Well look at what is holding housing in a sort of stalled position, and the signals you need to watch. Despite all those fees and complaints about uncomfortable seats, travelers in the u. S. Have never been more satisfied with the airlines, have we all just become numb to flying . Lets look at that one. Hi, sue. Stocks taking a bit of a breather. Right now theres a look at some of the utilities. At the dow is down about 60 points, nasdaq down almost ten. At 2. 53 . Is a summer rally still in the cards . Or should investors still be worried and cautious . Joining us from kansas city, chief Investment Officer of creative planning. They have 10 billion in assets under management. Peter, welcome to the program. Nice to have you here. Its going to be here. If you didnt know it, cnbc. Com is listing its list of top financial advisers, so we have a bit of a surprise for you, because the real reason we invite you to come on today is because your firm has ranked cnbcs top feeonly Wealth Management firm in the country, you are number one on the list. Congratulations. Happy to hear that. Thank you very much. Its always going to be number one when we didnt even know it was happening. So we appreciate that. Im sure they will find it validating. Lets talk about what you think of the market. You have basically done extremely wet over the last five to tenyear period of time. As you look at the market now, how do you feed about it . Weve been very big on education. If you look at there are periods of time where for a year we will underperform, say, the s p 500. Last year would be a great example of that. I think our when theyre looking at markets, they want to understand why they have exposure to various markets. P ratio of around 15, dividend yield of over 2, 2. 2, thats historical norms. When we have a year like that, one fourth of its down. So, peter, first, i want you to calm down now, after receiving this high honor here. I just want you to restrain yourself. Do whatever you have to do. Do you use etfs and mutual funds . Our core purpose is to customi customize. What we do at creative plans, we get to know the client. So rather than take riskbased approach to investing. What is their ultimate goal . To leave a big inherit answer, a long retirement where they spend money and travel a lot . Is it charitable . We try to mav them to those specific goals. That would require a multiasset close approach. Then we dont tie we dont look at every asset class the same. As an example of that, when we buy mlps for our clients, we buy them as individual securities, because thats the only way they can get the full tax benefit that comes with it. A Master Limited partnership for those who dont know. If you take a longer term view, you favor the emerging markets because of the big run weve had. And if so, which market do you like better than others . Wu just buy it as an asset class. We consider that an extremely volatile very risky asset class. For our client base we would buy the index in that space or purchase it through dfa, so use Something Like a vehicle like that with broad diversification, its still a niche play, highly correlated group. As a group, you have a pratio of 10, a dividend yield of 2. 7, if youve got five or tenyear money and youre patient, and you can handle shortterm volatility, theres a reason its depressed. But youll be rewarded in the long run. Peter, thank you very much. We appreciate it. Can we hear a big woohoo . Feel free to have him on anytime to tell me we have been number one on your list. Im happy to do that. Thanks, guys. Absolutely. Congratulations for being number one. Thank you. Cnbc digital has handled some of that work for you. Its terrific. Check out the new list of the top 100 feeonly Wealth Management firms. We rated them on whether they work with third parties and whether they have professional designations. For we rank them bin average account sides, and on their client segmentation. Or disclosures from federal or state regulators, and all the firms work on a feeonly basis. Which are the best performing sector in the s p 500 so far year to date. The sector is moving higher again today. You have names like wisconsin energy, also amoren. Really starting to outpace the overall market. Time now for the retail edition. Macys earnings beating expectations, raising the dividend by 25 , but changes were down for the quarter, i know this is a stock, company you have liked for a long time, so much so its a holding in your retirement portfolio. What do you think here . I still like it here. Yes, the comps were down, but think about this. Their margeens were actually up year over year. That shows you the power of where they come from, theyre also to keep those margins impact. Not many retailers will be able to say that in this fourth quarter, as we expect most to miss their. Number two, walmart and j. C. Penney, earnings out tomorrow. Walmart told us flattish comps, i was actually surprised they didnt guide down worse than that. I wouldnt be surprised to actually see a negative comp. The consumer is still under pressure. So the thing to watch out for, how much are they investing in pricing going forward, to get that market share back in the door. I think that will tell us a lot. What about penneys quickly. J. C. Penney, theyre looking for positive comps. Still the turnaround story, less part of the story until disruption here, but i would stay away from it. On to another struggling retail investor, sears may sell its majority stakes in sears canada. What is sears fund . I like to use the analogy here, you cant so really thats what sears is doing. We know their core business they have not invested in in years, we know sales have been down year after year, and theyre basically getting rid of assets to keep their cash position a place to stay in business. I think theyre outdated, way too much to have to invest in, so i would definitely stay away. Stacy, thanks very much. Thanks, tyler. A major and developing story, ty, that we are watching, at least 238 workers were killed in western turkey wednesday. Some, 120 are still missing. The explosion took place during a shift change with nearly 800 workers inside the mine, some as deep as 460 yards. The deaths were caused by Carbon Monoxide poisoning, which also has slowed down rescue operations. The last survivors was pulled from the mine at dawn, and hope is fading for those still missing, turkeys Prime Minister postponed a foreign trip, to visit the mine and comfort the family members. We will keep you posted on those developments. Here at home, many of the worlds top emerging markets in ceos are right here in new york and so is michelle carusocabrera. Most of them from latinamerican, sue. Right after the break, sitting to my right is the ceo of clabine. We love talking to ceos of paper companies, because corrugated boxes tell us everything about the economy. That interview after this break on power lunch. Welcome back. Wynn resorts has monday lower. Exercise Stock Options and sold shares earlier this month, there are also reports of a possible crackdown from macaw on certain swipe machines that are used in that region. Thats affected big names as well. So watch all of those big casino stocks. Sue, back over to you. We sure will, dom, thank you. A landmark night for christies auctioning off contemporary artworks. Its the highest total for a single auction in history. Asian collectors bid with a vengeance. About half of the items sold for over 20 million went to asian buyers. The unexpected top seller was black fire an abstract canvas which after a furious fourbay bidding sold for 84. 1 million. Flying fish fetched nearly double the estimate, because perhaps the fish is the chinese symbol of good fortune. One of mark rohtkos, this one from the early 50s. Christiess final tally, 745 million worth of art sold primary to mainland chinese buyers bidding over the phone. Quite a nighttime. Absolutely. A major ceo conference is under way in new york city. Michelle carusocabrera is there with a special guest. Hi, michelle. Conference of latinamerican ceos, Fabio Schwartzman joins me, the ceo of the largest producer of paper in brazil, largest exporter of paper in brazil. Good to have you here. Thank you for having me here. Like i said in the tease, we love talking to ceos of paper companies, you produce corrugated boxes, cardboard boxes, a great measure of any economy. What are sales tells you about the brazilian economy . The brazilian economy unfortunately is weakening. There are clear signs in this direction. The explanation is easy. We face inflation, and because of that rising interest rates, rising interest rates, they are derivative, but they cause the economy to slow down. Theyve been up 375 basis points by the center bank. For the audience may not know, they stand roughly at 11 . What about the worlds cup . There was a hope that the world cup would invigorate the brazilian economy, were hearing contradictory evidence about that. What do you think its doing . Actually causing more uncertainties, and adding to the weakness. Adding to the weakness. Why . Because of the uncertainty whats going to happen, if the construction will stop during this event or if its going to grow. Nobody knows. If i may, we face the situation in klabin using the flexibility the company has. We export more, taking advantage of our product is demandened worldwide. Weaker currency also made you more competitive . Thats part of the reason why we decide to increase exports, because and we did it very quickly. In order to not lose that window that opened. In your investor presentations, you focus a lot on disposable diapers in brazil. Why . Well, you know, with this new middleclass growth in brazil, the consumption of diapers in the country increased a lot, because it used to be a very expensive item. In the next few years, people started to consume a lot more, and as a consequence hundreds of thousands of thats used mainly for the production of diapers, absorbants, things like that. And klabin through the project, we will start to have the first local production of fluff in the country and obviously we will try to have you been affected by the talk of tapering by the Federal Reserve if. We are raising capital in the middle of last year when this tapering talk started, and we suffered the consequence. But it appeared then, but six months later, the market was back, and we were able to raise capital. Its not much different from the different economic scenarios that we face during so many years. Thank you so much for joining us, we really appreciate it. Fabio schvartzman, a large exporter as well. Sue, tyler, back to you. Thank you so much, michelle. Are you frustrated with Airline Travel . Guess what . Believe it or not, youre in the minority. Cnbcs phil lebeau has that story for us. I love this story not only because i fly so much, but i hear people the airlines are terrible. Guess what . New data shows that people are more satisfied than ever before in the skies. Well have the number and debate whether people are setting their standards a little low. Coming up, a razorfocused power pifl. This startup aims to shave the competition. Its a pretty high quality product. Currently has 66 of this market, how do you intend to compete . Stay tuned to find out. R than you expected. Its all part of our goal to execute your trade in one second. Im derrick chan of fidelity investments. Our onesecond trade execution is one more innovative reason serious investors are choosing fidelity. Call or click to open your fidelity account today. The numbers are impressive. Over 400,000 new private sector jobs. Making new york state number two in the nation in new private sector job creation. With 10 Regional Development strategies to fit your business needs. And now its even better because theyve introduced startup new york. With the state creating dozens of taxfree zones where businesses pay no taxes for ten years. Become the next business to discover the new new york. [ male announcer ] see if your business qualifies. Improving everything from booking to baggage claim. Were raising the bar on flying and tomorrow well raise it yet again. Welcome back. Plug power warning that it doesnt expect a profit this year, this due in part to fallen orders. They make Hydrogen Fuel cells. Theyre trading down about 7 . Despite todays losses, the stock is nearly up about 150 . Sue, im surprised you didnt use more puns in the introthere. I had my opportunity, but. There you go. This is the story that people who hate flying should Pay Attention to. Ive complained like everyone else, but flyer satisfaction is at an alltime high. They do this every year, this is the eighth year of the survey. According to them Inflight Service are a big reason people are more satisfied. This brings up the question what about the bag fees . Are more comfortable with those fees. In fact, 44 of the people surveyed this year is an improvement of 7 , they actually think the bag fees are reasonable. So what are the top airlines in term of legacy, alaska coming in number 1, followed by delta, americans, and on the lowcost side jetblue in part because of the positive comments regarding my tv service, then there you see southwest air over the last year, and real quick, lets look at the airline index. About what theyre paying when theyre flying. Ill take your word for it. Thanks, phil. You bet. Ty, up to you. Wow. Time now for our series the power pitch where we give ent entrepreneurs 60 seconds to make their pitch. And then our panel of experts will decide whether they have what it takes. I dont care what demographic you are in, everybody realizes that theyre overpaying for razors. Everybody does. We wanted a great shave, just didnt want to spend millions of dollars on it. Every man and woman wants a great shave, theyre just tired of overpaying for it. Im cofound you are of 800razors. Com. My Business Partner and i are outraged at the prices were paying, 35 for cartridges. We looked into the industry and what we found is the barrier to entry was to find a manufacturer who could provide a razor equal for the to the national brand. We signed an exclusive agreement with an americanmade razor maker. For men and women, and we deliver free. Customers love the quality of our product. That sets us apart from our online competitors who use cheap imported products that dont give a great shave. Customers love us, and our repeat order rates are through the roof. Joining us on the panel today is any kitscha alcindor. Before she she served as a mentor at columbia business school. And paul lee. He serves on the board of sprout social, to name a few. Okay, phil, great to have you with us today. Youre in the hot seat. Nikisha, first question to you. Gillette currently has 66 of the market and recently launched a Subscription Service similar to yours. How do you intend to compete with them . With the gillette program, you have to go through another retailer to get to this. We go directly to the consumer, and ship for free directly to your door. Theres competitors offering a similar product at a lower price. How do you straddle that fence trying to be a value provider . We are providing a razor equal to and a quality shave to the major brands. The other guys out there sell less expensive product, because its a less quality product. Customers want a great shave for a fair price we back it up with a guarantee. I know you have shaving products for women. Are you also going to expand into other products as well . Were not just a subscription business. We found with subscriptions after a certainty period of time customers get backed up. We are moving into other products. Were moving into shave creams, shave lotions, things like that, for men and women. Can you talk a bit about your margin dynamics from year one to present today . Our product cost goes down the more volume we do. So our margins continue to increase. We expect significant increases as we break the million and 2 million barriers. What would better your average margin . You have free shipping, trying to undercut on price. Hue do you make money . Everybody is trying to do a Monthly Subscription model. We sell less often to the customer but more, so were selling 12 cartridges at 19. 95, about a fourmonth supply, so our margins are about 60 . What percentage are repeat purchases . About 60 of our customers repeat. The issue that we have is were still young, so we have customers who bought a years supply, so we wont see those customers for a year. The lifetime value of a customer right now is over 160. It continues to grow. Can you talk about the up side to a new investor . The market is driven by the big brands. We expect to capture 10 of that market. Thats our goal, our focus. Guy, we heard what phil his to say. We want to know whether youre in or out on 800razors. Com. What do you think . You do have Venture Capital darrellings who have raised aen to of money and are well known in the space. I just feel that you have an extensive competition out there, as well as your branding isnt quite where it needs to be. So unfortunately, phil, youre a really nice guy, but im out. Weve got one out. What about you, paul . To date i havent seen anyone taking the approach of exclusively focusing on the womens market. I dont know how big that industry is, but that might be an interesting area of focus for the business moving forward. As it stands today, given their brand positioning, i am out. I like the fact theyre differentiating themselves with the womens products, but i would like to wait and see how that Gains Traction before i would sign is a checkbook not that i have a checkbook. Im out for the moment, but i really like the concept. It sounds as if everyone is cautiously optimistic. How do you feel . I feel fine with that. We have some good backing, were moving forward, our customers love our products. We know where we stands, and we continually focus on building or brand and brand positioning. Wonderful, thank you for taking is so well and thank you for coming on. Thanks also to our panelists. That, folks, is todays power pitch. I dont know that weve ever had three outs on the power pitch. You heard what the panel had to say, but now we want to hear from you, are you in or out . You can longon, or follow the conversation a twitter with the powerpitch. I feel bad for him, too. I dont think weve had three. I dont remember one. I dont, either the gold market is up, and once again, some of the other metals that have been performing very well recently, the copper market, based on better data coming out, and palladium is 1. 3 , youre up to date. Lets head uptown to the nasdaq. Hi, sheila. We are seeing a bit