Transcripts For CNBC Power Lunch 20140919

Under new management. Bob is here. Nicely done. Nicely done. Wonderful moment for barclays and New York Stock Exchange and for capitalism in general. I know that sounds corny but that is how i feel about it. What did you do just jump off the set . Thankfully post 9 and next is post 8. Took sideline reporting to a new level. I walked into the building this morning and said to an unnamed executive what time do you think this is going to happen . He said my indication is noon. It went off about three minutes before that. Josh brown will join us in a couple of minutes. They are switching over the mics. As soon as he is sitting down we will get his opinion on things, as well. Massive crowd down here this morning. So highly anticipated. What a lot of people didnt get a chance to see was the crowd outside the nyse at what they call the pen. It was amazing. Jack ma is literally a rock star in china and has an entourage of reporters that follows him around. There were 130 here today. From 100 different outlets. Lets get ti ty to join the conversation. When i was working my way through the floor it was an aizmaing moment. Things went very well and opened in a quite orderly fashion. Skpl they achieved it. Josh brown join the conversation. I was really impressed. I was here on the day that we did twitter, also. I was similarly impressed. What is interesting is that they can open these things later and everybody doesnt automatically assume something is wrong. You are not a buyer of the stock. Sd i can be impressed with the mechanism without feeling i have to pay to be a part of it. I was definitely impressed. The beauty of it was the transparency of it and the fact that we showed 3 increments and then 2 increments. Every 15 minutes we were on the air showing process. 92 to 93. 92. 60. Everybody had a sense of where it was going. Im struck by a lot of things. Number one is a lot of vestors say i want my babaand they got their baba. They said it takes real skill to do what was just done down at the New York Stock Exchange and said it was executed to a t. If you missed it earlier this is the alibaba executive chairman mr. Jack ma clapping as alibaba rang the opening bell. What an incredible story for ma from making 20 a month to one of the richest people in the world. He spoke about his big picture plan. We hope in the next 15 years the world changes because of us. We want to be bigger than walmart. We want to learn from walmart. We hope 15 years later they say this is the company like microsoft, like ibm. They shape the world. Those are high ambitions as he looks forward to the future. Some would say he is well on his way to realizing those ambitions with the debut today. Another interesting point about mr. Ma was the way the stock was allocated and that is that he and joe psy sat with bankers and decided who would get what amount of stock and virtually all of it went to mutual funds and very little to hedgefunds. Line by line they went through the list of investors and decided right then and there. It took several hours to get that job done. I think that is right, though. When you think about the makeup of the Shareholder Base you really want to make sure that a deal like today you are giving people shares that they are actually going to want to stick with and be on the Conference Calls. I cant wait for the first Conference Call to hear jack ma deliver. Almost the way he allocated the stock is kind of mirrors what he said about the company that he will stick with the company and grow it and nurture it. That is kind of the way the allocation was. Even though we are excited about this i think he told us about 100 year increments. Often the ceo is not that involved in the allocation process. It is often the syndicateers who give out the lions share of the proceeds to their own clients. Here this is the key point jack ma was very involved and chose to interject himself because he wanted to send the message. I was with somebody last evening and they were telling me we asked for 400,000 shares. We know we are not going to get close. They didnt get anywhere close and neither did anybody else for the most part. Hedgefunds got a small piece of the action i think far less than they thought they would. Im sure. We will see what happens. Thanks, guys. There is the price check on the stock at 90. A little bit more. Jack ma saying earlier today he wants to be a little bit of microsoft. He wants to be bigger than walmart. Alibaba already the biggest ipo ever. What is it and how did the company get to where it is today . Take a look. Former english teacher jack ma founded Alibaba Group out of his apartment in 1999. It is now chinas largest e Commerce Company connecting 279 million buyers with 8. 5 million sellers. Customers have spent nearly 300 billion. The website taobo and Halloween Costumes to sex toys. The other cash cow is t mall, a virtual Shopping Mall connecting buyers with big name brands from nike. Alibaba has a stake in the shipping company used to deliver the products it sells and a Payment Service Online Shoppers use called ali pay which has a hand in Financial Services issuing loans and even money market funds. But even though alibabas online merchants have sold four times as much as ebays they bring in less revenue. And what alibaba is really offering in the u. S. Ipo is shares of a variable interest entity which means u. S. Investors wont own a piece of the Chinese Company. They will be buying into a Cayman Island entity named Alibaba Group Holding Limited leaving control of alibaba with jack ma and his board. We will talk more about alibaba and the stock. Joining me now is spqr capital, Senior Research analyst there. What do you think . It was obviously a good open for the stock. Look a little longer term for me. What do you think . We felt that fair value on the stock was about 85. That was the price we were willing to pay in terms of an ipo. Longer term we feel the stock was worth around 120. If you look at it relative to the E Commerce Companies it is trading at about 100 right around in line with their valuations in terms of 2015. We think that there are opportunities that are much greater than these Companies Like amazon and google and ebay, much bigger opportunity in china. Would you if you were an investor with the longer term would you step again near term or do we let this settle out and see what the market thinks of it . We stepped in near term to round out our position. In the near term you see very large Institutional Investors who got half of what they asked for in the allocation. Alibaba we feel is going to be a core holding for a lot of institutions and so as a result there will be buyers in the near term. Longer term buyers up to about 120. There was talk of transparency and whether or not there was enough transparency. Mr. Ma addressed that this morning talking about how transparent he feels the company is. In dealing with Chinese Companies sometimes there is a transparency issue. It doesnt sound like that concerns you, though. To invest in Chinese Companies you have to have a certain stomach for Chinese Companies. There are a lot of specificities that happen. It is china. It is not the United States. If this was a United States Company Selling with these kinds of numbers with this kind of market share in the United States this would have a 50 premi premium. Working their way across the floor here. Art, you spent quite a bit of time with mr. Ma this morning. What did you think . I think he expressed great hope for the company, wants to transform the industry as he said. I think he was very happy that things worked out the way they did. The stock itself is holding up quite well. Sometimes we see in open a pop and then we go south. All that tells you is that the price seems right. The fact that it hasnt the fact that it hasnt moved significantly from where it opened really talks to exactly the process, how the ipo process worked. You guyed did such a great job with it today as you showed people how it worked. Does it tell us anything about the company by the fact that mr. Ma and mr. Psy did the stock allocations personally and it took four to five hours. As we said in the earlier segment it is highly unusual. What do you think it says about the company . This is obviously a very hands on management. They want shareholders there for the long term. That is exactly what you want in a management. You agree . Absolutely. On the price level 90 may be psych logically important. What do you think it does to the competition . We saw yahoo sell off. We saw a hit and come back again. Does it say anything about the competition . This is a much Larger Company than any of its competitors. Ebay and amazon combined dont come up to alibaba. But i think from a competitive perspective they have 87 market share in china on all e commerce. They are much larger than just the ebay and amazon. They are involved in businesses that we think are great here like group on and hulu and uber. There are about a dozen American Companies that we think are great and participate in those types of markets. It gives a competitor something to go after. Definitely throws down the gauntlet. The reason the competitors are under pressure is they have a war chest. I think the most important thing today is the symbolism. A poor chinese man makes a fortune and comes to the United States to actually bring the company public. While jack ma is a superstar in china and brings photographers with him when he came here who did he ask to meet . We have shots of jack ma going up to art cashen to say are we rolling that . As we watch the video of you and mr. Ma, art, what did you ask him and what did he say to you . He was nice enough to say i cant leave here without a picture of art cashon. We discussed his hopes for the company which is to expand things greatly. He said he wants to revolutionize things the way walmart revolutionized things. The most beautiful thing he mentioned to me he came back behind the post and was nice for him to come back and said what left you with the most impression. He said just standing next to the Market Makers today and learning how the process worked. He said he didnt know much about it before hand and now has a clearer understanding and was very impressed. I think that was true for most of the people down here because they saw it really live and in action the steps that we took and how the process worked. We will take a quick break. More coverage of the markets and the Dow Jones Industrial average hugging the flat line but it is a friday in summer. Up to you. Thanks very much. We will be back with a story on the latest on the market action. Alibaba is just a day old right now but a lot of other chinese stocks and internet ones are still a little older than they are. How did they do on their first day . How did they do since then . We will have those numbers after the break. As we head out a look at who owns alibaba. Yahoo about 23 . One of the Big Questions raised from this ipo, what will yahoo do with its cash win fall. Power returns in two minutes. Who do you work for . Your boss . Yourself . Your parents . Your family . At baird, what matters most to you. Matters most to us. As an Employee Owned firm, our Financial Advisors have the freedom and resources to realize a plan to fit your familys unique needs. Well listen. Well talk. Well plan. Baird. If energy could come from anything . Or if power could go anywhere . Or if light could seek out the dark . What would happen if that happens . Anything. Alibaba now the biggest ipo ever. Ever in the history of man kind. Putting the spot light directly on the other chinese internet players. How did these stocks perform on their first day of trading and did it give clues for how alibaba will perform . You cant make any kind of apples to apples comparison. Lets take you through four of the high profile names. We start off with a social Media Company in china known as ren ren. Think of them as the facebook or twitterish kind of thing. In 2011 they ipo top 30 but are down 75 since then. Not all chinese stocks pop and stay that way after their first day. Ipo just this year this is zillow out in china up 20 on the first day. Still up about 40 since then. Not too bad for them. Early on in their life. Also flash sales, group on, living social, they dropped 15 on their first day back in march of 2012 but guess what since then up 3,000 . We will end with one of the most well known names that is baidu. Alibaba is a huge company but perhaps some investors are hoping that you see returns that are on the hugely Positive Side over time and that is what baidu has done. Absolutely maybe taking a nip. It is for a lot of investors. Thank you very much. Sue down to you. As you know alibaba shares up big on day one of trading. We want to hear what you think. Go to cnbc. Com vote to weigh in. As you vote head of Investment Services and cofounder of Capital Research and we talk more about the stock. Welcome to both of you. We are long term investors. One of the largest in the world. You have a country growing at 6 . You have an online population hitting the internet and you have a company now with substantial amounts of resources behind them to build out a global platform. It is not that hard to see how the stock could double. Would you agree with that . I know you spent a lot of time in china and worked better than 20 years or so. Maybe you know the inside story of doing business in china betder than we do. You have to be a grinch to begrudge the money on wall street. A lot of people making lots of money on this stock. That is a great thing. It will happen for a little while. I have two problems with alibaba. One is the size and the other is the growth. The numbers for the size of e commerce and size of retailing in china dont make sense and the numbers for the growth expected out of alibaba particularly given that it is already 85 of the market really dont make a lot of sense. What about that . Those are some very good points. Well, i agree. Whenever you are investing in china the numbers tend to move around a little bit. I look at it more as a global play. When you think about the Global Supply chain i wouldnt under estimate the power of being the first mover. They really have become the Global Market place. Here in the United States most of us havent used alibaba until pretty recently a lot of people havent heard about them. I think as the supply chains become more interconnected across continents these guys are in a unique position to take advantage of that b to b and b to c level. While i hear those concerns and whenever you are investing in china or a Chinese Company those are valid concerns. When you look at Growth Potential in china and the rest of the world this is the largest market place in the world fairly shortly. I see this as being a huge opportunity. As we lock in the vote you get the final word. Now raised an enormous amount of cash. What do you suppose they will do with it . Thats a good question. I think that probably the major focus of alibaba right now is on the mobile payments market. Thats where i believe it is making most of the money in china is through the payments mechanism and converting people to mobile where it captures more of the payments. I wouldnt be surprised to see that. Jack ma has announced a logistics plan in china for building out wearehouses. You still have time to vote because we are going to give you the results after our commercial break so get those votes in. An even split right now. Shares of alibaba soaring on their debut. A lot of excitement obviously. A lot of investors want to get in on the action and get their baba. Our next guest says hold on. The way alibaba is structured could make it a risk for investors like you. He will join us to explain. If you missed it earlier on cnbc, more of our big interview with alibabas chief executive chairman jack ma. Alibaba now the biggest ipo ever. How big is it really . Almost 2280 million annual acte buyers. We will be back in two minutes. When the world moves, futures move first. Learn futures from experienced pros with dedicated chats and daily live webinars. And trade with paper money to testdrive the market. All on thinkorswim from td ameritrade. Virtually all your important legal matters in just minutes. Now its quicker and easier for you to start your business, protect your family, and launch your dreams. At legalzoom. Com we put the law on your side. To fill your Viagra Prescription online . Go to viagra. Com to find out about viagra Home Delivery. Millions of men have some degree of erectile dysfunction. Talk to your doctor, if viagra is right for you, you can fill your prescription at your pharmacy, or check out viagra Home Delivery and get started at viagra. Com ask your doctor if your heart is healthy enough for sex. Do not take viagra if you take nitrates for chest pain, it may cause an unsafe drop in blood pressure. 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That brings us to what we are asking you, would you buy shares of alibaba . Lets lock in the vote. 51 of you said yes but it is a tight one. 49 of you said no. A whirl wind day for alibaba ceo jack ma. I got to tell you the street was packed. Alibaba employees rang the opening bell. You see mr. Ma watching proudly and enthusiastically from the floor. He was one happy man. It was off to the cnbc set to speak with jim cramer. It was by far the most entertaining, engaging and informative interview you will see all day long on any network. Here is a look at the highlights. I believe that customer, shareholder number three. Today what we is the trust from the people. I have been thinking about next five ten years how i can make sure the shareholders will be happy and the very important things is to make these guys, people standing there, if they are successful we are all happy. That is what i believe. This is a Great American story that is a chinese story. Who are one of your heroes . Who are my heroes . Yes. I got my dream from america 15 years ago when i came to america and visited silicon valley. I saw the road was full of cars and the buildings and loigs. That is the passion. And the hero i had is forrest gump. 14 years ago box of chocolates. You know he is a fictional character. I have been watching that movie for about ten times. Every time i am frustrated i watch the movie. I watched the movie before i came here again before coming to new york. I watched the movie again telling me that no matter whatever changed you are you. I am still the guy 15 years ago. I only earned like 20 a month. Today i can do that much. What does it mean for the peoples republic of china . I think we are giving a lot of people inspiration. We want to encourage people to say yes. One of the things i want to do, 15 years ago i told the people in my apartment that if jack ma and People Like Us can be successful 80 of the people in china can be successful and 80 of the young people in the world can be successful. We dont have the rich daddy and powerful uncle. We are of the impression that china is slowing. Is that just the export market . Is the consumer doing better in china . Absolutely. We are helping that. This is the power of alibaba. The 300 billion sales every year. We want to make sure they grow. 300 billion in growth merchandise value. How big can alibaba become . We want to be bigger than walmart. It is not just the size. We want to learn from walmart that changed the business. We hope 15 years later they say this is a company like microsoft, like ibm or walmart. Your worth now will be more than the gdp of astonia. What will you do with that money . 14 years ago i asked my wife do you want a husband to be a rich man or a respected business guy. She said a respected business person because she never thought i would be a rich person. Jack ma in his own words. A lot of investors want to get in on the alibaba action. Beware there are risks so says dennis shay, chairman of security review commission. We had on earlier this week senator casey of pennsylvania who i believe shares many of your views with respect to concerns about Chinese Internet Companies and alibaba in particular. What do you see as the most significant risk investors face investing in this company now. The structure is based on the variable interest entity structure. Youre right. Other Chinese Internet Companies have used the structure to do ipos in the United States and elsewhere. The legality of the structure is still questionable and thats not my point or im not making that point. Alibaba makes that point in its own prospectus as one of the risk factors. Questionable by whom in. Basically a vie is a work around a Chinese Government regulation that prohibits majority Foreign Ownership in certain sectors of the economy including telecommunications and internet. What they have done as part of the structure is put the license, the operational license and other assets in five variable vie entities and the rest of the assets are in other Companies Directly owned by Alibaba Group holding which is the ipo company. For people who might not understand some of the legalities here in a practical sense when i buy a share of alibaba what am i buying . Am i buying a share of the operating business or am i buying an interest in some licenses that allow the company to operate and effectively what is the difference . That is a great question. I think it is a bit unclear reading the prospectus. The fact is the operational licenses of the company are in the vies. If you are buying into Alibaba Holding group which is the ipo company you are not buying those licenses. You are you have a contractual relationship indirectly with the vies that hold the operational licenses. Lets cut to the chase here. What is the worst thing that could happen given this sort of structural context, number one. What would the effects be for shareholders . The worst thing that could happen is that the Chinese Government could say that this vie structure is illegal. I dont believe that is likely to happen. I dont see that being in the selfinterest of the Chinese Government but it is possible. The point here, tyler, is that the Chinese Government would help reduce investor concern to clarify rules. Secondly, i think the s. E. C. Ought to take a deeper dive into the structures. And third the reason for the vie structures is to do the work around chinese regulations that restrict Foreign Investment in the telecommunications, internet and other sectors. If the Chinese Government liberalized those policies then there would be no need for the vie work around. That would be good for u. S. Investors as well as the Chinese Companies. Thank you for being with us today. Interesting points all. We appreciate it. Lets take a look at other markets that are trading with the dow up about 18 points. The gold market is down. Metals all the way across the board led by palladium and silver. To the bond market where the yield touched a session low of 3. 3 meaning a rally of one full point in the 30 year. The ten year the yield down from yesterdays 2. 62 . Thats todays bond report. I cant remember maybe you cant either a day with two events so eagerly anticipated. One the big day for alibaba but a huge day for apple and its ceo tim cook. The new iphone 6 hit stores today. This is cook at an apple store in palo alto. We are there live with the latest buzz. A happy day for mr. Cook obviously and we are watching alibabas biggest ipo ever. Tim cook getting ready to open the doors down. Stock up to a strong start. It opened at 92. 70 at pricing at 68. A lot of people take the company public. Here are firms that were involved. We are back in two. Whenwork with equity experts who work with regional experts who work with Portfolio Management experts thats when expertise happens. Mfs. Because there is no expertise without collaboration. You just have to win 70 of your points at net. And keep unforced errors under 10 . On the ibm cloud, the us open analyzes 41 million data points from 8 years of competition to uncover key insights. Data can help show you how to win, no matter what business youre in. Today theres a new way to work. And its made with ibm. [ inhales deeply ] [ sighs ] [ inhales ] [ male announcer ] at cvs health, we took a deep breath. [ inhales, exhales ] [ male announcer ] and made the decision to quit selling cigarettes in our cvs pharmacies. Now we invite smokers to quit, too, with our comprehensive program. We just want to help everyone, everywhere, breathe a little easier. Introducing cvs health. Because health is everything. Introducing cvs health. Everyone is looking for ways while to cut expenses. S unique, and thats where pg es Online Business Energy Checkup tool can really help. You can use it to track your Actual Energy use. Find rebates that make equipment upgrades more affordable. Even develop a Customized Energy plan for your company. Think of it as a way to take more control over your operating costs. And yet another Energy Saving opportunity from pg e. Find new ways to save energy and money with pg es Business Energy checkup. Welcome back to power lunch. Important thing is we have a quadruple. A lot of volume going on. Alibaba hitting 229 million shares. The price 320 million shares we will trade the whole float just about today. 91. 34 right now. We opened at 92. 70. I want to show you the price discovery process. We chronicled it the whole way. First price indications just after 9 30 we were at 80 to 83. It stepped up in three dollar increments and then dropped to 2 two dollar increments. 9091. Finally 92 to 93. Put up the second full screen. That is where we opened in that range. 92 to 93. Final indications. I do want to point out some of the chinese stocks had been weaker but had generally been weaker throughout the week. This is a quadruple situation. They reweighed the stocks. Some have added stocks and some moved it. Microsoft is the big name to watch today. Big add into microsoft. More shares in the flow today. Normally the stock trades about 30 million shares. We could see north of 100 million shares trading hands. People will be advertising about ads and prices all throughout the early afternoon. Thank you very much. Alibaba good investment or not . With us to debate. Welcome. I see that neither of you right now would be enthusiastic buyers. Quite the contrary. Why should i not buy alibaba today if im interested . Well, its ipo which means it is probably overpriced. We see the huge turnover. When you look at initial Public Offerings 80 of them lose money the first year, not to say this one will. If you look at the Internet Companies that come out from linked in to twitter to facebook in the First Six Months they all wound up being down. You have the hype that we have today and this weird governance that you folks have been talking about which may add questions about it. We think let the tie. Is the governance issue the reason you vote no on alibaba today . Basically, yes. Alibaba is a fantastic and very transformative company. I give them a lot of credit for what they have done. It is a strange structure and there are different accounting rules that are applicable in china that arent necessarily compatible with our accounting rules and they dont really have a rule of law and are shady on human rights issues. It is a totalitarian society. Im not sure the average american investor knows what they are getting into if they invest into Chinese Companies. This week several items have come and gone, the scotland vote, the fed and now alibaba which the market swallowed and didnt choke on it. In firms of the s p 500 is it green light, yellow light, red light . Yellowish, greenish. We are seeing a biforication in the market. Large cap stocks are going up and been going up at a decent rate with quantityive easing. We are in the transition period. The interesting thing to us is that small cap stocks have been getting hit on the head. Six out of ten Small Companies are down 20 from recent highs. You have the situation where one end is going up and the other end going down. It will probably shift. It wont be real quick. I love when you say biforication. Red light, green light or yellow light for the rest of the year . Green light for the rest of the year. No vote in scotland as well as the alibaba. The market absorbing alibaba was real really magnificent. I think those gains can continue through the end of the year. Thanks very much. Sue, down to you. The other big story is the iphone 6 and the frenzy is happening all over the world. Here is a look at the first person to buy one in perth, australia. Take a look. Walks out with the very first iphone. So obviously there is a rush of people running up to jack and here is what happened when i ran to jack. Have a look. Reporter just the normal iphone . The normal iphone 6. We are doing the reveal. All good. Well, it was okay. The two big tech stories of the day alibaba and apple. We want to hear from you. Would you rather own shares of alibaba or the iphone 6 . Join the conversation, cnbc. Com vote. And now to the mood of new iphone 6 owners. Josh is in palo alto, california. Reporter here in palo alto where hundreds of apple fans lined up to buy their new iphones and were treated to a special guest this morning. Apple ceo tim cook making a special appearance. He was here really walking the line, shook hands taking selfies. It was a big day for tim cook since becoming apples ceo in august 2011 putting his print on this company with new devices and new services cook telling cnbc he loved the reaction he was seeing around the world today and by the way which of the new iphones is he carrying around . Here is what cook had to tell us. 6 or 6 plus . Both. Im lucky. Reporter one of the perks there of being apples ceo. Demand looking strong here. Analysts telling their clients they expect apple to sell 10 million iphones this weekend. Sue, back to you. Thank you so much. Lets see what the viewers have to say about all of this. Lets lock in the vote. Would you rather own shares of alibaba or the iphone 6 . 51 of you said alibaba and 49 of you say the new iphone. Shares of apple on launch day right now are down just a fraction at 101. 70. In the last year lets take a look at a longer term chart and you can see apple is up almost 51 . And the public taking a bite out of alibaba today with its ipo. Right now it traded up 34. 5 . A number of people have become very, very rich today. Our wealth editor has that part of the story coming up next. Whos going to do it . Whos going to make it happen . Discover a new energy source. Turn ocean waves into power. Design cars that capture their emissions. Build bridges that fix themselves. Get more clean water to everyone. Whos going to take the leap . Whos going to write the code . Whos going to do it . Engineers. Thats who. Thats what i want to do. Be an engineer. Join the scientists and engineers of exxonmobil in inspiring americas future engineers. Energy lives here. Lets talk about stocks now. It kept a neutral rating with a 210 price target. Those shares down by about 2 on the day. Solar city moving lower on news it is getting competition. Said it planned to offer 21 million shares in a price range. It the second largest installer of residential Solar Systems in the u. S. The biggest ipo ever. It bears repeating. That means some people are getting very, very rich. Robert frank knows who and how much. I would add another very. Jack ma up in wealth by about 4 billion. The shares worth over 19 billion based on a price of 92 a share and selling a billion dollars worth of shares. His total net worth around 27 billion just between steve balmer. Joe psy. And a guy we also had on air this morning, son, his stake in soft bank gives him a share. Reports say that thousands of current and former employees will become millionaires. Alibaba has been holding work shops for employees to prepare them for all their wealth. Bankers tell me most of this money will stay offshore. Alibaba will be better for manhattan and seattle real estate than ferrari dealerships. Continue on there, i guess. I was going to say another thing he said this morning is his goal with this money is not to make himself rich but to make other people richer. A lot of this will be spread around in investments in other peoples companies. Sue, down to you. Lets take a look at how alibaba is trading right now. There is a look at the post right behind our post. And alibaba is traded at 91. 94 on the trading session. Art telling me because we have the rebalancing at the end of the trading session we may see a little selloff in the overall market. He thinks it is important that alibaba hold the 90 level. We are back in two. Before it went public the chinese tech giant went on a road show. Check out the companies it passed through. It was a global road show. At y. Do you guys have dentity theft protection . [ male voice ] im sorry, did you say identity distribution . No. Protection. Identity theft protection. You have selected identity distribution. Your identity will now be shared with everyone. Thank you. No, no, no [ click, dial tone ] [ female announcer ] not all Credit Report sites are equal. [ male voice ] were good in here, howie. Yeah, have a good night, brother. Experian. Com members get personalized help plus Identity Theft protection. Join now at experian. Com. With enrollment in experian credit tracker. Join now at experian. Com. Could mean less waiting for things like security backups and file downloads youd take that test, right . What are you waiting for . You could literally be done with the test by now. Now you could have done it twice. This is awkward. Go to comcastbusiness. Com checkyourspeed. If we cant offer faster speeds or save you money well give you 150. Comcast business built for business. 14 years ago. Box of chocolates . You know he is a fictional character. I have been watching that movie about ten times. I watch the movie and i watch movie before i came here again. For coming to new york because i watch the movie again and telling me that no matter what changed you are you and i am still the guy 15 years ago. Indeed he is. Power lunch reached out to steve tish, the new york giants chairman and also one of the producers of the oscar winning film forrest gump. Here is the statement to power lunch. I extend my sincere congratulations to jack ma and this recordsetting ipo is terrific for the industry and likely the first of many big moves by the company. I understand that jack ma is a fan of forrest gump and if he decides his next endeavor involves financing of a sequel i would be interests. I believe he will be an inspiration for many young people around the world for years to come. It is a fascinating story. Mr. Ma starting basically from nothing and now debuting at the New York Stock Exchange not just debuting but the biggest ipo in history. An american style Success Story born in china. That will do it for this edition of power lunch. We are back in two minutes time with a final wrap up of the markets and alibaba. Take and. Exhale. In. Aflac and a gentle wavelike motion. Aahhh ahhhhhh. Liberate your spine, ahhhahhhhhh aflac and reach, toes blossoming. Not that great at yoga. Yeah, but when i slipped a disk he paid my claim in just four days. Ahh four days . Yep. Find out how fast aflac can pay you, at aflac. Com. No. Not exactly. To attain success, one must project success. Thats why we use fedex one rate. Their flat rate shipping. Exactly. It makes us look topnotch but we know its affordable. [ garage door opening ] [ sighs ] honey, havent i asked you to please use the we dont have a reception entrance. [ male announcer ] ship a pak via Fedex Express saver® for as low as 7. 50. I have 40,ney do you have inak your pocket right now . Saver® 21. Could something that small make an impact on something as big as your retirement . I dont think so. Well if you start putting that towards your retirement every week and let it grow over time, for twenty to thirty years, that retirement challenge might not seem so big after all. Right here. With a control pad that can read your handwriting, a widescreen multimedia center, and a headup display for enhanced driver focus. All inside a newly redesigned cabin of unrivaled style and comfort. The allnew cclass. At the very touch point of performance and innovation. Welcome back to power. You see caterpillar shares down 2 . A last look before we hand it off to street signs. Alibaba a lot of people think it is important that it hold the 90 level today. It is at 91. 83 on the trading session. A very exciting day. I know you were down there right in the thick of it, sue. Describe the scene. It was just unbelievable. That is the only word for it. That will do it for us. Street signs begins right now. E commerce giant goes public at the New York Stock Exchange today. I dont want to disappoint the shareholders. I want to make sure they are making money. Biggest ipo in history opens at 92. 70. Officially open at 92. 70. Alibaba be