Transcripts For CNBC Power Lunch 20150219

Conference. We are live in San Francisco. Hi josh. Reporter well, tyler, marissa is about to speak here to the 1,000 developers, critical, of course, she is impresses the audience. We expect her to talk on two broad issues. One, to introduce new services new tools for developers so they can better understand their users, better monetize their apps, and also its expected that shes going to make news about the mobile ad technology. Remember yahoo controls 4 now of the mobile ad market according to emarketing. Compare that to rivals, 35 for google and 17 for yahoo. Look at the stock. Still in the green over the past 12 months but down sharply from that recent high in november. Im going to head inside right now, and listen to mayer and brain you headlines as they cross. Back to you. Thank you, josh. Another huge story today, and that would be . Walmart, they address everything today from the port problems out west to the minimum wage, all on earnings day, a day in which they Beat Estimates. Shares were clie es sent earlier, and so far, up 12 over the past month, but today, down about 2. 5 . Carl sat down with the walmarts ceo earlier today, and Courtney Reagan breaks down the numbersing and kate rogers looks as how raising the minimum wage stacks up against the rest of the country. First, though, lets go to carl. Reporter good afternoon, guys, we are in bentonville, arkansas speaking with walmarts ceo and president earlier this morning about the news regarding the starting minimum wage. We talked about the quarter, the guidance for the coming year, and more specifically that port dispute on the west coast which, according to mcmillan, is showing itself in the stores. Beginning to show up. You wont see much an impact to food and consumables. We buy the vast majority in the u. S. , but it shows up in patio furniture, easter seasonal goods. Now, we move freight not only through the west coast ports, but up through houston and through the east coast. We have some diverseifyication there, but it would be great to see this resolved quickly. I think customers will pay for it at some point as well as the economy. Reporter we covered ground regarding guidance for the year, lowered in part because of the strong dollar. For more check it out on cnbc. Com. Back to you guys. And were covering all sides of the story. Lets get more on how the wage increase will impact the companys bottom line. Yeah, exactly, susan, and the cost of walmarts announcement regarding Employers Training is part in addition to the issued guidance below wall streets consensus. Walmart says the total Program Costs a billion dollars. The retailer Beat Estimates reporting Fourth Quarter earnings of 1. 61 on revenues of 135. 7 billion, sloigtly below exceptions for the top line. They said International Currency moves impacted the results. The u. S. Samestore sales, the most noteworthy nugget from the rules, the comp sales have stores up a year increased by 1. 5 . The first positive comp in two years, traffic up 1. 4 the first gain in nine quarters for that metric. On a media call, the cfo, charles holly, said customers made more trips driven by lower gas prices and weather mentioned in the tail wind. I asked when shoppers would see an empty shelf as a result of the port congestion . The ceo says hes already seeing some pockets appearing where merchandise is getting held up at the ports. As far as the cost of rerouting or making alternative logistics plans . Walmart worked into the guidance, but warns if issues are not resolved at the ports, the problems for all retailers will worsen. Susan susan . Thank you. Now we have the minimum wage side of the story. Kate . Hiking entry level wages to 9 we decided to look at how the retail giant stacks up against other states nationwide. The current federal minimum wage is 7. 25 an hour but National Average minimum wage is 7. 75 an hour after increased were voted in after midterm elections. As of january 2 1st, 29 states and territories have wages above the minimum federal wage. This remits 60 of the American Work force. The map here, the states at the federal minimum wage above, blow, and states that just dont have a minimum wage at all. A few standouts here. Washington state has the highest in the nation at 9. 47 an hour. Washington, d. C. On the high side as the districts rate at 9. 50 an hour. Oregon rate is the 9 preponderate 25 an hour. Georgia and wyoming at 5. 15, and states without wages at all is alabama, south carolina, mississippi, tennessee, and louisiana. Now, of course begin walmart being a bell weather, Small Business advocacy group, federation of independent business says it adds pressure to mom and pop stores who cannot necessarily afford such hikes and rely heavily on entry level hourly wage workers. The International Franchise association echoed that same concern adding Market Forces not government should dictate wage hikes. Back to you. Thank you so much. Lets get a market flash. Shares of cocacola are rising today. The soda giant announced its going to boost Quarterly Dividend by 8 to 33 cents a share. The new analyzed dividend is now 1 preponderate 35 1. 32. Its at the foreseeable level here given the current stock price and watching other developments in the industry as well. Back to you. Thank you very much. A deadly antibiotic superer bug outbreak in california. What you need to know to protect yourself and family. Plus, the search for a drug that works. Power lunch is back with that and more in two minutes. E financial noise financial noise financial noise financial noise solar city tumbling after failing to meet street estimates, mounting expenses, leaving the company with a net loss of 140 million. The dividend by 4. 1 lets check in on the shares. Right now, declines at seven tenths, and foot locker upped the dif depd by 14 to 25 cents a share. Athletic foot ware retailer increasing its Stock Buyback Program to 1 billion. Thats up from 600 million. Lets get to dom chu for the market flash. Defense contractor up big today. Americas biggest military shipbuilder reported better than expected profit and sales in part to strengths in submarines and energy divisions. The stock is now up 2 1 , just in 20 15, its up 42 over the last year. Tyler, back over to you. Thank you. A new antibiotic resistant super bug may have contributed to the death of two patients at Ronald Reagan Ucla Medical Center and may threaten dozens more making the quest to find new drugs all the more pressing. We invite back to talk more about this dr. Shftner, professor of medicine at vanderbilts school of medicine. Is this bug something the general population has to fear or only people in hospital settings . The population needs to know about it tyler. We in Public Health and Infectious Diseases are watching this and the concern is the more we use antibiotics and overuse them the more bacteria will evolve so they become resistant, more difficult to treat. We need newer antibiotics to be able to treat them effectively. Educate us a little bit about this particular outbreak what is it . Is it a back tier ya we were aware of . How was it transmitted to the patients two of whom succumbed and others exposed to it . So this is an intestinal bacteria that gets in the bloodstream bloodstream, and when it does, it produces serious illness. Its noteworthy because its resistant to a spectrum of antibiotics making treatment difficult for us. It was passed from patient to patient, apparently through a procedure using a endoscope, a large tube going into the mouth into the small intestine, came out, and then had to be disinfected. It turns out, routine disinfection practices done well were not sufficient. Downstream patients apparently were exposed or even infected. This is new news for all of us in hospitals across the country. Were all paying close attention to this. And were all always learning, arent we doctor about how the diseases condition transmitted and what we have to do to defend against them. You mentioned that at the beginning there that the prevalence of the new superbugs is directly traceable to the fact that they have mutated. They have become resistant to the existing antibiotics. How many are there, and will there be more and more and more of them . Well theres a lot of different kinds of them. Some more common than others. This is one that likes to live in a hospital environment. Others are out in the community, so theres a lot of them out there. All of us as practitioners have to be much more prudent about the use of antibiotics and our patients are ready when we say you have a bad cold, you dont need an antibiotic. They have to be happy about that. Where do we stand in terms of research and development in new antibiotics . Tell me how the medical establishment and how the pharmaceutical establishment work to develop new drugs that could take on these very potent bacteria . Well its a challenge because antibiotics are not a highly profitable segment of the pharmaceutical industry, so the Infectious Disease kmupts has been working with the food and Drug Administration and congress to provide a pathway so that research is actually rewarded and antibiotics, when developed, will yield a profit to the companies. Without a profit they do not do the research. Were working on that and making progress. We have a long way to go. We hear a lot about this issue of the lack of profitability in certain drugs or certain vaccines. Is that because the industry is so driven by mass products like anticholesterol medications or low Blood Pressure medications sold to millions and millions of people and these antibiotics are limited and targeted use. Is that why . Very close tyler. Notice if you develop a new drug that lowers Blood Pressure the patient will take it literally for the rest of their life. Antibiotics are short term. You know week ten days and then as a new one is developed, we experts say, dont use it. Leave it on the shelf. Use it only when necessary when the old ones dont work. Not a very Good Business model. Are there antibiotics that youre aware of in the pipeline in the development that you would point to as potentially game breakers . Nothing that i know of as a game breaker, but theres a lot of research pads out there working on new antibiotics. Always great to see you, appreciate you spending time with us today. Thanks tyler. All right. Susan, over to you. Well a new survey shows investor optimism at the highest level since the start of the year. More good times ahead, or is this a sign of caution . That comes your way straight ahead on power lunch, plus casinos are known for having top security so how did a group of conmen walk out with millions of dollars . Coming up right here on power lunch, the wild scam that was all caught on camera. You have enough money to live life on your terms . 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. Welcome back, shares of oil and Gas Exploration laggers in trade today, but off the early lows, Company Reported earnings that miss the expectations after yesterdays close as well as a lower Capital Expenditure forecast. Shares though down 9 earlier on, and now down 2 to 3 . Eog will look to use recent industry weakness to add what it calls high quality acreage or production assets. Tyler, back to you. Dom, thank you. A scheme that began on the other side of the world, and in the end, it cost u. S. Banks millions of dollars. Andrea day now with more. Reporter its no secret that casinos are the toughest place to pull off a con, but this group had machines of dollars hand over to them and some of the men behind the scheme are on the run. One of the main targets is coming in on a flight right now from bangladesh. Were out with Homeland Security headed to jfk airport for the take down. Coming off the flight met by customs and Border Protection officers as well as our Homeland Security agents. The target . This guy sias hussein, a boss in a control Organization Behind a bank fraud. The scheme so sophisticated, it took dozens of con men to steal millions, and the race for the cash was caught on camera. There he is. Hes running. He wants that money. The men according to investigators all from bangladesh making their way to the streets of new york and hit up Atlantic City casinos for big cash using global cash access machines meant for high rollers. New york homeland securities special agent in charge james hayes. The casinos unwittingly facilitated the activity because that type of transaction, thats what the casinos rely on. During the course of it we estimate the banks were robbed of more than 9 million. Hes how the scheme worked. The group created phoney documents and ids for the front men who use the the fake ids at banks creating business checking accounts for companies that really did not exist. Once the accounts were established, they deposited counterfeit checks usually on fridays, before the banks closed for the weekend. Thats because the banks would make portions of the Funds Available immediately for business accounts. The group then drove to Atlantic City, hit casinos, and withdrew the cash. Sometimes four or five casinos over the weekend. Before the banks knew what hit them. Catching the scheme on camera the footage used as evidence to prosecute the case. According to homelands james deboer, this guy is a boss. Waving over the other guy, lets go, get it done, in and out quickly as possible. Youre going to see him run over to the atm machine. Reporter thats the machine meant for high roller. Swipe the card see the money available, and put the request in to take out the money around the corner to the cashier. Reporter calling in the request using the house phone and sends the front man to the cashier armed with phoney ids, he gets the money. 9,000 to 10,000 a pop. One of many hits going down at the same time here. Working two phones running around the casino. He wants in and out quickly as possible. With the most amount of money possible. Reporter the scheme went on for six years with the team depositing thousands of counterfeit checks worth millions at 15 different banks. The banks zeroed in and reached out to Law Enforcement to begin investigating. Thats when they uncovered this evidence, stuffed into a storage unit. Thousands of identification documents, counterfeit checks and a number of other pieces of evidence that gave us a lot more insight into how the organization was operating. Reporter took investigators years to uncover the full magnitude of the fraud and close in on key targets. He was convicted of conspiracy of bank fraud and bank fraud and awaiting sentencing. Four others are still on the run. Back to you. A news alert. A long time new York State Assembly speaker, second most powerful man in the state for decades has just been indicted in connection with a bribery case against him. The charges include mail fraud wire fraud, and extortion. He was arrested last month after leading the state assembly for close to 20 years, and this is a developing story to keep a close eye on. Meantime, gold prices as we have metals markets closing right now. We have gold prices back above 1200 thanks to the fed in its minutes keeping the word patience in the statement. Silver copper palladium as well across the board, looking at gains there and up arrows. The bond market, Rick Santelli tracking the action at the cme. Rick . Well, its an interesting day because everyone is looking at twoday charts using yesterdays ranges as benchmarks, and the ranges were obviously through the effects of the minutes of the fed. Look at a twoday, high yield fell from the course of the day, accelerated by the fed minutes and, of course that steepened the curve for the most part over the years has been flattening. Year to date ten shows, yes, we backed away from settlements last year at 216 and 217 but we are not moving that far on the long end, evidence by the twoday of 30s. Were basically right at or close to the top of the range established before the fed. Look at another area, high yield, a lot of anxiety about the sector about what was going on in energy. The one month spread chart, boy, the spreads have come down quite a bit. Theres the same dynamic in the etf, and the last chart, twoday index, people talk about the notion that janet yellen and company are afraid of a stronger dollar. I understand that. Look at the charts. Looks as though we are getting back to levels traded at before the fed minutes. Back to you. All right, rick thank you very much Rick Santelli. Auto sales surge, data Shows Americans borrowed a record amount in auto loans. Phil lebeau is behind the wheel. The new data will surprise you. Who is borrowing to buy new cars . Well look at nearly a trillion dollars of data when power lunch returns. Todays power house is the nations ninth largest city, the birthplace of convenient store, 74611, and at t is headquartered here. Can you name that city . 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 . If youre running a business legalzoom has your back. Over the last 10 years weve helped one million Business Owners get started. Visit legalzoom today for the legal help you need to start and run your business. Legalzoom. Legal help is here. Heres your cnbc news update for this hour. American express trading lower after a District Court judge rules that barring lower cost credit cards violates antitrust laws, and mx respondsed saying its disappointed in the ruling and will appeal. A combination of three Breast Cancer drugs could prolong the life of some women by more than a year, and this coming from a study published in the new england journal of medicine. The drug cocktail combines standard chemotherapy and targets the late stage Breast Cancer. Good news there. Apples latest Capital Return Program could be worth between 150 and 200 billion dollars over three years. The reason . Soaring iphone sales, apple watch launch, and apple pay growth. For more go to cnbc. Com. The happyist state to live in . Alaska. According to the well being index, its based on 19,000 phone interviews with people in all 50 states. Coming in dead last for the sixth time in six years . West virginia. Thats your cnbc news update for this hour. For now, back to you. Im happy where i live as well, though though its not alaska. Here, we are watching Airline Stocks flying higher today, al although off the session highs. Delta, southwest, american Continental Airlines groups all in the green. Tied to prices of oil, of course coming back from the days lows but still negative. We are watching crude oil closely as for that trades correlation with airlines. Now, over to josh lipton in San Francisco for breaking news. Well were here at the mobile developer conference in San Francisco. Ceo Marissa Mayer on stage talking about why theres so much focus on mobile business at yahoo. Giving statistics pointing out, for example, the average u. S. Smart phone user now spends nearly three hours a day on their smart phone. Thats a lot of time looking at the phone and looking at apps. The most popular being in the fields of gaming social and media. To meet that demand, there are now 500 people at yahoo working in mobile working on rebuilding yahoos apps offerings up from 50 people two years ago. Listen to what she said about what yahoo is doing under her watch. This reinvention of the products for the mobile space is perhaps the achievement im most proud of during my ten year as ceo. And that investment paid off. Weve seen tremendous growth in terms of users, revenue, and time spent. Not only have we seen that growth but weve seen an outpacing of the historical rate, which, by the way, was not hard. Weve outpaced the industry rate. Saying that the Company Generated mobile ad revenue of 1 preponderate 2 billion last year making it the third biggest mobile add company out there. Mayer finally said listen the mobile business for us is no longer a hobby, but a quarter of our business. Guys, back to you. Josh, thank you very much. Auto sales have been surging. The newest data shows that americans have borrowed a record amount in auto loans, but what may surprise you is the kind of loans that are growing fastest. Phil lebeau is behind the wheel for us. Hi phil. Reporter tyler it is the folks with the best Credit Rating right now who are doing the most borrowing when it comes to auto loans, at least they were in the Fourth Quarter according to auto motives which looks at borrowing, tracks it showing us the american consumer. What we saw in the Fourth Quarter is a Record Number of auto loans that were taken out and the total number of auto loans that are open right now, almost a trillion dollars. Its up to 886 billion in the Fourth Quarter. The strongest growth in terms of percentage coming from super prime borrowers. Lateness, people ask about this they remain low, and, in fact when you look at the sub prime borrowers, they are just not seeing the amount of growth that many people have been speculating about. Analyzing the data really does, you know, debunk myths its growing in the sub prime space. We see growth across all, and we see that the market is performing well across the spectrum. Lets look further at the question of is there a bubble in subprime and deep sub prime auto loans . Combine the top two bars its still below super prime credit borrowers. In other words, tyler, look at whats happening for auto dealerships now, are they writing loans for those with the poorest Credit Ratings . Yes, they are. We are not seeing a bubble yet. Clearly not seeing it in terms of deling sis and late payments and repossessions. Those are all below the historical averages so far, and the data for the Fourth Quarter is just a snapshot. We get a complete look in terms of Monthly Payments coming up later on this month. Tyler, back to you. Phil a followup question. Obviously, you can look at one groups data and another groups data, but earlier this week i believe a Federal Reserve survey indicated that auto loan dling sis were up. Low, at 3. 5 but a rise from 3 3. 1 . Right. That was from the office in new york looking at that section of the country, and theres been an increase. They noticed theres been an increase. Look at the 3. 3 its still below the historical average. Were going to see an increase simply because loans are written. Far less loans in the rears than student loans. Phil, thank you very much. Correct. Absolutely. Susan . Back to the stock markets and right now we are looking at mostly lower declines. The nasdaq held the gains. Getting to the big board, bob is following the moves, bob . Hey, susan, we could go either direction looking for one way to go or another. Historic highs, but oil, again, is smacking around energy stocks. We had the biggest weekly addition to inventories since recordkeeping began in 1982. That note was very widely passed around amongst trading this morning, a sign supply is an issue very much also in natural gas. We had problems with the big enp companies talking this morning with eog and noble. Eog announced dramatic cuts than people anticipated, 40 below 2014. Noble energy announced more Capital Expenditure cuts expected weighing on the whole markets. Drillers down as well as oz though they come off as oil came off the lows. Elsewhere, fantastic numbers from the hotels so far. Marriott with a great report as well. Revenue per available room up 8 , higher corporate room rates, up 6 in 2014 15. Not going to find a cheap room. One disappointment was host hotels, a down beat 2015 guidance, which i think was a surprise. See the stock down herement finally, piper jaffe ri the best report on the l. A. Port slow down, nay had it out this morning. They are saying even if the problems resolved now it takes six to eight weeks to smooth the supply. Deliveries disrupt the, impacts margins, and singled out companies in footwear toys and household, and 50 of the products come in through the ports, stocks down today like mattel, hasbro and steve maddening also down. Back to you. Okay bob, before the declines, we have the s p 500 hitting new highs again as bullish sentiment is returning with a survey from aaii showing optimism at the highest level since the start of the year. More good times ahead or is this a sign of caution . Bringing in rob, prosecute president and chief investment officer, and the ceo of first allied Asset Management joining us on the program. Youre a bull calling 20 upside for the s p looking for 2470 in the upcoming months . Yes, yes susan. Investors have to realize where we are in the phases of the bull market. A great way to look at the market is when you first enter youre in the denial phase. Move to acceptance which weve completed, i think, and then commitment, and commitment is when investors are actively raising a risk level of the portfolios. Were not anywhere near the fourth and final phase, the markup phase. This is the greed phase of the market. I think we have 24 months to go until that time and i think the market marches ahead this year and look for a 20 gain on the s p 500. Thats a lot two other let me ask what you think. You are saying youre cautious because it is extremely bullish. Thats a sentiment there right now. Caution is warranted here because of the excessive sentiment, a sign of fraud, and another thing is one of the bull risks on catalysts of this move was the move in wti or crude oil, a 10 spike up. You see a bottom in oil as a six month process, not a v bottom and as bob indicated, we are a wash in supply. I think youre going to give back a catalyst here. Whats the thinking . Rob, you said they are expected to someday low for a while . Yes, they could drop lower. Its a massive innovation in the energy sector. Not only oil, but talk about oil down natural gas hit lows as well. Bullish for the Worlds Largest economy that consumes the most energy in the world. I think manufacturing, Airlines Transportation all of those sectors have much better earnings than expected driving the economy forward. Yeah, what is the thinking if Oil Prices Hover at the levels . They are report cards out there saying that its not necessarily been good for the u. S. Economy. Ultimately, its very good in terms was manufacturing side good on consumer good on the intensive Energy Markets like japan and india. Theres winners. Lets be clear. Theres a deacceleration in growth here. Theres demand destruction, and a polar vortex again. Dont get optimistic on demand. Oil is a process for me and were not there at the bottom yet. Let me ask you about bubble territory. You say valuations, real estate valuations are 18 to 24 months away before calling bubble . Yeah. I think the typical days for the bubble prices to begin, it takes years to develop. Im not seeing evidence of that today. I think people are still very cautious with their money. I know in my High Net Worth sector i work in, people have a lot of money on the sideslines, large portfolios of cash they are not yet deploying because they are cautious with their money. The same is true i think, in the institutional area. Im on a lot of boards of institutions, and i think all the people in the commitment phase move up allocations to equities. I think that moves equity prices up alone substantially. All right rob, thank you so much for your time today. If you want it check out robs calls and plays, go to powerlunch. Cnbc. Com right now to see what they are calling or buying. Dont forget thats powerlunch. Cnbc. Com. Susan, thank you. S p 500 touched a new alltime high today, but now you see six of the ten sectors are lower as is the s p overall by 2 and twothirds points. Consumer discretionary tech, materials, and industrials are in the green right now. Plus next up todays power house is the birthplace of me linda gates, home rt second largest airport, and dean foods is headquarters here. Can you name that city . 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. Hey, girl. Is it crazy that your soccer trophy is talking to you right now . It kinda is. Its as crazy as you not rolling over your old 401k. Cue the horns. Just harness the confidence it took you to win me and call td ameritrades rollover consultants. Theyll help with the hassle by guiding you through the whole process step by step. And theyll even call your old provider. Its easy. Even she could do it. Whatever, janet. For all the confidence you need td ameritrade. You got this. Welcome back, notable area of weakness is the Real Estate Investment part of the market host hotels is the worst today, owner of Hotel Real Estate reported profits beating expectations but sales missed warning of the stronger dollar. The worst performers today, and the vanguard ticker down by 2 . Back to you. Sticking with real estate. Time for power house, weekly feature. It is home to the second larger airport, the city were visiting today, and that would be big d, dallas. Were going to focus today on the suburb of frisco texas. Laura, welcome. The stats on metro dallas accordsing to zillow. Median price is 235,000 inventory of 4,000 property local mls says properties on the market forage average of 66 days. Little more than two months. First listing, 15827 Buffalo Creek drive, 364,000, three beds, three and a half baths, 3300 square feet. Tell us about it. Where is it . Why do you like it . This is a great home at a very low price range. This one has very good architecture built in 2001. It has wood plank flooring, high ceilings in a community that has Community Pools and trails, and for the price range, incredible. Nice finishes there, laura, really beautiful. Obviously a spacious, spacious home. Thats a nice one. What was the price again . 365,000 . My goodness gracious. All right. Im living in the wrong place. Second listing at 5816 arrowhead drive. 825,000, taxes over 13,000, four beds four baths, 4500 square feet of living space, and, obviously, a big garage with what looks like a suite over it. Tell me about it. This is a wonderful community. This is in the starwood subdivision. Very highly sought after community. This is again, not the most expensive, but one of the nicest areas, i think. This one has a pond backs to a green belt area. Just incredible views about every window in the home you can see the views of the pond and the pool overlooking it as well. Oh man, that looks nice golly. Im making a mistake here. Power house of the week, folks, 5 armstrong listed at 4 million, taxes at 23,000 dollars, 6400 square feet of living space. That looks like a mansion. It is a mansion. Very nice mansion. It has a state of the art media room as well. Just incredible. Anything you could want is probably in there home. It has, of course, a pool. It is in a gated community, high end, stone briar mall and stone briar country club. Its probably thee finest living you can imagine. Wow. How close is it from what i think of Downtown Dallas . The dallas tollway probably does not mean anything to you, but it runs north of dallas Downtown Dallas and pretty much anything that follows on its path is kind of like a golden area. We are north of that north of plano yes, i know where that is sure. Just north of there. All right. All right, i like you, laura. Thats fun. Save one for me will you . I will. Come on down. I love it. Going to take you to dallas this time. Susan, over to you. Speaking of mansions theres a power house, you want to check out Donald Trumps first mansion . This lush 5. 8 acres of peninsula off the Long Island Sound a located in connecticut listed with coldwell banker. The home is priced at a cool affordable 54 million including agtd ben rooms, ten baths, pool putting greens and a boat dock if you need it. Back to the top story today, and walmart says its increasing wages for half a million employees to at least 9 an hour. The largest private employer in the u. S. Change the future of minimum wage in the country . That hot topic is coming your way on power lunch. The cnbc Trend Tracker live data board is brought to you by the cme group. We needed 30 new hires for our call center. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. Just like any other girl scouts, the girls in minnesota are selling cookies doortodoor. In the land of 10,000 lakes, doors are on ice. Those are ice fishing huts. This group of girl scouts all bundled up pulling the cookies on a sleigh selling thin mints to ice fishermen in minnesota. Lets look at the power points from the hour, what we learn. Walmart seeing an increase in customer traffic for the first time in nine quarters. Comp sales for stores open a year jumping. 9 29 states have minimum wages above the National Average, and yahoos ceo saying this hour that the thing shes most proud of in her time as ceo is the companys reinvention of mobile saying the companys investment paid off in firms of users, revenue revenue, and time spent on the site. Susan . If you missed the stoifrries in the last hour, go to powerlunch. Cnbc. Com to get updated. Sub prime auto loans were talked about today, and they are on the rise again. Todays Yahoo Finance question of the day asks is there a bubble forming in car sales . Well, 54 say yes, and 23 say no and 23 say they are not sure. Lets get back to San Francisco for breaking news. Josh lipton is on top of it for us. Josh . Reporter well, yahoo s executives have taken to the stage at the developer conference making the case they are now a mobile First Company pointing out the mobile ad revenue, 1. 2 billion last year from 0 to 1. 2 billion, they add. If you keep momentum going, keep consumers happy, advertisers happy, and you got to wow the 1,000 developers in the audience right now. So yahoo introduced the yahoo mobile developer suite, a new set of services and tools for developers to help them better understand their audience better monetize apps. Look at yahoos stock up 1 , up double in the last 12 months. Back to you. All right. Another market flash with dom on the desk. Watching colgate, volatility here, they anoujsed a 6 increase, and a new 5 billion Share Repurchase program. You can see spiking and movement there in the company. They moved up sharply, and now moving down off the highs, susan. Back to you. All right. Get excited. In the house is a voice of american greed. Thank you, susan. Tonight is the 100th episode, and we want you to check out the series by the numbers. 161 criminals profiled. Over 3,000 years sentenced. Nearly 50 billion dollars lost by investors. Power lunch returns with more american greed right after this. Know your Financial Plan wont keep you up at night. Know you have insights from Top Investment strategists to help set your mind at ease. Know that planning for retirement can be the least of your worries. With the guidance of a pnc investments financial advisor, know you can get help staying on track for the future youve always wanted. [ male announcer ] your love for trading never stops. So open an account with schwab. And when a market move affects, say a Cloud Computing stock youre holding, we can help you decide what to do. With tools that help you see how market activity is affecting your positions. So when the time comes to decide whether to scale in or scale out. You can make your move wherever you are. And start working on your next big idea. Theres a gap out there. Thats keeping you from the healthcare you deserve. At humana, we believe the gap will close when healthcare changes. When frustration and paperwork decrease. When healthcare becomes simpler. So lets do it. Lets simplify healthcare. Lets close the gap between people and care. Coming up a wall martd game changer, did they boost the minimum wage for every single american . Digging in, plus, the biggest news on oil weve had all year and do you know which commodity that you probably love has quietly fallen more than oil this year . The answer and maybe some opportunity ahead. Melissa lee and i at the top of the hour but first, back to you. Thank you very much brian. Normally, wed roll the tape ourselves. But today . The voice of american greed is here with us. How lucky are we . 100th episodes, congratulations. Thank you very much. All day on nbc were going to lead you up to the 100th episode tonight at 10 00. By looking at some of our worst offenders. Take a look at this. American greed 100, the greediest cons, the cunning cowgirl straeling over 50 million for a horse impyre the largest municipal fraud in history. American greed 100th episode at 10 00. The nba allstars of greed. Exactly. You said one of the things you love doing is shakespeare . I do. Can you give us richard iii . Now is the winter of our discontent, may a glorious summer by this son of york all right. So, tonight, the voice of greed will come on. Are there any particularly memorable episodes . I have to say it not just because its tonight, but tonights episode is one of the best weve ever shot. Our producer and i were discussing sort of the history and the past and theres another wonderful i mean, tonights but theres a great z z, z . The best carpenter. Yes. And there were a couple ladies some years ago in our first season who took out insurance policies on Homeless People and signed the money over to themselves. Then went out and murdered the Homeless People ran them over with cars. They were caught on tape saying what they did. How did you become the voice of american greed . Youre the voice of greed thanks to chuck. Thought you were good for it . Yes. And found you. Exactly right. You had a long career in acting, but the voiceover something you do . A lot of voiceover work narrated worlds most amazing videos years ago, a lot of animation animation, a character on the simpsons pleased to say, and i did a thing on from shakespeare to the simpsons. You have a range. A lot of variety. American greed is on in asia. Its popular over there . People watch it. It airs sometimes at noon during lunchtime, so the traders at the desk are watching american greed, and your voice is recognizable. Greed is universal. For sure. Not just american. Global greed. Thats one way to put it. Thats the title. Global greed. Congratulations on the hundred episode. Thats all for the first hour of power. Ms. Lee and i turn it over to you. Good to see you, and, susan, thank you very much. Appreciate it. Try to continue the good work here. Welcome to the second hour of power, im Brian Sullivan and melissa lee is at the nasdaq. We are 28 points down and nasdaq higher by 20 oil down 2 and gold though bouncing back at 1208 an ounce. We have huge news from walmart, raising the wage to 9 an hour in april, and then to 10 by february of next year. More than 500,000 wallmart workers get a pay raise, and its down 2. 8 . Retail industry veteran says the wage boost is a home run for walmart and other workers in the economy. Today, the governor with the National Employment law center says walmarts move was, quote, inadequate, and theres a long way to go to help its workers. Welcome, everybody. Diving into this, january, you emailed me this morning, getsing jan ready, and ill go to you. Why do you believe this was not enough on walmarts part . I think that the announcement is a small step in the right direction, but at the end of the day, were at a place where 29 states have increased minimum wage at 7. 25 where Companies Said that they would raise wages to cities like San Francisco and seattle raising it to 15 an hour. While the move is a welcomed first step its not enough considering the company is so profitable hosting 16 billion in profit last year. Because its the largest private employer in the country employeeing 1. 3 million workers, theres an obligation to do better and raise the wage more broadly. What you pointed out, what they do impacts far beyond the workers. 10 an hour in february far above the minimum wage its good, but not good enough . Thats right. I mean, 10 an hour annualizing that, thats 20,000 a year. That is assuming full time work. Another key issue workers raise is the fact they dont get fulltime hours even though they need them. 20,000 a year is not enough in the economy no matter where you live in the u. S. To make ends meet and something we have seen from the protests that have happened over the last couple years is that walmart soernts are adults raising families really depending on the income and spending their careers in the positions. You know 20,000 a year better than it is right now, but much more needs to be done. So in your mind then whats a fair wage . Whats the minimum living wage that you would offer if you could advise walmart . Well i think theres a lot of factors to look to want look to house cities like San Francisco and seattle have been able to do 15 an hour wages. The fact that if it just kept up with the cost of living, it would be above what it is today. Look at you know how worker productivity rose and the minimum wage has not. The real growing gap income inequality gap to stifle growth a lot of factors to look to. At end of the day, the workers demand 15 an hour. Thats 30,000 a year assuming fulltime work a much more realistic standard of living. You think they should still demand 15, not happy with the 9 or 10 next year . This is a first step. I think the workers should and probably will be demanding more. A pleasure thank you so much. Thank you. Let us now bring in jan rogers. Okay, you emailed me this morning saying, baesically this is not just good for walmart, but all workers assuming retail as well, workers in america. Why do you say that . Do i smell, come closer. I say that because right now president obama should be sending doug a belated valentines card saying thank you for the raise because walmart employees a Million People in the united states, and the largest employer in the country, the biggest in retail by far and this is going to cause everyone else to move their direction. When prices go down at walmart, price prices are down everywhere. So if you are a target coles, and are you sitting in the board room now in an emergency meeting saying were going to have to raise wages too, otherwise, were not getting the best candidates. More likely if youre a target than the rest of those you named and the Dollar Stores and five below. Anyone who plays in the space, you got to go wow, we better think about this. This could put us out of the box as far as the ability to hire people. Im excited about it. Curious, what happens to eps . Lets say were seeing it in the reaction to walmarts stock today down sharply. Say it causes targets and the other big, big box retailers to also raise wages, does that dent eps going bard . You know sometimes the streets stupid and this 1 one of the times, walmarts going to put this in place, going to see everybody follow suit. Where do the people spend the money if youre a minimum wage employee . You spend it at walmart. I think long term this is going to be a real positive for walmart with better employees, happier people the federal government will be off their back, State Government off their back local government it is off their back and the unions, that pretty much puts a stake in what they say about what walmarts doing wrong, and walmart will no longer be the most hated retailer in america like they came out on the scape last year. Do you believe, though to the point, i understand what shes saying people want to make more and have a living wage, could a retailer pay 15 an hour . Could they . Sure. Could they make money paying 15 an hour . Probably not. Without raising prices right . Theres competition, right . Wed all raise everything if we could, sell everything for more. Guess what . Know why we dont . We cant sell it if we do. If you pay people more you can sell for more because they have more money. Over time the chickenegg argument. We go from 7 to 9, 10 next year, that probably all works. We go to 15 it does not work. I dont know about 15. It probably doesnt work so well across the economy. It may work in seattle. That was the example she was using. And San Francisco. And San Francisco. Thank you very much. See you soon. Pleasure. The other huge story today, 40 cult in Spending Plans by eog resources. S houston based company slows output growth, and they are not a small player. This is one of the biggest players in the biggest fields in texas, the eagle ford shale. Eog grows production by 50 every year for five years, and its a job creator. This arguably the biggest hit seen yet from a Capital Spending cuts announced. Melissa, i guess we can find good news this this. I know you guys talked about it on fast money last night. Cratered after hours, but coming back. Is there a Silver Lining in that . Best cure for low prices is low prices. Seeing the worst is out there with eog, brian, and outstanding questions when it comes to cap x and plans for the future. Exxon mobile did not unveil the budget. They will do that the march 4th analyst meeting. There are shoes that could drop, perhaps for eog, the interpretation of the stock right now is the worst is behind it. You talk about eog, brian, and talking about oil stocks in general, compared to the s p 500 dhrks is a chart for the past month. Over the last month since the bottom in brent, brents up 30 since its january low. This is what happened to the oil stocks. The blue line here is the oil index, xoi, up 8 , double the gain that we saw in the s p 500. Where we are seeing the most movement, though, brian, is in the refiners stocks. Look at this. These are the refiner stocks here. Western to valero new highs in the session. Theres few reasons why the stocks are the pocket of strength in the oil index. First of all, refiners are defensive in a week crude tape which is what we had so far. Also, they generate good free cash flow. The dividend is protected. Western refiners i dont know did you know, brian, a dividend of 2. 8 , and in the amount of time, the last month or so, brent ti spread improved pumped up a lot. Remember in the Fourth Quarter, it virtually collapsed, negative for the refiners. With the ti spread widening that is beneficial. Weve seen it play out. Huge gains, brian. Up 26 in the past month. Valero up 3 2 . Wig big, big strength. Sprinkles to the analysis. A cherry on top. The names do not get attention, a couple billion dollar market cap companies. Remember studies have shown one of the things people did the most with low gas prices 1 they use more gas. Driving more. That means more refining and margins, there you go. Exactly. S p off to a great start this year compared to the rest of the world, top is russia sweden, and portugal. U. S. At number 34. Is it time to bail on u. S. Stocks in favor of europe . Lets bring in jack. Great to have you with us. Thanks, melissa. Recently bmo is 50 overweight u. S. Stocks and said you are preparing to sell a good chupg of the position. Have you . We have not yet. Part of the the look was looking at some of these european markets hedged to the dollar. They are up instead of you know, 5 or 6 , but up 12 , and so thats a good trade. Im enjoying the u. S. In fact this walmart news is good, going to spur inflation, perhaps combined with other wages, that could be a strong signal for the u. S. Really looking at momentum. I want to see that you know if momentum here slows down a little bit thats going to be the indicator we want to you know move away from the u. S. And go into the cheaper markets that appear to be starting to move in the right direction. What do you look for . One thing to say i want momentum slow down. What specifically would that be . I mean, look at europe. We see the european markets out performing the u. S. Markets. Are you missing that boat waiting for the u. S. To start dying down . Yeah. Im not worried about a little under performance on a relative base just because i think this is probably a three year trade. International markets, europe in particular trading at probably a 30 discount to the u. S. Emerging markets which are still further out there trading at a 50 discount to the u. S. Im willing to leave a little incremental return ton the table to prove it is that weve got traction there. That said i would look for, you know, anything related to the 200 day moveing average. For example, s p 500 is still trading probably 6 above its 208 moving average. The good news is the moving average is moving at rate of 13 per year keeping the market on a short leash. If the market does not continue to move in the 13 to 14 annual return pattern, that crosses. When it crosses and gets close, thats the signal things are slowing down and time to move on. Its been a great story in the u. S. Weve been here you know really in both feet since early 2010. Big time. Certainly, started picking up the signal in june of 2009. You know we went over weight and then max mali overweight early 2010. Jack, to your point, do you think the news on walmart changes feds thinking on inflation and rates . I think it could. I certainly like the most recent employment report. We did have wages rise you know, at long last and the year over year now, wages rising at 2. 2 . Its above the fed target for the first time in a long time. You get walmart and perhaps other pressure on minimumits ultimately a good thing. Give people 20 an hour and eventually prices go up and just be able to afford the same thing. I mean, if, you know, if youre earning 10 an hour and a loaf of bread is 2. 50, make 20 an hour loafer of bread becomes 5. You cant make something from nothing with minimum wage but it will spur some inflation. All right, jack thank you very much. Appreciate it. Thank you. This just in. The white house praising walmarts wage hikes saying theyll raise productivity and reduce turnover. That is the white houses first reaction to the walmart news. There you have it on cnbc. Allow us to set the menu for the rest of power lunch, lawmakers attack a brawl in a parliament. We showed you ukraine last week. This one, another one, another country. Where . Plus, why so many Chinese People are nervous about the year of the sheep. Pink floyd there. Huge story involving American Express. This time . Has to do with the kourtdcourts. We are back with power lunch after this. Ameriprise asked people a simple question can you keep your lifestyle in retirement . I dont want to think about the alternative. I dont even know how to answer that. I mean, no one knows how long their money is going to last. I try not to worry but you worry. What happens when your paychecks stop . Because everyone has retirement questions. Ameriprise created the exclusive confident retirement approach. To get the real answers you need. Start building your confident retirement today. Were going to have to turn parliament brawls into a weekly segment. Theres another nasty one out there in turkey. Trading punches and throwing chairs. The worst part of this . The clash broke out while lawmakers debated how much the cops should have in breaking up demonstrations. Five members of kinder erergarten excuse me, parliament, were injured in the fight. Meantime celebrations in china to welcome in the sign of the sheep, but its seen as an ominous one. We have more from china. Reporter the sheep is the black sheep of the 12 animals in the Chinese Zodiac. The domesticated farm animal is seen as timid, weak destined to be a follower. Not great attributes for superstitious parents who believe children take on characteristic of their sign. Hospitals here see a flock of people trying to avoid having a baby in the year of the sheep. Some of the hospitals reporting an increase in expecting mothers lining up for csections before the new year kicked in. Its not all bad news. Several successful Business Leaders born in the year of the sheep like bill gates and steve jobs were born under the sign. What was your sign . Ox. I have the bore. Haha how appropriate. Sorry, had to say that. Thats not nice. See, thats not nice. Accurate accurate. Anyway thank you very much. May be a big celebration in china today, in the u. S. The party is at a standstill thanks in part to the pork problems jane wells is live with more. Jane . Jane . Hello . Reporter brian, there are 18 million americans of asian dissent all celebrating today or their friends are or people who like a good party, and here in l. A. s famous chinatown, well they could be making more money than hay are because they have had souvenirs for today on the port out on the docks for two months in a container. They got the container yesterday, but theyve not had time to fully up load all the stuff, but the show must go on, and so some stores are actually flying in their merchandise, even though it costs more. And the hope is that a lot of the merchandise will be generic to use again next chinese new year, but if its specific to the sheep or the ram or goat whoever you are, depends on where you are, what you think it is, well that year does not come around again until 2027. As for the court standoff suicide, tom perez meets with both sides as well as the commerce secretary and walmart, even Big Companies like walmart are starting to see pockets of shortages on sales, but its mom and pops like this store hurting the most. As for negotiations one more point, brian, management cement out a letter to members detailing the last best offer. Somebody, quote, repurposed that letter and sent it out to all the union rank in file at various ports presumably in effort to get them to pressure Union Leadership to take the deal. Forget it, jake, its chinatown. Back to you. Great reference there, great movie, a creepy ending. Mother sister mother great, thank you very much. What exactly does the year of the sheep mean for your money . We have been digging in on that. Whats the sheep tell us . Well, brian, first of all, we should say were not trying to glean anything about what stock Market Performance should be a causal effect because of a year in the Chinese Zodiac but the team here at cnbc looks back over 50 years towards the zodiac cycles to see which are the best signs over the 50 year span. Theres four observations for each. Here are the average returns for s p 500 by sign. First of all, fourth best performer, the hare the rabbit on average those years s p is up 13 . Not too shabby. Move on to here, the ox the cow, the bull whatever you call it, its the third best s p in those years up 16 . Now over to you, brinean, the bore, the pig, up on average 16 in those years, and single best performing zodiac sign over the last 50 years with four observations is the sheep. The goat the ram. Even though it may be a timid sign, the thats a horse. Well thats its a goat. If you see the hair on the chin. Thats a goat . Theres hair on the chin. See it there . Oh there we go. See . Oh thats a goat . The interesting part brian, the worst performer, the zodiac sign was the horse. An average of 6 declines for the years, and last year the year of the horse, but we had a good year up 11 . Despite the fact that melissa insulted us born every 12 years in the year of the bore, were tied with the water yak. I only insulted you. That is true. That is fair. Im one of national called to action, the year of the bore we have to step it up, folks. Born in 7 1, step up. There you go. Thank you very much. You got it. All right. On deck and this actually has to do with melissas good quip. Todays answer to the trivia question, which commodity fell the most over the past month . Its not oil. It is not even platinum. Well have the answer ahead. Plus im grahm hot, and i get paid for this. What it takes to be a ski guide next on power lunch. The smartest or nothing. The quietest or nothing. The sleekest. Sexiest. Baddest. Safest,. Tightest,. Quickest. Harshest. Or nothing. At mercedesbenz, we do things one way or we dont do them at all. The 2015 cclass. See your authorized Mercedes Benz dealer for exceptional offers through mercedesbenz financial services. When the moments spontaneous, why pause to take a pill . Or stop to find a bathroom . Cialis for daily use is approved to treat both erectile dysfunction and the 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. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision or any symptoms of an allergic reaction stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a free 30tablet trial. Shares of American Express take a hit after an Unfavorable Court ruling after the credit card company. Heres the details. The latest in a string of bad news for American Express. A federal judge siding with the government in ruling the payments giant violated antitrust laws because of a merchant accepting American Express on American Expresss orders would encourage or insent vise a customer to use another card charging a lower processing fee. They plan to appeal the decision and said todays decision harms competition by entrenching the two dominant Payment Networks visa and mastercard. On the heels of last weeks decision to stop accepting only American Express in the u. S. Store, and jew blues decision to end the relationship with amex. Todays ruling addsing to the stocks now 17 decline this year making it the worst performing dow kpoencomponent. The costco news hurts the most a big hit to the earnings and revenue and next, and jet blue is least impactful, and todays ruling, its upnlikely to hurt transactions in large retakers because they negotiated rates like they pay others like visa and mastercard so theres little incentive. What it may affect though is amexs blue program aiming to increase the number of small to midsize merchants giving discounted processing fees. That may prompt merchants to ask for a bigger discount. Brian, back to you. Thank you very much. Every week, we introduce people who get paid to do cool jobs. Last week we had a helicopter pilot taking skiers up the mountain. Today . Meet the man who gets paid to help them get back down. Im graham holt and im paid to be a heldski guide. People see the job as extreme, taking a group of people up into the mountains and providing them with untracked, epic powder runs that we can get significant amounts of snow that blow peoples minds. On my given day, you deal with weather, obviously, snowfall changes in temperatures personal injuries making a wrong turn and seeing into a tree. Theres the whole other component of, you know flying innage aircraft with multiple landsings and takeoffs. Avalanches are a concerned, but everyone in the group has a backpack, and there is a probe. Those used as guides. Theres a collapsible shovel and so you are using that probe and shovel in the very unlikely event of an avalanche rescue scenario. Everyone has a radio sending on the avalanche receiver to keep clients safe. Best part about the job is i get to be around happy people every single day. I love my job. Yeah he gets paid for this. He says the challenge in the line of work is not necessarily the weather or risk of avalanche or accidents. It is, well to find out, go to p. O. W. Powerlunch. Cnbc. Com. The year of the pig stands up and we do it every day at this time counting down to the oil close your settle price today coming up when we return. [ 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. Here are your cnbc news update headlines this hour. The federal trade commission filed a lawsuit seeking to block the merger between cisco and u. S. Foods saying that deal would violate antitrust laws by significantly reducing competition. The u. S. And turkey sign a deal to train and arm syria rebels. The u. S. Military said it plans to send more than 400 troops to train syria moderates outside that country. The fda warns traces of peanuts not listed on labels turned up in several shipments of the spice, cumin, although hundreds of products are pulled, Officials Say people with peanut allergies avoid cumin and foods containing the spice. Mark cuban blasted the fcc for the plan to fundamentally change how it oversees the internet. In remarks that the code conference out in california mr. Cuban said Net Neutrality is just a demonization of Big Companies. Go to cnbc. Com for more. Coming up this evening, the ceo of red robin 5 00 p. M. Eastern here on cnbc. Thats the update at this hour. Back to you. Thank you very much. We talked about how drilling rigs laid down may not help the supplydemand balance in the oil markets, and theres more evidence of it last night. Lets get down to jackie with the oil close and that huge inventory build that we have. It was a big build, brian, but we were pairing our losses as we head into the close where wti settled, down substantially early in the morning because the api numbers came out seeing 14 million builds but thats a private survey, we got the doe number, the build 7. 7 million barrels. Whats going on . 7. 7 million is a steep build. Priced into the market, and traders sold and bought ranges at that point, thats why we paired losses into the close. At this point, two issues out there. Will we see less supply overtime . Will we see demand pick up to get back in balance here . Is this oils way of just trying to find a bottom . Or is this volatility just a signal that were going to go substantially lower from here if we continue to see builds like this in the coming weeks. That is still very possible brian. Back to you. All right, thank you very much. Now for a market flash. Talk about lorillard boosting an increase from current levels right now. Remember, we are talking about the latest in a slew of Companies Already today that have increased their dividends or announced a buyback or special dividend program. Cocacola boosted dividend payment, and also put a 2 special dividend on the table for investors, colgate had an increase, and abbvie boosted as well. Back to you. Thank you very much. Believe it or not, folks, 20 degrees in chattanooga, tennessee right now, 58 in miami. Cold weather is impacting your breakfast. Orange juice futures move higher, temps moving lower in florida, but balance out by bacon. The worst performing commodity over the last month is not oil, not platinum or silver but lean hogs down 10 in the futures market this month down more than 20 this year. Breakfast aside, can you make money off the trends . The ceo of Kkm Financial and Vice President at Price Futures Group joining us jeff, startsing with you. Back in 2009 to 2012 the greatest moneymaking opportunities in commoditys history when orange juice futures rose 220 in 36 months. Whats your take . Moneymaker or dedsad money . Seems dead right now. I tried to text lourn this morning, but hes not gotten back to me. We are seeing the next 24 hours critical in florida. The coldest day on record. 1960 they logged 36 degrees, right now the farmers spoke this morning they are concerned. Not just the temperature, but the wind dying down. If the wind dies down well see the crop freeze as well as the blossom freeze spiking oranges. Right now, we are optimistic. Its not going to have the damage a lot of folks anticipate. Jack what do you think . I would agree. Its very hard to get the orange trees anymore. A lot of production has moved so far far south in the state, youre talking about a temperature in miami of 56 degrees with the lows near 40 degrees. Go straight west over near over near the lake there, and you can see that even though the temperatures might get colder they are still above the threshold to damage the crops. Its getting late in the season to do a whole lot of damage down there. It takes just perfect conditions. Unless the winds really die down and we get a lot of radiational cooling, i would suspect were going to avoid, a near miss. Hog futures fell 50 in a matter of a year. Its light hearted, many of the viewers say, great, bacon is cheaper. Is there a way to make money off this . Should we go buy a couple pigs . Well, i dont know that you need to buy picks. Probably look to see did we couldnt get some type of a quick literally in through here or some type of point to sell futures or look at the puts. When you look ahead, were going to have expanding supplies of course factoring some of that in now, but they will hit the market and eventually, that continues to slide down to the retail level. Prefer to look to sell futures or buy puts or Something Like that. All right. We have to go. Jeff you are now the sauce sang king of chicago. Thank you. One more temperature note for you, 46 in mississippi right now. Ouch. From swine to street talk. Almost said sweet talk. Could be. Five analysts to know. Delta airlines huge Airlines Call from bank of america, merrill lynch, seven got a buy, delta the top pick. By the way, alaska and hawaii and virgin hit with under performs. Interesting American Airlines getting cautious comments. Credit swiss lowered to 65 and 2015 is a transition year. Skepticism as stocks had massive runs. A new high in the session, jp morgan niche gaits coverage, the price target strong reit on k1 bookings sparking a rally in the sector. A lot of positive buzz, raising estimates for 2016. Keep in mind though, thats way higher than the average price target on cruise lines just under 51 a share. Jpm very bullish. Next up Tractor Supply co bumping to an out perform from just a perform. Their target . 95 melissa, not huge 10 to 11 upside, but its a hot stock up 30 in the last year. Run in the Fourth Quarter last year, brian, and this is a stock in a sector getting buzz. Buffet revealed a major stake in deere. Positive sentiment overall. Next up tesla motors stanley pounding the table again. The analysts there, jonas, a long time bull maintaining the price target saying shares could be at an alltime high by year end, but theres a number of ifs. Its got to deliver, got to deliver, got to deliver, and, brian, whats interesting in the move today in the session it looks like its perhaps finally decoupling with oil. Melissa, is any tesla buyer oil price sensitive . Not yet. Not yet . The lower end model will be price sensitive. Yes, but the only model available now is model s. Its expensive. Doesnt matter. I understand, but facts together, theres a correlation, undeniable. Undneniableundeniable. Undeniable. Not just a river in egypt. Sunniville california focuses on small drugs treating cancer, et cetera upped from a buy to a neutral. The target, i dont know why they do this but the target is 195 196 from 195. 1. What is this the price is right . Just priced right all the analysts out there. Strong earnings all about the drug, and as you mentioned a treatment for leukemia as well as cell limb foe ma. Street talk is over. Thats undeniable. Melissa. Not just the river in egypt. No. More ahead, and Yahoo Holding the first ever developerss conference and 11 billion valuation on pinterest. Is that fair . Is that rekick louse . Let us know. Thats coming up. The road. It can bring out the worst in people. But the mclass scans for danger. Corrects for lane drifting. And if necessary, it will even brake all by itself. It is a luxury suv engineered to get you there and back safely. For tomorrow is another fight. The 2015 mclass. See your authorized dealer for exceptional offers through mercedesbenz financial services. 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. Daughter do you and mom still have money with that broker . Dad yeah, 20 something years now. Thinking about what you want to do with your money . Daughter looking at options. What do you guys pay in fees . Dad i dont know exactly. Daughter if youre not happy do they have to pay you back . Dad it doesnt really work that way. Daughter you sure . Vo are you asking enough questions about the way your wealth is managed . Wealth management at charles schwab. Can it make a dentist appointment when my teeth are ready . Can it tell the doctor how long you have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is can your business deliver . Check out shares of yahoo today, down 13 so far this year. Today, dow was hold inging. Melissa, at the conference, the ceo is taking the time to explain to developers here this skees had in billing a mobile business under her watch. Take a listen to what she had to say. The mobile revenue grew seeing 1. 2 billion of mobile revenue making us the Third Largest mobile ad company in the world. Theres 500 people at yahoo working on mobile up from just 50 a couple years ago. Executives introducing a range of services and tools for developers to help monetize their apps. Of course, you have to keep developers happy if you want to keep momentum in mobile going. They said that finally take a look at the stock, up 1 today. Up about 16 over the past 12 months though down nearly 20 from that recent high seen in november. Brian, back to you. Josh thank you very much. While Marissa Mayer holds the first mobile conference, you cant help but wonder what the company has in store down the road. Thinking they should watch japan japans core business, does that trump mobile or an ie side to watch as investors . Its an aside. Obviously, alibaba is a huge piece too, but those are both asides both important because at the end of the day is that the investors are not giving much credit to yahoo core the whole point of the mobile Developers Conference to reemphasize that but i think that all of them are important parts, and i think this really is a story thats not had much respect behind alibaba, and theres room for investors to become more on the misptimistic. Some of the parts analysis i imagine baba was a part of it now that the baba part is spun out, when it comes to core and yahoo japan, how much of whats left is japan versus the core in. 10 of whats left and the core again, strip out alibaba, the core is worth almost nothing at this point, and so its you know if you assume theres a 5 billion valuation on the core, you get to a 50 stock implying keeping that in perspective is that instagram is rumored to be a 30 billion. You talked about pinterest valuation. Its not giving yahoo core much credit. Theres room for upside in the overall shares. So does holding on to yahoo japan give cushion to turn the core business around . It does. I mean shes had two huge gifts, the biggest one, obviously, alibaba and yahoo japan to give her more time to really build the mobile business in the core and so i think its still lacking some of the spark thats going to get the average consumer excited about yahoo. More work to be done there. Does the valuations of snapchatp snapchat, pinterest, and others elevate the value . Theres big numbers out there. There are. They all have the experience of something exciting for consumers. Theres impressive growth. Look at the yahoo core its still declining. The mobile part is growing, but the desk top part is declining. The others mentioned are prerevenue or have huge revenue growth. Hard to use them as comparables. Going to leave it this. Thank you. Thank you. Speaking of pinterest, is it worth billions . Did Ryan Seacrest copy blackberry . Who pays for Space Exploration . Its me versus the bore, brian, two minutes away. S fast and taste better than tums smoothies assorted fruit. Mmm. Amazing. Yeah, i get that a lot. Alka seltzer heartburn reliefchews. Enjoy the relief. 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. Hello, im stacy keach. In honor of american greeds 100th episode at 10 00 im taking over point counter point. First up pinterest trying to raise 500 million that would put the companys value at 11 billion. Talk about american greed. Bubble or no bubble hm . I dont know stacy. Fantastic. You do it way better than we do. The voice is amazing. I do not have that voice. Its not for me to Say Something is valued or over valued under, its not my job, but i will say this that would put it at the same valuation of ralph lauren or tiffany. Take a look at what uber did. Were talking about a bubble in the nasdaq as it approaches 5,000. You have to wonder whats going on in the private market at this point. Blackberry suing Ryan Seacrest startup typo saying theyve stolen their keyboard design. Is blackberry right . I love it when stacy keach i think he should do this every day, brian. So do the viewers. Sure. Blackberry won a temporary injunctionin injunction against typo. This company, take a look at that. It looks almost the same. I do think blackberry has something to stand on at this point because they won that first injunction. Maybe blackberry should go back and sue gutenberg, the qwerty keyboard. Im kidding. Is this how far blackberry has fallen fighting with Ryan Seacrest . Blackberry, out. All right. Final topic for today. Americans want to stop tax dollars from going into space. Just let guys like elon musk and Richard Branson pay for it. Blast off, guys. I think i think that in some cases, yes, but overall the American Government and taxpayers should fund space travel. Why . Because its what we do great as a country. What do you mean . Going to the moon. It unites us all. One small step for man, one giant step for man kind. It unites the country. Its something we all can be proud of together. Rich guys can have their pet projects, fine. If were going to do cool stuff. Taxpayers should be paying for cool stuff, brian . I mean, think of some of the greatest advancements and Cutting Edge Technology like solar and electric vehicles. Its not the government that funded the best technologies its the private Companies Like a tesla. Or dineberg because the electric car in 1898 was the first symbolic brian, that solyndra the headquarters taken over by solar city. We cant compare walking on the moon to solyndra. The technology. Is the government an investor . Investing in space technology. Nice to have things as a country we can be proud of together regardless of your political themes. Baseball and apple pie. Thats what i say to you. I dont like baseball. The games take too long. Our thanks to stacy keach for moderating. Watch the 100th episode of american greed tonight at 10 00 here on cnbc. Coming up lots of reminiscing about nasdaq 15 years ago. One stock trading today. Plus well tell you where brians headed for tomorrows show. Heres a hint. Hed better pack his snow boots. 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. What does it mean to have an unlimited Mileage Warranty on a certified preowned mercedesbenz . What does it mean to drive as far as you want. For up to three years. And be covered . It means your odometer. Is there to record. The memories. During the mercedesbenz certified preowned sales event now through march 2nd, youll get complimentary prepaid maintenance and receive your first two months payments on us. Only at your authorized mercedesbenz dealer. Take a look at this picture from North Carolina. A jeep backs out of a parking space and leaves behind a perfect Ice Sculpture of the front grill. That is unbelievable, brian. Yeah. Its it is amazing. I mean youre looking at Something Like that. Listen, these Southern States i mean its when you get a little ice, you get a little snow its a dramatic thing. I know a friend of mine lives in North Carolina his kid is out of school for a couple of days because he had a dusting of snow. Youre tougher than that. Yeah. This is portland maine, where there is so much snow that the dumping grounds are already full and if it gets any higher it could interfere, get this with planes landing and taking off at the nearby airport. This is what it looked like in boston earlier this week. Speaking of boston that is where this show will be headed tomorrow. We want to examine not just the snow. You know the weather story, but the economy. How do you run a business . A lot of restaurateurs reaching out, were struggling. Is government going to do anything . We have Great Investors lined up. A lot of stock picks but well do it with the back drop of 27 feet of snow. A lot of the residents of boston have taken it upon themselves as a pastime to jump out of windows into snowbanks which the mayor does not like. I dont know if youre going to try that. You might want to put it on the agenda. As a representative of this fine network, i shall not. You shall not. Were going to talk to Business Owners about how you operate in this. Theres no sparking spaces. People cant get to work. Right. I talked to somebody on the phone, a 45 minute commute to work, four hours each way. The city effectively shutting down. A major economy. Well get the usual, melissa, good picks. 8. 4 94 a share, that will remind you of the nasdaq in 2000 when it wasnt so unusual to see a stock up 90 or 100 bucks in one day. More reservations for hotel rooms and rental cars on price line. Meantime brian, tonight on fast money the ceo of red robin, steve carley. Are e they taking share from mcdonalds. Theyre awe couple bucks off their 52week hayat this point. It was a 7 stock. Now its an 82 stock. Burgers. Burgers have been better money maker in some cases than some of these high tech wizardry conditions melissa. Thank you. Yeah. Thank you for watching. Get your power lunch to go. Powerlunch. Cnbc. Com. Close closing bell starts right now. Hi welcome to the closing bell right now im kelly evans at the new york stock exchange. Im bill griffin. Mixed day. Look how close we are. The steady march back to 5,000. The last time the index had a five handle we all remember that back in march of 2000. We know what happened after that. We are a mere 75 points away from nasdaq 5,000. The dow is giving up