our airplanes. Take a look at shares of allegiant, over the last couple years, were comparing them with southwest. Allegiant now serves for city. Primarily small markets but more cities in the United States than southwest airlines. But keep in mind, southwest carries almost 20 times more passengers than allegiant. Simon, this is a case of a niche airline continuing to grow because those flights between the small cities and popular vacation destinations, they are becoming increasingly popular around the country, simon. Yeah. And the margins as well. Phil, look, before we let you go, barely a day goes by that we dont mention tesla. But the news flow just keeps dragging you back. I mean, now scoring the highest safety test result ever by the government. Amazing. Yeah, i think this is going to catch some people by surprise. Yeah. When youre talking about the crash test here, simon, were talking about the nhtsa. National Highway Traffic Safety Administration crash test. They do this with every vehicle. They got a fivestar rating for the models. Thats the best score by nhtsa. What tesla sid is take a look at the subtests and measure the likelihood of injury and those scores show the models shows the lowest likelihood of injuries. Take a look at shares of tesla. What you have here is a stock and a car that is, as jim cramer said earlier today, theyre in the sweet spot. It adds legitimacy for the broader market, as they look at whether or not they eventually buy not only a models but other tesla models in the future. Combine this with the consumer r reports glowing report earlier. You have people on the fence saying this is not an interesting, funky, cool car, it has gravitas. Its an exciting beat at the moment. Thank you. It is. It pains me, guys, to watch them crash a tesla. Theyre such beautiful cars. Ruining that, 85,000, man tharks a mess. Netflix, right now shares are up 3. 73 . 9 and more. Julia boorstin on the case. Tyler, netflix is becoming more like a premium cable channel with a new deal inked today with oscar winning Weinstein Company. Netflix will exclusively license the Weinstein Companys movies starting with its 2016 films, bringing content of makers from Award Winning Silver Linings playbook as well as the recent hit from this past weekend the butler, in the same window those movies were previously only available on premium cable. No deals of the term were released. Netflixs gain is the loss of cbs show time which has a deal with the Weinstein Company for its films. Last year netflix got that window for documentaries and foreign films. Todays news is far more important to elevate netflix to the level of hbo and showtime. Tyler . Thank you very much. New episode of the prophet tonight. Star, Marcus Lamonis is going to join us. Plus one small businessowner in new york needs his advice. Hes with us. The owner of that business, going to ask marcus a few questions of his own. That comes up next on power lunch. Well be right back. In todays markets, a lot can happen in a second. With fidelitys guaranteed onesecond trade execution, we route your order to up to 75 Market Centers to look for the best possible price maybe even better than you expected. Its all part of our goal to execute your trade in one second. Im derrick chan of fidelity investments. 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This is the pursuit of perfection. All right, folks. Tonight an all new episode of the profit. Marcus lemonis is going to roll up his sleeves. Hes going to get dirty and clean at the same time. Marcus joins us from chicago. Well talk to him in just a minute. First, lets take a look at whats upcoming tonight. You didnt want a lot of bright colors but didnt seem to mind to throw up all over your bottle. I dont take it as throwup. You out of the gates said i said primary colors. So this is okay because its pastels . I wouldnt say those are pastels. I feel like these primary colors scream mass market, too extreme. Does that mean because its not your idea . Robin, i dont give a crap what it looks like. What i care about is it sells and that isnt selling. No company is about one person. My business would be better without me as the base because i get in the way, micromanage, control things. Sound familiar . I want to remind you im in charge and during this process, your feedback isnt any more important than anybody elses. Were a team. Were going to function together. We are going to make a change. Do you have a room we can go clean right now . Yes, of course, we should do that. Were willing to go clean toy toilets for you right now. I didnt come here to make this my sales presentation, but if jen wont ask for the sale, i will. Ill do whatever it takes to make sure we land this order including get my hands dirty. Housekeeping. All right. Ill take the shower. Jen, you take the toilet. I dont do the toilet in my own house. Really . So youre really going in there. Heck yeah. Because if i dont believe in the product, you wont believe in the product. Love it. Come on, jen. Youre like the supervisor or something. Does it leave streaks . Id like to have a chance to finish my job first. Okay. This gives you a chance to bl be enthusiastic and excited about your product. Any time the consumer can see that, their confidence builds. Marcus will do anything in the name of art. Wont he . Marcus, welcome to you. Two questions here. I want you to sort of give us the sense of the show tonight, but do you try and make women cry every week . You know, i dont try to, but it seems to be happening. But at the end, theyll be smiling. Theyll be smiling. Theyll be happy. Well, thats a nice way to think about it, marcus. All right. Whats the pitch here . This is a cleaning products company. Its trying to make get major contracts and so forth. How important is it for the ceo or the main guy like you to go out and actually do Something Like you just did, literally get your hands dirty . So, tyler, whether its a 500,000 company or 2 billion company, i think one of the things that vendors and customers want to see is you believe in the product. One way to do that is actually get out and show people. In light of all the Earnings Releases were seeing from the big box retailers right now, one of the things im noticing particularly with best buys numbers is thats a ceo whos out in the field, out in the stores making a difference. Youll see it in the numbers. All right. Marcus, lets move on because youre not busy enough. Weve recruited a bunch of small businessowners who are seeking advice from you. We started off with a hamburger joint last week. I actually went there and enjoyed it. The burgers were very good. The service was very nice. This time thanks for inviting me. Thanks for inviting me. Well, we just went after going to target on saturday night. You wouldnt have liked that part. This time, marcus, youre going to talk to the owner of gus soda. But first heres their business in a nutshell. Lets watch. Gus is a line of natural sodas. Gus stands for grownup soda. Were sodas that are not too sweet, all natural, made with real ingredients, real juice, real cane sugar that are 30 fewer calories than regular soda. We are a natural less sweet alternative to mainstream sodas. People enjoy them straight and actually are great as mixers. We sell in Specialty Food stores, natural good stores, cafes, eateries and fine dining such as eatery, French Laundry here in new york. Places where people are looking for healthier, natural alternatives than mainstream sodas. We do sell nationally and also internationally, particularly in asia. We are growing and we are always looking to expand. Our plan is to find the right markets and the right geograp geographies that make sense for our products and really penetrate those markets for growth. All right. Steve hirsh is is the proprietor of gus soda. Ill ask you why you didnt call it steve soda. Its gus. Be that as it may. You have a question for marcus, so far away. Marcus, if you were in my shoes, what would you do as a businessowner . There are three things i would do with your package. Get a focus group to look at your packaging. Ive had your soda before. Its fantastic. I dont get the sense its all natural and the things you talk about. Two, partner with somebody like unfi, they handle my distribution. You may be doing that already. Three, id temper my growth, really make sure i understood the markets i was going to and i understood the price points and i could stay competitive. Do you think, and marcus, id love to hear your thoughts on this, it sounds like youre in Specialty Food stores, have gone to very highend restaurants, per se, French Laundry and so forth. Where do you think your biggest growth will come from . Will it come from in restaurants or getting a contract at whole foods . I dont know whether youre there are already. Youre in some of those stores i mentioned. A lot of growth is going to come from food service. These restaurants turning away from some of the big sodas with a lot of sugar that are not natural are seeing the trends. Sort of the craft beer trend moving to soda. People looking for better quality, lower sugar, all natural. Im going to try one here in a few minutes because i havent yet. Great mixers. I bet theyre good mixers. Steve, thank you very much. I dont know why you didnt name them steve soda. Gus soda. Catch you tonight. Catch the profit with marcus. The over under is eight minutes on how long it takes him to get a woman to cry. 10 00 p. M. Tonight, cnbc, the profit on cnbc. Save one of those drinks for us down here. Thank you, tyler. Gold prices closing now. Sharon epperson is tracking the action at the nymex. Gold prices up just about 7 or so right around 13. 73 an ounce. Keep in mind many traders are waiting to see whats going to be inside the fed minutes from the latest meeting. That will come out on wednesday. We have seen a rise here in gold prices today ahead of those minutes being released. Were not at yesterdays high a the close here. Many traders are wondering what the next step will be. Any information about the plans for tapering, of course, are going to be watched very closely. Back to you. Okay. Lets bring in bob pisani with the action on the floor. Believe it or not, up. 06 on the s p. Put up the s p here. Thats the best move weve had in the s p since august 1st. Its been that kind of month generally to the downside. There we are. Important thing here. Stocks are up. Bonds are up. Were getting a nice bounce in Interest Rate sensitive stocks. Utilities and telecoms. Utilities have had a bad month. Home builders trading lower on lower Interest Rates and home depot helping as well moved the group to the upside. One group not participating, a small group of industrials have been down all day. Deere, danaher, ge. Emerging markets are up, or down overall on the month. I want to point out, simon, china is on the upside. And there are a number of chinese stocks doing very well. Heres sina, Online Mobile and media services. Thats doing very well. Not all emerging market stocks are down. Be careful about that. Theres differentiation. The industrials are down because so much of the profit stream is from emerging markets. Currency moving against them. Its going to hurt the likes of ge or deere. There are oath stocks trading to the upside. G. E. Hasnt bounced all day essentially. Lets check the nasdaq with seema. We digest the latest movements, check out the tech names that make a significant amount of their regular moves overseas, specifically in asia. Intel, qualcomm and apple on that list. Speaking of apple, according to factset, apples institutional share value experienced its third consecutive decline in the Second Quarter. However, its still one of the Top Tech Holdings held by institutional investors. Google, microsoft also on that list. Simon, back to you. Thank you very much, seema. Big news in the bond market. Weve had some sort of rally. The yield on the ten year backing down. Rick santelli has that and more live from the cme. Hi, rick. Yeah, not a huge rally but i guess everything has to start somewhere. Think about it. If your emerging markets are breaking down, wheres flight to safety coming in . Well, as you look as a ten year, simon is right, were down a half dozen base points. Were still at 282, 283. Lets look at everything from may 1st when the selloff began. Look at our ten year, or look at the eurozone ten year, or the french ten year, whether you look at the uk ten year. None of them, to me, look like a flight to safety is ensuing even though some of these markets that normally cause that are still not looking good. And the dollar index, no flight to safety here. As a matter of fact, the only thing that stands in the way of more selling, say technicians, is that 80 60 low right in the middle of the page from mid june. Thats a level a third of a percent away you want to watch. Back do you. Thank you very much. The one and only rick santelli. Stands as a statement of the obvious. Many americans are still struggling. But the richest of the rich in congress are getting even richer. Well name names and tell you how much, or by how much their wealth is soaring. It is a jawdropper. Right now, 7 years of music is being streamed. A quarter million tweeters are tweeting. And 900 Million Dollars are changing hands online. Thats why hp built a new kind of server. One thats 80 smaller. Uses 89 less energy. And costs 77 less. Its called hp moonshot. And its giving the internet the room it needs to grow. This is gonna be big. Hp moonshot. Its time to build a better enterprise. Together. She loves a lot of its what you love about her. 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When they raise the ratings, raise it from whole to eat, actually. In that sector. Bad joke. The dow, nasdaq and s p Holding Steady despite the selloff in the emerging markets. There you see maybe reversing this fourday losing streak for the dow and s p. Is the u. S. The place to be for investors . Katie nixon, chief Investment Officer for Wealth Management in Northern Trust. 200 billion in assets under management. Welcome back. Nice to be here. My question on this move away from the emerging markets is, is it a trade or a trend . Is it a tactical moment or is it something deeper, more strategic . Well, tyler, we reduced emerging markets to a neutrallatineutral la rating in our tactical model. There are nearterm headwinds. We have the growth slowdown in china having an interesting knockon effect in panasian emerging markets in terms of bringing down their growth. At the same time, we have the fed taper talk which is clearly having a large impact on some of the emerging markets with big current account deafficideficit. India comes to mind. We see what happened with their currency and stock market. Michelle carusocabrera talked about this point. Talk about in simple terms why the stock market in india or stock market in indonesia would react as violently as they have to talk of a taper in the u. S. . Why . You know what, tyler, these are markets that greatly benefited from the rush of liquidity driven by our own fed policy with zero Interest Rates and quantitative easing. At that liquidity is perceived to be pulled away, investors flee those markets which apparently has a great impact on their currency, as they have to sell the rupee to buy other assets. And these are countries that rely very heavily on foreign demand for their look at the emerging markets. Down 11 year to date on that particular chart. Let me come back to the broader, maybe even the more important point. And that is that this is a tactical change that youve made. Over the long run, you still have exposure in your portfolios to emerging markets. Youre basically market weight in those . We are, tyler, and its a core exposure for us. Recognizing that over the long term, when china gets its rebalancing act in a steady state, and we do see that transition in their economy, and were through the taper talk, well see much more stability in emerging markets. So if i were to mimic Northern Trusts recommended portfolio, how much of my money would be there . 13 of our equity rating. All right. Lets talk about the larger markets. The u. S. , japan, and europe which are the areas where youre a little more strongly represented now. Why . We were overweighted in u. S. Weve been overweighted in the u. S. For quite some time. And right. And right. Recognizing that the u. S. Growth trajectory and obviously Monetary Policy were very conducive to risk taking. We recently upgraded our Growth Outlook for europe including the uk, recognizing were starting to see the recovery happen in europe driven by france, germany and the uk. Europe will be out of a recession next year. Maybe little better to be early than late on europe. Is your view. What about japan . Japan is a fairly nuanced story. Were positive on japan insofar as theyll have a recovery on the growth rate. Theyre still out on massive quantitative easing program. If youre overweight on the u. S. , that suggests to me youre not overly worried about the fed and tapering. Were not overerly worried about the fed. I think its been interesting to have this dress rehearsal for how the market will react to taper talk. Its been a wakeup call i think for the Federal Reserve insofar as they may reconsider the magnitude and timing of tapering. The economy here just doesnt feel Strong Enough to withstand any significant change in fed policy. Or change at the margins, maybe not a big one. Indeed. Katie, great to see you. Nice to see you, too, tyler. Nice to be with you. All right, simon, down to you. Ahead on show, call it the parttime economy. More and more people are working part time or freelance. More exclusive data on which sectors are being affected the most. Plus, while many Americans Still struggle in this economy, the richest members of congress continue to rake it in. We have the startling new numbers. announcer at scottrade, our clients trade and invest exactly how they want. With scottrades online banking, i get one view of my bank and brokerage accounts with one login. To easily move my money when i need to. Plus, when i call my local scottrade office, i can talk to someone who knows how i trade. Because i dont trade like everybody. I trade like me. Im with scottrade. announcer scottrade. Awarded fivestars from smartmoney magazine. So you want to drive more safely . Of smart. Stop eating. Take deep breaths. Avoid bad weather. [ whispers ] get eight hours. [ shouts over music ] turn it down and, of course, talk to farmers. Hi. Hi. We are farmers bum pa dum, bum bum bum bum and this is my home team. This is my large lecture hall. This is my professor. And also my coach. This is my booster club. This is the guy whos graduating ready for a great career in technology. [ male announcer ] in 2012, 90 of Devry University grads actively seeking employment had careers in their field in 6 months. Join the 90 . Learn how at devry. Edu. In todays Yahoo Finance question of the day, we asked would best buy and home depot reporting higher profits, are you buying more online or in store . 15 say that they prefer buying online. 35 say they always prefer instore, and 50 , half, say they shop evenly between online and in store. Now lets see whats coming up next on street signs. Hey there, simon. Okay. Yeah. Coming up top of the hour, we watch many emerging markets melt down, we invite the ceo of tezsla fitzgerald to tell us whether or not the United States is still the safest and best play for your money. And also were fast approaching humanless airports . Were going to talk to one companies hoping to make that reality and a very cool, fun toy. The ceo is taking us to the skies. Well, at least in our imagination. All those things and of course lots more coming up, guys. Top of the hour. 2 00 p. M. Eastern. Back to you on power lunch. Looking na ining forward to Unemployment Rate seems stuck around 7 , 8 give or take. People are wondering where the new jobs will come from. One area seeing growth is freelance work. Swro joining us for an exclusive look after the latest trends is the ceo of the Global Online platform, the employment platform elance. Welcome to the program. Your job basically is connecting people for job work. What are the solid trends youre seeing . Yeah, simon, were seeing the freelance economy booming in sharp contrast with fulltime employment. Research shows that Small Businesses are hiring freelancers and theyre making them part of the core strategy now to extend their workforce in hiring specialists mostly with Technical Skills and creative skills that work on a freelance basis. Interesting. What sector i didnt mean to interrupt you what sectors are you seeing that most evident in . Why do you think theyre doing it . The benefits of hiring a specialist are obviously significant. Most small and Mediumsized Companies cannot afford to have fulltime employees for every sps specialized skill. We see heads of i. T. And heads of marketing in Smaller Companies extending their workforce with freelancer and choosing the just in time specialist. Hiring on our side is up over 50 annually, and demand for s. T. E. M. Skills which are science and math and research are up 150 . A huge surge. In other driving factors for this model and the adoption of freelancers is they cant just find fulltime employees with the appropriate skills. We talked a lot about the talent gap. Were actually seeing that talent gap. If we could fill all those positions, these businesses would possibly hire fulltime employees but they just cant find them. Its fascinating. Every time the employment report comes through, the nonfarm payrolls number, theres this question about the quality of the jobs that are being created. Are they full time, are they paying benefits . Are they highly skilled . Are they manufacturing jobs . What would you say to people who worry that while youre doing im sure its a great business but in general, were not delivering the sort of jobs that even these very highly skilled people that youre talking about might want. Well, i think the issue is one of employability. The economy works on supply and demand. Jobs are about having the right skills. The big mismatch we see is in supply and demand. People be the rigwith the righte getting more offers, highly sought after. If you have the right skill sets, youre most likely getting multiple bids for you to join a particular company. We certainly see that in parts of our economy, like Silicon Valley and new york. If you have a certain kind of skill set, youre actually in a very good position. At the same time, if you dont have the right skill set, youre experiencing the exact opposite. So its a story of feast and famine, depending what kind of skills you have. Im sorry. Were out of time, fabio. Finally, if you could give a child advice as to what to studty to accelerate their career, what would it be, briefly, if you would . Today i would focus you on technology, Technical Skills Like Software and engineering. Or creative skills. Be really good technically and be really good at creative. You cant lose in either case. But i would also tell you, remember, the most Technical Skills have a short life span. You have to retrain. Sure. Fabio, great to see you. Thank you very much. Fabio rosati from the west coast. Ceo of elance. Simon, meet the millionaires of congress. Whos bringing in the most dough . Who has the highest net worth . Republicans, democrats . Eamon javers is in washington with new and staggering surprising numbers. Hi, tyler. The hill newspaper is out with its list of the most wealthy members of congress. Ill bring you the top five when we come back. Whos the richest member up on capitol hill . Ill give you one hint. He has to pay the new millionaires tax out in california. More in a bit. [ male announcer ] at his current pace, bob will retire when hes 153, which would be fine if bob were a vampire. But hes not. Hes an architect with two kids and a mortgage. Luckily, he found someone who gave him a fresh perspective on his portfolio. And with some planning and effort, hopefully bob can retire at a more appropriate age. Its not rocket science. Its just common sense. From td ameritrade. Who are the richest members of congress . Eamon javers knows. Hes in washington. I was going to do a big reveal for you here. Lets start with number one and count our way down to number five. Darrell issa from california is congress richest member according to the hill newspaper in their annual rich list with an estimated net worth of 355 million. He made the bulk of his fortune with the viper car alarm company. Early on in his career. Now a member of congress. Number two, Michael Mccaul of texas. Hes a republican. 101 million. Hes married to a Clear Channel heiress. Number three, mark warner, former technology entrepreneur, democrat of virginia. 88. 5 million estimated net worth. Number four, go to number four to see a rockefeller on the list. Senator jay rockefeller, 83. 8 million. Blumenthal, democrat of connecticuts, 76. 6 million. A couple other notable members of congress. Names you might recognize from past and possible future president ial and Vice President ial campaigns. Elizabeth warren worth 3. 9 million. Congressman paul ryan, 2. 3 million. Senator ted cruz has been in the news a lot this week, 1. 5 million. Senator rand paul, 455,000 net worth. And senator marco rubio a negative 190,000 net worth according to the hill newspaper in their annual list here, tyler, of the richest members of congress. Marco rubio might want to go out and hit the speaking circuit. Do we know why his net worth is negative or do we not . We dont. Hes been in politics from very early on. Very young guy. You know, in politics you just dont make all that much money. You know, as compared to some of these guys who were investors and having so issa, how what does he own with that 355 million . He owns a lot of the same stuff, tyler, you might see in any upscale investors port folio. He owns a lot more of it than anybody else. He has a lot of investment funds. Goldman sachs. Jp morgan. Oppenheimer. He owns commercial real estate. He owns a property at 1 viper place listed on his disclosure form. A neat address there. Thanks very much. Eamon javers. For that report. Simon, down to you. If youre looking to cash in on the movement to legalize pot, be careful. Your profits may go up in smoke. A new alert on marijuana stock scams. Well tell you all about it next on power lunch. [ male announcer ] its time. Time to have new experiences with a familiar keyboard. To update our status without opening an app. To have all our messages in one place. To browse. And share. Faster than ever. Its time to do everything better than before. The new blackberry q10. Its time. 20 years with the company. Hool. Thousands of presentations. And one hard earned partnership. It took a lot of work to get this far. So now im supposed to take a back seat when it comes to my investments . Theres zero chance of that happening. Avo when you work with a schwab financial consultant, youll get the guidance you need with the control you want. Talk to us today. A talking car. But ill tell you what impresses me. A talking train. This ge locomotive can tell you exactly where it is, what its carrying, while using less fuel. Delivering whatever the world needs, when it needs it. After all, whats the point of talking if you dont have something important to say . A quarter million tweeters someis beare tweeting. Say . And 900 Million Dollars are changing hands online. Thats why hp built a new kind of server. One thats 80 smaller. Uses 89 less energy. And costs 77 less. Its called hp moonshot. And its giving the internet the room it needs to grow. This is gonna be big. Hp moonshot. Its time to build a better enterprise. Together. Are you hungry for marijuana stocks . Buyer beware. The financial industry regulatory authority, thinra is issuing a new investor alert called marijuana stock scams. Marijuana stocks, they were probably when they came up with that one. Mary, what do you got . Medical marijuana is legal in 20 states. This is tied to this. Finra says scammers are blowing spoke about the potential of stocking. Warnings come via emails and faxes aimed at pumping up interests in and the stock prices of firms linked to the pot industry. The scammers then sell their shares after the price pop, leaving duped Investors Holding the bag. No laughing matter. Finras Vice President says when theres a next new thing, you see fraud sters swarming like vultures to get in on the action. 2. 4 million current users, estimated revenue of the medical Marijuana Industry, reaching 1. 5 billion this year. Making marijuana the next new thing for scam artists who on websites and chat rooms falsely claim it can among other things clear the common cold along with the lost appetite. While the medical Marijuana Industry is finra reminds us their stocks are thinly traded and the stocks have little revenue and few in any profits. Not that they might have them someday. Read the s. E. C. Filings and many say theyre in the Development Stage making scammers claims of doubling profits and storing stock prices a bit of a pipe dream. Weed cant cure the common cold . Weed cant. It cannot. Ive been wrong all these years . That was a richly written little piece, mary. Oh, yes. I want to go back and listen to it. Obviously, i didnt lets get simons final market update. A quick check on the dow. Were up 40 i like that. Were up 48 points. So far, united, bank of america, verizon, intel and cisco. That basically does it, tyler. Thats right. For this edition of power lunch. Remember, simon, weed does no cure the common cold. That will do it for this edition of power lunch. Street signs starts now. Well, apparently the death of the American Consumer has once again been greatly exaggerated. Retailers everywhere are soaring today. Weve got your full roundup of the winners and even bigger winners ahead along with whats old that seems to be new again. Well explain. So what is the safest place for your hardearned cash right now . The ceo of one of wall streets biggest firms brings you actionable advice. Plus, left for dead stocks. Should you take n