Feb 19, 2013|
What's Up On Wall Street - Jeff Cox, CNBC.com
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Well mergers and acquisition activity is making a significant -- we have a big merger to talk about between. OfficeMax and Office Depot we are joined by Jeff Cox from CNBC he's following the story Jeff Loria. Good morning how are you guys doing today. What a deal I wish I had bought shares of this on Friday -- 330. Is that both stocks are our our arch -- Today -- It's centrist think it's kind of like the other that rising tide lifting all boats split you know that the the thing that I found that interest thing about how to video share movement today -- -- yeah office Max on the -- -- to her -- at. The ideally years that these two I can't electors are gonna come together and and and and did you take on stapled at staples shares or 50% to that is so you know it it's just. Everybody ideally the you know stock could that there would be affected by the it's not doing so well there's actually Costco -- -- -- down barely sporting. Let me ask you on this deal because I'm trying to figure this out we're talking about it and our investment committee meeting this morning we all a lot of staples. So. We we knew that staples was gone up in the premarket. Unsure why Office Depot and office Max are rising and they're out there even were problems up 5% in. Office Depot office Max is up 25% office people up 18%. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- What do you only ask because the staples. It nobody knows this their very few people know it is staples. Dominates the online sales -- they say they're the second largest on Iran online retailer next Amazon. He ended combined company of office Max and Office -- make a dent in online sales. Well. I don't think so but. You know if it if you if you -- on the right -- I -- -- I think that you know that it it's sort of one of those things where you put these two companies together and -- kind of happy to say you were number two and it was sort of like you know once Kmart decided that they didn't need to be number one anymore and that you know. Did that do that they could still -- carry on their way being you know number three or number four number five or whatever. In the airspace that the other just kind of -- -- profitable niche there in -- and that's where they kind of rested and you know perhaps that's what you know the office Max speed boat. Virtual it will give escapee and just sort of you know solidified that kind of we're number two -- sort of that's. So we think is this going to be a big year for -- already has it right yeah a lot of deals and it seems like every Sunday night. When I'm watching television. Or were checking my email from the journal there's another deal. It's been huge are ready and you would you know certainly -- -- market conditions are there at least in terms of the company covering the cast and mean it it's still kind of Q wilders meet. The way that this news slip how much you can just out. On all of the people buying at the top and selling at the bottom of that just that doesn't -- just four with -- retail investor it seems to go -- you know that the corporate titans were looking -- to do -- deal could mean you know it it just seems so counter intuitive. That you you would expect you know -- when -- at the you know in 2009 and 2010 -- look like that's what I -- going to -- the -- because that's when you're gonna -- companies -- it just seems that you -- confident that can come back and and you know we don't use it until. Stocks give much more expensive than it did have much bigger price tag of the field but hey you know more power to him -- as far as that are predicting factor for the broader market though somebody with pocket but it is much. Now -- cleric now. Hey listen Jeff I appreciate your time thank you very much -- -- Jeff Cox CNBC reporting and if you all those stocks staples office Max Office Depot. Smile you're making a lot of money to. Just put on a happy face -- -- you know well. Like good news -- nothing wrong with making money now that are whoever -- it was the good old. Hard work anyway that's what we do market hey Tom what would an interest rate rise mean for bought how many times have we talked about that. Right we will it'll come up in a conversation what I've gotten emails from a from listeners on that topic by the way. Jews email address is June night at W mark GO dot com my email address is barrier Armstrong at WQ and a and we want good emails. Tocqueville. You've got to go to the bag -- some people think the the amount of personal email is oh liking complain. But that's -- right well we'll take it. You know people ask me this question and you know it's it's one thing for me to say well you could lose 15% of your value could lose 20% of you guys what I thought I would do June. Is cite a specific time that I think a lot of our audience will recall. The largest increase occurred in the mid 1970s. As interest rates rose by seven point 6% from trough to peak the -- All of this by the way is contained in a guide there were giving away grab a pencil paper -- -- the phone number you need to call to get this report. During that time period June AAA rated. Corporate bonds lost 24%. Of their guys here's why it's confusing. The last time you had a major loss in the bond market was in the mid 1970s. So you've got. Ford generations of investors that don't understand. That bonds can lose money and in fact I imagine you've -- you put your money into what you perceived to be a very safe and conservative investment AAA. Corporate bonds were talking about bonds and companies like. IBM and Microsoft in General Electric rate will back in the seventies in Italy in mid 1970s. Interest rates rose by seven point 6% investors in those vehicles lost 24%. Of the guy why don't I bring this up. You it's incumbent upon you as the investor it's incumbent upon you as the listener. To understand how this works and how might affect -- -- investment -- -- if you want to learn how might affect your investment portfolio call this number 781. 534. 9555. You call that number and you'll receive a report called what would an interest rate rise mean for bonds it's that simple. Let me just ask you this do that you know as a I know a lot of I'll speak of the -- right now -- you know the Fed came out and said that they probably won't raise those interest rates sold when he fifteen but what could happen. You know goes against that acts like what's happening out there. The if you had rapid inflation rate and I'm talking about. Chicken be in 56 bucks a pound -- -- seven dollars a gallon high high risk levels of inflation could happen and it seeped through to the core that interest rates will rise and they'll rise very rapidly you get a guy like Paul Volcker. In office right. He will raise interest rates not -- he's not gonna take the position. But if all of the sudden you have a shift in the -- from away from the doves like a Bernanke's a dove right. If you have a shift in that office away from a dove in to more -- like Kansas City Hoenig. Then interest rates can arise -- that it in all of try to do all -- want our audience to do is be educated that know what it's about the in the -- right. So the phone number 7815349555. For the report what happens to your money if interest rates rise rapidly 71534. 9555. June our next guest in your have been in an Apple Store. When bound until now the AT&T store you don't it's almost well not really a valued -- ever been and an Apple Store all -- -- and Apple -- time -- Apple Store it it's if they are cool stores so I mean everyone's copying Apple Store -- -- well you know who's about to copy them is Google and we're gonna talk about decision. A story in today's Wall Street Journal. And we're going to be joined by a a gal from CNET may know this stuff cold -- -- talk about Google's effort to open stores retail stores. That's our next topic.