Transcripts For CNBC Power Lunch 20140110

Is he right . And how would the market react to that . And for target, it just keeps getting worse. Now presumably more than 100 million customers may have had their data breached. The security of it, in the past month or so. Sales have taken a hit. Earnings, a new warning from that company. Well have more on that. Meanwhile, sues at the nyse. The markets right now are down about 42 points on the trading session. But were watching that target story very closely. The shares right now are off just under a percent. In the last month, you have been seeing them go up and down extremely volatile in that stock. A spokesperson from target saying today the data breach is bigger than they thought. It may now impact, as you said, more than 100 million customers. A newly set of discovered breaches includes names, mailing addresses, phone numbers and email addresses. Investigators believe this indicates a second target data base may have been hacked. Target lowering its Fourth Quarter guidance to lower to between 1. 20 and 1. 30 a share from a range of 1. 50 to 1. 60. The Company Believes q4 sales will be down 2. 5 . Targets chairman, president and ceo saying in a statement quote, i know that it is frustrating for our customers to learn, our guests to learn, that this information was taken and we are truly sorry that they are having to endure this, end quote. Ty . I dont think were ready for this. How are you . All right. Becky quick will interview the ceo of steinhoffer this weekend. It will air on squawk box monday morning. Good to have you with us. You will be the first journalist to interview him. Rare opportunity. He doesnt do much. I covered retail for years at the wall street journal and target is a company that has always been mediashy, has never really been open to bringing people in. Unfortunate to do this now but there are two groups he has to speak to. The first are his customers. They are trying to do that today to address some of the concerns. But hes going to have to explain to them what happened. The other group he needs to talk to are the investors who at this point are probably wondering if this is the end. Obviously the worry about the Customer Security is one thing but the Financial Performance is really in the target bulls eye right now. Thats right. Theres more than just the data breach that came out in these numbers today. A lot of concerns about the store sales. They did dip significantly when this news first came out. The company said that those numbers had picked up in recent days. In the last several days. But a new breach like this, information about more things coming out, that could put people at bay, make them not necessarily come back into the store. This this revision, it felt to me as i read it that it was kind of a kitchen sink kind of thing. They were throwing in a lot. There was information about the red card, about the Canadian Stores and those are some huge issues. The Canadian Stores themselves are now looking at potentially 44 cents they will write off for that. That is about double what some people had been expecting, the low end of the guidance before. Thats a big deal as well. Great to see you. Thanks for staying up. All the way to 1 00. Thanks, guys. Appreciate it. Now the question is how will that hacking fallout impact targets business Going Forward . On the phone with us is ian gordon from iq equity research. Nice to have you. Welcome. First, give me your opinion of how you think it will impact their business and do you think this is the end of it . We keep hearing more and more and there are some security analysts out there who dont think they have any handle on how big this hacking is. Yeah. I think its hard to say. Theres the old adage where theres smoke, theres fire. We initially thought this was contained to the 40 million credit card accounts but now it seems its a little bit broader. I think one, we need to step back and ask another large retailer was the target of these sophisticated criminals, would the result have been any different. My gut tells me the answer is probably not. Target is not known for having shoddy i. T. Infrastructure. I think this is probably just a broader issue. Ultimately, i think consumers will come around and you know, we expect there to be some impact but overtime, we think it will work out. The question is going to be what are the costs to target in terms of legal settlements and penalties and anything like that. But despite that very quickly, you left your hold rating on the stock, correct . Yeah, we did. I think the stock is the numbers are coming down and as you just talked about in canada, i think its part of that. Despite that, the shares are fairly reasonably valued but we think as the canadian losses transition to lower losses, we see Earnings Growth pretty strong over the next couple years still. Ian, thank you very much. Appreciate your time. Youre welcome. Lets go to dominic chu for a market flash. Check out intercept pharmaceuticals. As of yesterday, 300 gain, the stock is up another 70 today. This on news yesterday of a successful midstage trial for its Liver Disease treatment. Now, at the beginning of the week, the stock was around 70 a share. Right now, you can see it, up about 467. Heres a tidbit. Steve cohens sec capital own about a million shares last year so if you take a look at the move here, thats hundreds of millions of dollars in gains if that position is still held by sac capital. Back to you. Thank you. Another big story right now that were following, the white house is shaking up obamacare. Eamon javers is on the beat. Reporter thats right. This reporting coming from the wall street journal. As of right now, the Washington Post reporting the Obama Administration getting ready to jettison the company contracted to do the work on healthcare. Gov that has been such a political disaster for this administration. The Washington Post reporting now that a 90 Million Contract is in the works for accenture to come in and fix up the problems with healthcare. Gov. It has done some work previously on californias Health Insurance exchange so they would seem to be well positioned here to step in but obviously, a big, big change here if this information bears out. The white house has not confirmed this report to us just yet. We are waiting for a White House Press briefing which was scheduled for about 15 minutes ago. As these things go, its drifted a little bit. We have not heard from the press secretary but expect to do so shortly. Sue and tyler . This is a big change and an awful lot of people critical of the choice of that initial Website Designing Company in the first place. Yeah. They thought in retrospect, obviously retrospect, 20 20, that if they had gone with accenture, ibm or amazon, this never would have happened in the first place. Right . Reporter one of the questions here is why did cgi federal get this contract in the first place. Why not go with a big brand name. This country is full of companies that know how to make big robust websites. Why didnt the administration go with one of those. The president has made in the past that look, he is so frustrated with the federal i. T. Process, all the rigamarole you have to go through to get to a big contract, might be too much for some of these companies to deal with and too much for the government to get to the right company. Thank you very much. Also on the radar today, this big stock question. 2014 has not been great for the bulls so far, not at all. Should you buy in now . Dominic chu joins me now and has been on the case with various sort of themes from global to gold everything else. Absolutely. Take a look at this. We wanted to get a sample of where the pros are seeing investment opportunities. We asked the question whats the musthave investment in your portfolio, your area of coverage. Heres the three responses we got. First, lets take our virtual shopping cart. You can see first of all, douglas c. Lane and associates, hes a stock picker, his funds performance has beaten the s p over the last year, five years, and ten years net of fees. He likes auto parts suppliers. Delphi goes into the cart. Its got exposure to all the major car makers and have high value products with global exposure. We will take the cart and move along the lines here to whats happening with global pictures. On that front, Fidelity Investments Portfolio Manager and director of global macro strategies likes investing in developed markets, thing the spy for the u. S. , the ewg for germany, edj, those are all etfs that track those particular markets. Thats got to go into the shopping cart. Then we will move our shopping cart over here to the metals side of things, because we asked rbcs george gearo, he likes gold on the commodity side. He believes continued stimulus will lead to inflation concerns and gold is the hedge to have, the one etf that tracks gold of course is that gld, the one everybody talks about. Take a look at those investments. They are all going into our shopping cart here. Back to you, sue. Thank you very much. The Unemployment Rate now reads 6. 7 but is that the most misleading number of the day, perhaps . Because the Participation Rate is 62 . Thats the worst in 35 years. Which one should you believe . Well talk about it in two minutes. Doing a little cleanup. Steve liesman, clean me up. Tiffany sparkling over the Holiday Season. Sales for the luxury jewelry retailer up 4 through november and december. I helped by Strong Demand in america, america, ladies and gentlemen. Tiffany also sticking with its full year forecast. Sears going the other way, folks. New 52week low. Lets take a look. There it is, at 36. 89, down another 13 . Ouch. The struggling Department Store chain says sales over the Holiday Season actually plunged 9 . Sears also expecting a much bigger than expected Fourth Quarter loss now. And shares of five below also getting hit. How could that be when the temperature was five below . The discount retailer cutting its Fourth Quarter outlook, blaming bad weather and that stuff for weaker than expected sales. Steve liesman, just about everybody got an estimate about todays jobs report and they were mostly wrong, steve. Just 74,000 new jobs created in december. Thats one worry. The labor force Participation Rate, another. How big a worry . Mostly is a kind euphemism for entirely, myself included. Was it weather or actually underlying weakness in the economy . That is the debate right now in the market and among economists as they try to make sense of this huge disappointment in the jobs number. Here it is. Payroll, 74, looking for 200. There were whispers of more than 200. Private payroll, just 87,000. Revisions didnt do enough to get away from the disappointment that was there. Unemployment rate, 6. 7 , down. 3. That was because people left the work force. You can see the decline in the labor Participation Rate at 62. 8 . This number comes amid a slew of other indicators such as strength in the economy. In fact, Macro Economic advisors moments ago revised up its estimate of Fourth Quarter growth to 3. 7 after better than expected inventory numbers. Hard to have the weak jobs numbers with strong growth numbers. Goldman sachs remains upbeat. It is a weak report. However, you look at all of the other indicators that are coming in and those are quite consistent i think with the idea that the economy is accelerating to a faster pace. Second half of 2013 was quite strong from a gdp perspective. Other indicators werent quite as strong. But in general, there has been a nice sort of acceleration over the last six months. If there was weather, it probably showed up in the construction numbers, down 16,000. Government also adding to the decline. Manufacturing, okay. Services look good but in a service economy, you have to do better than that to get a strong jobs number. Retail was good at 55,000. Temp help, maybe thats a good sign, up 40,000. As for the fed, given the potential weather influences and the decline of the Unemployment Rate, we still expect a further reduction in the pace of qe of 10 billion to be announced at the january meeting. Thats probably the right call but one fed official called yesterday for the fed to do more, not less. By easing Monetary Policy relative to its current stands, the fomc could facilitate a more rapid fall in unemployment and a more rapid return to the 2 inflation rate. Thats a minority view right now but more weak economic reports could make it more of a centrist view. This certainly does sort of put a different spin on the ball than the fed was expecting, i would think. True, but i also know the fed was going to look at a whole bunch of numbers and from the isms to nfib, to the stuff we talked about yesterday, and this gdp number, its really hard to say jobs were really weak when you had a 4. 1 in the third quarter. We have been waiting for this kind of growth. Thats the kind of growth that should give us good job growth. Thanks very much. Have a great weekend. Sue, down to you. Well, the numbers bear repeating. You were just talking about that huge miss for the december employment report with the economy adding just 74,000 jobs. The expectation was for a gain of 200,000. The Unemployment Rate did fall to 6. 7 but that is due to americans dropping out of the game. The Participation Rate tumbled to 62. 8 , the worst level we have seen in 35 years. Joining me here is mark morial, from the National Urban league and former mayor of new orleans along with larry kudlow, host of the kudlow report which airs weeknights on cnbc at 7 00 p. M. Eastern time. Welcome, gentlemen. Always a pleasure to have you here. You know, larry, we did see that Unemployment Rate tick down, but im worried about the Participation Rate. That indicates that theres an enormous number of americans that are not able to get work, not looking for work. Thats aworrisome figure. Close to 350,000 some people dropped out of the work force, apart from the weather. The weather probably took out 350,000, too. Thats why i think this numbers a fluke. But longer run, the lower Participation Rate, employment to population ratio, 58 . Thats a disaster. Where did those people go . Exactly. Where does some of them retired but i fear that thats not the right answer. I fear that the economy is not creating the jobs it needs to create. Were not running the policies we need to run. And this is going to be a long range problem for the united states. It really is. I just want to add one thing. We looked at this all week long in the kudlow report, we looked at the antipoverty issues and so forth and so on. Education, marriage, keep the family together, make sure theres incentives so if you go to work, you dont lose money, you actually gain money, things of that sort. We can do this but its going to require some policy reforms. You have been talking about some of this as well. The issue of education and maybe you can get a job but you need a better paying job. Most americans who do get jobs right now are getting jobs that pay them less than what they were making before. Lets face it, the recovery has created jobs. Its created jobs consistently, particularly over the last two years. But it may not be creating the kind of jobs that pay the kind of wages that most americans want. This problem of underemployment may be, i think, a long term trend for the country. I believe that one thing the congress could do is raise the minimum wage, index it to inflation. The effect of that would be that it would raise maybe about half of the working poor out of poverty. Its a Public Policy gesture that i think or Public Policy step that the congress should take. With all respect to the mayor, i do respect the mayor, who has been a guest on the kudlow report, as i recall, i dont think this is the time to raise the minimum wage. Minimum wage is a penalty on the businesses that have to pay it. They tend to downsize the work force. They will. They will. Because we are not living in the fat years right now. Now, if you want to help the low, call them the marginally poor working poor. The working poor. If you want to help them, i got a better idea. Number one, in full view with full transparency, have a wage benefit. Give them a wage benefit, okay . It will cost money, its a budget issue, but youll give them the extra. Or second point, improve the earned income tax credit. Improve the earned income, make it so that if you go to work, you dont lose any money. Theres an incentive. The earned income tax credit has proven to be very good and a wage subsidy might work, too. What im saying is, if you believe in what you believe, im not sure im with you, mayor, on all this, but im just saying, if you believe that they need a helping hand, and i do believe in the safety net, do it so that all the taxpayers of the country share in it. Dont just penalize certain businesses with minimum wage. Heres whats so important about this argument with a minimum wage. Theres not a bit of evidence, not one single report, that suggests when you raise the minimum wage and give people a chance to earn more money, that somehow it causes more unemployment or layoffs. Thats an argument without support. I respect you but i think there has been study after study, National Bureau of economic research, those are the guys, those are the blue chip guys, ivy league guys, they put out report after report, minimum wage does damage. I know this is a debate. I know we will disagree. But im just going to say, there are plenty of reports that show the final word. Work should pay. I think if we give people a chance to earn a fair wage, its going to not only help the economy but certainly incentivizes. We have to make sure we focus on next time we have you back, i want to talk about the fact that some of these jobs may never come back. Thats what i think. Thats very worrisome. This will sound wild, but one of my solutions, all right, is to abolish the Corporate Income tax all together. It is not really a tax on corporations. Its a tax on wages and a tax on workers and a tax on consumers. Its a passthrough. Get rid of it. Well have to figure out lets have a show. Well get rid of the corporate subsidies that we do not need. What i call crony capitalism. I have always been for that. Im a flat tax guy. Corporate tax is an obstacle to wages as well as jobs. That sounds like a kudlow report to me. We will invite you. We appreciate it. Happy to do it. Dont miss the kudlow report tonight 7 00 p. M. Eastern time. Mustsee tv. Fascinating conversation and a really important intellectual debate to have. One thing you may not have thought about is the impact of the jobs Participation Rate on housing and home sales, but diana olick, it kept her up last night. She has been thinking about it and is live in washington. Reporter thats all i think about. Look, say what you want about Mortgage Rates and home prices, jobs, fuel, housing, plain and simple. Three things in todays jobs report were negative for housing. First, job participation hit the lowest level since 1978, as we have been talking about. These are folks who are not only not working, but theyre not even looking for jobs. So who is giving up . Well, according to the bureau of labor statistics, recent College Grads and older americans. Thats two key housing components. First time home buyers and downsizing baby boomers. Now theyre stuck. Second is wage growth. It came in at 1. 8 for 2013, below the rate of inflation. So lets call that wage stagnation, shall we . Again, a problem for the first time buyers, because they cant save enough for a down payment and for current homeowners who might have wanted to move up, they can forget it. Finally, millenials. Again, the first time buyers. Their employment rate rose very slightly, just over 75 of them are employed but that should be closer to 80 . Finally, todays jobs report answers a question i have been wondering about for a couple days. Realty track earlier this week said the number of homes in the foreclosure process that have home equity jumped from 24 to 31 last fall. So why arent these 31 of borrowers refinancing to lower rates or getting a loan modification . Probably because most of them dont have a job or a job that pays enough to keep their home. Why not sell . Well, because thanks to long foreclosure timelines, they can live in the house for free for quite awhile. There is of course much more online. Realtycheck. Cnbc. Com. Sue . Well, it is cold and snowy here but simons in a much better place. Im jealous, simon. We just hit 82 degrees on the top deck in fort lauderdale. Ahead, im going to tell you how ceos and cruise lines will ensure this year it is safer, more comfortable and more interesting to take a cruise. Before we hit the break last night, caribbean took me up to one of the giant simulators that they use to teach engineers and i got a chance to pilot a ship into manhattan. Take a look. But this is my projected thing is coming back away from battery park. Im not going to hit battery park. Youre going directly there. You want to start turning right now. Now youre coming back. Now you can reduce. Now you can reduce. You have lost power in your rudders. We could have hit goldman sachs. Five tech stocks with more than a 10 . Change in aftermarket trading. All the tech stocks with a market cap. Of at least 50 billion. Are up on the day. 12 lowvolume stocks. Breaking into 52week highs. Six upcoming earnings plays. That recently gapped up. [ male announcer ] now the world is your trading floor. Get realtime market scanning wherever you are with the mobile trader app. From td ameritrade. With the mobile trader app. If. Hey breathings hard. Know the feeling . Copd includes emphysema and chronic bronchitis. Spiriva is a oncedaily inhaled copd maintenance treatment that helps open my obstructed airways for a full 24 hours. Spiriva helps me breathe easier. Spiriva handihaler tiotropium bromide inhalation powder does not replace fastacting inhalers for sudden symptoms. Tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. These may worsen with spiriva. Discuss all medicines you take, even eye drops. Stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain, or problems passing urine. Other side effects include dry mouth and constipation. Nothing can reverse copd. Spiriva helps me breathe better. Does breathing with copd weigh you down . Dont wait to ask your doctor about spiriva. [ male announcer ] eeny, meeny, miny, go. More adventures await in the new sevenpassenger lexus gx. Lease the 2014 gx 460 for 499 a month for 27 months. See your lexus dealer. Its been almost a year now since we saw that memorable and not in a good way carnival triumph disaster in which an engine room fire stranded the ship for several days and crippled the ships population. People really going through misery there. So what has carnival done to ensure that that kind of incident doesnt happen again . Simon hobbs has been taking a look down in fort lauderdale. Reporter you know, tyler, carnival is spending 700 million to make sure that that drift never happens again and they gave me a chance to go down, right down inside a carnival ship, where they have identified the design flaw that left the triumph drifting and told me exactly how they will fix it. This is the breeze, the newest and largest of the carnival ships and while the bridge is really very impressive, if this is the brains, the real heart of the vessel lies below. This is in many senses the heart of the ship. This is the engine control room. This is where the vital signs of life on the ship, if you like, the direction, propulsion, power, water, hvac, the toilets, they are all controlled from here. Mark jackson spent 28 years working for the u. S. Coast guard. He is now head of technical operations for carnival and is going to show us around. So this is the propulsion shaft. Electric motor drives this and it rotates, which drives the propellor that makes the ship go. Reporter what exactly was the problem on the triumph . What was the design flaw . The problem on the triumph was that some of the cables from the forward engine room ran through the after engine room and the fire burned the cables so that we couldnt use the power from the forward engine room. Reporter basically you had two engine rooms, the command and control going through the roofs of both, you burn out one, it knocks out the other and that really shocked the industry. Since then, we found a way to reroute the cables outside the engine room so that that problem wont happen again. We are adding additional High Pressure water mist which, with a total flooding system, it will essentially make a rain forest out of the engine room and no fire could exist. Reporter all of it of course monitored from above. For cnbc, im simon hobbs deep within the carnival breeze. In the meantime, of course, the race continues to innovate between the various brands. What can they put on a ship that will persuade the 97 of people that dont cruise to buy a cruise . Caribbean lent us that evil genius, as they call him, to take us round the liberty of the seas to look at innovation on just one ship. Its hard to imagine you are actually on a cruise ship but this one has an ice rink for the kids to play on and practice in the day or for a professional show at night. You said the boss said we can build an ice rink on one condition. It needs to be real ice. And we worked with rockefeller center, found the manufacturers and here we have the ice. It has been marvelous. Reporter if you want a real thrill, how about the 40 foot climbing wall. Everything needs to be a spectator sport as well. Reporter if its not too windy, how about miniature golf . Go on, give it a go. Yes and look at this. This is what they call the flow rider. This is the big attraction on this ship. You were saying no thank you. You were saying you had to wait until you had bigger, longer ships to put this on. Yes. This weighs about 250 tons all together, and we needed actually to design the ship from the beginning in order to be able to carry this weight. Reporter on board royal caribbeans liberty of the seas. Sue, i think that would appeal to you as a holiday, no . Absolutely. That was fantastic. He was quite a sport going around with you. Great work. I would love to do that. Reporter hes been there for years. Its fantastic, simon. Thanks for showing us around. Appreciate it. Enjoy the weather. Because were not enjoying our weather. Lets get to the gold market. Prices are closing right now. Sharon epperson is here with the details. Reporter were looking gold prices up about 17, closing above that 1245 an ounce level. We did get a nice pop in gold prices after that disappointing u. S. Jobs data and the fact that the dollar has weakened a bit has also helped gold prices. We are also looking at a nice pop in silver, because silver is the best performing metal today, up about 2 . Keep in mind we had a big selloff of course for 2013 in these metals. Barclays says this year gold will be 1205 an ounce. Look for silver to be 19 an ounce on average. Back to you. To interest rates, which had a move this morning on that jobs report. Rick santelli is tracking the action at the cme. Reporter wild day down here. You already know that. Obviously the jobs report was anything but stellar. Its reflected in weaker rates. That part still works. Looking at intraday of tens, down ten points on the day. Weekly, we are down an even dozen. Look at a one week of fives, they are down ten on the week, they are down eight on the day. And the only, the only currency that is not up against the dollar today is canada. So look at the dollar canada chart. You see the dollars up. Why . You think our report was bad, their Unemployment Rate in canada went from 6. 9 to 7. 2. To equate it to the u. S. , multiply by ten. Not a terrific number. Ricky, thank you very much. Appreciate it. We just want to note that coming up, we saw simon on that cruise ship. Later today, on street signs, royal caribbeans ceo will join simon. You just saw that stock performance. They have had a very good run for the last three months, up better than 30 . Ty . Before apple shook up the world, the Tech Industry gave a back seat to design but that is changing in a big way. Gadgets are getting sexier than ever and one man is increasingly behind those hot sexy products. We will introduce you to him and look at his growing influence in your digital life after this. [ bagpipes play ] make it happen with fidelity active trader pro. Its one more innovative reason serious investors are choosing fidelity. Call or click to open your fidelity account today. [woman] ask me what its like to get your best nights sleep every night. [announcer] why not talk to someone whos sleeping on the most highly recommended bed in america . [woman] ask me about my tempurpedic. [man] ask me how fast i fall asleep. [woman] ask me about staying asleep. [announcer] tempurpedic owners are more satisfied than owners of any traditional mattress brand. Tempurpedic. The most highly recommended bed in america. Save up to 300 on select mattresses during the tempurpedic model closeout event. Find a store at tempurpedic. Com. Welcome back to power lunch. Heres an interesting sign of the times in the video game business. All that talk of the demise of nintendo has been grossly overstated. The current market value of nintendo stands at a respectable 22 billion as of close of tokyo trading. By contrast, Consumer Electronics and media giant sony has a market value of just 18 billion. Thats right, for all that talk from pundits and gamers about the struggles of nintendo, the market says nintendo is worth more than sony, even with its play station 4, even with the movie and Music Studios and all that Consumer Electronics, the story is just about as much about the turnaround at nintendo helped along by its handheld portable 3ds gaming devices as it is about the struggles at sonys entertainment and Consumer Electronics units. At least for now, nintendo isnt being so much left for dead. Tyler . Thank you very much. Until recently, much of the world tended to place relatively little emphasis on design and form with respect to building products, Tech Products in particular. Apples steve jobs and johnny ive the rare exception of course. But this man here is quietly creating a new generation of iconic and very influential new devices, including the jawbone and fitness band. He is profiled in the february issue of vanity fair which is online and on stands this week. Carol, welcome. Welcome back. Lets talk about yves behar a little bit. What is he doing and why is he so interesting in Silicon Valley . Well, theres not a lot of designers. Most of the design gets sucked up by apple and they are known as the great designers here. They have a very strict aesthetic, the white, the very clean lines, everything they make looks the same and its headed by johnny ive, so yves stands out because theres not that many designers beyond apple. He designed the upband, which is very interesting looking. He designed the one lock top for child, even the soda stream and stuff like that. Hes doing all kinds of Different Things around chairs, around all kinds of things. Its unusual in Silicon Valley where design has taken a back seat for much of the history of technology. Industrial design is a very interesting area. There have been some wonderful examples of it. Theres the soda stream device. Does what he does cost more . Do i pay more for a better looking product . Well, you know, not really. Not really. A lot of things Like Computers for years before apple made a lot of changes, they came in beige or possibly beige, then black. I think some of the things do. They are very high end. But a lot of them, he makes a chair, im completely blanking on the chair, but its not an expensive chair, its an inexpensive chair. Its just quite beautiful, using much more expensive plastics and the way they do it. Its adding design to everybodys life. As opposed to i want to turn you, if i might, to todays top story here on cnbc, the jobs report. You obviously cover Silicon Valley, know an awful lot of people there. Whats the jobs picture like in that part of the world . Are those companies hiring, hiring aggressively and if so, who . I think so. Look at all the fundings that are going on. If giant hundreds of millions of dollars of fundings. This is to hire people. Silicon valley seems relatively untouched by this jobs market report. Its just at ces, it was packed with people, there are all kinds of fundings that keep getting announced. Companies keep getting funded and adding people. Its not touching this sector as much as other sectors of the economy. Very quickly, any fresh buzz on who the microsoft ceo might be . I dont know. We know who its not. Its not fords ceo. I think someone might come out of nowhere at this point. Someone we may not have been thinking about. I named a few names, but its still tbd. It wont come until february, i think. Okay. Kara, thank you very much. Appreciate it. She is at re code. Check out her article in vanity fair. Sue . Getting america back to work. Cnbc is traveling around the country to show you where the jobs are right now and which companies are taking the initiative to look for workers for higher paying skilled jobs and how theyre helping those workers get the skills. Ve you fifteen percent or more on car insurance. Yeah. Everybody knows that. Did you know there is an oldest trick in the book . What . Trick number one. Lookest over there. Ha ha. Madeest thou look. So endeth the trick. Hey. Yes. Geico. Fifteen minutes could save you. Well, you know. Aflac got em. Yeah, hes clean, boss. Now listen to me, duck. I have an associate that met with, uh, an unfortunate accident. While hes been incapacitated, somebodys been paying him cash. Now, is this your doing . Aflac . Now, if i met with some such accident, would aflac pay me . Nice. This is your stop. [ male announcer ] find out what aflac can do for you and your family. Aflac . [ male announcer ]. At aflac. Com. The economy is adding jobs but most manufacturers say they would like to add more. A survey by the Manufacturing Institute finds 82 have openings for Skilled Labor but simply cant find it. In the first of our series on where the jobs are, Mary Thompson joins us from j. W. Humes headquarters in st. Paul, minnesota to tell us how this company and others in that area are working to solve their skilled shortage. Over to you. J. W. Humes has been making their high end Leather Goods and accessories in the u. S. But to make anything that range from a 45 keychain up to a 2,000 satchel, you need industrial sewers. The problem is employment in the u. S. Textile and apparel industry has dropped 83 over the last half century, making those sewers hard to find. To fill the gap, this company and other textile firms in the tristate region here asked a local college to create an industrial sewing program, a skill that faded as schools abandoned home ec. Labor costs are rising in asia and work is coming back home. The dean says Companies Still want to outsource the training. Companies didnt want to focus on training. They wanted to focus on being productive and making products. After being assured by companies of current and future demand for the sewers, she set up a sixmonth course costing over 4200. The first graduates earning on average 13. 46 an hour. The start was rocky. The Vice President of j. W. Hume says their first hires werent quite ready for the job. The first three we brought in from the program, we really saw a need to have some highly skilled, more refined skills for industrial sewing for leather. Sewing on leather, what we do here, is a different skill set. The dean has listened to the employers and they have altered the course. The students get less time on the books, more time on the machine, learning to work with different fabrics, make different stitches, and they are taking courses like upholstering and machine maintenance. The placement rate . 90 so far and just who they are placing is the next part of the story, coming up on street signs. Tyler, back to you. Terrific. Thank you very much. Ink magazines editor in chief has been listening in to marys report. Inc recently conducted a survey on the outlook for Small Business in 2014. The magazine concluded that entrepreneurs are feeling optimistic about the new year. I just noted that of the 5,000 Small Business founders and ceos, 80 say they plan on increasing their head count in 2014 and Something Like 82 say that their job or companys prospects this year are either good or excellent. Thats quite something. They are all looking to expand their business, 90 are looking to expand their business, get more customers. 40 are looking to expand overseas. Entrepreneurs are optimistic by nature but you get a sense from talking to them in this Small Business report that they really feel an economic wind at their back for the first time in about five years. This goes beyond just their normal sort of instinctive, intuitive optimism you have to have to be an entrepreneur. We want to get to the question of where the jobs may be. One of the things that stood out in this survey to me is that one out of six Small Businesses in your inc 5,000 are somehow related to housing, one way or another, and that must be where some of the hiring is going to be. Thats right. Its also a great source of optimism. One out of six jobs, yet look at the depression in housing is over now. Prices are up, construction is up, and construction has a lot of carryon benefits. So when people are building and all those people are getting paid and appliances are being bought and movers are being hired, it has a lot of economic aftereffects. Optimism is high, but concern about obamacare is also high, isnt it . Yes, it is. I think whats going on there is uncertainty. People are not sure what the effects will be. A lot of Small Business owners who are worried about obamacare have fewer than 50 employees so they are really not even affected by it. Theres just a lot of misapprehension about it. One statistic i thought was really telling that way was that 60 of the Business Owners in our survey thought that the u. S. Ought to have universal health care, at least Health Insurance ought to be universally available. Yet the same percentage didnt like obamacare. That seems like a contradiction. There was also a survey of who these people would favor as a president ial candidate right now for 2016 and the winner is . Governor christie but i have to say, this survey was taken before bridgegate. None of them were caught in the traffic in fort lee. You can safely say that. This survey was taken roughly the time the government was going into the shutdown . Yes, thats right. Even so, the entrepreneurs were optimistic about it. It probably knocked a few Percentage Points off their number and certainly raised their concern about the government interfering in their business. Worry about washington was one of the things that did stand out here. Great to see you. Sue, down to you. We are down about 28 points. When we come back, the biggest winners in todays downside trading. Plus when we come back, a lawyer digs up a very different line of work in the graveyard. We have an informal motto here at the cemetery. Come visit while you still can leave. 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Its grounds are so gorgeous and so historical and so significant that an attorney escaped his cubicle to become its historian. We have an informal motto here at the cemetery. Come visit while you still can leave. Hi. Im jeff richman, historian at Greenwood Cemetery in brooklyn, new york. I used to be a lawyer. I was a criminal defense lawyer for 33 years. I like the idea of being able to organize arguments, i like the idea of researching, i like the idea of outworking the opposition. I first came here to greenwood in 1986 and immediately fell in love with the place, and decided i wanted to start doing tours here. I would like to welcome all of you to a very special evening. After that, i started working here parttime, working as the historian. Our history has been somewhat neglected from the early 1900s to the 1980s. We realized there was pretty much a need for fulltime position. Over the years, i liked the law less and i liked the work as the historian here at greenwood more, so i took a leave of absence, came here, tried it out for a year. It seemed to be working very well and so we went with that. There has been a diminution of my income but im doing fine here. My favorite part of the job is discoveries. To go into the durant mausoleum, the man who drove the golden spike to complete the Transcontinental Railroad and to think that these people paid for this sculpture that virtually nobody would see because the door would be closed is just a wonderful adventure. In the 1850s, the cemetery is rivaling Niagara Falls as the greatest tourist attraction in america. We have over a quarter of a Million People coming through the gates. We are really returning to our roots as a tourist destination. Creating my own job seems to have worked very well. It brings together so many of my loves and so many of my passions that im very happy with the decision that i made. What a great story. Jeff richman is only the second historian of greenwood since the cemetery opened in 1838. Three of the biggest winners in todays trading coming up next, and a number of stocks that are hitting new highs despite todays kind of lukewarm trading. Back in a moment. This is the sy of the little room over the pizza place on Chestnut Street the modest first floor bedroom in tallinn, estonia and the southbound bus barreling down i95. This magic moment it is the story of where every great idea begins. And of those who believed they had the power to do more. Dell is honored to be part of some of the worlds great stories. That began much the same way ours did. In a little dorm room 2713. This magic moment theres nothing like being your own boss and my customers are really liking your flat rate shipping. Fedex one rate. Really makes my life easier. Maybe a promotion is in order. Good news. I got a new title. And a raise . Management couldnt make that happen. 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The s p is down just about two points on the trading session. The nasdaqs only off about half a point so far. Theyre watching the ten year which had a big move on that poor unemployment report this morning. The ten year yield, well below the 3 mark, now at 2. 86 . Take a look at the righthand side of that chart. Wow. Thats the dropoff in yields today. 51 companies in the s p 500 hitting new 52week highs today. Some of the names right now, intuitive surgical, which is up almost 6 . Ventas up almost 4 and w. W. Granger just under 4 . Carnival at levels we havent seen in quite some time. We showed you that chart. Its doing quite well. So ty, things looking pretty good in some individual stocks down here, but overall, the markets kind of treading water. Theyre not sure exactly how to read that employment report this morning. Was it a fluke, was it not a fluke. That remains to be seen. When you show that chart, you can tell time by that chart of the ten year yield. We draw your attention to Abercrombie Fitch in this otherwise down day, up more than 10 , almost 11 at 36. 78. And under armour also doing very nicely today, in part on news that the company has signed a deal with notre dame to supply Athletic Apparel to the fighting irish. Mary thompson will be happy to hear that. Been an interesting week, folks. Thank you for joining us on power lunch. That will do it for a friday. Have a great weekend. Ty and i will see you monday. Street signs begins right now. Just how safe is your money . The target credit card breach growing even larger. What you need to know and more importantly, what you need to do. Hello, everybody. It is an absolutely jampacked friday. We are also going to dig into why so many retailers apparently have no clue as to how their business is doing. An investor who made a mint on one biotech name will give you his single best idea right now. And legendary investor bill gross on where he is investing. If thats not enough to keep the