crisis management. >> and i'm sue herera along with tyler mathisen and brian shactman too. fasten your seat belts, "power lunch" begins right now. >> and turn off that cell phone too. a disappointing durable goods report. the energy sector is slumping. some fresh worries in europe. this time about spain. result is u.s. markets lower for a second day in a row. here's where we stand right now down 84 points in the. significantly weaker than where we started the day. s&p down and same for the nasdaq. energy is a noticeable story today. crude oil down more than 2% right at 105 a barrel. natural gas down another 1.5%. rbob down as well. loving organic mac and cheese. exploding after their ipo up 74%. tyco up 3.3% after announcing its merging the flow control business. and medco up 3%. on the downside, the fallout from sinking prices. alpha enjoy more than 3.5%. i'll delve deeper into coal and nat gas stocks when i'm back at 1:30 p.m. eastern time. bob pisani, what led to the bleed? was that post-euro close? >> yeah. i think it's broader. two things going on. one relating to the end of the quarter and one to the economic situation. we've had a little bit of a blip in the global recovery road. some problems recently. let's take a look here. look at the global picture here. what do you see? this is all the global slowdown -- global growth slowdown. these are commodity plays. biggest decliner in our stock market, material stocks. there's your commodity plays. copper down over 2%. all the other commodities are weak. the australian dollar down again today. stocks in moscow down. shanghai did terrible for a while but down 2.6%. this is the global commodity play, the global growth play. we had a couple firms out this morning, societe generale talking about growth in china this year. bigger copper company reporting declines. durable goods were disappointing didn't pick up from january's decline. that's an issue. there's another thing going on. besides the global slowdown, we're reaching the end of the quarter. a lot of pensions have quarterly rebalancing. if stocks have gone up 12% this month or this quarter with bonds flat to down, that means they've got to sell stocks and buy bonds to get back to say a 60/40 balance. that may be a factor. very tricky to call this. nobody putting out press releases about what they're buying and selling in the pension funds, but clearly that's an issue here. the i shares versus bond funds. s&p 500 and biggest bond fund out there. basically flat to down. that's what i mean about the rebalancing going on. a lot of speculation about when if anything all these people in bond funds might be deciding to get out of them. the bottom line, sue, i think there's a global slowdown story playing out here and i also think the end of the quarter story as well. >> indeed. bob, you mentioned the bond market. thank you so much. breaking news now because $35 billion worth of 5-year notes are up for auction. rick santelli is tracking the action at the cme. and he's going to give us a grade on today's offering. hi, rick. >> absolutely. we're welcoming $35 billion new bouncing baby 5-year notes. and the yield, 1.04%. now, let's go through all the metrics. where was the one issued market? right before the auction ended at 1:00 eastern 1.03 offered at 1.025. so we tailed a bit. we haven't done that in a while. 10-auction average bid-to-cover 2.1, this auction 2.85. the weakest since august. look at indirects 44% 10 auction average. directs 12%, 10 auction 1 1.3. we're giving this a c minus after a very good b plus yesterday. sue, back to you. >> yikes. thanks, rick, i think. >> let's switch on the "power lunch" power surge and get to some of the stories that are driving the day. we're keeping a very close eye of course on natural gas stocks. all down big today. it is really a commodity collapse. nat gas prices at 10-year lows as inventories hit record highs. sharon epperson has been speaking with traders at the nymex about where prices might go from here and the etfs that could benefit from this deep slide. sharon. >> well, tyler, you're right. of course the focus is on how low will we go. and if we go lower, how can you benefit? as you mention, it is a 10-year low here for natural gas prices below 2.20 here per million btus. some of the etfs traders are talking about are those highly leveraged. whether you're talking about highly leveraged on the downside, the double short etf or the double long etf if you think we are near a bottom and poised to bounce. the etfs i'm talking about are kold, double short etf that many are very attracted to right now as we've seen this precipitous decline in natural gas prices. there are some who say we are eventually going to hit a bottom and i want to be hedged properly ask capture that upside when it happens. and they're looking at the boil etf. the dow jones industrial average double long etf. so those are two to keep in mind as you're trying to play natural gas. here on the floor though they trade futures and options for natural gas. and i'm here with cindy who is an independent trader and has a lot to say about the spread action you've seen in natural gas. how do you make money with prices this low? >> as you said we're trading near a 10-year low. it's not unusual to see the lowest price of natural gas around this time of year because we're between the winter heating season and summer cooling season. one thing you can do is sell the front month future contract, which would be may. and buy further out along the curve, maybe september or october. this lets you limit your risk and should let you take advantage of the downward pressure on the front month in a bear market. and it gives you a couple months to rollover your position as you assess what kind of summer we get. >> are we already seeing people do that particularly today as we do have the expiration of the april contract? >> we've been seeing this for the last week or so i'd say. >> tyler, there you have it. this is expiration day. expect a lot of volatility going into the 2:30 close. >> sharon, thank you very much for the programming note, the ceo of enbridge will be on tonight to talk about the new oil pipeline proposal to compete against the controversial keystone pipeline. and it's not just nat gas prices that are collapsing. mortgage refis have been plunging. our real estate correspondent, diana olick has the newest numbers and what they might mean. >> hi, sue. you're right. mortgage rates have risen just about half a percentage point over the past month. that's on the 30-year fixed. but refis plunged 24% during the same time. that is a huge reaction. take a look at the numbers if you will. refis down 4.6% week-to-week. that's the sixth consecutive weekly drop this week. not as bad as last week's 9% drop, but still not good. purchase applications are up slightly, which is what we need to see for the spring. back to the refis, the share is now down to about 72% of all applications. at one point it was well over 80%. the mortgage bankers association also notes in today's report that the drop in refis came largely from the government refis. that is fha. those are down 12% and will likely fall even further because the fha will raise its mortgage insurance premiums come april 1st. so, why do we care then? because refis put extra cash in our pockets, cash that we go out and that we spend in the economy. now, if mortgage rates are still at historically low and 50 basis point rise tanks refis this much, then what happens when mortgage rates hit 5%? is that the new barrier to entry in this market? and one thing to note, the government is really depending on its new refi program for under water borrowers. a lot of those folks are over 5%. but as mortgage rates continue to climb up, the bang for the buck on the refis is going to get smaller and smaller. more on this on the blog, realtycheck.cnbc.com. >> thank you very much. the fate of president obama's health care reform on the line again today. the supreme court holding a final day of historic arguments at this hour. the justices seem split on a critical question. can parts of the health care law survive if the high court strikes down its key mandate? namely that americans must buy health insurance or face a penalty. the political stakes couldn't be higher in this election year. and our chief washington correspondent, john harwood, is at the supreme court. john. >> reporter: tyler, they're very high because this isn't just a legal question, this is a political question. remember, this was a law that was passed with democratic support, republican opposition. look at this poll numbers from the popularity today to show what a wild card this is. 43% support the law, 50% oppose it. that shows more intensity on the conservative side because they lost the policy argument. then look at how it might affect the vote. 76% of the people overwhelming majority say it would not affect their vote. however, you can bet that that's going to change once we get an opinion and the losing side is going to be mobilized by this especially if it's the obama administration that loses this case. they scored in 2010. a policy victory and a political defeat. they would have the possibility of sustaining a policy defeat turning into political victory because democrats all across the country would say look at that just like bush veto. we need to elect obama so he can appoint another justice to the supreme court. there are ways in which you can win by losing and lose by winning in this case, sue. >> indeed, john. thank you very much. a big headline out of los angeles. two fan favorites joining forces. basketball legend magic johnson leading a group to buy the debt-stricken dodgers for a whopping $2 billion. shadowing records for a u.s. sports franchise. darren rovell is covering it. darren, it still has to be approved, of course, by the league. it seems an extraordinary number by any measure in any sport. >> yes, sue. it's such an extraordinary number that many can't figure out this whole thing. let us show you why this is so strange. magic johnson's group agreed to $1.25 billion for the dodgers, stadium and some surrounding land. when we're told the next closest bidder wasn't within $600 million of that number for comparison sake. let's take a look at the recent sale of the maple leafs, the raptors, the air canada and surrounding land all which sold weeks ago for $1.3 billion. that's a major metropolitan area, nice fan support, the leafs i'm talking about, and included the tv network. or a team with a similar tradition. how about the chicago cub which is sold for $845 million and that included wrigley field, surrounding land and a 25% share in the local sport station. that only happened in august 2009. one banker told us if the dodgers valuation would make the cubs worth about the same. that would be 134% increase in less than three years. and how about the new york yankees? unlike the dodgers at this point, they have fans to fill the seats. even without their tv network included, yes, the yankees would be worth at least $3 billion off this dodgers valuation, almost double the value that forbes said they were worth last year. and a high profile football team with a new stadium, forget about it. how about the cowboys. the numbers we were told for comparison sake would be $5 billion. of course no one will be paying that price. speculation is this is just going to be an outliar. it will be approved most likely, but it can't be worth this much to all the other teams. i'm sure the owners are pumping their fists. at this hour again we're told that the nearest bidder was more than $600 million behind this bid. so you could have bought the astros with the difference. >> that's an amazing story. >> what did frank pay for that franchise? >> $430 million. >> whoa. >> and he didn't put in much cash as i recall. >> no. he didn't put in anything. you're left with the worst team and a worst database as far as fans showing up. he didn't make it any better. >> that's some expensive parking lots they're buying there too. >> and they're only getting half of them. >> i know. that's the ironic part of the whole thing. >> the team is actually worth $2.3 billion. >> playing music. it's not the dodgers theme. thanks, darren. just a few days ago turned out to be a terrific quarter for stocks. tech, financials, consumer discretionary best performing so far. >> time to look ahead to q-2. can the bull keep charging? which sectors will be the stars for the next three months? stick around for the q-2 playbook when tyler and i come back. ♪ ♪ here we are, me and you ♪ on the road ♪ and we know that it goes on and on ♪ [ female announcer ] you're the boss of your life. in charge of making memories and keeping promises. ask your financial professional how lincoln financial can help you take charge of your future. ♪ ♪ oh, oh, all the way ♪ oh, oh here's a chance to create jobs in america. oil sands projects, like kearl, and the keystone pipeline will provide secure and reliable energy to the united states. over the coming years, projects like these could create more than half a million jobs in the us alone. from the canadian border, through the mid west, to the gulf coast. benefiting hundreds of thousands of families throughout the country. this is just what our economy needs right now. now let's check in with scott wapner, see what stock's on his radar this hour. hey, scott. >> sue, thanks so much. i'm looking at my screen here and doing almost a double-take. remember talking about pfizer being the best in the dow? caterpillar is the worst today. i think it centers around the concerns people are having about the chinese economy. the china stock market today down about 2.3%. the latest performance since late november. one of the stocks that factors in to what the growth in china will be. pretty big battleground stock on the "fast money" "halftime report" today. one of our traders shorting the stock. the whole industrial group for that matter is one of the reasons why you've got the dow at one point today down triple digits. it's stocks like caterpillar that are the ones to watch as you factor in what you think heading into the second quarter is going to look like for the chinese economy, guys. >> indeed. scott, thanks. >> and despite a pullback today, stocks have been soaring so far this year with the dow, s&p and nasdaq on track for their best first quarter performance in more than a decade. joining us with the second quarter playbook of the stocks and sectors you should own right now as well as their forecast for the remainder of 2012, hugh johnson and ted parrish. gentlemen, welcome to both of you. you both basically are overweight equities at this point. you like the market more broadly and generally than you dislike it. but, hugh, if i want to make moves now based on how far the market is come and which sectors have driven that ride higher, what would you be counselling? >> well, the thing i'd be counselling, first of all, is maintain sort of a bullish structure generally speaking in your portfolio. but recognize that we've come a long way, very far, very fast, had a great waquarter as you've suggested. and the chances of a fairly sharp correction are fairly severe. when i look at the numbers and i do my sort of valuation number crunching, i think we're about 8% to 10% overvalued or above the level we should be at in the current quarter and maybe 6% above the level i think we're going to end the year at. so under those circumstances what i'd simply say is, yeah, be bullish, but drag your feet on putting any new money into the markets. and when you do put money into the markets, put in what really works, which is technology, finance and consumer, but dragging your feet is important. >> hugh says drag your feet, ted, what would you be moving out of? in other words taking profits, repositioning and where would you redeploy? >> there are some areas within the consumer cyclical space gotten ahead of themselves. some retailers. also some very attractive companies in the consumer cyclicals. there's a ple tho ra. a small rent-to-own company here in atlanta, they have a really small geographic footprint, a lot of room for growth, great balance sheet. also the industrial space i think is going to do well because their later cycle businesses are doing really well. a company like general electric, which has seem to gotten its act in order on its ge capital and again its industrial business doing really well. >> hugh, talk to me about international exposure. if you're dragging your feet or averaging into this market very carefully, how much of a model portfolio, if you will, would you expose to international exposure. and what part of the globe? >> first of all i'd emphasize the whole globe. developed would be about 2/3 of my international exposure, emerging about 1/3. i was about 5% of the equity in the my portfolio as international. both developed and emerging. i'd probably move that up to something close to 10% primarily because i think that they're performing better, the relative performance is good. and i think the fundamentals in various parts of the world, particularly south america and some parts of asia are pretty sound. again, the most important thing i can say is drag your feet because we have a little bit of a valuation risk facing the market right now. >> you know, so, ted -- you know, if there's still risk in this market, why not go into high-yielding corporates that perhaps don't have the volatility that some of the key equity components have? >> well, i think that, you know, you missed the growth opportunity there. the economy's definitely turned around. and if we get a stabilization in housing, we're probably off to the races. and you don't want to miss that. i think there's a lot of good growth opportunities out there. companies have refigured that their balance sheets are in great shape. and in the retail space they actually go on the store counter again. looking forward to organic growth. you don't want to miss the ride up. >> gentlemen, thank you very much. we appreciate it. >> you're welcome. >> we want to bring your attention to a headline that's just crossing. you probably all know about the jetblue story about the pilot who had some very erratic behavior on a las vegas-bound, new york to las vegas bound flight, jetblue has now suspe suspended the captain whose erratic behavior caused that flight to be diverted. we'll have an interview later on "power lunch." next, a cnbc exclusive. the results of our all-america economic survey. an in depth look at what americans think about the economy including who they blame for the financial crisis. >> steve liesman, who is waiting in the wings, he is there in the dark going to show you the results of his amazing 4d setup. james cameron's avatar has nothing on the chairman. ♪ when your chain of supply goes from here to shanghai, that's logistics. ♪ ♪ chips from here, boards from there track it all through the air, that's logistics. ♪ ♪ clearing customs like that hurry up no time flat that's logistics. ♪ ♪ all new technology ups brings to me, that's logistics. one golden crown. come on frank how long have we known each other? 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[ clang ] the all-new 2013 lexus gs. there's no going back. see your lexus dealer. welcome back. i'm seema mody with your check on biotech stocks. specifically antiobesity drug makers in focus today. we all remember the big moves we saw in shares of vivus after winning the backing of the fda. the stock gained 100% in a day. but there are some bears saying tomorrow's ruling by the fda on whether additional heart safety trials are needed could add significant shares to vivus. also in focus, arena pharmaceuticals. its arrival of vivus, this stock also could nose dive. the stock down now better than 1 10%. piper jaffry downgrading that stock although the third player in the obesity drug market is orexigen. remains to be seen as a head of the gain. the stock flat right now. >> seema, thank you very much. stocks hitting new highs racking up their best first quarter since 1998. but unemployment is still high, gas prices are moving higher as well. so where does the economy and the market go from here? steve liesman joins us with the exclusive results of our cnbc all-america survey. hi, steve. >> hey, sue, thanks very much. our survey -- fascinating results inside this national survey of 836 americans on a broad range of economic and political topics. and i think the headline number is that there has been some improvement in the economic outlook. let's take a look at what the results show. 27% really no change since november of those who gauge the economy as being worse or that it will get worse from here. but take a look here. those who say it's going to be the same, that's come down a little bit from 41% -- 43% down to 431%. big change there. where does it go? right here. those who say it's going to get better. 36% versus 27%. if you move to your right just a little bit and zoom in on the numbers right there, you can get a better look at where those numbers are right now. 36%. let's get rid of that and take a look now at whether or not critical political question, are you better off now than you were four years ago? take a trip down memory lane. 1992 here. what is that? 37%. what happened that year? an incumbent president bush lost re-election with numbers like that. we'll go forward now into 2000. 63%. 2004 president bush won re-election with those numbers. and in 2008, 34% the incumbent republican party essentially lost. drum roll, please, where is president obama? the low for the survey going back to '92, 28% are saying that -- only 28% saying they are better off than they were four years ago. let's move now i want to show you some interesting issues about what the best investments are right now. and what you see right here, treasuries 8%. savings account just 14%. stocks only coming in at third with 19%. real estate, 24%. and there it is, folks, gold. 37% of the public say gold is the best investment right now. another big political issue right there. who is to blame for the economic -- or for the financial crisis? take a look at some of the culprits that we offered people. that's democrats just 8%. next one here, sorry. where is that right there? over here. oh, there it is. the business cycle just 8%. president obama just 13%. wall street 25%. that's a big number right there. president bush still getting the most of the blame or equal to that. now, we broke this down by political party to show you just how partisan the public is. what you're looking at here in this next bit here, the green is the gop. so 20% of self-identified republicans blame wall street. 31% are democrats. how about obama and the democrats? 49% of the gop blames obama and the democrats. and this next one here, the democrats really blaming bush and the gop 67%. i actually find this one here most interesting that still 20% of the gop blames wall street on financial companies for the financial crisis. normally that's a backward looking idea, guys. but i think these kind of numbers will play big in the presidential election. >> you're right, steve. come on over here. make your way to the set and we'll talk more about this. ty, i'm interested the fact that basically real estate topped stocks. >> still is a favorite investment. >> i find that fascinating given the first quarter that we have had on wall street. >> but i guess you could say that real estate represents a value today, but gold, if you apply the same reasoning, gold is not necessarily a value given where it is priced today. >> right. >> compared with where it was five years ago. >> but the fact that they find real estate an attractive investment more so than stocks belies the common theme that we've been hearing that a lot of people -- a younger generation of people feel that investing in real estate basically is not the future for them anymore. >> did you ask, steve, who blames whom for gas prices? >> we didn't ask about gas prices. we asked about unemployment. and we asked about the deficit. a lot of people have asked that gas price question. we try not to ask the questions that the more mainstream media's asking. >> you went much deeper than the mainstream media. >> i think so. and i think that people sort of split. some obama, the oil companies, i think the list of victims is pretty normal. what we did find -- i didn't get to show you that chart, when we asked people what their biggest worry is, not the cost of education, not the cost of food, but the cost of gas price -- of gas, and the cost of health care actually tie. which is fascinating to me from an economics point of view that something so important as health care -- and of course gas is important, but that it is up there exactly equal 28% of the public say gas prices and 28% say health care. >> the ageing demographic would go to the health care costs, but the health care costs go higher as we all get older. >> exactly. we've had this spike. the question is how much this spike is playing on the current numbers. i will tell you that the inflation concerns of the public are not where they were back in march '11 when we had a prior spike. they could get there very quickly. >> that was terrific by the way. >> thank you very much. >> what do you have coming up at 2:00? >> at 2:00 we are going -- fascinating poll question we asked. how many apple products do you own? what percent of the country owns apple products? what's the average number? and do you plan to buy one in the next year? i just want to tell you a little bit of polling background here, i know we have to wrap it up, but we try to find another company to put in as a benchmark, we couldn't. >> you couldn't? >> we couldn't think of another one that would be a benchmark for the apple penetration. you could do johnson & johnson, but how many people know it's a product? >> that's true. >> we'll have the results. fascinating results. >> this is the second time they've played the music to get us out of there. >> we're going to update the markets and go live toymex for the closing prices in the metals. >> plus, what the smart money is doing they said in unison. hedge funds having a strong first quarter. kate kelly has the strategies driving the comeback. and first on cnbc, the results of the russell investment managers survey. back in a minute. 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[ male announcer ] at&t introduces the samsung galaxy note. phone. tablet. both. the samsung galaxy note. ♪ the samsung galaxy note. i have two products in front of you. we are going to start with product x. this is a very affordable product that will help save you a, lot of money. i like it.. i like it too. this is product y. this is a much more expensive product. you will not see a lot of savings with this one... harsh. you chose geico and you did not choose their competitor. was this your first car insurance taste test? as we see, the dow jones industrial average average now down 100 points again. also seeing a big selloff in gold, yet not a ton of money heading into treasuries. rotating out of gold and commodities not necessarily into bonds. natural gas continues to slide and so do the equities related to it. today the stocks are actually weaker than the actual commodity. producers like chesapeake, southwestern, quick silver, kom stock, all underperforming. bake down 2.5%. that's an example. coal also getting thumped. this could be more of a permanent discussion the epa implementing new rules. they're all down but look year-to-date, 25%, 26%, 44% respectively. keep an eye on coal. sharon epperson at the nymex. hey, sharon. >> hey, brian. gold, silver, copper, all closing significantly lower on this session. gold prices have been in this range between 1625 and 1700 for weeks and not much has changed that. cpn group out with a very interesting report saying they believe we will see prices around 1,500 this year, 1,400 next year. they do not expect to recoup those gains we saw at the end of 2011, that 1900 level. and why? of course there's not the same concern about a global collapse of the financial system. and of course there's not the same fear in the marketplace. very interesting story on cnbc.com about all this and where gold prices may be headed for the rest of the year. back to you. >> thank you very much, sharon. well, after getting battered and kicked to the curb last year, some of the world's most high-profile hedge funds and money managers are bouncing back in a very big way. kate kelly is going inside the industry's comeback kids and looking at the trading strategies that have put them back on the map. hi, kate. >> hey, sue. so i'm looking at some of these comeback kids which include the fair holmes fund, king don capital, maverick capital and lansdown partners. these are up respective 26%, 12%, 10% and 10%. what's perhaps more interesting than the ground they've gained this year however is that it follows double-digit percentage losses for all of them last year. as low as 32% in the flagship mutual fund. the ding is simply the s&p is up about 12% this year sochlt any decent stock-picker should be able to do at least that if not better. you could also argue that the funds blew it last year because the s&p ended 2011 essentially flat while all these funds were significantly down. down 32% in fairholmes case and 20% in lansdown. this sort of missed opportunity is what's turning some investors off of hedge funds these days. speaking of stock picking, there's a common thread, which is financials. you were mentioning that earlier, sue. all the money managers own jpmorgan and some also have shares of citi group, wells fargo and bank of america among their top holdings. the mutual fund manager who runs fair holmes shares trading double what they were about three months ago. >> kate, thank you very much. meantime, investment managers are getting more bullish about stocks. russell's latest thwarterly survey shows 50% believe the u.s. market is fairly valued. that's up five percentage points. despite the move, 43% still believe the market is undervalued. joining us first on cnbc with more -- you always want to be first with more, rachel. consulting client at russell investments. overall bullish sentiment has increased? >> definitely managers have an improved risk appetite this quarter. we're seeing that in terms of asset classes and sector outlook from the survey. >> domestic u.s. equities broadly more bullish. >> yes. >> on the other hand, the view of u.s. treasuries is extraordinarily negative. >> we had an all-time survey low. 80% of managers are bearish on u.s. treasuries. they're indicating they want to go into the slightly riskier asset classes and sectors like you said within u.s. equities, growth equities across the cap spectrum looked good. emerging market equities looked good. >> let's look at domestic sectors. which ones have gotten more bullish and which less bullish? >> this quarter technology was the top sector for our 13th survey in a row. managers love the tech sector and the opportunities they see there. but also energy and consumer discretionary had increases. the ones they don't like are the ones that really ran last year. those more defensively oriented -- >> utilities. >> -- utilities, consumer staples, don't embrace the risk forward. >> final thought on emerging markets. more positive? >> more positive this time in emerging markets. really, you know, i think the changes we're seeing from last quarter to this quarter really indicate that it's great to have a professional money manager working on your side to make those trade-offs within a multi-asset portfolio. >> rachel, nice to have you in the house. have you back soon. >> thank you. >> sue. >> ty, next on "power lunch," ladies and gentlemen, fasten your seat belts. your pilot is experiencing a midair meltdown. that's what happened on a jetblue plane yesterday. so what's jetblue's ceo need to do to fix the pr nightmare? we're back in a moment. laces? really? slip-on's the way to go. more people do that, security would be like -- there's no charge for the bag. thanks. i know a quiet little place where we can get some work done. there's a three-prong plug. i have club passes. 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[ male announcer ] every day we help students earn their bachelor's or master's degree for tomorrow's careers. this is your moment. let nothing stand in your way. devry university, proud to support the education of our u.s. olympic team. i'm brian sullivan on board the u.s.s. intrepid where in 20 minutes a special "street signs" is going to kickoff. cnbc has teamed up with the u.s. chamber of commerce for a hiring our heroes job fair. more than 1,000 veterans have come on board the ship to interview with more than 100 companies. we have full coverage all hour with two very special guests by the way. we've got the lockheed martin ceo and a big interview with jamie dimon. we'll talk about hiring vets, jobs, the housing, economy, everything else coming up on hiring our heroes "street signs" in 20 minutes. >> we look forward to it. see you then. this is the water cooler of the day certainly. jetblue ceo on damage control after one of his captain's completely loses it, has a midair meltdown. jetblue has now suspended. >> sue, we are learning more about the captain. he has been suspended. he's been flying since he was a child, piloted 35 different aircraft and approaching 18,000 hours of flight time. in this video you'll hear him freak out in the background after being taken down by passengers after being locked out of the cockpit by the co-pilot. [ inaudible ] >> witnesses say he screamed about a bomb, iraq, told them to pray. the co-pilot managed to get him autoof the cockpit. an offduty cop was there to help. he's a standards captain, meaning he may have helped develop the very procedures used to remove him. jetblue ceo says he's known him as a consummate professional and tried to highlight the happy ending. >> the training that took place with the co-pilot who became the pilot in command the entire cabin crew and then working with the customers, i think that's the follow-up to this story, consummate training and a call to action. >> this comes two years after another embarrassing jetblue incident when steven slater famously quit by grabbing a beer and exiting via the emergency slide. a story mocked all over the world, ech in animation. this time we're talking about a pilot while the plane was in the air. we don't know if he was taking any medication. they are calling this a medical incident without any further explanation. there are some rules about that. and, sue, in 2010, for example, the faa started allowing pilots to fly while taking antidepressants. again, we don't know what if the situation is in this case. >> we will wait for more details. thank you very much, jane. ty. >> did jetblue respond to the pr side of the equation in correct fashion? do they still have an ongoing crisis? let's ask derek, ceo of dezen hal resources. welcome back. good to have you. >> thank you. >> what kind of grade to you give jetblue and the ceo for how they've handled this? >> well, you measure stories like this by what didn't happen not by what did. and what didn't happen here is very good. by most accounts, the training of the co-pilot was very good. the actions of the crew and passengers were very good. and you didn't have a disaster. i think the ceo did the right thing by giving one interview and one interview only. i think one of the things jetblue has learned that in this day and age any unit of information you surrender is going to get tweeted and punned and there's no correlation between how many interviews you give and whether the problem goes away. i think the challenge going forward is really going to be addressing the issue of standards and procedures how you prevent something like this from happening in the future. >> you know, what do they have -- how do they keep on top of this story, though? eric, you know it's going to be replayed and replayed and replayed not just here on cnbc and other news outlets but on youtube and the like. so the story's not going to go away. do they need to do anything more? do they pull back a little bit because he did just give that one interview? >> i tend to be very conservative about these things. the first thing to talk to a client about is what you can control and what you can't. you can't stop networks from running the footage. you can't stop it from being on youtube. and so when you have pun pendents out there saying you have too much of this stuff, what you can control is what you do. i think there is something to be said for limited communications as they know more, they should tell it. but i think the core thing to address is how do you evaluate pilots and their capacity to handle situations like this in terms of what the co-pilot did procedurally and terms of ferreting out who might tend to have problems like this going forward, which is very hard to predict. >> eric, thank you very much for your perspective as always. good to have you. >> you bet. thanks. >> let's go meantime to jon fortt who has breaking news now on yahoo!. jon. >> dan loeb of third point has fired off a note to yahoo! ceo scott thompson. very much upset full of zingers about the fact that scott thompson does not want loeb on the board. he says only in a logical alice in wonderland world would a shareholder be deemed conflicted because he is well a shareholder too. apparently thompson told loeb that because he's got so much stock in yahoo! he might be tempted to represent short-term interests instead of long-term. loeb of course fired off a note days ago saying that they could expect a long and costly proxy battle that yahoo! really can't afford to engage in right now. and loeb is definitely turning up the heat on thompson now. the new ceo at yahoo! tyler. >> in the last letter he used the phrase -- which you doint usually see in the text of proxy fights or these kinds of battles. >> no. you don't. up next, anies soaring on first day of trading. we'll get you the latest trade on today's ipo. >> and he's just one company cashing in on health food. the company's ceo joins us next in our hot start-up series. will it go public? w ohhh my head, ohhh. 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[ all ] i'm with scottrade. welcome back to "power lunch." i'm brian shactman with the dow down more than 100 points, i want to take a look at the annie's ipo. the mac and cheese monster experiencing heavy trading and up 88%. just to reset the story, the maker of organics food geared at children and families priced at 19. you see right now it's at 35.81. they grew revenue by more than 20% last year while profits were actually up 200%. so, sue, they're growing and making money. >> indeed they are. thank you, brian. annie's ipo the latest example of a niche food company making a very big splash. in today's hot start-ups, our look at smaller companies on the cutting edge but having a very big impact. we turn today to the dairy-free food company that's been around for quite a while but demand for their products is soaring. welcome, david, a pleasure to meet you. thank you for coming. >> thank you. >> in full disclosure, i discovered your products because my young son, daniel, has a very deadly allergy to dairy products. so i turned to tofuti for that. but when you first started this company, you were looking for a dairy-free alternative for the kosher market and people who had lactose intolerance issues, correct? >> yes. and especially started off as being for the kosher restaurant that i had. and then people can have dairy-free products. you can't mix the dairy with meat. >> right. >> and then all the sudden, i mean, the demand became so great. and the people are asking for more and more and more. so then i realized that i have developed something that's far, far outreaches what i had in mind. >> you're launching some new products because the market for this particular area, some people call it health food, some call it alternative dietary food, but you've launched a riccota cheese, new pizzas, raviolis. the product line is quite diverse. what i found interesting is the company has been profitable every year since 1992? >> yes. yes. >> and is that -- what about distribution? tell me about the distribution of your product and how you've been able to push it forward. >> well, thank god there's a lot of interest. there are close to 100 million people that can't have dairy. and that's 100 million people in the united states. and then abroad so many people that can't have dairy. so i realize that the opportunities are enormous. and the distributors came to us instead of me looking for them, they came to us. >> that's a nice problem to have. >> yes, yes. and thank god. we were looking forward to seeing this as just the beginning. >> i was going to say very quickly, since a lot of people have chosen not to do dairy, even though they could tolerate dairy. >> right. >> what kind of an incremental increase have you seen in that? >> demand is growing by leaps and bounds. what we're very excited about is the opportunity that it took ten years to develop the riccota. >> that's a lot of money. >> every night i threw it down because i was quitting. in the morning i picked it up again. perseverance. we believe it will set the company going forward full steam ahead. >> good luck, david. pleasure to meet you. thanks for your products. it's certainly helped my family a lot. i know a lot of other people will be watching it closely in light of the annie's ipo. tyler, back to you. bone appetite. >> thank you very much. ♪ when your chain of supply goes from here to shanghai, that's logistics. ♪ ♪ chips from here, boards from there track it all through the air, that's logistics. ♪ ♪ clearing customs like that hurry up no time flat that's logistics. ♪ ♪ all new technology ups brings to me, that's logistics. ♪ is moving backward. 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[ male announcer ] good choice business pro. good choice. go national. go like a pro. i wouldn't quite call it a bounce. we are off the lows here on "power lunch," but still about 15 points weaker than when we started the program. look at the s&p 500 flirting with going below 1,400. >> despite the incident yesterday aboard the jetblue flight, the stock of jetblue is our chart of the day. and it's higher there by 2.5%. i suppose one could say this was something happily it ended well. and very sad of course for the pilot. >> it is. but it seems as though the damage control by the ceo this morning seemed to have worked. >> that decrease in oil is what's pumping up the entire airline sector. >> on a down day as you see. >> all right. very quickly take a look at the