Star state reporting on the impact of low oil on jobs and the economy in the great state of texas. First, lets get to bob in the heart of all the action down at the nyc. I can hear smashing in the background. All those records being smashed again today. I believe its been the best twoweek gain for the s p in three months and im just looking at the leaders here. Energy and materials are on fire. Once again. At that level this will be a new historic closing high. Well see if we get there here. Intraday inteks for new highs, theres a bunch of them. The s p 500 is an at intraday by semiconductor index, i mentioned this all week its been at historic highs. Midcaps have been historic highs. The nasdaq is at a 15year high. The russell is close to new highs as well. Well be keeping an eye on that. Leading the charge as mandy mentioned is energy and will we see brent up very strong this morning and close west texas intermediate. We get some of the more volatile names up. Danbury, halliburton, bakers hoousz apache, anadarko, all of those names are up 2 , 5 , or 6 . This is what i mean when i say a growth bid to the market this week. Look at this. Tech materials, Consumer Discretionary are the big market leaders along with industrials and financials. What you dont see here is more of the defensive names that are out there. Like you tilts. Straight down the last month. A lot of creation. Theres a lot of shorting going on. Shares here are going up because traders are trying to short a utilities because they see higher rates coming. The stock goes x dividend. I was quite surprised that zales didnt move much tiffany didnt move much. There wasnt a relationship on whether the economy was going up or down at the time. Back to you, tyler. Hat day, no . Well im sorry. Theres a deadlock ahead of mondays euro group meeting. Both sides say there is still hope for a debt deal and that hope is reflected in greeces market. Over the past week it is up 11. 25 . With the s p 500 once again hitting an intraday high. While the u. S. Market is doing well, the german dax is on fire. Its out performed the s p yeartodate. It is up by 12 . Should you be betting on the u. S. Or germany at this stage . Which you can do by the way, through etfs which mirror the performance of the dax. Three of the biggest ones are dbgr and dxge. Great to see you there, bob. Germany or the u. S. What say you . I think ewe very interested in whats going on in europe. Were seeing good strong gdp reports. Youre seeing growth out of there. Its not going to come from the euro zone or uk or latin or south america. Its going to be coming from the United States. You know why go overseas if you are a Retail Investor and have an argument thats predicated on growth in the United States. If you are a professional investor like we are, we have dedicated Portfolio Managers that are focused just on europe and on other parts of the globe. Germanys economy in the Fourth Quarter 0. 7 . More than double expected. Now theyve got qe. Their own qe being unleashed. Theyve got that at their back for the entire euro zone where is our qe is already wound down. The economy might pick up and you might see Economic Activity as far as the banking demand is concerned, but i think, again, if you are a Retail Investor and you are working out of the back of a truck, it doesnt make a heck of a lot of sense to have an argument thats predicate odd growth coming from the United States to sort of put all your money on there or to have an overweight into that area. Its going to stay keep rates low for a long time. About half of that leaves the euro zone. Theyre well positioned for growth. I think the latest gdp numbers reflect that theyre starting to kick in. Okay. Weve got to leaf it will, guys. Sorry. How much lower could they push Interest Rates before they go to negative rates . In many cases theyre pushing the negative rate already. How aring going to encourage people to go out and secure a loan if they havent already done it . I dont get that. Final word to you, darren. I think the rates are going to stay low across the euro zone because they need to fuel growth. Clearly that worked for the United States. I think that low rates wont fuel growth i think is a misconception. I think it has worked in the United States. Sorry. Thank you. You can also check out bob and darrens energy play. Go to power lunch. Cnbc. Com and see what the play theyre talking about is for that sector. Okay. Lets get a little bit further south. Brian sullivan is in galveston, texas, for power lunch today, and, brian i understand you have the weekly bakers hughes reet count. What kind of numbers are we looking at . Down 84 oil rigs. We lost over 90, but that includes gas. Oil is what were dawg about. Hello. The weekly drilling rig count fell again. Down 84 for the oil rigs. Now oil rigs down 367 from one year ago. This according to bakers hughes. Canada added one rig. No real difference there. Guys, i also just want to caution everybody. Remember, huge difference between a rig and a well. Rig is for future production. The current production is at an alltime high. 9. 22 Million Barrels per day in america, guys. Even with the decline in rig counts, its still a record high for u. S. Oil production. Thats why were here in galveston, texas. Ill tell you what were doing in a bit. Rig counts down 84 weekoverweek. Back to new jersey. You point out, it is really the production that matters the most there. That is at a record high. Lets move on now farther out west. Fears of a Measles Outbreak now growing in Silicon Valley. This after Health Officials in San Francisco say a linked in employee infected with the measles may have exposed tens of thousands of people commuting on the citys metro train system. Scott cohen is in palo alto with the latest. Hi, scott. A linked in employee up in San Francisco has contracted the disease, and before it was apparent the east bay of San Francisco. At least a couple of times during toward the end of the week around february 4th and 6th. Ate in a San Francisco restaurant, and so indeed many people may have been exposed. Linked in says its followed although protocols and notified all of its 7,000 employees around the world, and its working with Public Health authorities. Then theres the issue with the daycare centers. The herd imunit threshold that keeps us all protected. 92 vac tination rate. Many say 95 . We have a google facility at 68 . A cisco facility at 59 . A lot of things could impact this, though. The Companies Say its a snap shot in time and theyre still working at parents to get their immunization records in. Thats part of it. Also, if the facility has a large concentration of infantsz that arent vaccinated that could affect things. Public Health Officials say you have to look at the whole picture. Not just individual facilities but in that area we are not not where we should be according to an Infectious Disease expert at ucla who says this Measles Outbreak could indeed grow and could indeed grow by here in Silicon Valley. Tyler. Thank you very much. Scott cohen reporting. Dominik chew now. Market flash. Tooil, what were watching here is the big casino and gaming stocks. Think las vegas sands, wyn resordz and mgm. Can you see theyre anywhere from 1 1 2 to three 1 2 . It notes there are favorable air traffic and trends developing for las vegas, and it adds that airline seat capacity is going into the city and its showing the strongest growth since mid 2011. That could be a good driver of visitation to the city and core revenue trends specifically for those casinos. Tyler, back to you. Dom, thank you very much. Airline business going strong. Probably dont need to tell you that. Delta employees receiving the largest profitsharing payments in company history. Phil lal bow. Hes numbers will probably surprise a few people but they shouldnt given the success that delta has enjoyed over the last several years, and in particular last year today the Company Announcing profitsharing for all of its employees will total about 1. 1 billion. That will be split amongst roughly 80,000 employees at delta. That works out to every employee on average getting about two months salary as part of the profitsharing. I talk about delta being successful. Look at the growth in profits over the last four years. They have had a huge runup in particular 2013 to 2014. 4. 5 billion. Thats a heck of a move there in terms of pretax profits. Now, some people will look at this and say, well sure gulf coast jet fuel prices have dropped over the last four years. Therefore, its going to help the bottom line. Take a look at shares of delta. Most of the move is because of the fall in jet fuel prices but, mandy, this is the kind of news that people will look at and theyll say, boy, i remember it was less than ten years ago when Richard Anderson took over this company. He said be patient. Eventually things will pay off. Its paying off today. Back to you. It has paid off indeed. The shares just today down about 1. 5 . Thank you so much phil lebeau. Well power lurching is back in texas. What does low oil mean for the local economies . Better take it to a restaurant with prices get this, that are set by oil. Stay tuned. Know that chasing performance can mean lower returns and fewer choices in retirement. Know that proper allocation could help increase returns so you can enjoy that second home sooner. Know the right Financial Planning can help you save for college and retirement. Know where you stand with pnc total insight. A new investing and Banking Experience with personalized guidance and online tools. Visit a branch, call or go online today. Continuing the slide after costco ended its 16year relationship with the car giant. A costco exec is telling dow jones that the decision came down to costs and saving money for their customers. Also, this morning bank of america and Merrill Lynch downgraded mx to underperform. It cut its price target to 78 a share. It was 109. Mx shares are now down a total of 9 since that news broke. Back to you. Dom, thank you very much. Conagra foods and the company name the new ceo. There you see the stock price down 4. 5 today. Purchasing the organic Food Producer applegate farms. That deal pricing up to 1 billion. Hormel has grown 23 over the past year auz see there. Red progressin shares regaining lost ground after missing earnings and on the top and bottom lines. The stock had increased nearly 6 in the past 12 months. Its a little bit higher today. Manned where i. Lets get back down to brian in galveston, texas, since he has gone all that way. You have been taking a look at how one particular Restaurant Owner is cashing in. How is he doing this . Well, theres a lot of comparisons to make in 1986 given the steep drop in oil. Most people say its not nearly the same economy as it was. He found awe way to go back to 1986 in a lighthearted way. Take a look at this. Steve zimmerman has seen it all. Oil booms and oil busts. Ill show you theres great stories. All from a his pip is the owner of one of houstons finest Boutique Hotels and restaurants, and he says that even though oil has fallen so far so fast this time it is nothing like the epic oil bust of 1986. Theres a concern, i think, because all the headlines and media is talking about oil and the newspaper is saying let 2000 get off here and 2000 there. Thats when the idea hit him. Serve a lunch whose cost was based on the daily Closing Price of a barrel of oil. Stwloo its kind of a fun thing that they say, hey, the economy is going to go up or they will be affected with oil prices. It is going to make us think a little built, but lets have some fun. The marketing mrou worked, and even during the tough times, he said he often had a line waiting to get in. Two weeks ago he brought it back. Only this time its a 51 dinner instead of a 9 lunch. Zimmerman acknowledges that oil may not be the be all end all it was back in the 198 0z but it is still a part of houstons dna. The Major Oil Company in the world thats head quartered here for the host part and International Banking is effectively the ten tickles of oil are all over the city. So guys kind of a semi lighthearted look. Obviously steve is going back in time and resurrecting this. Its reality a house. He founded a Company Called humble oil in humble texas. Humble oil became a little little known thing about exxon. He does have the actually in the restaurant building. Its pretty cool. He was a great sport for hosting us. Thats incredible. Yeah. I love that. Its a ru sort of in terms of a corporation raising to riches story from very Humble Beginnings to well what it is today. Now spending is about to be revved up. What cyber stocks are worth buying right now . All the pecks coming up on power lunch. Then our crime and punishment series. Casinos are known for having top security. How did a group of conmen walk out with millions of dollars. The wild scam that was all caught on camera. [ male announcer ] legalzoom has helped start over 1 million businesses. If you have a business idea, we have a personalized legal solution thats right for you. With easy stepbystep guidance, were here to help you turn your dream into a reality. Start your Business Today with legalzoom. Prices are closing in london. Gold is sitting at 12. 28 to the up side by 7. 70 an ounce, but we have had some ups and downs over the past five days leaving gold slightly lower for the week which would make it the Third Straight week of declines for that precious metal. As for some other metals lets take a look at silver. To the up side. Copper, slightly lower. Paladium and platinum also moving higher. Lets go to dominik chew for a quick marshall flash. Mandy, the higher gold prices mean were seeing those gold mining stocks head higher as well in todays trade. Our daily check of those companies shows that some of the larger players, like numont mining are all trading to the up side. As are the market vekters, gold miners eff and the gdxj. Back to you. Ill pick it up from there. Rick santelli you are tracking all the action at the cme. Ricky, whats happening in the bond picks today . Well theyre getting ready, of course, for a threeday weekend, and the market is being sold off ever so slightly. Look at a twoday chart. Were not up to yesterdays high yields but were getting close. Open the chart up to the first day. You can see we see yields in place. Look at the dollar index for that same period since the last fed meaning. Its gone nowhere quick. Maybe a little perspective is necessary. Open that index xhart up for a 20year chart, and even though were at 11year highs, were a long way from the 120 high you see on that chart. Tyler, mandy, back to you. Plus internet stocks that benefit the most that the government starts pouring more money into the space. All that and more. Im bertha combs. It looks like atlantic citys luck may be changing. New date why shows the eight surviving casinos saw close to a 19 increase in revenue in january. The overall revenue from an internet bet, slot machines, and table games came in at 197 parking lot 5 million. There is an investigation into that the allegation that argentinas president was involved in a coverup with iran. Canada has its first case of mad cow in a beef cow. It was discovered in the province of alberta. No part of the cow reached human or animal feed systems. An update on a story we told you about last hour. Have no fear alibaba workers wont get their bonuses Lunar New Year but they will get them later this year in april. Weve been telling you about the big white house Cyber Security valley jarrett will tell us all about it. Im bertha coombs. Now back to power lunch. Thank you very much. Lets go to dominik chew. Tyler, were keeping an eye on shares of the health care partners. This is the provider of kidney dyalysis services that hosted better than expected profits and sales. It also reiterated its fullyear outlook. The shares you can see are down by 5 . The company is of particular interest to some investors because the companys biggest shareholder is Warren BuffettsBrookshire Hathaway which at the end of a Third Quarter had a near 18 stake. Neck week well find out if the company added to or since mandatory holdings are due next week. Those are known as s13f filings. Cyber Security Center stage today as president obama meets with tech leaders out at Stanford University. About a half hour from now he is going to push for a more cohesive sharing of Cyber Threats between business and government. The summit is a step in the right direction but we still have a long way to go. He is back with us from london. James, welcome back. Good to have you here. I think in the past week one of the things that was most concerning to americans was this major breach of Anthem Health a health care company. People are very sensitive about anything that has to do with their Health Care Records and so forth. Its a relatively small percentage that they might be doing for political reasons or the gathering of intellectual property. The credit card is the obvious path, but the kinds of data were seeing in some of the more recent braechz such as the one you mentioned, could open up possibilities for very significant fraud. Perhaps opening up a Mortgage Application in someone elses name using the combination of data and information like loss of a Social Security number. Undoubtedly, there could be very significant financial and social damage as a result of this kind of data loss and its critical we see People Holding this volume of valuable information doing more to protect it. He is with a lot of the top executives in Silicon Valley. Of course, the history here has been has created a tender relationship. Those companies very much feel irks think, that they may have been taken advantage of by certain programs that were you should the governments war on terror. I think every company you have listed really understands the importance of protecting consumers. Some unfortunately do it better than others. Weve seen some occasions recently where for example, apple have struggled with protecting their customers tim cook has come out big and said its really important that we practice excellence in Cyber Security. To me its not so much about the government and those enterprises as every one of us listening to this program effecttive Cyber Security isnt something that the government alone can accomplish. Its sgnt that apple alone can do although they have their part. Whats key is that every business from Small Businesses to Large Enterprises implement effective security, and every person listening to this program does their part as well. Any one of us could be the way that the tashgers next get into an organization and steal data. James. Im looking for a Broad Spectrum here. Thank you very much. Always great to hear from you. We appreciate your being with us. James. Mandy rsh. With all thats going on in the Cyber Security state which internet stocks stand to benefit the most if the government starts pouring more money into the space. Lets bring in joe fishbin. Theres a Company Called imperva protecting the databases, Barracuda Networks cuda, which is very important in the midmarket companies that are looking for security solutions. Splunk, splk which is more around the analytics piece of analyzing the date wra from government and from the Internet Companies that you guys have already talked about. Then the other company is Paloalto Networks which is probably the best and most broadest Security Firm out there that has the best Holistic Solutions in the pashgt. It was the year of the breach. No one was safe. Think of ailt although companies from target to dairy queen, the irs. In 2015 according to you, its going to be the year of security spending. Which companies have adapted the most to the way the attacks have also been adapting . Well theres a Company Called fire eye, which feye. They have also looked at it from a security perspective from analyzing what is already happened. I think that the companies that are going to do the best are the ones that are in there blocking attack brz they happen. I think palo alto has done a good job in terms of developing technologies. I also think you are going to see mergers and acquisitions. Some of the private companies in the space. He recently said at davos he expects that cisco will be one of the Largest Security Companies in the world. I think that will happen through m a. I think youre going to see increased spending. Youre going to see increased mergers and acquisitions as well. Thank you very much. Watching out for m a. Lets get a market flash where dominik chew. Dom. It started off so promising today right now, but you can see here by what you see in the ticker at the bottom here stocks with the s p 500 and dow have pretty much given up all of their gains today. If you take a look at the s p, the dow jones we did hit a record intraday high of one point today. Now were just about flat. Well see if we gain that back in the last couple of hours. Is there anything in the news flow that would suggest a reason for this other than maybe we just ran out of steam and people are taking money off the table as we go into a long weekend . There hasnt been an evident catalyst. It wasnt like the market just dropped off dramatically in the span of a minute or a second or Something Like that. What it does show you is that there is this steam, this momentum coming out of the marketplace right now. Notable, though, today utilities, theyre not a big part of the overall market but they have been laggard so far today. Far and away the most well see if that changes given the fact that theyve become more defensive as we head into the afternoon. Im also wondering, i mean in recent weeks and even months weve started to see tighter correlation between stock market between the stock market and what crew crude has been doing. Its up today 2 . It was up over 3 earlier on in the day. Crude has been losing steam over the last half hour. As have stocks. Into power lunch we saw the defensive sectors like telecommunications utilities, those types of sectors really under perform. Now the question is as we start to turnover the overall market maybe now just flirting with losses, whether or not you start to see a bit more of a coming back to the more defensive sectors. The ones that are not as exposed to the ups and downs of the overall economy. Well be watching utilities, Telecom Stocks very closely. Of course, theyre also Interest Rate sensitive as we all know. Well watch the tenyear yield to see if that gives us any clues at all about the direction of those particular stocks as well. Absolutely. Well keep on watching the markets. In the meantime, lets jump aboard and take a look at the sect ors here. The ten s p sectors right now, energy and materials are still the leaders. Were just looking over here. As you were mentioning utilities and also Consumer Staples and telecom that are the laying advisers right now. At ally bank no branches equals great rates. Its a fact. Kind of like shopping hungry equals overshopping. You see the s p. You have roughly half in the green and the other half the bottom half in the red. 5050. It doesnt get much more equal, mandy, than that. Did you know though that historically friday the 15th 13th is historically better than most days. Thats 50 of the time. Sfwloolt push and pull and also hurting. Both builders and realtors are worried, but it should take time for the oil prices to trickle down to houstons Housing Market. In previous oil down turns, its taken 18 months to two years for the job losses to fact o into home prices. You know all eyes are on houston now. The leader with Oil Accounting for 5. 6 of hoouts jobs but houston has benefitted dramatically from the runup in energy. In fact, as the rest of housing sputtered into recovery houston saw record home sales in 2014, and theyre not slowing yet. Single family houston home sales jumped 6 in january from a year ago. Prices hit a record high of 7 from a year ago. The only problem they have now is supply barely two and a half months thanks to although demand. This is builders starting to get careful. Kb homes ceo said last month the builder had pulled out of a couple of land transactions in the Fourth Quarter because of sensitivity there. They claim they are not seeing any pullback yet by consumers within consumer david home kinz sold his houston area home last fall and feels like he timed the market just right. According to trulia in the seven large metros where oil relate jobs are at least 2 of the togethers, home prize rose 10. 5 ee year over year. Thats a lot faster than the 7. 7 increase for the 100 largest metros nationwide. Plenty more on this online. Brian. All right. Thank you very much. Everywhere you go around houston, you see these new developments. A couple of hundred homes popping up and they are names that our investor viewers know. Mkm partners Home Building analysts. You are not an oil analyst, but how much are you now having to look at oil and the derivative impact of the price fall in modelling your homebuilder numbers . Were certainly paying a lot more attention to houston than we usually do. Our assumption is that houston could have a big decline this year. Were forecasting a 30 decline in starts and for the rest of texas maybe a little bit of a decline as well for the rest of the texas forecasting a 10 decline. Thats the way you have to approach it to be conservative enough to look at the builders the right way. You know im going to use a number from one of your competitors, bob and rbc capital markets. He has his number at 16 . That is the percentage of all Housing Starts in america that originated in texas even though texas is only about 9 of the american population. How important has not just houston, but how important has all of texas been during this . Homebuilder communities, its probably even a little bit bigger as Community Counts probably closer to the mid 20s in terms of their exposure to the texas market because its been such a big grower. It is its very important. You do have to put it in percent penkt. Think about that 60 and put a with 10 decline in the texas market, thats only going to impact the National Market by a couple of basis points. If we get something bigger than that, then we do have to worry that its going to impact the overall growth rate. Meagan just jumping in here some Home Builders have more exposure to texas than others. What are the implications of what your predictions are for the Home Builders in terms of buy, sell, or hold . Yeah. So in general were certainly seeing a lot more volatility in those texasbased builders. We have a lites out of all the texas builders their exposure to texas, but to houston. If you start to see a decline in texas start, diana said we havent really seen it yet. If you start to see the weakness there, i would certainly be quite conservative about those builders who have higher exposures to the texas market. Right now, honestly i dont think youre seeing that much of a valuation mismatch with those more exposed to texas. I think that a lot of hope is priced into these builder stocks right now that its not going to see a big decline. Were having a hope trade here, and were not likely to get a lot of the more important data. I would think. Not until the end of march or early april. Right now im not panicking yet. Sfwroo meagan how im having trouble hearing. How much do low Interest Rates mitigate any of this . Especially around the fha and fhsa. I think that on nashl basis could have an offsetting impact this year. Your volumes could be relatively neutral on a National Basis if those easing and lending standards kick in. Well be back in a little bit. Lets go now to dominik chew for a market flash where are. What were doing right now is watching shares of Green Mountain coffee roasters. They are up now by about a quarter of a percent. They had been down markedly lower throughout the course of the trading day. This after cocacola discloses that it is up its stake in keurig Green Mountain to 16 of shaerz outstanding. Its prior disclosure was it had 12 . About a 4 boost to cokes overall stake in Green Mountain coffee. Keurig Green Mountain. Gmcr shares up on that bit of news. Thank you very much. Were all over the big market meltdown. There is live cattle thrown in for good measure. Well be right back. At ally bank no branches equals great rates. Its a fact. Kind of like mute buttons equal danger. That sound good . Not being on this phone call sounds good. Its not muted. Was that you jason . It was geoffrey it was jason. It couldve been brenda. We live in a pick and choose world. Choose choose choose. But at bedtime . Why settle for this . Enter sleep number and the ultimate sleep number event, going on now. Sleepiq technology tells you how well you slept and what adjustments you can make. You like the bed soft. Hes more hardcore. So your sleep goes from good to great to wow now we can all choose amazing sleep, only at a sleep number store. Save 50 on the ultimate limited edition bed, plus 24month financing. Know better sleep with sleep number. Theres a gap out there. Thats keeping you from the healthcare you deserve. At humana, we believe the gap will close when healthcare gets simpler. When frustration and paperwork decrease. When grandparents get to live at home instead of in a home. So lets do it. Lets simplify healthcare. Lets close the gap between people and care. Weve come off our highs. The bottom line is off the highs we sit near the lows for the day. I think one of the things factors that sort of brought us down a little bit was oil, if you take a look here moved down in the middle of the day on oil. Put that up here. You can see. I think that was a factor. Look at the xop. This is the expiration of production etf. This is where a lot of people are playing these days. I dont see a lot going on in the tenyear yield. Still steady. Art cashin is just walking by. Come on in here. Other than a move down in oil, anything else that you see that might pretty much. A little nudge up in yields, and i think that kind of took the steam out of it. People were talking about the drop in the rig count, but thats counter intuitive. The drop in the rig count has pressure on oil. Well ordinarily you do. As we discussed off camera day before a threeday weekend is historically noted to the buy side. The real iron where i is the one friday before threeday weekend is the one before president s day. Okay. Thats are this hours power points. As obama addresses the nations top technologists on Cyber Security attacks, we learn that globally these cost that, folks, is 1 of our global income. Well, Energy Taking the lead in the s p 50000 among the top gainers. Pioneer and natural. If you missed any of the big stories, go visit our website at power lunch. Cnbc. Com. If you are looking for alternative ways to invest fine art continues to spike. Sothebys this week sold 200 million in contemporary works. The standout, this masterpiece gerhart richter. Last time it sold for just 600,000. Now 46. 3 million. This rare selfportrait by francis bacon, he must have had a bad selfimage issue. 22. 4 million. Thats a 4,000 spike. The last time since the last time it changed hands, and that was back in 1993. If canvass arent your thing, this 100 care at flawless diamond, i bought it for you, mandy, for valentines day. Could sell for 25 million this spring at sothebys. I now know what i want for valentines day. Hubby, better be listening. Brother and sister duo who quit their wall street jobs to get centered. Coming up for this brother and sister a new business that runs in their blood. Loo. We carry that heritage the soul of yoga that comes to us, and we were escaping the cube next. At ally bank no branches equals great rates. Its a fact. Kind of like shopping hungry equals overshopping. Anything . No. You . No. Aflac what are you guys looking for . Claims legend has it these hills are full of em. It can take months for an Insurance Claim to surface. Claimin takes patience. Aflac paid my claim in one day. They got some newfangled kinda one day payin machine . Hehehehe yea, i got aflac at work. Aflac. In just one day, we approve and pay. One day pay, only from aflac. Aflac. Its just you and your honey. The setting is perfect. But then erectile dysfunction happens again. You know what . Plenty of guys have this issue not just getting an erection but keeping it. Well, viagra helps guys with ed get and keep an erection. Ask your doctor if your heart is healthy enough for sex. Do not take viagra if you take nitrates for chest pain; it may cause an unsafe drop in blood pressure. Side effects include headache, flushing, upset stomach and abnormal vision. To avoid longterm injury, seek immediate medical help for an erection lasting more than four hours. Stop taking viagra and call your doctor right away if you experience a sudden decrease or loss in vision or hearing. Ask your doctor if. Viagra is right for you. At ally bank no branches equals great rates. Its a fact. Kind of like mute buttons equal danger. That sound good . Not being on this phone call sounds good. Its not muted. Was that you jason . It was geoffrey it was jason. It couldve been brenda. Texas has contributed so much, housing, jobs wages, to the overall american story. All the next hour were going to tell you the residual effects of the oil price drop. What does it mean for houston and texas . What might it mean for america in general . Got a great gives lineup for you, including one of the biggest Restaurant Owners in america. A billionaire. Owns a Golden Nugget casino chain and about half of galveston, texas. All hour guys. Walk through not just who oil is doing, but how it might trickle through or it might not. Is everything okay even though oil is 50 from its highs, guys . Theres a lot of stories to tell and were going to do the best we can in the generous 60 minutes that they have allotted us in a couple of minutes. I didnt think anything was bigger than texas, but you have obviously proven us wrong. Alaska. You have a different job growth that is a very important point that you are making tyler, because, you know weve come on. I talked to i mean and said on twitter. Oh, you moron. Its not goinging to affect the southwest economy. Consumers are saving money. If texas slows down will it skew the data enough to make it appear that the American Economy is slowing down because texas has contributed such an out sized impasse. Put it this way. 8 to 9 of the population 23 of all jobs created in the last six years. Yeah. I thought it was an absolutely amazing stat that meagan mcgrath, our guest just a moment ago on the Housing Market in houston, you know how she was predicted that maybe, what housing sales in houston could fall maybe 30 over the next year or so. Just looking up stats that she gave us. She says that could be a drag on the national Housing Market by about 3 . That could give a false read or maretive on what is happening with the overall economy. One quick anecdote. Everybody rocks. We have a fantastic crew. Our camera guy here sold his house in six hours. Six hours . Six hours. Here in houston. A couple of weeks ago. What was that, joe, a couple of weeks ago . Whats that . Back in august. So six hours. He sold his house. All right. Today were going to try to find out. 2 00 in the eastern. 1 00 where you are, brian. Its been a great first week, and are you taking off a week. I am. A little vacation time. Nice to you. A little bit of vacation time. Back in a weeks time. Thats the first hour of power. Now power continues with brian. He is right there. He is live in galveston. Take it way, buddy. Im still here. Thank you very much, mandy and tyler. Thank you. Sflo were going to give you shocking stats about texas and how much it has mattered to the overall American Economy and basically whats going to happen now that oil has come down 50 from its high. How about this . This is the fastest, steepest oil drop or one of the four in american history. We had it in 1986. We had it in 19901991. We had it in 2008, and now we have it once again. One of four times where we have lost 50 in just a matter of months. Is there no negative impact from that . Were going to be here to find out. We have a great guest lineup for you all hour long. We have sarah eisen with us who is joining us from the nasdaq. Sarah, welcome. Thank you very much. Good to see you all the way out there in texas, brian. Absolutely. All right. I just want to point out were also awaiting president obama, brian. He is going to be speaking this hour. All right. Well, we could have some headlines there as well. Were going to tell the macrostory, not just in texas. Right now this hour really is focused on oil, and i believe weve got our do we have our guest . Yes im here. All right. Is there not any negative impact from a 50 drop in oil in a matter of months . Very, very negative. What weve seen is very difficult. I live in midland, texas, and its extremely difficult on all the Service Companies within the permian basin. Yeah. Give us then the steps. The story were trying to tell this hour larry, is not some dire story. Not bad news. Fwloo it has a major effect within the economy, and theres a lot of other Industries Related to the oil and gas industry. Drilling rigs. You have all the Steel Industry the chemical industry. Housing. All the small towns surrounding midland, texas, that have exploded within the last five years. Now you have a contraction going on, and many people being laid off. In 2008 and 2009 the shape of the curve then was like a v. In other words, the economy as a financial crisis we had at that point in time we had demand destruction within the economy within we thought perceived demand destruction. However the fundamentals were still in place, and so it snapped back pretty quick. In this situation larry, do you anticipate do you anticipate that also kind of rapid snapback like we had in 2008 and 2009 this time or is 40, 50, 60 a barrel here for years to come . This is going to be in my opinion more of a shape as a u. Its going to be a long drawn out protractive recovery. In my opinion its going to be quite some time before we see 100 oil again. The reason being we know where the oil is today. Its just a matter of individual well economics and the service cost to drill in complete wells, they have to ajust to the current price. Huh so much. Hope to chat with you again, appreciate it. Also exclusive to power lunch. Were calling it the power city index as the pcis, if you will because you dont have enough acronyms in your life already, america. Im sure. What weve done is this. We created 29 different city and metro area stock market indexes with the 12 largest publically traded company in each one. One of the reasons we are here is that when we ran the numbers for the pcis, the power city indexes over the last three months, of 29 metro markets, only four are down. Two of those, houston and dallas, are the worst performers in the United States . In fact, average, the top 12 publicly traded companies in dallas, down about 4. 9 as of this morning. Houston down about 4. 6 as of this morning. So there you go. You dont think this is a negative impact . Well, tell that to the publically traded companies that are also driving a lot of the employment and the wage gain sarah, in texas and in houston. The pcis. Yet another reason if you didnt have enough to tune into power lunch. All right. Sweaters, for one. Heres another one. Were awaiting president obama this hour, brian. About to make a big speech at Stanford University. Eamon javers is there. What do we expect from the president this afternoon . The president is going to talk about his executive order on Cyber Security. He will sign this executive order here at Stanford University in palo alto the heart of sell convalley. Its really about sharing information between the private sector and the government. That sort of thing. Thats a little bit of a new look at some of the capabilities of apple pay. Were expecting to hear the president a little bit later. We just saw the White House Press pool come in. Thats always a sign that the president is here on the premises. Well wait to see what he has to say, guys. All right. Eamon, well look forward to that. Thanks very much. Brian. All right sarah. Thank you very much. We got so much more here live from galveston, texas, including one of the biggest Restaurant Owners in america that owns a bunch of resorts right here in galveston. The conference center, the Golden Nugget casino chain. A man with his finger on the pulse of the consumer probably unlike any other. Coming up in just come on over here. Tillman. Two minutes. Hell be here exclusively on cnbc. Stick around. In my world, wall isnt a street. Return on investment isnt the only return im looking forward to. For some every dollar is earned with sweat, sacrifice, courage. Which is why usaa is honored to help our members with everything from investing for retirement to saving for college. Our commitment to current and former military members and their families is without equal. Start investing with as little as fifty dollars. Female announcer get 36 months interestfree financing, and save up to 300 on beautyrest and posturepedic. Even get three years interestfree financing on tempurpedic. And of course, free sameday delivery. But only through president s day at sleep train. Sflool were in galveston, texas, a guy that was not only born here but came in galveston to become one of the most successful entrepreneurs in the Restaurant Hotel space in the United States. Ceo of landries. One of the biggest Restaurant Owners in the United States. We appreciate you coming out. I know its your town. Its a big week. You know, you understand the story were telling. Absolutely. As a guy that has 60,000 employees, you have been a job creator for a couple of thousand employees the last five or ten years. You take say, an average family in texas that between the two people they make 100,000 a year and everybody has two cars. Theyre saving approximately 4,000 to 5,000 a year after tax from gasoline. Thats putting a lot of eh lot more money. Thats why samestore sales are so good now. As oil keeps falling, the 30s will overcome that. See, thats thats what we have to watch for. Thats my concern. You have your resorts here. I would imagine a lot of your customers the last few years have been people in the oil industry which have had more money in their pocket. They say, you know lets spend an extra night. Lets have a little more fun. Now you have 25,000 announced job layoffs in the oil and gas industry. I know thats small for the whole country. Means a lot to those people. Are you seeing any effect at all . Not at all yet. Remember, everybody is just slowing down. Remember all has dropped so quickly that have you get hit across the head with it. Were going to have to see what happens. Anywhere below 65 is going to cause layoffs and a lot less cab x to you know new york the oil industry. The data has been strong and our viewers know that i have been positive on the American Economy for almost four years now. When you see whats hang and you see the wage gains in oil, i worry about the jobs lost but the wages cut. Remember, rest raubts are going to feel it last okay . Its the big ticket items that are going to hurt first. This whole area has so much down stream with all the refineries. Texas city bay town pasadena. Thats all suburbs of houston. Lake charles. There are so many refineries like onethird of the gasoline is dortch right here in this area within a couple of hundred miles. You are not going to have these monstrous layoffs. You still stay around 50, 40. You are going to see layoffs. Buildings are already being put on hold. So you are thats my next question. You are hearing about now you have you have a new casino in lake charles. Golden nugget. You also have plans for other buildings. Right. Are those going to go forward, or are you going to shelf or delay those . I have a huge skyscraper im about to build. Im going through with it. Youre still going to do it . But im not going to have the lemplg that i was going to have on it just in kashgs and also im a longterm player. Im not going anywhere. Its not a strict project finance. We joked that the state bird is the crane. Bleechbt it is. You can literally count 22 cranes. That ought to tell you something. Each one of those buildings is new Jobs Construction jobs. Its the tenant that is go into those places. Thats why were here, and maybe were a little early. Sounds like youre not just to wrap it up youre not worried yet. You may not have it stays here, then were okay. Im always looking into the future and if we stay in the 50 to 55 youre going to lose jobs but i think that what everybody is saving when theyre saving 5,000 a household, thats going to be all right for us. You do not want oil in the 30s. If it goes in the 30s, you will see houston go into a lot of the trouble. I saw it in the 1980s. All of a sudden a building would shut down and be empty for ten days. Interest rates are lower. You dont have a lot of people getting called out there. Lets end on a positive note. Its mardi gras week. Have a great time. Hey thank you, my man. Thanks for having us. Didnt even know you were here. 30 could be bad. Got a Houston Chronicle reporter on sort of the local view as well. Well have more texas sized stats. We have a market flash from dom chew. What are you looking at . Brian, earlier we brought you a story that cocacola had boosted its shares of keurig Green Mountain. They are still up by less than a percent. We want to clarify details have that report. It had previously been disclosed that cocacola was going to have that 16 stake in the company. That happened last year. Now, a separate regulatory filing was generated today after the company took delivery of those shares. That actually boosted its physical state to that previously reported 16 . Those shares of keurig Green Mountain theyre still volatile in afraid trade. More on power lunch after the break. Student. Know that chasing performance can mean lower returns and fewer choices in retirement. Know that proper allocation could help increase returns so you can enjoy that second home sooner. Know the right Financial Planning can help you save for college and retirement. Know where you stand with pnc total insight. A new investing and Banking Experience with personalized guidance and online tools. Visit a branch, call or go online today. Tigers, both of you. Tigers . Dont be modest. I see how youve been investing. Setting long term goals. Diversifying. Dip you got our attention. We did . Of course. Youre type e well, i have been researching retirement strategies. Well thats what type e s do. Welcome home. Taking control of your retirement . E trade gives you the tools and resources to get it right. Are you type e . Who do you work for . Your boss . Yourself . Your family . Our Financial Advisors are free to realize a plan to fit your familys unique needs. Well listen. Well talk. Well plan. Baird. Watching the markets flirting with alltime highs. S p 500 break agency new record. Pulling back here a bit. The dow a stones throw of 18,000 and the nasdaq hitting 15year highs. Bob passany at the new york stock exchange. A lot of milestones. Its good enough for a new high on the s p. At least intraday. Take a look at the s p. 2,090, it would be a closing high. Thats where we are right now. Oil did come off its high in the middle of the day and thats some of the oil stocks. This is one of the big active etfs. That came off the hes. When you see them crawling back right now, and i think thats a factor in holding up the markets. Its been a very big growth bid to the market this week. By a growth bid, i mean tech stocks. Materials. Discretionary. Energy. Industrials. All have been out performing. Again, another down day for utilities. Heres the Exchange Traded funds. Bpus, van garde. You can see on an intraday basis, this is down but its been down all throughout the last several days. This is one of those sect orz thats getting a lot of creations these days in the etf because traders are going out trying to short these kinds of etfs. They need to buy shares of it and theres creation of these shares going on. Utilities are going down. At the same time people are coming in trying to short them more. Very active trade. From first to worst those utilities. Thank you, bob. Keeping an eye on transportation car sales are soaring. Theres another part of this industry, though that is also rebounding in the economic recovery. Boats, Morgan Brennan live. One of the worlds biggest boat shows in miami, florida. Whats fueling it . Were all jealous of you out there. Hey sarah. You know we are seeing a roer in new boat sales, and whats fueling this is a lot of the the same factors that are fueling other big ticket discretionary items like motorcycles and rvs. Basically you have an improving labor market Rising Consumer confidence. Also increasing disposable income, thanks in part to lower gas prices. All of those are contributing to a recovery in boat sales thats been long awaited. The National MarineManufacturers Association estimates that in 2014 boat sales, sales of new recreational boats, i should say, increased 7 to 8 and it expects a similar increase this year in 2015. Now, thats after boat sales, new boat sales, plunged 60 in the recession. To recapture consumers, boat makers have changed their strategies to better compete with the preowned market, which held stead where i in the down turn. Manufacturers are both producing less expensive boats to attract the new boater as well as new highend boats. Were seeing both ends of the spectrum. But even though were starting to see this recovery in the boat industry keep in mind we still have 30 or 40 breaux below the prerecession peak. Businesses abroad. If we see the u. S. Economy begin to slow down and also another thing to keep an eye on is the Housing Market. Weve got the slow choppy uneven recovery in Housing Market. Boat and home sales are actually directly correlated. As you can see behind me we have a lot of boats on sale here on display and on sale and everybody we spoke to nonetheless says that they are seeing much stronger demand than they have in years past. Back to you. All right. A bullish time i guess. Boat economics. Thanks, morgan. Coming up on power lunch, a texassized problem in the lone star state. Were headed back out to brian in galveston to talk about the real impact of falling oil prices. Speaking of oil prices the final trade for crossing yet another volatile week for energy. We have the crude flows coming up all when power lunch returns. So why pause to take a pill . And why stop what youre doing to find a bathroom . With cialis for daily use, you dont have to plan around either. Its the only daily tablet approved to treat erectile dysfunction so you can be Ready Anytime the moment is right. Plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. 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. 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In the meantime the Bottom Administration announced it will allow cubas small private business sector to sell goods to the u. S. The exceptions however, include tobacco and alcohol. Its back to the future. Google and mattel announce they will produce a view master for a new generation. They are swapping out the film slide tore an android smartphone. It will sell for 29. 99. It will hit stores this fall. Coming up on fast money find out why one analyst is predicting a netflix spending spree. We are nearing the oil close. Were about 52. 50 on a barrel of crude oil. Up nicely today. We will unless we drop in the next minute or so we should finish with some gains up in crude oil this week. The battalions right now in oil is simple. You have record current supply. Record current production coming out of america alone, but you add another 84 drilling rigs come off line in the last week. So traders right now are fighting between. Yesterday we were in houston, and we had the opportunity to chat with houstons mayor, and we talked about a lot of things but we also obviously talked about oil, and i asked her if she thought that houstons economy maybe had gotten a little bit too hot and if she was also concerned about the drop in the price of oil. Heres what she said. Whats happened is weve gone from a super charged super heated economy. Just really fast growth to a more sustainable and more organic growth. Now, if the Oil Prices Stay where they are in the next few years, i might become a little concerned. All right. So thats the theme that we have heard over and over again. Its not prices falling even this far this fast. Its how long prices might stay here. Its not fear mongering. Whatever it is. Everybody from tellman to the mayor of houston is saying low prices for a long time may not be good. A man who knows a lot more about texas than i do is our own scott cohen because texas has won the top state for business for cnbc i think, a number of times. Scott koen is joining us now. Scott, i hope that the thesis of why were here has made some sense, which is that weve created lets call it six million jobs in america over the last five years. About 23 have come from texas. This state is not only its own story. It is actually impacted the overall american story. Has it not . It has. The rest of the economy is picking up steam. When you talk about rig count and future production last year protects t extechnical produced about 458,000 jobs. Thats onesixth the u. S. Total for 2014 and, yes, it is also a letime winner of americas top states for business. Oil and gas should be viewed in a balanced and reasonable perspective. This areas economy is more diversified than is generally recognized. Well, the year was 1982, and the speaker was interbank Interfirst Bank chairman elvis mason. Good old elvis. Five years later his bank was part of the largest Bank Collapse in u. S. History at the time. The fact of the matter is its only 15 of our growth state product. Thatsz former governor of texas now rick perry. In 2008 the first year that we named texas americas top state for business. It was in the same month that oil hit a record 145 a barrel. This could be the fist sustained test to test texass effort to diversify. It really began with the oil shock in the 198 0z and it could show up in our top state rankings for 2015. We do ten categories competitiveness, and texas, which has never finished below second, and the economy, infrastructure technology, and innovation, and access to capital. Texas is a job growth leader of course. Economic growth. State budget. All of those are vulnerable to price decline. We chalk that up as a potential negative in our rankings. In infrastructure texas gets the most points for the value of the shipments that go through the state. The state is a magnet for research agriculture, health medicine. Thats not likely to change. Well call that a neutral. Thats for access to capital. Well have to see whether capital flows to the state or flows from it. Texas is an economic engine but it faces very serious head winds. Not just for the state of texas, but for the national economy. Yeah. Because then i want to be very clear on this point, scott. Im not sure i have made it clear. Maybe thats my fault. My point i guess i didnt prove it very well is that texas has played such a big role in the numbers, in the data that if texas slows down could it give us false reads on the date wra . Oh look the American Economy slowing down. In reality its doing foo in. Some of the only wage gains that we have seen for much of the middle class. Thats my point. Well bring sarah eisen in as well. Heres Something Else thats interesting. Look around. Ive talked to folks about oil. They said, you know what the panama canal might help us. Theyre expanding the panama canal, which everyone in houston now thinks will drive more ship traffic and bigger ship traffic and maybe ship building action here. Who would have thought that the panama canal would have come up . Todays show . Fwloo isnt it spread unevenly . Around some of the big cities like austin and class and san antonio, about Big Technology hot spots . They are not as dependent, correct . On the surface, youre right. Let me try and get into all of that. We talked about intra from a structure and the ports in houston particularly the ship channel there. Thats huge. Thats going to be thats going to serve texas well almost regardless and perhaps because of lower energy prices. Its something they said going into the prices, and texas with stood that better than a lot of people. If we continue to see lower rig counts and, thereby, lower hiring, it has a Ripple Effect not just in places like houston, but throughout the state when you talk about Housing Starts. You are talking about construction. Yes, oil is a certain percentage of texass gross state product, but then you look at construction. Other factors, other sectors. Always good to see you. Especially especially. The president is there to talk Cyber Security. Well monitor this for you and bring you any headlines as they come, brian. He is going to be meeting a little bit later with ceos of top companies, including tim cook of apple and executives at visa master carped american express, bank of america, and others. When it comes to fighting hacking and cyber crimes which are way out. Well send it back to you in texas, though for now. All do the cities effectively. Number one was san diego. Number two, was austin san antonio. That metro area has actually done free scale semiconductor. Thank you very much. A lot her here on power lunch. Five analyst calls that you need to know about. Weve got a houston reporter to talk more about what the city is feeling with what the moods are rsh i know its warm and were in galveston, and mardi gras this weekend, and we can see doll fenz. The dolphins have come out for power lunch. Thats all you need to know. Back after this. [ female announcer ] who are we . We are the thinkers. The job jugglers. The up allnighters. And the ones who turn ideas into action. Weve made our passions our lifes work. We strive for the moments where we can say, i did it we are entrepreneurs who started it all. With a signature. Legalzoom has helped start over 1 million businesses, turning dreamers into Business Owners. And were here to help start yours. [ male announcer ] at northrop grumman, we know in the cyber world, threats are always evolving. At first we were protecting networks. Then, we were protecting the transfer of data. And today its evolved to infrastructure. Finance. And military missions. Were constantly innovating to advance the front line in the cyber battle, wherever it takes us. Thats the value of performance. Northrop grumman. Zimplt wack fwook power lunch. Time for five Analyst Recommendations on stocks. Buy, sell hold whatever. This will be the first street talk that features dolphins in the background. Here we go. Texas based apatch where i. Forgive me for reading this. Bank of america, Merrill Lynch from neutral to an underperform. Normally dont like to highlight neutrals, but the fact that theyre bringing up apache maybe good news for the equities. They boost their target. 78. Its about 18 up side. Stocks up 5 yeartodate. The latest cap exspending. Next up, i have a Texas Company for you, brooen. Dr. Pepper snapple. Market perform from underperform at wells fargo. The valuation range has been increased 74 to 76 from 68 to 66. This has been favorite play for beverages because it is the least exposed internationally to the strong dollar versus say, keek or pepsi. I knew you were this is the Little Company that could. Sun drop taking down cocacola. They raised their earnings estimates not once but twice last year. Well see if they can do it again. All right. Next up another Texas Company. You seeing a trend here . Jc penney deutsche bank. Deutsche bank adding jcp to a buy list but its a shortterm buy list. Almost a trading list. They think lower gas prices and improved Consumer Confidence may help jcp, but only for a short time. Its actually a type of memory trip and. Flash memory consumer products. Looks like maybe that market is over supply concerns are being over done. Okay. Finally, the under the radar name of the day. This stock is always one thats under the radar. Maybe not a household name if you will. Today its amtech. Ame, the ticker symbol. Airplane cockpit displays. Rw baird from an outperform. They have a 56 target. Its about 10 up side. Not a huge amount. Hey, 10 . Maybe this market. May not end up being so bad. Electronics manufacturer. Yeah, this is the company, traces back to 1930. How about that, brian . Thats it for street talk. We have more from galveston, texas brshgs we go away. What could be on the front pages tomorrow . Right now i want you to listen to this. This is the Energy Corridor of houston, and you know in texas, everything is bigger, including the numbers. Listen to this. 300 major corporations. Shell, bp conco phillips. 91,000 employees. 5. 5 million square feet of new commercial and Residential Office space being built, which is already 65 leased. More power lunch from texas. lowe directv is wireless, so you can put your tvs anywhere without having to look at those ugly wires and boxes in every room. hs lowe cable isnt wireless but you just gotta put something in front of them. lowe im still in awe of how great my tvs look. hs lowe and im still captain of the team. lowe dont be like this me. Get rid of cable and upgrade to directv. Call 1800directv. I make a lot of purchases for my business. And i get a lot in return with ink plus from chase. Like 60,000 bonus points when i spent 5,000 in the first 3 months after i opened my account. And i earn 5 times the rewards on internet, phone services and at Office Supply stores. With ink plus i can choose how to redeem my points. Travel, gift cards even cash back. And my rewards points wont expire. So you can make owning a business even more rewarding. Ink from chase. So you can. Just how important is the oil business . We know its important, but did you know theres a museum an off shore retired drilling rig called the ocean star here in galveston that is now used for corporate classes and education . You can learn all about not only what they used to do but how the technology is dramatically changed over the years. This is the only publicly accessible off shore drilling rig in existence in america at least. They have a museum even in the water. Thats kind of a fun thing. The ocean star is right over there. The technology has changed so much. When that thing was at a couple of hundred feet of water, they could drill down a couple of hundred feet. Now theyre going regularly more than 10,000 feet down. If get down to galveston, check out the ocean star. Good to know. Thanks brian. Meantime, want to take you out to california Stanford University. We have eamon with an update on the president who took the podium just a few moments ago. What has he said so far . President obama talking about Cyber Security just telling the crowd within the past couple of minutes that american critical instra structure at risk including the u. S. Airport system and saying nonetheless, the u. S. Is prepared to deal with this threat which is costing american jobs. The president comes here at a little bit of an awkward time. Weve got the ceo of apple, tim cook, thats here and just spoke a few moments ago as well as ceos of major finance and other technology couples. Thats being seen as evidence as some of the tension that exists between Silicon Valley and the federal government in the wake of Edward Snowden nsa spying revelation. Part of what the president is doing here is extending an olive bramplg to the Business Community and Technology Community. Theyre talking about how well theyre positioned and encouraging a partnership between the Business Community and the Technology Community and the federal government. All of that is part of the executive order that he is signing today. Designed to encourage the information sharing back and forth. Im just curious about the politics of all of this. How political is this for president obama . Yeah. Its a good question. The executive border strategy by the president and the white house is sort of born of frist rags with congresss inability to pass anything that the president would like to see. They can pass plenty of things that he would not like to see . Theyve adopted this go it alone strategy of using the federal bur ok sis, using the executive orders to get what they want. Its a threat to american jobs and a threat to the American Economy. They would like to see something. Ive talked to some white house spokesmen who were out here last night. I just asked them a a little bit about what their expectations were for congress to pass a Cyber Security bill. They sound optimistic when you talk to them. Thank you very much for the wrupt. Well continue brian, to bring you headlines as they pros from president obama who is still speaking at Stanford University. For now back over to you in texas. Crisp next what is maybe next for texas . Listen to this. Texas is fine now. What happens if oil stays at these price levels for a couple of years . The Houston Chronicle reporter with the local view on just that. Coming after the break on power lunch. [ male announcer ] your love for trading never stops. So if you get a trade idea about, say organic food stocks schwab can help. With a trading specialist just a tap away. Whats on your mind lisa . Id like to talk about a trade idea. Lets hear it. [ male announcer ] see how schwab can help light a way forward. So you can make your move wherever you are. And start working on your next big idea. The s p 500 hit a record high earlier, then it lost some of the earlier gains. As you can see climbing back up with the dow up 20 points. The russell 2000 index of Small Company companies also flirting with a record high. Can we check the bond market here because we were seeing the 10year above 2 . First time weve seen that in a while. Dont think we have the bond market right now. There we go. The 10year yield above 2 . Still up there. Were also seeing a rally in gold softness in the u. S. Dollar and that russell up 0. 4 . So what do money and meditation have in common . Pair of siblings found out when they launched a business based on their lifelong passion for yoga. There were a lot of Business Ideas discussed on the dinner table. We are the cofounders of yoga smoga. But we used to work on wall street. We grew up in india in a region up in the himalayas where yoga comes from. I moved to the United States for my education, started work at goldman sachs. I started at Merrill Lynch. On a trip back to india in 2009, i sort of realized that yoga wasnt reflected properly in the United States. Whats out there is not going to cut it. Somebody should be doing something really elegant and beautiful in the yoga space and thats when i started developing a business plan. It took about four years to develop the product and research it. We went out and found out everything there was to know about fiber technology. It was a lot of cold calling, finding who the players are out there. We were selffunded. The first production run came into my apartment. When we launched our website, we thought we had ample product for one year and in three weeks we were completely sold out. We would get hundreds of emails of people complimenting the product. Last year we started rolling out our Retail Stores greenwich, connecticut being the first store. Our second store was on the sunny coast in los angeles and we expect 100 stores by 2018. The part about being siblings we operate on the same wave length. The name yogasmoga is a nod to our Indian Culture but its common to rhyme similar things. If you came to tea for my moms place, she would ask you do you want some shy chai which means do you want tea and cookies. Our dream would be to have a public offering. I dont think its the wildest dream. We are following a passion. It is definitely more valuable and more satisfying than my wall street job. Having your only sibling come along for the ride it cannot get better than that. And yogasmoga products are made entirely in the u. S. They will open ten stores this year. Lets get back out to brian in galveston, texas. And we escaped the cube, sara. We got out. Sweater and jeans. I love that series. No yoga pants. I cant do any of the poses. I think i might have just ripped the jeans. We have our friend ron holiwellyholywell. Youre here every day. Are we fearmongering . I dont think youre fearmongering. We have spent the last week at the chronicle sort of talking to a Cross Section of Business Owners from around town hotel operators, restauranteurs, car dealers. Theres a sense of people being on edge. I dont think too many people in houston are feeling the real pain of the slowdown in the Energy Sector yet but theyre definitely bracing for it. The lexus dealer we talked to sold 500 cars it was a record. Same with joe our camera gaiuy, sold his house in six hours. Houston has been red hot. You havent seen any signs of a slow downette. Yet. Not yet. Houston has benefited from the energy boom. Weve added more than half a million jobs but theres a sense that job growth could be cut in half. We talked so some Financial Planners who work with the guys in the Energy Industry and theyre saying dont go buy that new car youre hearing Financial Advisers saying cool it a little bit on the spending . Absolutely. That has a trickle out effect to the rest of the houston economy. The Restaurant Owner says weve had double digit sales growth thats probably going to stop. The auto dealers are worried about losing some fleet sales. Youre getting a front page story in the chronicle on sunday without revealing it too much so you can sell some papers, what is the theme of it . I think the theme is that, you know, houston is not going to be in the dumps but its been red hot for five years and i think, you know, people are going to be in for a reality check in the next few months. Its amazing, ryan. I have this blessed job and this great opportunity to go all over the country all the time, and theres no place i have seen on the scale that i have seen like houston. The growth. I mean, tillman told us earlier cranes everywhere. Its just i dont think the rest of the country appreciates the spectacular jump in houstons economy the last five years. Its one of the only cities in the country where people cheer when oil prices and gas prices go up. Whats the old bumper sticker, drive 70 freeze an yankee. We dont care about High Oil Prices but we do. Exactly. The city everyone in houston knows that its benefited enormously from whats happened in the last few years. People arent terrified but i think it would be naive to think if we benefited on the way up theres not going to be an effect on the way down. And i want to give our viewers an anecdote again. Exxon is building a campus so big that they have to put in a new highway . Its going to be like its own city north of houston essentially. In the area of the woodlands but they have to build a new road and somebody said theyre not being a road theyre building a new highway. Thats how many employees will be working there. And theyre bringing a lot of people from d. C. And virginia where mobile yas headquartered. The job alsolosses receiveweve seen seem to be focused in the field. We havent seen an effect on the office tower people the geologists, the attorneys, the accounts. Ryan, thank you. Look forward to reading your article on sunday, Houston Chronicle. Thank you. 5. 5 million square fees being built in a place called the Energy Corridor. The new stuff 65 leased. Houston is still going gangbusters. Im going to end with some positive things about houston. Number one, the economy is only half as reliant on oil and gas as it was back in the 80s. Back in the 80s Interest Rates were out of control. They are low now and the economy of texas and the economy of texas is much more diversified. These pelicans they terrify me. So many animals in your live shot. The other positive thought to end it on is have we seen a bottom in oil at least for the energy jobs and for the Energy Industry . Today we went above 60 on the price of brent. It was another positive week in what has been such a volatile one. The question remains has this been the bottom or are we headed back lower like a lot of wall street analysts say . You know, i am with all due respect to every guest that i appreciate coming on the program, i dont know if anybody can really know where oil is going. Right. Just like nobody predicted the collapse. Its a good point. Well, listen i know where im going and thats away. So thank everybody for watching power lunch. I appreciate travel safe. I will. Im going back to the cold northeast. Thank you for watching power lunch. Ill see you back in studio on tuesday. The closing bell starts right now. And welcome to gelt to close out this friday this week. Im kelly evans at the no, stock exchange. And im bob pisani in for bill griffeth. The s p 500 on track to close at a new high as the market posts its second straight week of gains. The dow is trying to close above 18,000 for first time this year and right now its less than 100 points away from a new high. Less than about 50. So you can see alltime closing high or the dow is 18,053. Right now were looking to see if the index can close above 18,000. Were at 18,001 to