Total back-to-school spending is expected to rise 6.9% this year from 2006, though consumer spending on apparel is not expected to rise significantly, as consumers splurged on apparel last year.
With AT&T to report earnings Tuesday, two analysts told "Power Lunch" that the exclusive provider of wireless service for the iPhone will report higher-than-expected numbers. "I think that they [iPhones] are going to be fairly successful over the next two years," said Frank Louthan, telecom analyst at Raymond James, linking AT&T's earnings report to high iPhone sales.
Earnings reports have been trickling in for the past week, and two analysts have predictions for which companies and sectors will perform well next quarter. Jeff Macke, of CNBC's Fast Money, thinks Hasbro, maker of games, puzzles, and electronic toys, is an investment, not a trade. "This is the peak for them. They did real strong orders on Transformers, and they've done great on Spider-Man," Macke said on "Power Lunch," naming two movies released this summer.
Pfizer's "pay-for-performance" policy -- which essentially amounts to a money-back guarantee to pharmaceutical users and healthcare payers -- will be a boon for pharmaceutical companies, Catherine Arnold, director at Credit Suisse, said on "Power Lunch."
Paul McNulty, deputy attorney general at the U.S. Department of Justice, joined "Power Lunch" to address controversial issues raised after U.S. District Judge Lewis A. Kaplan dismissed charges Monday against 13 former KPMG employees. One of the issues raised during the case was whether companies paid defendants' attorney charges. This policy, McNulty said, was changed in December, and the Justice Department no longer questions who pays the fees.
Beverage companies are looking to bottled water for profits, but environmentalists are speaking out in their opposition to the popular product. If the number of bottled waters consumed by Americans annually were laid out end to end, they would stretch around the globe 500 times, according to the Sierra Club's Ruth Caplan, who appeared on CNBC's "Morning Call."
With Internet businesses set to report earnings this week, two analysts joined "Power Lunch" to discuss the likely performance of big names in the sector.
Global M&A activity has reached its peak, according to a report recently released by KPMG, though two analysts believe that is true for only small companies and not so for large private equity firms. Tom Burnett, access director of research at Wall Street, said M&A activity within small companies may have peaked for now, though he believes high-profile deals could still continue.