Transcripts For CNBC Power Lunch 20141121

Why did china do it . He says the Economic Situation behind the great wall is not good at all. We will talk to him in four minutes time. And one hot market. Homes in the Million Dollar plus range if you are lucky enough to own one you are doing just fine, ladies and gentlemen. Why is there such a boom in this segment of housing right now . We have answers coming up. First to sue. And there is big liquidity moves that you nus mentioned and they are fuelling a rally. Stocks are off the highs at this hour. We still have a gain in some of the indexes. Thats the big etf that tracks china. The ftse china is up almost 4 . Now a little better than 4 . Bertha coombs is at the nasdaq. Mary is here with me. We have a lot of steam. About 173 point range. So holding on of course as you would imagine when you have a rate cut in china it leads energy and materials. The materials sector at the s p 500 is approaching a 52week high today and also the dow leaders reflecting on what you would expect to see after a rate cut in china, as well. Caterpillar raised to buy. The other story has been domestic with a number of retailers reporting their results. Surprising in some cases. Ann taylor reported weaker than expected numbers. One of the reasons the backup at the port of l. A. That we have been watching. They say delay in the delivery of inventories as well as weak foot traffic is behind the numbers. We will see if other retailers are impacted down the road. It is the first one to my knowledge that has actually said that. Gap, of course, also came out with results that were disappointing. Old navy, you must shop there. My kids dont like the clothes there. Weak sales there, Management Changes putting mark on the brand. We will see whether or not. We want to end with foot locker. Here is one ceo who is leaving the company, mr. Hicks. The stock quin trupalled under their watch. So we have fuel from some of the overseas markets, Central Banks. Here at home mixed picture for the retailers. Nasdaq trading at the highest level since march of 2000. Bertha coombs following that for us. About 6 away from its alltime high. We are seeing strength today in chips and chips today at a 13year high, as well. Small caps at a fourmonth high. The russell back to its alltime high back at the beginning of july. Chips are really the story. We had a report, some softness in guidance. Its 4 g chip strength was pretty strong. Today it is doing very well. We also had new highs from other stocks reporting earnings today. Ross stores at an alltime high. We always watch apple. In and out of positive territory today. It just eked a new high, as well. Thank you very much. With most of the Central Banks sending a message of support can the bull market continue . Here is what Goldman Sachs david costen said earlier today. 70 of revenues of corporations is domestic and that is really the source of the underlying driver of the overall market. Think about the path of the market likely to be higher in the first part of the year and in the second part of the year when the fed does hike rates that historically suggests we get a multiple contraction. You have the market rising to around 17 times forward earnings and then a contraction closer to 16 by the end of the year. Some reaction to those comments from executive Vice President and chief Investment Officer from bmo private bank. As i understand it you are bullish going into the end of the year and think we still have more traction. 2015 we are looking for more volatility. Is that a correct read . Our big Market Indicators we have five of them and two of them have turned negative. Valuation i would say the last time the market was fairly value was probably the Second Quarter of 2013. But we recognize that valuation is not a timing tool. We have other measures. Most notably the economy and liquidity and momentum. They moving in the right direction. The one other big Market Indicator that turned negative about a week or two ago is psychology. Investors are overwhelmingly bullish. Unfortunately, as we know bullish investors have High Expectations. In a market that is a reflection of reality versus expectations, High Expectations are not as good as low expectations. Talk about the data which seems to be saying stay in the market right now. So if that is the case and you are expecting more volatility in 2015 as we get into the end of the year do you start to lighten up on some of the positions that have been profitable for you . Sure. So the metrics, the big Market Indicators that are suggesting to stay in would be the economy, everything seems to be moving along slowly but still steadily. We are creating, as you know, more than 200,000 jobs a month. The other is liquidity. There is a lot of liquidity around. Money is available to borrow, lend and invest. And then momentum is still ver powerful. The s p 500 is well above 5 above its 200day moving average right now. Have a great weekend. Its always good to see you. Thanks for joining us. Thank you, sue. Lets go to Courtney Reagan for a market flash. Jude medical upgraded. The firm surveyed doctors who were bullish on the companys controversial new Heart Failure monitoring device. The stock currently trading higher and moving higher. Thank you very much. For more on what is happening inside china and why we got this big rate cut today here is our chief international correspondent, michelle carusocabrera. It was a big rate cut that we saw this morning. No one was expecting it. There are other three moves central bank made, as well. Interest rates in china are fixed by the government and pushed by economists to allow Interest Rates to be set by the market so they took a small step towards that and announced the creation of certificates of deposits for firms and individuals that just goes to show you how the Banking System in china just hasnt progressed very far at this point. There are still so many things for them to do. The central bank said they favored much more monetary stimulus versus fiscal stimulus. Show you the fxi, etf that is a proxy for chinese stocks. Remember this all happened after the Chinese Market closed. This will show you that when they open up on monday you are likely to see biggest chinese stocks move higher. Now, the fact that they cut rates this morning suggests that the Chinese Central Bank is worried about the economy. Should they be . What are they telling us . Peter is an american doing a lot of business in china. He is here in the studio. You do a lot of manufacturing in the united states. What is your reaction here . Is the Chinese Market slowing that much that they needed to do this . I think it is slowing even more than this says. I find that there is a truck structural problem in their society going back ten years, go back ten years ago they were manufacturing for everybody, europe, japan, united states. They had to build capacity to service that. Now you go into a recession, a crisis around the world. So you have a destruction of demand. And that destruction of demand has not reversed yet. You are saying they got a lot more factories than they need in order to supply the demand from around the world. We have plants that we run where we used to have 500, 1,000 workers. They are down to 200. They capacity get labor because no one wants to work in a factory anymore. You got the fixed cost of the building to amortize over lower productivity so costs are rising on two fronts. You answered, i think, i was going to ask you what tells you that it is slowing as precipitously as you say . One indicator would be labor indicator. Why are people not wanting to work in a factory . You got to go back a period of time. One, they had the one child policy. Two, most of the people now, the children that are of working age had been educated. They dont want to work in the factory. And you have on top of all of this people dont realize in the ten years since 2004 the currency has appreciated 25 . So that means that besides absorbing the additional cost of labor and fixed overhead on smaller productivity base and on a currency basis you have to raise the price. Steven rauch was on this morning saying there is constantly this question of whether or not there is very bad debt in china. He doesnt think it is a ticking time bomb. Do you have an opinion on that . I would say a lot of people who borrowed money in the Manufacturing Sector had this thought if my factory doesnt work out i can sell the land to a real estate developer. That is not happening right now. It is tanking. If real estate is tanking, if there is no demand for manufacturing, somebody is carrying all the debt, whether it is banks, their shadow Banking System. There was never a debt problem here until people discovered the sivs. Thank you very much. Have a great weekend. Thank you. Yahoo question of the day, do you think china is heading towards a recession . Go to finance. Yahoo. Com. We will bring you results later this hour. The rise of Million Dollar plus homes in america. It is a major bright spot in the housing recovery. Diana and robert on the rich and really rich and real estate. Tyler, 5 million, three offers and its freezing cold outside. I will tell you what is heating up the high end coming up next. Talking about freezing cold. Snow in the north means booming Real Estate Sales in the south especially florida. We will take a look at Real Estate Sales in miami beach and take you inside a waterfront paradise. Coming up after the break. Theyre coming. What do i do . You need to catch the 4 10 huh . The Equipment Tracking system will get you to the loading dock. There should be a truck leaving now. I got it. Now jump off the bridge. What . In 3. 2. 1. Are you kidding me . Go. Right on time. Right now, over 20,000 trains are running reliably. We call that predictable. Thrillingly predictable. Get to the terminal across town. Are all the green lights you . No. Its called grid iq. The 4 51 is leaving at 4 51. They cut the power. Itll fix itself. Powers back on. Quick thinking traffic lights and self correcting power grids make the world predictable. Thrillingly predictable. Welcome back to power lunch. Check out lions gate moving lower. The latest movie mockingjay sold 17 million tickets in the first night but less than the two predecessors brought in. Investors are not happy. Lions gate trading down about 5 . It only makes up a fraction of the overall Housing Market but it is the hottest area right now. This is usually a slow time of the year for realtors unless they have wealthy clients. First to diana on the rise of the high end home. Reporter the realtors say it is the rising stock market fuelling sales of high end homes like this one, but there is actually something a little more fundamental going on here than that. That is simply more supply on the high end. This 5 million home goes under contract and there are more coming on the market. They are selling. We know in markets like dallas, phoenix, atlanta, nashville, inventory is twice as much on the high end than it is on the low end. Inventory is higher in 68 of the low end markets this year than last year but it is higher in 82 of the high end markets all according to zillow. This house went on the market last spring. There were a lot of people looking at it but no takers. It was around 5 million. This fall suddenly three offers because there is so much more to choose from and people are getting excited about the market. The appraiser says low Interest Rates are really helping fuel the high end. The buyers come in all cash. They get the contract and go to closing and then they finance afterwards. He says appraisals are coming in much closer to asking price and that is fuelling the high end market, plenty more of this online. Thanks very much. Staying with that high end housing theme it is chilly for many of us up here in the northeast. The rich fly south for the winter. Our wealth editor robert frank here to tell us where they are going. I bet florida is part of the scheme here. They like to fly in the gulf stream. When the going get tough the rich go to the beach. The cold weather usually leads wealthy to visit florida more often and stay for more time. That leads to more real estate viewing. This year sales up more than 6 . Prices up 19 . Brokers say this winter is already shaping up to be stronger given the calls, emails and showings that they are already booking. Of course, these are brokers so they are always promoting. Florida saw a record for terrorism last year and Real Estate Experts say there was a 40 to 60 increase. Aside from Better Weather and lower taxes florida is a bargain compared to prices in miami beach. 572 per square foot, about half of what it is for manhattan. Check out this place, a penthouse at the four seasons miami, 9,000 square feet. Yours for a mere 21. 95 million. That is gorgeous. I would like to be there right now. Thanks. High end real estate in new york is on fire right now, too. Its not suffering because of all of these people in florida. If you look at the mega home market it has exploded this year. The number of properties selling for 30 million or more already hit 23 this year. Thats more than three times the previous record in 2012. A penthouse at walker tower, a converted 1929 art deco building in the chelsea neighborhood just sold for 40. 7 million making it one of the most expensive deals downtown. It was purchased during the financial crisis for under 25 million. The developers put 150 million into the property and created 53 superlux units. They have already sold all of them. The top floor units combined for 120 million. The sale price works out to be more than 6,000 per square foot. We are talking downtown in a really old building. The big question here is whether all of these prices will stay up given all of the new inventory that is piling on the market especially. What neighborhood . Chelsea. 18th street on the west side. Thanks. Appreciate it. Down to you. Between the views and the private terrace, i can understand why it went for that amount of money. Rate cuts in china, news possible of production cuts by opec. Is this the bottom perhaps being put in in the oil market . Are prices set to rebound . How to trade it, etfs and stocks. Power pitch heats up, a sweet startup with a twist. Spicy hun is the next thick. Across america, can they take that kick . Is it honey or a hot sauce . Stay tuned to vote with the power pitch analysts live. Are you in or out on this weeks startup. Go to cnbc. Com vote right now and get ready to start voting. I make a lot of purchases for my business. And i get a lot in return with ink plus from chase. Like 50,000 bonus points when i spent 5,000 in the first 3 months after i opened my account. And i earn 5 times the rewards on internet, phone services and at Office Supply stores. With ink plus i can choose how to redeem my points. Travel, gift cards, even cash back. And my rewards points wont expire. So you can make owning a business even more rewarding. Ink from chase. So you can. Welcome back. Check out the dow way off lows after being up as much as 175 points. Its currently trading up about 58. Pressuring the blue chips intel at session lows the stock not participating in todays rally. The stock downgraded following analyst day yesterday saying guidance was too optimistic. The stock currently trading down about 1 . It has been a good year for the company up nearly 40 . Back to you, tyler. Thank you very much. Time for the power pitch where one entrepreneur has 60 seconds to convince a panel of experts that his sweet and spicy startup has what it takes to be the next big thing. I love you saracha but spicy honey is the next thing. This sweet spicy chile infused honey is hand made in brooklyn, new york. It is great on anything from your eggs in the morning to pizza at lunch, grilled veggies and meat for dinner and drizzled on your favorite ice cream. The category is dominated by big names known for versatility but use low quality ingredients. This is made from honey and chili peppers. The bees knees craze is traveling throughout the country. Bees knees is available through our website and a growing number of online and local retailers including whole foods in the coming months. Lets introduce you to the panel. The founder and ceo of idea merchant capital. Some of his ventures include pop chips. Chef Alexander Smalls of the cecil and mintens. Joining us from jerusalem, the land of milk and honey is richard demb, founder of abes market and runs a Venture Capital fund that invests directly with suppliers. Casey, you are in the hot seat, no pun intended. This is right up my alley. That boy from vermont putting chilies in honey. When my partner Morgan Newman and i decided we wanted to start a food business we thought that category is so crowded lets think of a more creative way and by doing this it becomes more than a condiment it becomes an ingredient, as well. Honey price for a bottle that size is probably in new york 5. 99 and you are out at 14. 99. Do you have plans to bring the price down . We have done great sales at the 14 price point. As we continue to grow and expand the line our next ingredients will be high quality but not as costly. My question is, is it honey or is it a hot sauce . It is hot sauce but honey, too. It bridges sweet and savory. If i wanted to acquire this product right now it is cost prohibitive for me. Do you see yourself creating a product for the commercial kitchens . We do wholesale for retail. We started slowly working with bars and restaurants to integrate it into their menu. I love the twist. We are seeing the most Successful Companies we work with have something remarkable. I love the chili inside the bottle. What is next . When we started the company we had two ideas in the brain storm we came up with honey and another ingredient that is a similar sort of idea, something you wouldnt expect. As we come up to our one Year Anniversary in january we will be launching the second ingredient. It is a very consumerbased question. I tried the product on a bunch of things and this thing kicks like a mule. And i can take it. This end of the table can definitely take it. The question is across america from a mainstream perspective can they take that kick because it is a kick . It is but who saw suraucha coming . We have been surprised by how many full households order six bottles at a time because each son needs their bottle and the dad takes it to work. Now we need to know if you are in or out and this includes all of you out there watching or listening. Let us know if you are in or out. What did you think . The product looks amazing. The quality is fantastic and i want to root for him. Where struggle, though, with when i use this and what im replacing it with because that combination of spice and sweet is throwing me off so from that perspective i dont see the scalability so im out. Alexander, what did you think about mixed made . Spicy is in. So my only concern really is whether or not its an affordable product. By using not the very best ingredients will it be as good as it is now. But im in. Richard . We know consumers are willing to pay a premium price for premium pruks that are done right. I think they are hitting on a phenomenal trend. People want honey. The chef said they want spice so im definitely in. We have two ins and one out. What is your reaction . Im so grateful for all of your feedback. This is i think the biggest thing that has happened to us so far. Your criticism is on our radar. Thank you very much to casey of mixed made. Our online vote is closing right now. Thanks to all of you for voting. That is todays power pitch. It is split right down the middle. 51 say in, 49 say no. There it is. Bees knees spicy honey. Im going to taste it. There is a chili pepper in it. How is it . I didnt get a chance to taste it yet. Thats hot. It does pack a punch. I might be finishing the rest of power lunch. I dont know where you use it. I bet you could put it over ice cream. Kyle, water please for the anchor man. Sue, down to you. Thanks. Listen, take a breath, take a sip of water. Gold headed for its third weekly gain up almost 6 since that time. Prices are closing right now and we have another gain in todays trading session of almost 7 on the trading day. Silver, copper, palladium and platinum. Big percentage gains. Almost a 2 gain in platinum. While he figures out whether he can continue to anchor the show lets check into the bond market and on the back of those liquidity moves by china and europe, rick santelli, whats going on . Its so fascinating. You look at a tenyear note and a couple of things as you look at the 24hour chart realize we are down two basis points on the day. We are unchanged on the week. If you open the chart up to 19 sessions, not days, 19 sessions ago, so almost two full weeks of trading starting on the 28th of october you will see still in the range on closing basis, 2. 30 to 2. 38 pretty amazing. If we look at the euro versus the dollar going back to the summer of 2012 it really does explain why the dollar index is at the highest level since mid 2010. It is the lowest point on that chart except for one day, november 6 when we traded lower. The juanyen is the popular trade on this floor. You will not find a higher level on it. If you back hug the last two days you can see it is making a subtle difference cht you think a trade is a big issue in the globe, just imagine how this trade is going to go between china and japan. Back to you, tyler. We have the hot honey here doing its job. Chinas surprise rate move and possible opec production cuts. Did investors get too catalyst for an oil rebound . The etfs to watch plus i want to say it. I need to feel you, jerry. Show me the money you better yell athletes have them, hollywood actors, people right ipthis news room have them, agents now high tech workers saying show me the money, getting agents to negotiate their salaries. We will speak with two agents in this booming business. Are you better off with an agent to negotiate your salary . Go to cnbc. Com vote. For tapping into a wealth of experience. For access to one of the top Wealth Management firms in the country. For a team of Financial Professionals who provide customized solutions. For all of your Wealth Management and retirement goals, discover how pnc Wealth Management can help you achieve. Visit pnc. Com wealthsolutions to find out more. Just take a closer look. It works how you want to work. With a Fidelity Investment professional. Or managing your investments on your own. Helping you find new ways to plan for retirement. And save on taxes where you can. So you can invest in the life that you want today. Tap into the full power of your fidelity greenline. Call or come in today for a free oneonone review. Welcome back to power lunch. Check out valiant fapharmaceut l pharmaceuticals moving higher. It said it made by up to 2 billion worth of its stock trading up about 2 . Back to you. Oil started the day up and then trailed off big time just ahead of two big days next week for oil. Monday is deadline day for iran nuclear talks. And then thursday is a key opec meeting. Apparently they dont come to thanksgiving. Jeff, what are you watching for next week and which direction do you think oil is going to go . I have been for the last couple of sessions buying it on dips right now for sure. I would have to say we are going to come probably inconsequent l inconsequential. May be a talk about a cut. I am more concerned with the weather right now. As we see we are very sensitive this time of year to weather reports. Im keeping an eye on weather reports. Its cold and i think there is a little bit of reprieve this weekend but then more cold weather due over the mid section of the country and northeast which is quite reliant on oil for heat. Does the china rate cut and the possible stimulus to the economy there help oil price at all . It is certainly supportive. You have to remember some of that will be seen in the next couple of weeks, not right away. We had an initial knee jerk reaction this morning to that. That will play out over the next four to six weeks before you see draw downs in inventories. I am more sensitive to the near term happenings and that is weather and inventory. Buy the dips and watch the weather. We appreciate it. And you know its been a tough second half of 2014 for the major oil etfs and the u. S. Oil fund. Both losing about a quarter of their value. Less painful for the ultraoil etf thanks to the less direct connection to the underlying commodity price. If you went with inverse etfs you are up 8. 5 in six months. Markets right now, lets take a look at where we stand. We are well off of our best levels of the day but up about 60 points on the Dow Jones Industrial average. The nasdaq is up 6 and the s p 500 is up six points, as well. Mary thompson is back here at post nine for me. I was surprised we couldnt hold to more of this mornings gains. I was speaking with art cashin earlier. He said you have to watch brent. Take a look at how brent has performed today. That is what happened as brent drifted lower we have seen markets drift lower, as well. That is what is happening. We are still in record territory and materials are leading the way because of the rate cut out of china giving a lift to the stocks. Allegheny. The other story we have been talking about are all of the earnings that came out from a number of retailers. The fresh market and zoes. Both were impacted by higher food prices. That squeezed their margins. The fresh market saying it absorbed some of the costs in order to keep sales going. Zoe saying higher beef and poultry. Game stop not only cut forecast but also reported weaker than expected results. Crediting or saying the problem with the Third Quarter was because of a delay in a game called the assassins creed unity. So evidently that cut into earnings for the Third Quarter. It is under a lot of pressure. 13 . Ahead of christmas you didnt hear them say anything about holiday sales. Well see how they do. Now to Bertha Coombs at the nasdaq. We are seeing the rally fade and one of the areas is in the nasdaq big caps. The nasdaq 100 is starting to go a little bit negative. One of the reasons one, one of the big momentum names have been lower much of the day and apple has been in and out of positive territory not withstanding the fact that apple looks like by my account the 51st time that it hits a historic high. For the week the best performing sectors are the bio techs and also the chip stocks. They are the strength today. They have been the strength since the bottom on october 15. They are up 16 and 17 respectively. We asked you is china headed towards a recession . 25 of you say yes. 34 say no there is still growth. 41 say not a recession but no growth either. Hollywood stars, rock stars, sports stars, tv stars, news stars. They all have agents. But there is another group in need of representation, tech talent, coders. We will talk to two agents who specialize in just that. Are you better off, do you think, having someone else, an agent negotiate your salary for you . Go to cnbc. Com vote and weigh in. Power lunch will be right back after this. 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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. E financial noise financial noise financial noise financial noise the rally on wall street has stalled. The s p 500 currently trading near session lows trading up just about a fraction of a percent now pressuring the index game stop on weaker than expected earnings, gap after it cut earnings outlook and Keurig Green Mountain and microsoft. Hollywood movie stars have agents, what about the rock stars of the tech world . The programmers and coders who can take a startup from the dorm room to the board room . There is a new crop of agents saying tech talent needs representation, too. Do you think you might be better off having someone else negotiate your salary for you . Go to cnbc. Com vote. Here with me now are managing partners of 10 x management. Welcome. Good to have you with us. Michael, who is using your services now in the tech world . What kinds of people . The range is everything from data scientists, hardware engineers all the way through the range of software engineering, mobile, web, the spectrum. We have User Experience designers and visual designers as well as branding people. You are new yorkbased. Do you represent people who are working not only in new york but in Silicon Valley and austin, texas, wherever . We have global talent. Most of the people we work with are working remote freelance jobs for our customers. We have a large proportion in the states but they are in europe, canada, israel. Do most of the companies you might be negotiating with, do they know who the superstar programmers are . No. These are not household names. Its not like lebron. For the people in the know when we describe what some of our clients have done or the platforms built on the things they built, they are household names. What is the rate . The rate varies really based on scope. A specific job commands a certain rate and depends on the needs. The range can be from 150 to 500 an hour. It is not a percentage of gross . We earn 15 of whatever our clients earn. So the bottom line here for a potential customer would be can you get me 15 more than i could have gotten on my own and you must answer that yes. Do you do that . Absolutely and then some. And then the rest of our services which we provide a broad array of Services Become free to clients. Is it career counseling stuff . Strategy, development, presentation. Its all of the things that we have done for music clients in the past. It is taking a holistic view of what you want your life to be. I want to get to immigration in a minute because i know you must have insights and opinions on it. What beyond the salary are the kinds of things you negotiate for your clients . What are the things they want and what are companies likely to give them or pushback on . Usually it has to do with nonfinancial terms, things like the scope of work. Generally when you go into a job and the scope of work can get vague and change. Our job primarily is to once we have determined the salary, the fee, help determine the scope of work, stay with the scope of work. Here is what im going to be doing and to spell it out the way a contract is often very detailed and spelled out in our business here or in hollywood. There are moments that compensation is not just a salary or an hourly or fixed fee. There are times where we are negotiating equity. So Stock Options can be a big part of it. There will me no orange pingpong balls. Quick thought on immigration, the president moved to stall deportation. This is clearly a major issue in Silicon Valley. What is your perspective on it . Ultimately unless you are native american we are all immigrants here i think we have to keep that in mind as we think about the issue. From a tech perspective we have an enormous number of vacant positions. The more people we bring into the country who can help fill these roles. A lot of people making technology are not american born. Its helpful. Our Education System is not churning out enough stem people. You would be in favor of liberalization of visa rules. The number is going out of my head right now. 5 million. Exactly. One of the things i love about the Immigration Reform and immigration in general reading the book startup nation israel is so robust and they attribute a lot of that to the fact they have a constant influx of immigrants. Immigrants are naturally entrepreneurial. Appreciate it. Continued good luck to you. Lets lock in the viewer vote. Are you better off having an agent negotiate your salary for you . 57 say no. I think it depends on the industry and the norms. Thank you very much. Really good conversation. No rules were broken. No laws were violated but our next story has people outraged. Reuters reporting that a director at the s. E. C. Held up to 6 million in stock and has been actively trading. There are nuances here. We will talk to the reporter who broke the story coming up next. And we want to hear from you. Should an sec director be legally allowed to trade stock . Go to cnbc. Com vote. With the dow up 67 we are back in two. Music. The getaway vehicle for all the confidence you need. Td ameritrade. You got this. Thank you. Ordering chinese food is a very predictable experience. I order b14. I get b14. No surprises. Buying business internet, on the other hand, can be a roller coaster White Knuckle thrill ride. Youre promised one speed. But do you consistently get it . You do with comcast business. And often even more. Its reliable. Just like kung pao fish. Thank you, ping. Reliably fast internet starts at 89. 95 a month. Comcast business. Built for business. Welcome back. Before i start this story i want to make sure that everyone knows that no rules were broken and no laws were violated. But reuters is reporting that according to disclosures an sec director held up to 6 million in stock in 90 companies according to 2013 filings. He has made 60 trades so far this year, the vast majority of them made in september. Is this consistent with free and fair markets . We are talking to reuters reporter sarah lynch. We want to hear from you, the viewers. Should it be okay for an sec director to trade stock . Cnbc. Com vote is where you can go to cast your vote. In this case the director, mr. Keith higgens, had worked in the private sector for a long, long time. That is when he amassed all of that stock. If he is holding the stock, what is the correct process for him to sell the stock or make sure there are no violations once he joined the sec . The sec has an auto mated system in place that requires you to preclear everything before you buy or sell. It checks to see if there are conflicts in the system. If a company is under investigation it wont let you buy or sell. I want to make sure you are aware that some of the stock he reported actually belongs to his motherinlaw in a trust she uses to fund her affairs. Some of the stocks that may be sold could also be hers, as well. We mention he worked in the private sector for a number of years, obviously invested. Given his case, what else did you find out . Is it an anomaly for people at the sec to hold stock or common . We looked at all of the Division Directors and looked at all of the commissioners, the five commissioners and keith in 2013 held the most individual stocks and second after him was Investment Management director. But those two also came right from the private sector. The other folks there a lot had been at the sec a while or in and out of government. You would kind of expect that those two might have different portfolios compared to other people who have been in government before. Thank you very much. We really appreciate it. Thank you. Should an sec director be legally allowed to trade stock . We can see 12 say yes but 88 say no. Coming up, we are going to hit the slopes with morgan brennan. This season is kicking off early here on the east coast and just as a ski stock debuts on the nasdaq. I will break down the ski season and hopefully not a leg when power lunch returns. When change is in the air you see things in a whole new way. Its in this spirit that ing u. S. Is becoming a new kind of company. Ing u. S. Is now voya. Changing the way you think of retirement. Requires precision and anattention to detail. G it takes knowledge, hard work and a plan. At baird, we approach your Wealth Management strategy that same way. 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I just want to note that that is a small company, market cap of less than 120 million. If you are looking to check out some other ski stocks there are other names to check out. The first is vail resorts and also intrawest. These are extremely seasonal stocks. Analysts at Goldman Sachs note these names head higher ahead of november and stay elevated and then like clockwork they tend to sell off coming into the spring. You can see the trend right here intrawest one year trust. Vail the operator acquired Mountain City resort in september. That is the thing to keep in mind for investors. What about the outlook for snow bunnies . Operators in most parts of the country are optimistic about the season largely because we have seen the cold snap and solid snowfall in places like the rockies. Here the slopes just opened this morning and this is the first time we have seen that before thanksgiving in five years. So its all about the weather when it comes to the ski stocks and all about the weather when it comes to the snow bunnies. Back to you. Thanks very much. Bundle up. That will do it for power lunch. Street signs starts now. And welcome to street signs. We have a huge hour ahead and it all comes from overseas with love. China cuts Interest Rates, europe follows with asset purchases and the u. S. Market loves it