Were down 102 at the moment. Everything got weve climbed back a little bit. Dow down 103. S p, you wafkly are down for the year now. About 2. 5 . Weve dropped at the open. There were a number of sectors that were notably weak today. A lot of comments. I want to show you Retail Stocks right now. Deckers also on the weak side. A lot of these stocks have been hit badly, and they are not showing any signs of recovering at this point. Home builders we did have the National Association of homebuilder, home market index weaker than expected. These are big dwee clinz here. Unusual for the builders to move this much. No big catalysts, but all of them just down. Some a little more volume than others. Then energy stocks. You get that whenever you get that all the big energy names are to the down side. One group on the up side, simon. Delta did beat on the earnings and they talk about 2 billion in fuel savings in 2015. Faebl a company talking about the head winds that you are going to be having. The take winds, sdus me that youll be having from Lower Energy Costs in 2015. Bob, thank you very much for that. Lets get you analysis. Darren richards, chief Investment Officer at wealth advisors. He also joins us. He is president and ceo of first allied asset management. Gentlemen, welcome to you both. Welcome to the program. Craig, let me kick off with you and introduce something that we havent mentioned so far on this show, and that is the breakout success so far this year of the Real Estate Investment trust. The reets up. I guess 7 or 8 so far this year. Obviously, they track what treasuries are doing. Are you still a buyer here of reets . Certainly a holder. I think where it gets hard to value assets but your top line is falling too, the yield producing assets those are the kinds of things that you want to look at. Dividend payers Like Health Care and the reets. Those do well in a deflationary environment. Darren i see youre looking further afield. Asia is where you think a lot of people should be looking. Just elaborate us on that. Yeah. We like growth. The imf downgraded Global Growth. When that happens, growth is even more attractive. If you look at china, india, for instance, you got somewhere around 7 growth. Very very attractive. Valuations are not stretched. There are opportunities there. I certainly think when you look at europe no growth makes emerging markets in particular asia look very attractive. What do you make of the assertion that you should invest in the stocks that behave like bonds, like reets, for example, as treasuries, whether we like it or not, continue to make gains in the yields continue to plunge . I think thats a natural reaction. When Interest Rates drop where are you going to get your yield . 1. 7 or 1. 8 on the youre seeing money flow into reets. The same thing with utilities that are high dividend payers. The opposite happens when rates move hire. People are not buying reets because theyre interested in real estate. Theyre interested in yield. When something moves higher for instance, the tenyear starts to go back towards two, utilities and reets will be in the crosshairs. Let me pick up what where you are on asia. Its the msmlx, the maptx, and, of course, the fxi, which charts the top ten plays in china itself. Craig, you heard what darren had to say of your investment ideas. What do you think of his . What do you thif asia . I think we have to get past europe on thursday though because its such an important trade. The consensus narrative is that its going to be a shock and awe package. It caused the Swiss National bank to panic when it got an advanced preview. I say this about all assets. The bar has been raise sod high for thursday, that i think we run the risk of disappointing because remember this isnt going to be openended qe because of the german political constraints. For all assets in the world right now, i want to get through thursday, and i want to get through the creek elections. Well said. Craig columbus thank you for your time. Thank you. All right. Simon, thanks very much. Lets talk taxes, if we might here. In president obamas state of the union speech tonight, tax hikts on the wealthy will be on the agenda on the table. Taxing the top, 320 billion raised from two principle sources. One, the Capital Gains tax. Thats 210 billion. By raising the top Capital Gains rate from 23. 8 to 28 which was the rate it was when Ronald Reagan left office. Secondly, they would tack the appreciated value of inherited assets, so that Capital Gains dont get washed out when you move from the person who leaves the asset to the inheritor. Secondly, 110 billion over ten years. In terms of a fee on large Financial Institutions thats the 100 largest firms that have 50 billion in assets. A fee of seven basis points on their liabilities. That money would be used for these purposes. 175 billion to expand tax credits for young families in particular. Families with children. Two earner couples. You have 60 billion for the president s proposal to make two years of Community College free. Expand taxes to relax. This is not going fast to congress any time soon. However, we are squarely getting the u. S. Economic debate focused on the incomes of middle class families that have been stagnant. All but through the 2016. It sure feels that way. John harwood, stick around. Larry is not terribly happy about this, and he is with me here, of course. Very good to see you. Simon hobbs at the new york stock exchange. I want to bare down on one thing that is part of this. Apart from raising the it helps the middle class homeowners, and it helps the middle class if you are taxed on the asset that passes to you, you might have to sell that lets head outside. That is corrects. To pay the tax. You might even have to sell your Small Business to pay the tax. I think its a lousy idea. Generically, raising taxes on investments will damage the middle class. In pi opinion, okay . Heres how it works. Ill be real simple here. Investment is required to start a business. Businesses create jobs. Jobs create income. Income creates family spending. If you attack investment at the margin, you are attacking the very heart of our Business Capital free market process. Thats why this doesnt work. I can lead the rhetoric you know, class warfare, redistribution, whatever. Im just telling you, analytically this does not work. John, let me turn to you. I believe its adjusted Growth Income of 500,000, and it has an exemption for primary residences, but, you know this is something that larrys point is a point that were going to hear from republicans, but whats different about this moemgt is republicans are engaging with their ideas, and not necessarily just the supply side ideas that larry has been identified with over the years. Some republicans who were saying, look we cant cutting the top tax rate isnt really an option right now. 39. 6 . Theres not enough bang worth the political pain of trying to enact that, so theyre looking at their own ways of providing tax credits or middle income families and thats going to be where a lot of this debate lies over the next two years. Jump on in. What about the debate about the rich amendment . When obama comes through and speaks to the nation tonight, john is he really genuinely starting a National Debate along the lines that he thinks the democrats will win 2016, or is it about the whistle for the Democrat Party itself so they for example, would support the trade deals that need to get done with the gop . Is it about cementing his own base and making sure theyre giving money for 2016 rather than what will win the middle ground in the election . I dont think its he is going to be aing saying it out loud to the entire country. The trade deals are going to be one area where president obama is going to be on larrys side and against the side of his own party. We know that. The president believes that it has to be addressed in part due to tax code. Has other ways of addressing it. Human Capital Spending education, and job training. Also infrastructure spending. Its a huge growth debate. Republicans are joining. Mitt romney is the problem is the rich are getting richer, and the middle class bare the weight. The socalled rich 1 pay 34 of the taxes. The middle class pay 13 of the taxes. So come, on we have a very progressive tax code. Now, let me say this. I dont believe the Obama Initiative is going anywhere at all, okay . Nowhere at all. However, what the gop should focus on and what this congress should focus on is a large Corporate Tax cut and reform of the tax rate of corporations. They are a little further away on repat reation and territorial profs overseas. Let me make this point. Look at any study. Left of center think tanks, right of center think tanks. A lower Corporate Tax cut would benefit the middle income wage earner the most whether you are at brookings or aei or wherever. Bring the money thats overseas back home and stop kicking people out of the company by raising taxes. That will help the middle class. The last word mr. Kudlow. We appreciate it gentlemen. A former House Majority leader eric cantor tells cnbc that he is worried that president obamas speech tonight will inflame the Gopled Congress which could lead to even bigger messier fights across the aisle over his remaining two years or so in office. Log on to power lunch. Cnbc. Com for a complete read of cantors exclusive op ed. Meantime, a developing story right now in yemen. Yemens powerful shia rebels are shutting the president ial pal whereas. The u. S. Allied president was home at the time. His status is now unclear. This is footage of fighting wrerl in the day. Reports from the ground say the rebels have now raided the palace. One yemeni commander was quoted as saying a coup is underway. Kelly is live in london. Kelly, we should point out here that this is a crucial ally for the united states. A very dial file for yemen with al qaeda amongst its ranks. Shelling occurred about a half an hour today. The information minister tweeting that the shelling started at 3 00 local time. His group has no intention of attacking his residents. To make it that much more confusing, the rebels own tv Network Claims the rebels stopped an attempt by another group to loot weapons from the president ial palace. A very confusing situation on the ground. Interest rates are very low. Check out the tenyear. 1. 783 . Right now rates are really just of course, one factor in the Housing Market. See what the builders are seeing and saying next on power lunch. Welcome back to showdown im jerry rice here discussing the big race between the tortoise and the hare. My guest is stephanie branton. Jerry, im going bunny. Shocker. Not really. You see, the hares thoracic limbs allow for greater extension and elongated strides. Look for the hare to leverage this advantage. Ok. Vote on twitter for your chance to win a mercedesbenz big race viewing party. Ive been called a control freak. I like to think of myself as more of a control. Enthusiast. Mmm, a perfect 177degrees. And thats why this road warrior rents from national. I can bypass the counter and go straight to my car. And i dont have to talk to any humans, unless i want to. And i dont. And national lets me choose any car in the aisle. Control. Its so, whats the word . Sexy. Go national. Go like a pro. Zimplt welcome back to power lunch. The dow losing ground after opening higher earlier in the session here. Leading the way lower are Johnson Johnson shares. Intel on an analyst downgrade as well to the down side. Ibm also lower. It reports earnings after todays closing bell. Home depot rounds out the bottom four. Those are some of the bigger layingers in todays trade. Back to you. Lets get some headlines at the new york stock exchange. Going is closing in on a 1 billion investment in elan musk. It will provide Internet Access using satellite. Shares of google are down 12 since the summer. Schlumberger is shares are now trading slightly lower in the session that is down anyway. Meanwhile, amazon is building a wind farm in indiana that will power its wind Service Data Centers starting next year. The company partnering. Shares of amazon have dropped 27 in about a year. Patent energy down more than 3 today. Over to you. Simon, new numbers on the state of the u. S. Housing market, and diana has them live in washington. Hi. Hi, t wr. Homebuilder sentiment stalled in january. Several analysts are downgrading the big public builder on concern over weakening demand hitting the markins. The affect of oil prices in texas, and the potential at least for higher Interest Rates. Homebuilder confidence fell just one point in january, but december is reading will provide points. Really it didnt move at all for the whole month. The nhp monthly sent meant index now stands at 57. Anything above 50 is considered positive, and it has been in positive territory now for seven straight months. Last january it was 56 bushgt then dropped into the 40s for the first half of 2014. Amid higher Interest Rates and weaker sales. The index was three components. Current sale conditions remained unchanged at 52. Expectations for future sales dropped four points to 60. Thats the lowest since june and that may be where the analysts are focused now. Traffic of perspective buyers fell two points to 44. Buyer traffic is the only components that seems to be unable to break into positive territory. Po xwnt auto just for population growth. There you see where you are. Look at realty. Cnbc. Com. Diana, thank you very much. Dominik, another quick market blast. Tyler, lets keep that theme going. The Home Building stocks are taking a hit over concerns like diana said regarding the Housing Market here. Profit margin concern from lenna and kb home. Added to some of the concerns. This time around those two along with pulte, dr horton, you can see some of the biggest losers. Back over to you. Thank you, john. In the meantime, Morgan Stanley, the last of the big banks reporting results, and its been a mixed bag, to say the least. Power lunch is back in two. She inspires you. No question about that. But your erectile dysfunction that could be a question of blood flow. Cialis tadalafil for daily use helps you be Ready Anytime the moments right. You can be more confident in your ability to be ready. And the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid long term injury, get medical help right away for an erection lasting more than four hours. 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Mary thompson has broken down the numbers. Its a messy Fourth Quarter for Morgan Stanley marked by a number of charges that have increased its legal reserve. It took a hit from underwriting revenue, and a weak trading environment in fixed income and commodities. The ceo james corman on the call. Its a difficult market and trading environment. Especially in october and the last few weeks of december. As trading business is in particular fixed income and commodity sales in trading would clearly not be immune to the Unfavorable Market environment. In other news pressuring the box. Also saying on the call the firm does remain committed to selling its physical commodities business. Part of its plan to reduce risk weighted assets after the unit sales. Gorman also updating plans to get the firms return on measurability from 8 this year to 10 while declining to specify a date for achieve this goal, gorman promising this is not a fiveyear target. Cutting the Investment Banks ratio from 39 to 40 , and targeting lower pay ratios in wealth and investment management. Second, also returning more capital to shareholders via dividends and buybacks. Pending, of course approval. Looking ahead, morgan has continued strong u. S. Growth benefitting wealth mrgt systems which accounts for just about a little under half of its revenue, and also sees other key foreign markets benefitting from actions from the central bank they are expected to take. Mary thompson reporting. Zimplgt lets take a look at the other financial goldman saks beating the streets. Shardz for the quarter down about 1 3erz. Wells fargo in line with analyst expectations. Its shares up 5 for the quarter. Shares of both have fallen about 5 . Shares of jp morgan dropping 1 . Simon. Okay. Thank you. Gold prices are closing about now, and we put on a seventh day of consecutive gains. Up about 7 in that period. Its the strongest sevenday run for about eight years. The intraday high we have not seen since august the 28th. Lets get to don from market flash for the dow. Now down 80 points. Gold corp. All moving higher in the session. Just trying to get our arms around some of the other moving stories, but for the gold side of things that is what were watching right now. Back over to you. The eye of the storm for many continues to be the bond market. Ecb thursday. Once again, a flattening day as maybe were pricing outside means. Maybe its just the kind of sluggish global gdp. Even with some better numbers today. Looking to hit five. Three intra dah ten. Down five. The long end prices are rallying more. Pushing yields down more aggressively. If you want aggressive in front of that meeting just referenced by simon, look at italy. Italy is 20year chart. You wont find a lower yield. Hovering just a bit below 170 these days. Youll look at spain. Around 152. I dont have denmark up there, but they surprised everybody where heed with a rate cut. Their tenyear around 54 55 basis points. Of course whats all of these low yields doing to the currency . Whats the currency doing to yields . We made fresh lows going back to november, early november of 2003, and thats euro versus the greenback. You see it on that chart. Back to you. Boy you are right about that. It is the story of the week and well be all over it as thursday approaches. Meanwhile, cnbc exclusive sit down with Charles Schwab and the pga commissioner tim, just minutes away. You dont want to miss their big announcement, and take a look at how stocks are fairing right now. [ male announcer ] approaching medicare eligibility . Dont put off checking out your Medicare Options until 65. Now is a good time to get the ball rolling. Medicare only covers about 80 of part b medical costs. The rest is up to you. Thats where aarp Medicare Supplement insurance plans insured by unitedhealthcare Insurance Company, come in. Like all standardized Medicare Supplement insurance plans they could help save you in outofpocket medical costs. Taking informed steps really makes a difference later. Thats what it means to go long™. Call now and request this free decision guide and explore the range of aarp Medicare Supplement plans. All plans like these let you choose any doctor or hospital that accepts medicare patients. These are the only Medicare Supplement insurance plans endorsed by aarp. Call now and request your free decision guide and start gathering the information you need to help you go long™. Welcome back to power lunch. The stock is at session lows right now. Down by 5 on continued concerns regarding the soft outlook from the cal gaining that contributes to major portions to win revenue stocks. Down by 5 . Also simon, in your wheelhouse as well the chinese governments crackdown on corruption plays into that story as well. Simon, back to you. Theres a lot going on. In the meantime, theres a big decliner todays, sar wra. Fxcm plunging. This is a currency broker that almost collapsed last week when the swiss franc, the currency shot up shockingly. Well, friday afternoon it did get an Emergency Rescue by lupedia, a big Financial Firm that owns Investment Bank jeffries. That was a loan that prevented fxcm from breaching its Capital Requirements and having to shut down. Why is it getting absolutely brutalized in todays session . Well, investors are digesting the terms of that deal and theyre voting that it is not too friendly to shareholders. Just a few highlights here. Lukadia can force a sale of the company under the terms of the agreement. It would be able to keep at least 50 of proceeds from a sale. The Interest Rate for the twoyear loan, 10 . Thats high. It has the potential to get even higher as high as 17 . Basically shareholders get nearly wiped out on this deal. Thats whats behind the reaction. Shares down almost 90 as we speak. Analysts say next likely step from here is either a sale of a firm or potentially more destruction client withdrawals, earnings come out march 59. Well have to watch. The bigger picture, obviously, is the damage and destruction that the Swiss Central Bank lacks. Other provision with its retail clients. Sarah, thank you. Down 65 points. Bob has more. We climb back. Not a lot of energy or volume. We need a little bit more bond picking. Take a look at the s p 500. We basically went right down at the open. There you see it move to the down side. Also the lows and trying to get into positive territory. Builders and retailers have had a big problem. Today in in the last several days the builder are down 5 6 , 7 . Its not an issue of today. Theres not a lot of news out here, but its a familiar scene. Number one, weve sold it last week. Heres whats going on with the builders. Margins are falling on cost. Higher cost that is weve seen. As well as incentive that is are continuing. Its been an ongoing theme for the last couple of wrooex weeks. Retailers are weak and there isnt a lot of big news out there, but its a little bit noticeable. Abercrombie and aero pos tale. Deckers makes uggs. Not a lot of news but, again, just continuing concerns about slow economic environment. Well thank you. Lets check in with don chu with Something Back from hq. Were watching shares of staples. Session lows. Office depot as well. The Financial Times citing sources saying the company is expected to reject starboard values call to acquire office depot. Staples down by nearly 5 . As for office depot, can you see down by 5 . 4. 5 simon, as well today. Back to you. All right. Thank you very much for that. Lets bring in cnbc market analyst kenny. Its not a great start to the year. Not a great start at all. Today is just bob makes a couple of points. Not a lot of news out there today that causes anyone to be really bullish. You continue to get that caution. Especially in front of ecb on thursday and greek next week. I think its giving investors just a reason to say theres no reason to go gang busters here. Technically, were toying with 2007, which is the 100 day on the s p futures. Kind of toying with that for the last week. Just plus or minus of it as it fights to try to last week earnings not great from the big banks. Today a big regional banks. Region financial has a miss in their guidance. People are just edging down the numbers. You see it almost powerly because of what the Foreign Exchange has done to foreign earnings. Right. I think that that as were going to see in earnings season thats going to play a bigger role. Its best. Especially the longterm investments. Reason just to remain patient and let it come to them. Remain patient. Back to you, tyler. Gentlemen, thank you. Historic marketing announcement for the pga tour today. The tour and Charles Schwab announcing exclusively to cnbc a new 20year, almost unprecedented in its length deal that assures the continuation of the Charles Schwab cup through 2023. That is the longest Marketing Agreement the tour has ever entered into. Joining us now is tim finchham, pga tour commissioner and chuck schwab, chairman of Charles Schwab. Mr. Finchham i hope youll indulge me a couple of questions right off the top for mr. Schwab about the markets, and i promise you well get plenty of time to discuss this exciting new marketing deal. Chuck, let me begin by asking what do you think of the market in its current state, and as you look ahead to 2015 after two very good years for Equity Investors . Well i think its a time to pause. We had three and a half four years of nothing but straightup markets, so it seems appropriate to me that we have valuations sort of getting settled in and before we have the opportunity for another significant rise. Hopefully that will come with an improving economy, as it seems to be improving today. Schwab incorporated had very good results last week. Partly because trading revenues were up a little bit. I have heard an awful lot of Fund Managers and investment advisors, chuck, say in recent days that 2015 is a year or likely to be a year for active managers as opposed to indexes. Indexes have whipped the pants off the active managers in recent years. Do you agree with that or disagree . Oh they have, and theyve had over really over a long period of time and there are reasons why. There are lower costs, of course. Broader diversification, and also the savings you have from less turnover. Is 2015 leeblg to be a better year for indexers or for active managers than indexers or do you have a point of view on that . My own view is that you should have acore part of your portfolio that should be an index fund no matter what and have a portion in active managed. Mostly my position really is in the low priced stocks for active management. I see mr. Finchham is listening very carefully to what you are saying there, chuck. Let me return to you, if i might. Tell us about this new deal and why you would choose to partner, a, with schwab. Its pretty obvious. A great brand. Why is that so appealing to both of you . It is an unprecedented length of any Marketing Agreement for the pga tour and the history of our organization. Chucks firm and the pgas relationship go back to 1997. All those years he has been the official Marketing Partner of the official Investment Firm of the pga tour. A great job. Then really this idea of a point system to identify the best player in golf started on the champions tour with the schwab cup, so we have a really good history here. The reason for 20 years is it really sets the stage for that tour. It gives the tournament on that tour confidence. It allows the sponsorships to work more closely with the players to build a tour and i think the product here is really a result of three things. First, the foresight and activision of huck and his team. Secondly and very importantly, the players on that tour who worked so hard to deliver value to sponsors, starting with schwab with their customers. And then third, to our tournaments out there that have done such a great job. Its a meaningful thing for that tour but also i think this commitment and the length of it and the uniqueness of it is great for golf. I think its great for the pga tour. The lpga and various tours. It speaks to the strength of college in the marketplace when you have a firm. Just talking to chuck, thats as savvy and with such great history to make this kind of commitment just speaks volumes to the strength of our sport. You know chuck, i know you love to play golf. Good player in your own right. Why is this the right deal for schwab and its shareholders . Well we love the content of golf. The audience and the relationships that we have and we of course have 26 tournaments each year and were its an opportunity for us to take our clients out to the tournaments, to actually play in a proam with some of the fantastic famous names of years past and the current time also. Like Bernard Langer who just won the tournament. Its a great place for us to obviously advertise, but not only that develop our relationships with our clients. Yeah. I love watching the senior go ahead, please. Im sorry. I was going to say the reason why we signed up for another 20 years, we have essentially been involved with the pga tour senior tour for now almost 20 years, so it seems rather obvious to us. We want to secure that position. We think this sport is very important, and its the audience of 26 million golfers out there and its a great way for us to communicate the relationship between investing actually in golf. Theres a lot of similarities frankly. Its a longterm deal. Its a wonderful pairing of products there. What we used to call a senior tour, now the champions tour with guys like langer as you point out, mr. Schwab or fred couples or before them hale irwin. Magnificent players to watch and great to go visit. Congratulation on your partnership and continued good luck to both of you. Lets get back meantime thanks. Thanks again. Lets get back to the market. Bertha coombs is following the nasdaq. The composite fractionally positive a few minutes ago. The big caps are really moving high. Its really a story about apple. Apple near the highs of the session. Investors now starting to look towards next week when it reports sales and the expectation is we could get a blockbuster number on iphone 6 and iphone 6 plus sales. Biotechs continue to power forward. The big caps especially. A movement on one of them being mentioned this morning by they say if the president tonight announces a program, one of the flu shot sequencing programs that, could be very positive for the sequencing maker. You are having some folks starting to question the bubble lisciousness of some biotechs. Some of the more speculative names. Take a look at kite. They are getting hammered today on some of that negative. We are also seeing Morgan Stanley turning negative when it comes to the cable names. Cutting its outlook on several of them. Cutting its rating in fact on viacom to underweight from equal weight, and we are seeing those lower today. Scream streaming media continues to power forward. Amazon is down, but google and netflix reports after the close continuing to be higher. These are the big players to watch these days. Not to ty. Over to nyse. Bubble liscious. Havent heard that for a while. Cnbc talks to one of the most successful hedge Fund Managers of the past year. What is his secret weapon . Power lunch reveals the unconventional indicator in two minutes. You just got a big bump in miles. So this is a great opportunity for an upgrade. Sound good . Great. Because youre not you youre a whole airline. And its not a ticket youre upgrading its your entire operations, from domestic to international. Which means you need help from a whole team of advisors. From workforce strategies to Tech Solutions and a thousand other things. So you call pwc. The right people to get the extraordinary done. Gun milwaukeers like smith and wesson. After the company said its seeing recent positive trends in the consumer gun market and that it would likely translate into higher sales and profits in the fiscal year 2015 as a result of those shares up by 17 so far. Rival ruger up by 5 on todays trade. Back over to you. Sfwroo okay. We have some breaking news on orbits. It would appear that the small Online Travel company Online Travel agency has been suspended. Its reported that orbits is drawing interest from private equity according to some analysts. Its said to be working with an advisor in order to seek. We did talk to the ceo of orbitz very recently, and there was no indication at that stage. Orbitz moving this tuesday lunchtime. Meantime, theres a Hedge Fund Manager in london who calls oil correctly. How did he do it . What is he betting on now . Kate kelly is live in london with more on that story. Kate. Hello simon. Merchant xhoddy generated 59 up side in 2014 partly by using an unusual economic indicator. Rubber. Yes, rubber. Rubber demand for his Sister Company in singapore that essentially creates or sells the raw tirl that sfwz into tire for industrial commerce for industrial equipment. Saw weakening demand for its product in the middle of last year. They regarded it as a tell on slowing gdp in certain parts of the world, and eventually slowing crude demand. That gave them an edge going boo intoou that bearish period for the market. Take a listen. Rather similarly, its linked to gdp because its an industrial commodity. It goes into industrial its historically been a good prof esy of how Global Growth is going, the demand was poor. Now, you can argue with that market share, that could be the case. You have to look at those things, but it was so widespread around the world that it just sort of triggered us. Now this may sound a little bit off beat in terms of an indicator, but actually using one footprint in a physical commodity business as a tell for what may happen with future prices is playing that out in the futures market and its actually quite common amongst some of the worlds expert commodity traders. Im talking about glen corps, cargill. These are all companies that buy and sell crude and agriculture tour on a daily basis, and as a result theyre extra informed when it comes to trading futures. Now, what does he say about his current outlook . He thinks the price of rubber indicates further pain to come. Yearoveryear just in the last year alone, prices are down markedly. Yet, he hasnt seen enough swing in demand to take advantage of cheap rubber. Therefore, he thidz crude is going lower. He told me yesterday he thinks it may appear to the 40 level, simon, but even possibly the 30 level. Sounds like there could be a lot more pain to come. Yikes. Kate kelly in london. Thank you. Lets send it over to don chu for a quick market flash. To followup about orbitz. The stock is surging. Its reopened for trading after being halted for a Circuit Breaker of volatility trading pause. It reopened up 12 to 13 . Those shares up by 11 . Bloomberg is reporting that the travel site has drawn interest from both private equity and possible other strategic buyers. Again, thats why those orbitz shares are up in todays session. Thank you very much. Former president of shell oil making headlines today with some startling predictions on the direction of oil. Is the party at the pump over for consumers . Mandy drury has the details. You know were talking in the next hour on hotline. Shell ceo and also founder and ceo of citizens for he says he sees oil going back up to 80, 90, even 100 a barrel late this year or early next year. Hoffmeister adds he is predicting 5 a gallon gasoline within a decade. However, lets take a step backwards. He has made this kind of prediction before. Back in 2010, he predicted 5 a gallon gas by 20 12shgs and although he did see prices rise to nearly 4 a gallon on average at times, it never really got to that 5 mark. What is he seeing . Is oil heading for a steep rise . Are consumers heading back to hard times at the pump . Were going to get some answers to those questions later on and also, you know what peeking of gasoline, can you name the state with the cheapest average pump price . Dont answer. Thats the tease. The answer will surprise everybody, i think, on the show and its all coming up on street signs in about five minutes time. Its not california. I know that. Its not california. Its not california. Its not hawaii. Mandy. Beyond that its up to you. Well wait to see. I have my guess, but im not going to die vulg it. Tyler, a big up and down market day. The dow right now is down 75 points. Were back in two minutes with more on the market. I sure hope so. With healthcare costs, who knows. Umm. Everyone has retirement questions. So ameriprise created the exclusive confident retirement approach. Now you and your ameripise advisor. Can get the real answers you need. Start building your confident retirement today. You total your brand new car. Nobodys hurt,but there will still be pain. It comes when your Insurance Company says theyll only pay threequarters of what it takes to replace it. What are you supposed to do, drive threequarters of a car . Now if you had a Liberty Mutual new car replacement, youd get your whole car back. I guess they dont want you driving around on three wheels. Smart. New car replacement is just one of the features that come standard with a base Liberty Mutual policy. And for drivers with accident forgivness,rates wont go up due to your first accident. Learn more by calling switch to Liberty Mutual and you can save up to 423. For a free quote today,call Liberty Mutual insurance at see Car Insurance in a whole new light. Liberty mutual insurance. Welcome back to power lunch. More news on the docket here. Check out whats happening with salix pharmaceutical. It was halted for a trading curb. This on a reuters report that the company is working with center view partner to explore its options, including a potential sale of the company. Those shares spiking up by 7 . Simon, it looks like its a takeover tuesday in lieu of the merger monday, if you will because of the Martin Luther king jr. Holiday. Thank you very much. In this hour of power stocks coming off their lows with the nasdaq flirting with positive and negative territory. Home builders taking a big hit today. Staples and office depot sliding. Sources say the company is expected to reject star boards call to acquire office depot. Tyler. Simon if you missed any of the big stories over the past hour, you can go visit our website at power lunch. Cnbc. Com. Well should they stay or should they go . New york city asking that question about air bnb, and kate rogers is live. Hi, kate. Hey, thats right. Well does renting out your apartment make you a hotel . If you are rent it out, should you be subject to regulations here in new york city . Above all, what does it mean for the new me . Well have those answers coming up next on power lunch. 6 i have the flu with a runny nose. [coughs] better take something. Theraflu severe cold wont treat your runny nose. Really . Alkaseltzer severe cold and flu relieves your worst flu symptoms plus runny nose. [breath of relief] oh, what a relief it is. Mommy hey welcome back to power lunch. Im kate rogers. The disruptive startup behind that movement have butted heads with the regulatory establishment all over the world. Today the fight is over air bnb and its place in new york city, and that fight has hit the steps of city hall right here behind me. Now, new yorkers who support air bnb say its important for the local economy, and, in fact has generated millions of dollars in Economic Activity in 2014 alone. Last year we did see big cities like portland and San Francisco allow air bnb to collect and remit hotel taxes. Official heres in new york city say its a long way from becoming a reality in manhattan. If you follow law in subletting or having a roommate which is essentially what a bnb person could be then you can, in fact, collect taxes, but only if you follow the law. Well air bnb supporters say they do want to follow the law, but more than that they want to see that the table, talking about future regulations. Now, for many the issue is not fwlak and white here but at the least if you want to be sharing your home legally in new york, it has to be your primary residence. You have to be there when its rented out, and you cant do shortterm rentals. Anything less than 30 days is not allowed. The hearing is still going on inside, and the fate of bnb is still up in the air, but we can tell you that there were many supporters here on both sides of the issue. Back over to you. Okay. Kate rogers there in central manhattan. That basically does it for this show. This edition of power lunch. Great as always to be with you, and street signs begins right now. Stocks down. Gold up as the country awaits tonights big state of the union speech. Hello, everybody. More of these manic markets in a moment. Plus why one Oil Executive sees gasoline going back to, wait for it, 5 a gallon and soon. The great wealth debate income versus wealth and small cap stocks that analysts manage to see 30 up. Hello. Well, things turn south very quickly today. We are off the lows and the nasdaq is really very hard to stay in the greenl. If the dow ends up losing triple digits like it was it will be the ninth triple digit move