Transcripts For CNBC Power Lunch 20130917

Flol advice. Well get you taper ready. First to sue at the nyse. And Gary Comiskey and kenny have started the conversation. Theyll join nous a second. We start out with two Major Corporate titans two members of the dow and both stories from washington state. Boeing shares hitting an alltime high as it gets ready to make the first flight of the next generation of dreamliner. Ty mentioned we will bring that to you live. Microsoft announcing a huge stock buyback and boosting its dividend. John fortt is all over microsoft but well begin with phil lebeau live at boeings big event in washington. Hey sue. Ten to 15 minutes away from the dash 9 making its first flight here outside of boeings Assembly Plant in everette, washington. To bring you up to speed at what the 7879 is about, a larger version of the dreamliner. It carries about 40 more passengers. The first flight is scheduled to last about five hours. Theyre going to go out over the coast for a while and swing back over moses lake to the east of seattle before touching down here in seattle. The dreamliner carries about 40 more passengers, able to fly further and ray conner, the ceo and president of Boeing Commercial Airplanes believes this is the key plane entering the sweet spot of the market for boeing. Its a real ultralong range markets for the airline. The 7878 is kind of the path finder, that opens up the markets. This airplane with the more capacity and longer range will fill in behind it and pick up as the Airlines Start to increase the loads in the traffic. So how many dreamliners have been built and delivered . 84 have been delivered. Theyre being flown by 14 airlines around the world. Orders yeartodate, 88. Remember, three of the last four years boeing did not have an increase in dreamliner orders and the backlog, 852 that stretches out well into the end of this decade. 40 of Boeings Dreamliner backlog are 7879 models. This is going to be the bulk of the backlogs in the future. It is on target to raise 787 production to ten per month by the end of this year. We talked with ray conner. Theyre seeing their suppliers move up their production schedule to ten per month and shares of boeing trading or have been trading earlier today at an alltime high. Again, tyler and sue, about 10 to 15 minutes away from the 7879 making its first flight and were here on the runway and bring it to you live. Thank you very much. Well be back with you in about ten minutes to watch the takeoff of that beautiful aircraft. Meanwhile, lets move sort of upward, up the coast a little bit inland to microsoft. Redman, washington. There you see it up 20 cents a share right now. The tech giant announcing a major stock buyback, planning to pump up its dividend as well. The shares at 33 even right now. The stock is up more than 20 this year, 23. 5 . Besting the s p 500. John fortf is live in, with ceo Steve Ballmer retiring in a year, why is he doing it now. That was nice mental navigation you took us on. This is a bit of a carryover. Microsoft had an authorization for 40 billion in buybacks set to expire in two weeks, so they are reupping it. The news part is the dividend going up 5 cents to 28 cents a share putting microsofts dividend yield at about 3. 4 . Thats a lot for a tech company. Thats going to cost the company more than another 400 million a quarter which isnt even that much for microsoft considering what it generates on a quarterly basis. The dividend hike comes at a time of uncertainty for the company. They announced a reorganization in july, consolidates power with the ceo and then announced steve ball pler is going to retire within a year and microsoft also plans to buy nokias devices and Services Business for just over 7 billion in overseas cash. Microsofts core Windows Business has staultds as consumers shift their dollars away from pcs and toward mobile devices like smartphones and tablets. The main areas growing at microsoft are cloud and data center. Now this is nice news for shareholders, of course, but analysts arent likely to change their outlook on the stock based on this. Many seem to be keeping their powder dry ahead of thuss Analyst Meeting in bellview washington. Jason maynard at wells fargo says it wont fix microsofts growth challenges and theyre still hoping for a breakup the last i heard. Sue . Thank you so much. The other major story the fed kicking off its twoday meeting on Interest Rates and policymakers are widely expected to announce some sort of pullback of their Bond Buying Program. Maybe a major market mover, maybe not. Which stocks could move if the fed does begin that taper. Dominic chew takes a look for us. Sue, the expectation like you said among the experts is that the fed will take the opportunity to announce those reductions and the expectations of that announcement comes as early as tomorrow along the rate decision, so what sectors are poised to feel the impact if you will if that happensp. Many strategists say if stimulus is reduced Interest Rates will high. Groups get a boost when buying power for consumers is boosted, low Interest Rates help boost buying power. Then the utility companies. We talk about them often these are Mature Companies that generate lots of cash thats paid out in dividends to shareholders. These relatively high dividend yields become relatively less attractive as Interest Rates start to rise. Duke energy, coned and pg e. Who might do well . There are some traders looking for more cyclical or economically sensitive stocks really improving fundamentals around the world may help drive those names. You think blue chip names, multinationals like ibm, maybe a caterpillar and qualcomm on the tech side to play in on the smartphone revolution. Again, sue, some names to consider if youre looking for whats going to happen when the fed makes any kind of announcement with regard to rates. Back over to you. Thank you, dom, very much. Stock market session highs up 56 highs. Kenny of oneill securities is with us and a cnbc market analyst and dear friend gary is back. Great to see you. Took us a long time to do this together but im excited. I am too. Great to have you here. You think the taper is a nonevent if it occurs. Why . I think its a nonevent in the sense that as a traditionalist investor, Interest Rates going up, rising Interest Rates is one thing, when the fed is moving to raise Interest Rates. The taper is more about a symbolic gesture and thats been priced into the markets the way i see it. I dont expect any major Market Reaction whether we taper, dont taper, whatever that amount is. Its about rising Interest Rates and thats not anywhere near anything on the horizon. You dont think theyre going to taper . I dont think theyre going to taper because we havent hit any of the metrics that ben bernanke laid out five months ago when he talked about inflation and unemployment. If they begin to taper how do we sell this . We havent hit the metrics but still going to taper. I understand the thing we need to get out, it has to start, but the macro data is not confirming, havent hit the metrics and if they push it off another month which i think probably could happen, then what happens . I think the market then continues to rally an test the highs and if they do announce a taper its going to be the next conversation, okay, whats going to happen next month . People will start to get anxious about how big is it going to be next month, is it going to be. Listen, kenny can be right there. The point is if they do nothing tomorrow, say they do something and the Market Reaction is negative, you put yourself in a corner where youre letting the market dictate your moves by the fed and thats not what the fed wants. Again, focus on whats happening. Not the Economic Growth that has higher Interest Rates around the corner and thats the important thing. No, but i think if the market does pull back tomorrow for the longterm investor its an absolute opportunity. We like to hear that at morgan stanley. Im sure you do. You know, youre headed out to singapore to the conference. Yes. And one of the gentlemen you are going to interview exclusively is tim geithner. I will be yes. His name being bandied about even though he denies he wants the job as perhaps a candidate for the fed chief. Yeah. Going to ask him . I will see mr. Geithner and ask limb that. I think he has been pretty steadfast saying that was an opportunity he felt was there for somebody else. But i will be reporting back after we have that conversation next week and let you know. But i think that he is enjoying the private sector from what i understand. Who would you like, take mr. Geithner out of the mix right now very quickly, gary, he has said hes not interested in the job and done his washington stint as we know. But yellen seems to be the favorite of the street. Cohen seems to be a favorite of the street as well. Do you have a preference . What do you think would be best for the market. Forget my personal preference. As an investor somebody in the equities market and investing capital you want somebody who is going to be transparent, who is going to tell the market what their plans are as kenny pointed out if youre going set guidelines follow the guidelines. That seems to have been the most important thing thats happened since 2008. Setting the guidelines and following the path. All right. Gary, good to see you. Great to see you. Good luck in singapore. Kenny, see you later. Up to you, ty. All right. Sue and all, delta and u. S. Airways flying higher as you see there by a little bit for delta. Little more u. S. Airways. Jpmorgan upxwraedsing both, noting increasing margins for delta, better prospects for u. S. Airways even with its merger with American Airlines doesnt go through. Sue . Ty, biopharmaceutical moving higher today, up 25. 5 . The company says some of its experimental drugs to treat double chins showed positive test results. The stock up nearly 40 over the year. All right. To washington, and the latest details on the tragic shooting at a Navy Shipyard that left 13 people dead. New details emerging now about the suspect. Plus, how could security in your work place be improved and a former fbi profiler will tell us what to look for when we return. Nice car. Sure is. Make a deal with me, kid, and you can have the car and everything that goes along with it. [ thunder crashes, tires squeal ] so, what do you say . Thanks. But i think i got this. [ male announcer ] the allnew cla. Starting at 29,900. Washington trying to begin to pick up the pieces just a day after a military vet went on a shooting spree at a navy yard. 13 people dead including the shooter. Eamon javers live on the scene with the latest in this continuing story. Over to you. Hi, sue. A whole lot of questions today and now apparently some misinformation out there about aaron alexis the 34yearold shooter who unleashed carnage yesterday here at the Washington Navy yard. Were now told officials believe contrary to what they told us yesterday and earlier today, that alexis may not have at any point used an ar15 assault weapon the civilian version of the military m16 rifle. They now believe, according to our latest information, that he used a shotgun which he brought with him which he purchased in virginia just within the past week or so. And then picked up one, possibly two handguns, not long guns, but handguns on the site and thats the scope of the weaponry he used to unleash this carnage wed. Were also told within the next hour were going to get some new information at the top of 2 00 eastern from officials who are expected to brief. Theyre getting set up right now with the podium outside the Fbi Field Office here in washington, d. C. Were expecting some more answers at the top of the hour as to what kind of weaponry was used here, what the situation is in terms of the psychiatric background of alexis and any other new details about how the shooting went down and what were the failures that allowed it to happen. Sue . Thank you very much. We appreciate it. That deadly rampage yesterday certainly highlights potential risks to workers every day. So how can Companies Keep their employees safe . Aaron cohen the founder of ims security, and he joins us with some ideas and my partner ty is in with us as well. Welcome, aaron. Nice to have you here. Securing a work place i think could be difficult depending on what kind of a work place youre in. Is that correct, and what are some of the guidelines employers should follow in the wake of the is situation . Well, thats absolutely correct what you said. Theres obviously going to be a difference between securing a small restaurant and a corporation or a business that employs thousands of people. The security approach for a corporation or a Large Business is the same type of security that you would set up anywhere if you want to truly be safe which means you want a multilayer approach. Its become a cliche term. Explain what it pleens. It means it would take a multifailure event for the system to fail and for a Large Corporation it starts with trying to determine the threat before they ever set foot on your property and actually engage or become an employee. That means having a very specific look at who the employee are or who the potential hire is, before you ever bring them in. You want to do a background check. The type of background check usually consists of a criminal check, obviously credit to make sure theres no financial history, but more importantly have a look at a profile and begin to see who the person is so that you can look for any potential red flag indicators. If you end up waiting too long, or if the background check ends up missing something, you have to rely on the response which is what we saw in d. C. And that becomes too late at that point. The farther you can push the threat away before letting it on your property, the sooner, the better you are of preventing the actual attack. Some friends of mine we were talking about it, they are also in the news business, talking about this story yesterday and we were talking about work place security and every single one of them work for different companies. All of those companies had different protocols, but none of them practiced the protocols in terms of what would happen if somebody actually did engage in an event like yesterday. How important is actually training for this, practicing for this type of an event . Thats a smart question. I the training for the security personnel in my opinion is the one thing that this country is missing. Its something we practice in israel, we do it with the airlines before we board a flight. The mind is the best computer, the only system that can respond to seeing a threat. But the actual training allows you to test the system to make sure that its functioning. If you dont test it in the security world we call it red teaming, which is where you take actual adversaries, try to run them through the actual security program, try and get them to breach, sue, to see if the system is going to fail anywhere and ultimately only through the testing can you realistically look and have a reality base security program. I think theres a misconception here. A lot of people sort of have the apparent security idea and then theres the actual security threat. Exactly. Its very important to focus on the actual threat. The only way to do that is to test it realistically and try to start poking holes at that system. We should tell our viewers that you spent three years in israels Counter Terrorist special Operations Unit so you know a lot about this. As we wrap this up, aaron, in general, do you think that most corporations are adequately prepared or not . No, i dont. I think that corporations are okay. I think they are a lot better than many of our Government Installations and the reason why is because they are businesses. If you look at las vegas, they dont mess around with the security and the reason why is because they will lose money. That same model needs to be transferred. As far as where theyre at, i give them probably a c or cplus and the only way theyre really going to be able to fine tune that security, is to make sure that theyre doing everything they can to prevent the attack from happening and as weve seen, this violence, due to the sheer size of our country, is real. Until you have the measures in place, ultimately at the end you could potentially fail. All right. Aaron, very interesting conversation. Sobering one, but interesting. Thank you so much for joining us. Ty, up to you. All right, sue. What are some of the danger signs to look for before a person turns violent . Candice delong is a retired fbi profiler and some of her biggest cases included the unabomber and the tylenol case. Welcome to cnbc. You know, mr. Cohen just suggested that if they had looked at mr. Alexis background, his profile more closely, potentially this incident could have been averted. Do you see it that way . Well, quite possibly. He had two different disciplinary actions when he was enlisted in the navy and they both concerned weaponry. This man should not have been given a security clearance. Ever. I dont know how this happened. Yeah. Well thats what i think were all asking today. Given his background, given the fact that he had two incidents in his history involving the discharging of fire arms, apparently after sort of angry interchanges with a neighbor or someone who was parking in a space or Something Like that, you would have to question why he got the security clearance. Are there signs that people could look for to tell whether someone is close to the edge or about to go off in this kind of violent way . Yes. Usually before people that commit this kind of crimes, these mass shootings, usually before they do it, they exhibit what we call in my line of work leakage. They let it leak from their mouth what their plans are. Im going to get those people. Everyones out to get me. Im going to make them pay. Because what theyre motivated from is revenge. Their world is a mess and they blame everyone else or one particular entity for the fact that they are in such pain, their life is a mess. By the time they leave the house, the morning of the massacre, theyve already decided theyre going to die. But prior to that moment, there are lots of things. One of the things ive been hearing since this morning at least and yesterday, is that he played an interactive bang bang bang shoot them up video game up to 16 hours day. Thats not normal even for a teenager. Now i dont know his living situation what, if he lived alone, but someone knew that because now we know it. If its true, if its only half true, thats unusual for a 34yearold man to be interacting in a game for eight hours, 16 hours, what it appears he was doing, the game didnt make him become a shooter, it was already in his mind and he had already exhibited bad behavior regarding guns. Yes. The game just was an outlet for him. Fascinating. Whoever knew he was doing that, should have said you know, i think we need to see a doctor. There are what youre saying here is that there are almost always these shooters have in common, some telltale of a deformed or defective personality. One of your former colleagues, former head of the new york office of the fbi told us on kudlow last night, exactly what you said, it would be probable that at some point prior to this event, his intentions, his anger would have leaked to someone somewhere along the line and that person either didnt act or gave him encouragement and legitimized his anger in some way or another. Alas, we have to leave it there. Thank you so much. Youre welcome. We appreciate you being with us. Lets bring in chuck todd at the white house. Chuck, the president has been criticized in the past 24 hours for making a speech yesterday about the financial crisis, kind of a victory lap on the fifth anniversary of Lehman Brothers and the speech came right in the middle of the shootings with a mass murder having taken place just a couple of miles from the white house and active crime scene, a manhunt going on and he delivered some very pointed shots at his republican opposition. Is this an instance of a guy whos usually very tone adroit, being tone deaf. Its interesting. Their official stance and ive talked to aides and hear no regrets on what they did, they defend what they did and feel like they addressed all the major topics of the day, the shooting at the top of his remarks, then the syria thing and then going into the fifth anniversary. But i get the sense that had they had to do it over again, they might have done things differently, maybe stacked the speech differently, maybe not had people behind him, you know, knowing now, knowing now, then what they know now, their sort of things. Their public stance they stick by this, ultimately somebody is hearing this message, they have to get it out, but i can tell you it just seemed off and if you think about the moment, tyler, d. C. Police chief had just said there are two other suspects potential suspects who remain at large at the time. Now, turns out there wasnt any other gunmen, but that was the most immediate public warning at the time two miles from here where im standing. Thats what i think particularly for those of us in washington, it felt it was more jarring for, you know, its possible for the rest of the country much less so. Chuck, it just its sue here herera here, it just didnt feel right, just didnt feel right given what you laid out. Although the president did address the situation that was unfolding just a short way from where he was, i think also it was the fact that he is clearly angry and aggravated at the partisan bickering thats going on and the big fights that are looming and i think it was almost it was his stance that was juxtaposed against his trying to show his sympathies for the victims. It just didnt work. Well, you know, sue and tyler, just traveling with him the last couple of weeks, being in russia with him, all that, the syria crisis and watching it, you can see the stress wearing on him in a way we havent seen in the past. I just think that theres a lot going on. I dont think it would surprise anybody that he might have a shorter fuse these days. Im sure. Or have less patience with whats going on. Its funny, its interesting that you say thats what came across to you. I feel like ive seen a lot more of that over the last couple of weeks than before and i just think its sort of theres this feeling coming at him from all sides right now. Yeah. All right. Chuck, thank you very much. All right, guys. The fed as you know holding a twoday meeting on Interest Rates. Ben bernankes News Conference is tomorrow afternoon. Steve liesman here with results of our cnbc fed survey, right, steve . Yeah, thats right. Coming back after the break well show you what top market experts think about the coming military action in syria, if thats a concern of theirs, about the debt ceiling debate, will that be a bruising debate or not and the taper and the fed when power lunch returns. [ male announcer ] at his current pace, bob will retire when hes 153, which would be fine if bob were a vampire. But hes not. Hes an architect with two kids and a mortgage. Luckily, he found someone who gave him a fresh perspective on his portfolio. And with some planning and effort, hopefully bob can retire at a more appropriate age. Its not rocket science. Its just common sense. From td ameritrade. My customers can shop around see who does good work and compare costs. It doesnt usually work that way with health care. But with unitedhealthcare, i get information on quality rated doctors, Treatment Options and estimates for how much ill pay. That helps me, and my guys, make better decisions. I dont like guesses with my business, and definitely not with our health. Innovations that work for you. Thats health in numbers. Unitedhealthcare. Fed policymakers have begun a twoday meeting on Interest Rates. The markets expect the fed to announce a plan to scale back the big Bond Buying Program thats been with us some time now. Ben bernanke set to give a News Conference on wednesday. The debt ceiling, syria also factors out there and Steve Liesman is here now with the results of our exclusive cnbc fed survey of economists policy folks. Money managers. Strategists. And the like. What did you find . What i found is that the survey looks efficient with you standing in front of the logo. Absolutely. Let me get to what people are thinking about potential military action in syria, whether or not that was a factor in the market for a 47 respondents and its not. We asked, do you believe the u. S. Should attack syriap. Will it attack . You can see, twothirds say no. We also asked what kind of Market Impact you would get if that did happen. And you see here, about a 5 impact on equities if, indeed, there was an attack. A lot were not sure here worth watching it. Right now the situation seems quiet. It was not when we asked this question. Lets move on and take a look at something else. How about the expectations for the debt ceiling and what youll find is that the market is gearing up for maybe a more c contentious debate than brief prooefly. The green lines are the survey right now. 48 say about the same. 24 saying it will be more contentious and 27 saying less down from 35. Take these two together, not sure its got to be quite as smooth as others had perhaps suggested. One more thing i want to show you, which is, the taper or the expectation for a default. Pretty low, 8. 4 . The end of the day, the market thinks that the Congress Comes together and passes it. Now how about the debt problem. This has gone back and forth here. We have he asked for a while now, do you think the u. S. Has time to solve the debt problem or not . 50 say the u. S. Should act now, a reversal from last time. 41 saying it has time. One more thing i want to show you, we told you earlier that average taper amount is 15 billion. But thats because of the distribution. I want to show you the majority think its going to be a ten and then you start adding in all these others, that brings the average up to 15 billion. If the fed with the majority, tyler, what you would find it would be a 10 billion. The average of our survey is 15. 10 billion would put us at 75 billion a month. Exact. Thank you very much. Back out to washington now, are we going to do that right now . Lets go to washington where the dreamliner is about to take off. There it is, taxiing and phil lebeau joins us now to narrate. Phil . And tyler, what youre watching right now is the 7879 getting in position to turn around here. Theres a number of media here which youre probably seeing are some of the photographers who are here. Theyre going to turn the dreamliner around and then it is going to be coming towards us before it lifts off on its first flight. Let me give you perspective on where the first flight will be. Its going to last approximately five hours. They are going to be going out over the coast and then sirc cling back and going east of seattle over moses lake, which is a traditional first flight test flight route for boeing planes, and then it will come back and it will land about five hours from now down in seattle and when it lands, then they will have a briefing and theyll talk about what the new dreamliner is like in its first flight. As im looking at the video, i dont know whether you can see it, it appears there is some sort of device suspended from the vertical stabilizer, the tail. Am i seeing something or is that correct . Thats for recording data, tyler. Thats one of the many instruments that they have on the plane to record data. Remember, while this is a first flight, they are still doing a number of tests with the aircraft. And this is scheduled for delivery in the middle of next year. So theyre still a few things theyre working out as they look at the aircraft. Its turning right now and it will pause here for a few seconds and then we will see i turn further around come towards us for its takeoff. Phil, i know this airplane is going to be able to fly longer and i would assume thats going to be advantageous on the long haul flights to asia and the like. Who are the big buyers of this particular aircraft . Well, this first one going to Air New Zealand given the length of the routes you have for new zealand. A number of the asian airlines. About 40 of the backlog of 852 dreamliner, planes that still need to be built, they will be building them until late this decade, about 40 of those are 7879 models. So it is these larger models and boeing believes this is really the sweet spot of the market because you have a plane that can carry about 40 more passengers, depending on how its fully equipped and then on top of that, you have a plane that has greater range. So youre going to be opening up new markets and thats what were seeing with the dreamliner, tyler and sue. These planes are opening up new markets. Austin to london, who would have thought you would see routes between austin and london direct flights. Youre now starting to see that. Thats the type of route youre going to see more with these larger extended range dreamliners. Go ahead. Woulds this plane be fully equipped, have all the seats in it and the galley and so on and so forth or is this a special plane set up to with telemetry to measure performance . Correct. Still there for measuring. It is not fully equipped, if you will. And so once they get done with this flight and a few other flights, then you start to see them be fully outfitted with the seats an the galley and everything. But at this point, it is largely, its got some equipment in there, still for measuring this flight as well as other flights and it will be like that for a couple more months. Phil, just hang with us. Were going to go to Rick Santelli and get a bond report while we continue to wait for that beautiful airplane to take flight. Over to you, rick. Thank you. It is a beautiful airplane. If you look at whats going on right now in the fiveyear chart were kind of idling, hovering before we learn what the fed is going to do tomorrow. A couple of basis points below unchanged same as the tenyear. Dollar index, the dollar index is only down a bit but it continues to hover at very low levels. Many traders arent sure what the fed is going to do, but one thing is for sure, that even after most of the buying weve seen, were still hovering at about 14 basis points from the high yield close at 299. Tyler, back to you. Get your sleep tonight, rick. Going to be a busy day tomorrow, i am sure, with the bond action and the fed meeting. All right. Were going to keep our eyes on that 7879 dreamliner that is about to take off from everette, washington. Well take a quick break and be right back. Vo two years of grad school. 20 years with the company. Thousands of presentations. And one hard earned partnership. It took a lot of work to get this far. So now im supposed to take a back seat when it comes to my investments . Theres zero chance of that happening. Avo when you work with a schwab financial consultant, youll get the guidance you need with the control you want. Talk to us today. Debt economy have made its bonds a risky bet for most investors and why the yield is high, between 5 and 7 depending on which youre lookingp. Commonwealth rated one step above junk by moodys, fitch and s p. Some suggest we could be look at another detroit. Check out barrons cover story which singled out oppenheimers aggressive 6. 5 billion bet nearly 25 of their portfolio sunk into puerto ricos bonds. Manager troy willis not backing down from that, in it to win it and joins us now. Why do you find these bonds as attractive as apparently you do given some of the risks that are outstanding . The most important things you think about what the government has done, you think theyve had two successive administrations on each side of the aisle who are doing the hard work unlike places like detroit. Theyve done what i call the holy trinity in longterm bond world in the Municipal Bond world. Theyve raised taxes, theyve reduced spending, and the biggest, most important thing the recent administration has done is attack the pension issues. They are now on a defined Contribution Plan Going Forward january moving forward. So they have sort of stopped the bleeding on the pension side which is many steps ahead of where most municipalities are on that front. All right. John joins us as well, at the fivestar main stay high yield muni fund and youre not touching puerto rico at this point and the pension liability is one of the reasons why. Correct. I mean we had puerto rico in our portfolios up until the First Quarter of 2012 and started looking at demographics, the economy in puerto rico and became concerned. At the same time the administration was showing revenues below expectations and expansion much higher and continued deficits. Their debt load is now aggregate all of it is well over 100 of the Gross National income and we dont think its prudent to add in that time frame to really buy bonds at premiums. We sold in 2012 and we have stayed out. We still believe based upon how the economy is going down in puer puerto rico still declining we could see a restructuring in the next five years. Troy, i can see the reach for yield because at a 7 yield, thats absolutely attractive. I guess its the large percentage of the portfolio that has some worried. Why carry that much of those bonds in the portfolio at this point . We it represents uncommon value right now. The Municipal Bond market has been in outflows for the last four months and then this barrons article which we obviously disagree with, came in sort of at the end and has put a lot of pressure on bonds. So weve been steadily adding our position over the years. This way we do in rochester. Were looking for longterm taxfree income to provide to shareholders and the Municipal Bond market tends to overreact to news and tends to be backwar years ago they were a worseingh. Theyve moved to a defined an. Thats a huge credit plus that i dont think is reflected in the price. All right. On that note, troy willis, john, thank you very much for joining us. Ty, up to you. Should the wealthy give away their money to charity or give their money to people who are trying to start businesses and companies . Which one is better for society . Well tackle that in just a minute. Woman everyone in the nicu all the nurses wanted to watch him when he was there 118 days. Everything that you thought was important to you changes in light of having a child that needs you every moment. I wouldnt trade him for the world. Who matters most to you says the most about you. At massmutual were owned by our policyowners, and they matter most to us. If youre caring for a child with special needs, our innovative special care Program Offers strategies that can help. Its delicious. So now weve turned her toffee into a business. My goal was to take an idea and make it happen. Im janet long and i formed my Toffee Company through legalzoom. I never really thought i would make money doing what i love. [ robert ] we created legalzoom to help people start their business and launch their dreams. Go to legalzoom. Com today and make your business dream a reality. At legalzoom. Com we put the law on your side. Coming up on street signs, can you hear that ticking . Yeah, thats the countdown to the most important fed meeting of the year. No, im going to say maybe of the past few years. Were going to give you the full playbook and bill gunderson gives us wise advice on what to do with a losing stock. Weve all had them. And a battle royal over herbal life. Herb in one corner, a mega bull in the other. Stick around and tune in and enjoy it. Its all examining up top of the hour. The name is street signs. Back to you in the meantime on power lunch. All right. Thank you very much, mandy. The americas cup is under way out in san francisco, but is it making the waves planners had hoped for. Jane is out covering the event live for us. Jane . Hey, tyler. We are expecting the two boats to get here momentarily, part of oracle team, our colleagues at nbc sports say there are yachts behind me, the big one is jim clarks, cofounder of net scape and two over is part of larry ellis fleet. Its a beautiful day, maybe too windy to sail, big money, big boats, big thrills, big busts . It could wrap up if emirates new zealand wins both races and if they sail and assuming this doesnt happen. New zealand almost capsized. Oh, my gosh. Going over. Hop back. Coming back. That near capsizing, gave team oracle usa a victory. Larrys team will have to win eight more racing. It was penalized for breaking rules in an earlier regatta. Supposed to be on par with the world cup and olympics hasnt panned out despite amazing racing and the 72foot long ka tat ma rans that sail above the water. Werent as many teams as expected. The Economic Impact to the city has been slashed and the ratings, the ratings of the races that aired the week of september 7th on nbc average about a million viewers. Last weekend, the ones airing on nbc sports fell to 250,000 on average each day. Americas cup is paying nbc to air this and then selling ad time. Think of it as an infomercial. The cup has its own fundraising needs. Only a few teams could afford the 100 come. The ceo of the cup is working to bring those costs down. One of the things that we are doing is were trying to find other Revenue Sources and those sorts of the igs for the americas cup so that we can bridge the gap between competing and winning and the revenue thats created. Reporter now, some are saying that larry ellis should cover any shortfall to the city if there is one and grumble he only has one american defending the americas cup. New zealand its captain has reportedly said they win and take the cup back he wants cheaper boats and crews which represent the countries theyre sailing for. Back to you. Thank you very much. That is the first topic in rundn. To gcu that knows a lot about people who can spend 100 million to race some boats. Robert frank, our wealth Larry Ellison, just like ted turner years ago. Yep. This sport attracts deep pocketed bad boys it seems. Thats right. The coke family got into it. Easy to make fun of billionaires and their boy toys but ellison got 1 million americans to watch sailing on tv which is amazing. I watched the races, its like formula 1 on the water, going 50 miles per hour, cameras all over the boats. It was amazing tv. In terms of boosting awareness hes done a great job. Move on speaking of Larry Ellison dont miss his interview on the closing bell tuesday next week, tuesday the 24th. Well see how he does the rest of the way. The americas cup. Meantime the rundown with comments from Scott Mcnealy sun micro systems cofounder joining squawk box and said a few things about charity. What is he saying . Not big on clarity. He said if gates and buffet put their money in startups they might have an impact. Take their tens of billion of dollars and chopped it in five million chunks and pledged it to a Business Plan sponsored by an mba graduate from an mba school. Not the first guy that says carlos in 2010 said the wealthy should create jobs not give to charity. Its a controversial thing. We asked the gates folks for comment and said no comment. Very interesting indeed. Lets move on to the Yahoo Finance question of the day where we asked, whats the better way to go, 10 say if the wealthy give money to charity thats a good thing. The wealthy give money to create businesses and jobs, 62 . Wow overwhelming they agree. And 28 well better way the paeltsy to pay more taxes. Last but not least the versace mansion in south beach, a beautiful property there, selling for 41. 5 million at auction. It was owned by the Fashion Designer who was slain. Has ten bedrooms, 11 baths, gold lined pool. Weve been following this. Do we know the buyer . The vm group which includes the gwynnedy family and korb families will turn it into a hotel, hoping to use the versace name and turn it too a hotel. Unclear whether the versace family will let them. When is 41 million a bargain . When the original listing price was 125 million. So this is a third off the original price. Again, a lot of money but relative to the ask, it was cheap. Kind of Boutique Hotel down there. A steal. Lets find one. Lets go in. Sue, down to you. Thanks, guys. Appreciate it. Some bad news for motorists. Prices at the pump may not drop much even as the syria threat eases. 3 gas could be the new norm. Find out why when power lunch returns in two minutes time. vo you are a business pro. Maestro of project management. Baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. aaron purrrfect. vo meeeow, business pro. Meeeow. Go national. Go like a pro. Unh [ male announcer ] you can choose to blend in. Or you can choose to blend out. The allnew 2014 lexus is. Its your move. Welcome back to power lunch. Im dominic chu. Check out shares of facebook, the stock trading just off the session high up nearly 5 . Breaking a threeday losing streak. Its best performance in about a month. Its approaching record highs. The ones that we saw back on september 12th. Shows shares up 68 since it reported earnings on july 24th. Back over to you. Quite a nice chart there, dom, thanks. Are you getting used to paying more than 3 a gallon for gasoline. You should be because aaa says the average price of a gallon of gas has surpassed 3 a gallon for the 1,000th consecutive day. Thats never happened before. The current streak began december 23rd of 2010 and unless theres another recession, aaa says that a price floor of 3 a gallon is here to stay. I want to take a bike. The biggest stock winners in todays trading session the dow up 46 points when we come back. My mantra . Trust your instincts to make the call. To treat my low testosterone, my doctor and i went with axiron, the only underarm low t treatment. Axiron can restore t levels to normal in about 2 weeks in most men. Axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. Women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. Report these symptoms to your doctor. Tell your doctor about all medical conditions and medications. Serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. Common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. Ask your doctor about the only underarm low t treatment, axiron. Welcome back to power lunch. Im phil lebeau live in everet,e washingt washington, a live picture of the boeing 7879 waiting at the end of the runway to turn and take off on its first flight. Awaiting chase planes. Once they arrive the next dreamliner can take off. For now tyler and sue, back to you. Look forward to it very much, phil. All right. A look at the markets right now, up about 44 points on the dow. The s p up 7 and the nasdaq up 26. Stocks at alltime highs today, mckessen, united technologies, boeing on the list and announced a big expansion for the 78710 thats going to take place and Tjx Companies on the list. That does it, right. Thats right. And the dow and s p less than a percent away from their alltime highs. That will do it for todays power lunch. Have a great afternoon. Street signs begins now. All right. Welcome everybody. A big show for you, 24 hours now until the Federal Reserve meeting but before we get to any of that is a live look in washington, d. C. We are awaiting a press conference from the fbi on yesterdays tragic naval yard shooting. Were going to bring it to you live. Our colleague eamon javers in washington, d. C. Where the facts have been collected over the last 24 hours. What do we know right now . Hi, brian. Were waiting for this press conference expecting to hear a lot of new information and, of course, clear up some of the misinformation thats been out there over the past 24 hours