Transcripts For CNBC Power Lunch 20150420

The biggest gainer is the qqq, the nasdaq etf. China with an aggressive move allowing more flexibility. It is soars today, as you would imagine, up more than 4 . Bob, its a good rally, but were not quite getting back what we lost on friday right . But if youre not confused about the action the last couple days i dont think youre paying attention. We are down 280 points on friday. At one point today we were almost on the verge of getting it all back. Put up that twoday chart. Were basically almost back to where we were. Lets not quibble. The point is whats going on . Why is this happening . Ive asked many traders this morning how to explain the last two days. No alternatives to stocks bob. Theres no reason they should have been down on friday. Chinas going to stimulate other people are saying bob, its an illusion. No matter what its true i think mand,is right, china has been sending some mixed signals recently. By the same time on friday they came out and banned margin financing, theyre saying were going to keep stimulating, owner saying we dont want a stock market bubble. You can see the shanghai and china markets down right now. Techings and industrials are having a great day. This is the best day for ibm probably all year. Microsoft, the industrials like d. On or about techs are doing great, your leader apple i got the usual handwringing from people who were worried about it. Today its knocking the lights out up 2. 4 . So your boiling oil are all up on new highs of the day. I think, brian, the point im trying to get across is if the trend is your friend whats the trend . Thats what everybody is having a hard time trying to figure out. I think you used your powers of perception and went deep inside the brain. Fantastic, bob pisani thank you very much. Jason pride is our next best. Hes moving more into asia and europe. Ive got to ask you, were down big on friday up big today. What in the world is causing this relatively extreme volatility the last couple trading sessions. I think we can point to two things. I think your other person bob just pointed it out. It really came down to greece and china. Theyre sending mixed signals back and forth. We think you have to put on the blinders a bit to all the noise that is going on around the world. Some of whats going on in greece, this is temporary. There would be some sort of fix. I personally think theyll eventually have to leave the euro but how you actually get through that process is a whole other manner. And really trying to do a lot of things to kind of bring their economy into shape, and that means cutting back on some things while also stimulating others. The market takes it day by day, but reality, where were going long term is theres an ongoing economic expansion. And ongoing profit expansion, and stocks will ultimately follow that. This is the stuff that probably drives your clients and momandpop Retail Investors absolutely nuts. It drives me crazy. Greece might default, but wait, china is stimulating. What about earnings . Isnt the stock just supposed to be the future didnt graham and dodd say that at summer point . Sometimes its hard for investors to see that particularly when we have such a high volume and high turnover marketplace both domestically and abroad. Sometimes its easy to get carried away and not remember okay, earns are going up and the stock market is going to be youre in the birthplace of america, youre a troy jason, even your last name is pride. However, you are moving more into europe and asia with your investments. Why is that . Well sure brian, first of all we have a large stake in holding within the u. S. Number one. Number two, valuations in the u. S. Have been a little expensive. Its not a jump up and down this is as cheap as it gets more. And particularly in asia theres great sfa opportunities there, particularly in europe. Therefore we want to overweight that at this point in time. Valuations and fundamentals are turning in the right direction. Its not a slam dunk but its better than what we see in the u. S. In a show formerly known as street signs we talk a lot about europe. The Biggest Companies in europe, the nestles of the world, the lordial, the majority of their sales are in the united states. Retail investors made a fundamental mistake saying this is a cheaper way to play the american recovery. I think thats a broad statement, independent of where theyre based. This is a global marketplace, confide often the investment markets throw out the baby with the bathwater. Theres great franchise businesses in europe japan, asia, even some in russia and brazil that may be sp interesting at some point in time. Wait. Are you investing in russia . We are not necessarily investing in russia but there are interesting businesses that look in that region. Youre looking . Youre browsing . Whenever things get cheap, you have to start thinking. Hopefully were thinking all the time. Jason pride, its a pleasure. Have a great week. Enjoy this beautiful spring day in the northeast. Right. Im feeling no stall juries you mentioned street signs right off the show. Allowing for more money to pour out into areas such as potential all part of a bid to step up efforts. Chinas stock market by the way, weve been mentioning it quite a lot, recently. Its up around 30 so far this year. It was all sparked, they cut interest rates, again in february, and boom you have a rally. Lets bring in ron insana editor after and normally in beijing, but today right here next to me eunice yu. You wrote a piece last week on cnbc. Com about a potential chinese bubble and of course you came on our shore and talked all about it. Does one move make a difference in your thinking . To me it smacks of desperation. I understand why china wants to ramp up lending, though lending to whom i think is an important question. They have overbuilt the infrastructure, i dont so joe where the money goes. They tried at the same time to tamp down speculation. Shanghai has doubled in the past year. I would be nervous that when we tried qe or launched qeu. We were at the lows testify the market cycles. Theyre doing it at the highs, certainly to lift asset prices temporarily, but i think this would be a more risky place than six years ago. I think ron makes an excellent point, theyre trying to get more lending happening that this at the same time a lot of overbuilding and some are saying this is the start of an aggressive easing cycle. Do you think this is maybe too much . I think there are a lot of people worried too much, because there are a lot of companies that have high debt. There are a lot just the tradition is for these banks to lend to state banks state companies, so because of that there is concern that the money isnt going to go to the right places. In fact on friday we heard the chinese premier had gone around to some of the major banks and said you guys have to start lending to small and medium enterprises, and try to get the money to the right places. What would be a better way of stimulating the economy, if not this . Its going to be a combination of investigate cuts as well as infrastructure spending, everything and anything, but in terms of whether or not this will be very effective, its it doesnt its definitely not going to be as effective as it was, say, 5, 10 years ago. And how much of this money will be unleashed, how much will it find its way to the stock market, which as we mentioned is already looking a little hot. Thats an open question. Using it as a template or even europe now, they came in at different times in the cycle, in the economy cycle. I dont think throwing gasoline on a fire is a great idea. Now, granted, you know countries should use macroproduction regulation to slow down activity in markets. The chinese cant do that now. By the same token, the economic is constrained in such a way that they have built too much. To such an extent they have done over the last five or six years. There is to brothero the expression yin and yang going on that might not lead to the desired outcome. I would be cautious about china. A lot of speculation. Raising that red flag ron, the regulators came out and made that decision. Its just that the government is pushing this market rally. We see that i walk around various parts of the country, theres so much capacity so many unsold properties. When you look at the options that investors have they dont really want to invest in property anymore. They dont have the wealth manage theres been a clamp down on that so were seeing more and more people. I hear from friends im excited about this concept of and mandy, we need experienced that in 1999. This is when people were buying egghead. Com because they liked the name. They didnt know what the company was, and again, as we said last week not to condescend to individual investors, but theyre often late to the party. You might want to be cautious. How do you say mom and pop investors in chinese thank you, the new york governor is in cuba. Andrew cuomo is in cuba. Hes not expected to meet with president raul castro or his brother fidel, but he will have a sitdown with the first vice president. This makes him the first acting governor to visit cuba since diplomatic relations were restored were looking at shares of harmon international. Jpmorgan resumed an overweight rating on the audio and Electronics System company with 159 price target. Software development, with several recent acquisitions. Back over to you its the five years since the bp oil disaster. Is it any safer . Jackie deangelis is in louisiana. Reporter good afternoon, mandy. The answer to that question is that it is safer, but were going to talk about the impact this disaster has had a both big oil and other companies five years later. A lot of these Companies Still trying to cope with hardship in rebuilding and how the industry is working on that as well. We have that story coming up. Stay with us. under loud music this is the place. Their beard salve is made from sustainable tea tree oil and kale. You, my friend, recognize when a trend has reached critical mass. Yes, when others focus on one thing you see whats coming next. You see opportunity. Thats what a type e does. And so it begins. With e trades investing insights center, you can spot trends before they become trendy. E trade. Opportunity is everywhere. [intercom] drivers to your marks. Go its chaos out there. But the mclass sees in your blind spot. Pulls you back into your lane. Even brakes all by itself. Its almost like it couldnt crash. Even if it tried. The 2015 mclass. See your authorized dealer for exceptional offers through mercedesbenz financial services. Hasbro trouncing revenue estimates. Despite negative impacts of yeah, the strong dollar. Michael kors taking a hit, with mizuho downgrading them. The firm says the survey does not look good for future sales callaway moving higher. Jeffries with a buy rating. You know what else is up . Oil is up again to the mid 58 buck range. Were at 58. 20 right now, but oil still up 22 just this month. Believe it or not it has already been five years since the bp oil spill. Die spite concerns the space of Oil Production is rising. Jackie . Reporter let me give you the main takeaway. People we spoke to said things will never be the same after the deepwater disaster. Its just the way business is being done is changing. Not only for big oil and seafood, but also in terms of tourism. What we do now is its 20 to 30 less official right now to produce out of this region on an offshore platform. There are any well design rirms in place, also increased of blowout prevention is necessary, and more mo are projects are continuing. We do know theres about five or six more rigs operating at this point than were ted of the bp oil spill, but were not at those levels yes. Important to note this role of technology. Fiveiers we had near already 200 million gallons of oil pumped in. It took 8 7 days to contain. Thats why Companies Really care about trying to prevent accidents like this from happening in the future. Theyre trying to work on same prevent, rest race. Theyre getting together to invest in this, and taking it really seriously. Last but not least, we have spoken to some of the local businesses here. Theyre working on recovering. As i said at the top, nothing will ever be quite the same. Its probably going to take a long time to know the main and sort of significant Environmental Impact of this disaster really has been. Back to you. Jackie deage his it seems like were always on the grid right . Its a completely different story in americas subways. Were going to be heading underground, some cities like i have behind me. Well find out which subway system is the most mobile and internet friendly cities lee los angeles, washington chicago, new york city and san francisco. You have to stick around to find out more. And takes the wheel right from your very hands. This isnt that car. The first and only car with direct adaptive steering. The 328 horsepower q50 from infiniti. Push your enterprise and you can move the world. But to get from the old way to the new, youll need the right it infrastructure. From a partner who knows how to make your enterprise more agile, borderless and secure. Hp helps businesses move on all the possibilities of today. And stay ready for everything that is still to come. Here at the Td Ameritrade trader group, they work all the time. Sup jj . Working hard . Working 24 7 on mobile trader, rated 1 trading app in the app store. It lets you trade stocks options, futures. Even advanced orders. And it offers more charts than a lot of the other competitors do in desktop. You work so late. I guess you dont see your family very much . I see them all the time. Did you finish your derivative pricing model, honey . For all the confidence you need. Td ameritrade. You got this. A japanese store understanding vales a robot, named, and shes distressed in japanese clothing. So far the robot can only read programmed scripts, but it will be upgraded soon. Now, a real and a huge store greeter and receptionist says she does not mind working with the robot, but its eyes need a little work. If youre on the radio, mandy, i best way to describe it the eyes are robot eyes. In almost a perfect human noticed body. I think its definitely creepy. Im going to put it in the creepy camp as opposed to the cool camp. The dow on track for the first gain of 1 this month. Last gained 1. 5 on march 30th. So lets look at some of the dow movers. 28 of the 30 higher. All the top performers. In fact with a gain today apple stock is now worth twice as much as exxon. The market cap on apple is almost exactly double that of the next Biggest Company in the world. Amazing. Lets also check out the biggest movers at this hour. It said read wall on the teleprompter. I will look at it and weve got to put the sectors up in order for me to read the wall. Sectors, shazam there you go. I just read the wall. The problem was you had the passcode wrong. It was kant shazan it was abracadabra. Youll learn. There we go. 1194, back below the 1200 mark just to the down side by 0. 7 of a percent. A troy ounce, flip over another board and take a look at silver copper palladium, platinum by 1 or more in silvers case by over 2 . Ricky, whats going on with bonds this week in. Ought rates are a couple basis points lower than they were yesterday, but the yield curve has a presence. Look twoday of 10s and 30year double down about four basis points. Why . Mainly because the selloff is more aggressive in the long end. When you see it next to each other are other, the push out is to where most of the action has been. Today the dollar index has been pretty much up 41 all morning. We see only one foreign currency doing better. If you want to see a strategic couple charts like at oneyears charts. The euro versus the one, and the yen versus the yuan because the strength in the dollar translates into weakness in those currencies against the chinese currency. This was going to be a big dealing because of what china is trying to do to keep things moving as they go through a variety of measures. Mandy, back to you. Youre absolutely right. It is a big deal. On you to Morgan Brennan for a market flash. Thanks mandy. Angies list is near session highs. Its partnering with on deck capital to give Small Businesses access to loans of up to 250,000 that financing will be available to angies list Service Providers and can be used to drive Business Growth or Fund Subscriptions to angies list. Theyll also have lines up to 20,000, so shares up more than 5 , on deck up over 2 this is gearing up to be the biggest week for earnings season so far. It is still, of course early, but a very worrying trend is starting to emerge. If it continues, it could undermine the bull market. Well explain. Also as we head out, the biggest mover on the nasdaq. Power lunch is back in a flash. Discovery up by 3. 6 facebook up by 2. 4. Dont go away. E financial noise financial noise financial noise financial noise lets take a look at your credit. I know i have a 786 fico score, thanks to all the tools and help on experian. Com. So how are we going to sweeten this deal . Floor mats. Clear coats. Youre getting warmer. Leather seats. And this. My wife bought me that. Get your credit swagger on. Become a member of experian credit tracker and find out your fico score powered by experian. Fico scores are used in 90 of credit decisions. Hello, everyone. Heres your cnbc news update. The 119th running of the Boston Marathon god under way this morning with more than 30,000 runners expected to take part. Ehissia won his second two years after hi devoted his medal dedicated to the victims of the marathon bombing melissa gates is in india, discussion the expansion of the Family Planning program. With the plans to halt the spread of hiv. China and pakistan agreed for 45 political quoteunquote worth of investment projects signed by chinese and pakistani ministers. Both countries have and a sobering number is expected to rise as baby boomers age. Millions of women born between 146 and 1964 will tails as much as a 50 increase by the year 2013 according to the National Cancer institute. Brian, back to you. Thank you, sue. Back down to the market. Back to bob pisani. Youve laid it out for us so adeptly. What is catching yew eye today . Were seeing no attempt to sell off in the middle of the day, which i thought might happen. All the rally was in the first 15 minutes. A flairo five or sixpoint range. Still up nicely off the day. We talked about why getting these upanddown moves, these crazy moves. My thesis is china is sending very confusing signals. The monetary authorities have been take are talking about more stimulus for a couple months now, but the regulatory authorities have been clearly indicating theyre concerned about bubbles. They banned margin financing over the weekend. That was an issue. Take a look at some of the chinese indices today, some shenzhen shanghai and hang seng all to the down side. In terms of sectors, were having a great day with tech. Ibm with the best move in the year. Energy is up halliburton had a decent report. Industrials also doing well. For the most the best advice i am hearing, brian is very simple right now. Youve got to sell rallies, and buy the declines. Were in a range here 2,000 to 2120 roughly, and we are slowly towards the higher end of the range here. I have not, brian, heard any better advice than stay within that range sell the rallies and buy the declines and if he hit 2012, im going to insist we play the entire rush album by the name title. 42 of s p 500 companies that have reported their numbers have topped revenue estimates. Thats it. According to the spoke investment group. As you can see, the last time it was this low was in the First Quarter of 2009 we dont need to remind you the economy was still in the throes of the financial crisis. That story, by the way, is up now on cnbc pro, and also can real it at power lunch. Cnbc. Com. A lot of dots there. Put them together and it makes a pretty picture the dow is up 200 points as we gear up for a big earnings week. How do you play the market rik now . Joining us is president and and ryan perry of the morningstar fivestair rated hennessey man, you need to shorten your title there, sir. Great to see you both. Michael, bob pisani said the best advice hes been hearing at the moment is sell the rallies and buy the declines. Is that good advice to you . I think its with the stronger dollars putting a hurt on u. S. Earnings and retches, i think were starting to see that for real butu plus the softer Economic Data does give you some pause, with respect to stocks continuing to go up at the rate weve seen the last few years. On the other hand i wouldnt argue were anywhere near a recession. We still have gdp growth in the 2 range or Something Like that so i think you have to be more selective in your names, one for growth companies, one for Economic Activity but also be careful in a broader sense with the market. We will get to some of year names in just a second. Brian, you know, the other brian a moment ago was telling us about this concerning trends that revenues are fall short. Obviously a lot of eps estimates are going aggressively lower. El the revenues give you concern. No . I think thats exactly right. When were focusing on the they can do some cost cuttings and beat earnings estimates, but what really catches our attention are companies driving multiple you know, double or Revenue Growth companies doing better than the overall gdp are the ones we think will do better longer term. Lets get to the individual names there. What are you putting your money into, brian . If you look at a company thats doing exactly like what i said skechers is a great example of that. Theyve been knocking the cover off the ball consistently. Even the intergnashed operations is doing exceptionally well. We think they have more quarters to come that theyre going to continue to beat what we would sxekd, and those are the time of companies we really like. J. C. Penney is with unthat call my eye. But when you look at maybe a longerterm chart, still nowhere near like the 11 like last september. You still like this story . I do. I think the turnaround is behind them. When you get the Lower Oil Prices and how that will translate, i think where you really wind up seeing the benefit is on the lower to middle income consumer. This is exactly the segment that j. C. Penney is going after in rebuilding their brand. I think management has done a great job in turning around the business, and i think it continue toss expand and will do well in the next couple quarters. You have like 30 seconds, mike . Run us through your picks. I think facebook coming out with earns, either tomorrow or wednesday, early stages classics growth story, monetizing you know the tangible asset of information they have in many ways and with or without the success of bill gross racing money on the bond side Fund Performance is improving, and Margin Expansion potential and a different yield. So our earnings while youre waiting for the growth story to play out. Wow, you really take orders. 30 seconds, boom done. You can see where when brian thinks Consumer Spending is going to take off. Bride, own to you. And more dots. We need a place to store all the dots. We have a big deal in real estate. Prologis announcing an acquisition. Diana olick has the ceo of prologis in a cnbc exclusive. Diana . Well brian, what this does is makes prologis a whole lot bigger. It gives them a wider footprint in major u. S. Cities like dallas, in Southern California in chicago, new jersey and right here in seattle. And joining us in a cnbc exclusive, hammond mogodon thank you so much for being here. What v what was it that said to you this is the right time and frame to take on seven a large portfolio. Diana, weve been in a period of about three or four years that industrial rents have been recovering. Thats been primarily because of limited supply coming on the market while demand has been pretty strong. We see rents going up and see the higher rents working its way through portfolios. The problem is there arent that many highquality portfolios for us to buy, and everything we look at we need to dispose of a significant part to fit, but this was an exception. Perfect match for our holdings and one of the few deals that you just have to make. Interesting you say that. Your major customers, places like amazon home depot, walmart, u. P. S. Youre more than doubling your u. S. Footprint with amazon. Does it concern you with the way retail has been changing to which, that amazon a very specific type of retailer with warehouse, should they change their model, would that leave you holding the bag . First of all, with that particular tenant the leases are longterm leases but more importantly, even as large as they are, 2. 4 of our rent rolls. The nest largest customer is 1. 8 . So were extremely diversified and not dependent on any particular customer for our success. Reporter lets talk about the deal specifically. Still 2. 6 billion to fund. How do you plan to do that . We have actually a pretty strong balance sheet, our leverage is in the low 30 range. We have a variety of options. We can always issue equity. We have the ability to pull down lines of credit. Even if we financial it totally with debt it would be in the 38 leverage range, which the short term is perfectly okay and question can always capitalize that. Reporter thank you so much. On a very exciting real state deal. Brian . Thank you very much. Just a reminder dow on track for the first game of 1 almost all month long. As we head out to break, lets look at how the financials are trading right now. They like Everything Else are up. Power lunch back in two minutes. The Technology Changes the design evolves the engineering advances. But the passion to drive a mercedesbenz is something that is common. To every generation of enthusiast. The 2015 dream machines, from mercedesbenz. Todays icons. Tomorrows legends. Visit the dream machine event today for up to 3,500 towards purchase. Your moms got your back. Your friends have your back. Your dogs definitely got your back. But whos got your back when you need legal help . We do. Were legalzoom, and over the last 10 years, weve helped millions of people protect their families and run their businesses. We have the right people onhand to answer your questions backed by a trusted network of attorneys. So visit us today for legal help you can count on. 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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. Why pause the moment . Ask your doctor about cialis for daily use. For a free 30tablet trial go to cialis. Com from one Large Customer as a major factor for the quarterly loss. Still taking a look at shares down 4 right now. Morgan thank you very much. Lets get the traders take on this move. Gordon, i guess i could have just inverted the script right . Friday i said lets get your take on this big drop. Are you going to tell us really . Because china might stimulate . And friday was because greece was in trouble . Ill tell you that if you want me to tell you that. I dont believe it. Thank you. The thing were not seeing is any intraday volatility. So we continue to see that trend. Will they hold the line and maybe rally them to the close . Thats the reaction were talking about today. Its a monday after a minor exploration, about what you would expect in terms of volume. After the down day we had on friday, the reversal is consistent with the range weve been stuck in. Theres a bit of data coming later in the week but its about the sexy big names. A lot of guys have been talking about meeting or reducing expectation. Weve seen that over many of the last few quarters but i think the have you been initial spot might be in the tech sector where if the dollar has such that its going to impact those guys, theyre not going to recoup it on the in side. You may see some increase in volatility because of that. The u. S. Dollar had a rare back week last week so i dont know they might be a period of confident action but it seems like were sorely in need of a domestic catalyst. It seems like weve been reacting to what happens overseas. Do you see anything on the horizon . You mentioned durable goods, but beyond that is there anything that you can see that will move this market . The earnings will be the shortterm catalyst but lets face it the backdrop is were still being fueled by Central Bank Policy globally. You really cant do much here domestically when the rates are what they are in germany, so were sort of stuck here in this you know p. Hurry up and wait kind of environment. To see exactly how theyre going to allow for some of the, you know improvements that we have seen and how that will be reflected in rates. Of course as we start moving forward, politics starts to get into it a bit and some of the geopolitical implications so its about earnings right now. Thats where our focus is. Okay earnings earnings earnings, lets see if they can drive the market. Thank you very much gordon heres a question for you. At what age can you really retire . Not the age you want to retired, for Many Americans its not 65. In fact many are financially unprepared to retire at all. How to figure out your real retirement age is coming up next on power lunch first the great new series online on cnbc. Com. Its all about marijuana and money. Heres a look at what you may find. My name is nick vavovicr, this is my company. I knew this industry was going to take off. I create add product thats compliant that dispensers can keep them its a poptop bottle, childsafe a different alternative to a medicine packaging container. A regular prescription bottle is not nearly as cool as this pop top bottle. You dont lose your top. As you know with certain marijuana users, theres sometimes forgetfulness that goes around so this helps solve that problem. Here were in side kush warehouse. Were selling about a million bottles a month. We have about 20 employees across three states. The revenue for this year is about 4 million. Access to capital on the Public Markets is huge for this industry. So thats depositionly an option we are considering. Bring us your aching and sleep deprived. Bring us those who want to feel well rested. Aleve pm. The only one to combine a sleep aid. Plus the 12 hour pain relieving strength of aleve. Be a morning person again, with aleve pm. Its more than the cloud. Its security and flexibility. Its where great ideas and vital data are stored. With centurylink you get advanced Technology Solutions from a trusted it partner. Including cloud and hosting services all backed by an industry leading Broadband Network and people committed to helping you grow your business. You get a company thats more than just the sum of its parts. Centurylink. Your link to whats next. If you missed part of the show, dont worry. A big recap, if you will. Offsetting despite this the shanghai index up over 30 year to date. All dpu to new well design requirements and more blowout prevention techniques. Finally as today kicks of on a very busy earnings week we learned that only 42 of the companies that have reported their numbers have beaten revenue estimates. Mandy, the last time it was this low was the First Quarter of 2009. If you missed any of the big stories the past hour or what i just said go to our site and ill say it to the sixth time. Polyerlunch. Cnbc. Com and dont forget the dots. We have a really on our hand. Will u. S. Equities keep their gains this week . Thats todays yahoo power poll. 33 say the rally will last. 40 say theres a pullback coming and 27 say markets will be flat. Follow us and coming up folks, cnbc heads underground in five of americas largest cities. Find out which subway system is the best and the worst for Smartphone Users. All coming up on power lunch. Do not miss it. Anteed. You picked a beautiful ring. Thank you. Were never having kids. Mmmmmm. Breathe. I love it here. We are never moving to the suburbs. We are never getting one of those minivan . We are never having another kid. Im pregnant. I am never letting go. For all the nevers in life state farm is there. Hopefully some of your picks can, too. Even in americas largest cities theres still one place where the most avid Smartphone User is forced offline. Yep, thats underground. Cities are stepping up their efforts to context users wherever they go. From coast to coast, we put those claims to the test starting right here in the tunnels of new york city. Were walking into the deepest subway station in new york. There are actually 277 supway stations in the city but only 76 of them have cell or wifi connection. So we decided to come here and do the ultimate test. Can we tall context and surf the internet 180 feet underground . The answer is no. By the year 2017 all stations will get internet and cell phone connection but that doesnt included the tunnels. Once you step on the train, you have to put away your phone. We else checked los angeles, chicago, washington, d. C. , and san francisco. Im at the blue line on south street station, a couple blocks away from where we trade. In 2005 chicago installed basically a 2g system but as i look at my telephone, im getting 3g. All bars in terms of cell phone coverage. Give the wifi a bminus, better than the suburbs at home but in a few months chicago will be expanding into 4g. I hear them coming down. Congratulations, chicago you have good marks now. Maybe bigger marks in a couple months. So were here at union station, the busiest underground subway station in the entire d. C. Metro system. Theres no wifi, but there is cellular centering it visitor stations. Full service has been delayed under the end of the year. Meanwhile, the Transit Authority is in talks about advancing the service with all the tunnels with the carriers responsible for building out the infrastructure, but ive got enough bandwidth where i am where you and i can chat on video. This is great stuff, hampton. Good to see you. Send that awesome . Want to be unplugged in los angeles . Get off the grid . Head underground. Its the only place where youre in a black hole in terms of communication. There are about 22 miles of subway tracks underneath the city of angels just as many subway stops, but theres no cell or wifi service, zero zilch, nada thats about to change. Theyre going to fire up wifi in four stations downtown in may, adding cell service to the same stations in august and the whole system will have both cell and wifi in two years, but just in the stations. On the trains youll still be in the cone of silence. Im here at the embarcadero b. A. R. T. Station in san francisco. In the bay area if you use b. A. R. T. Youre out of luck at least for right now. Theyre looking at different offerings, but theres no plan in place just yet. Theyre going to expand 4g lte with all the carriers that rollout will include both stations and tunnels. Out of five cities we tested only a few stations in new york and d. C. Were smartphone and internet friendly. Request over 8. 2 million riding just these five systems, its clear the demand to go wireless is there, and the urgery so upgrade is more apparent when we compare international. Theyve had connection for years now, but there are plans to change it. Get all the depails at powerlunch. Cnbc. Com. Brian . And then you can access the website on the subway. What was the website again . Powerlunch. Cnbc. Com. Youre a quick learner. That is it. Its over to you and melissa lee for the second hour it is 2 00 on wall street, lunchtime in denver. Melissa is at the nasdaq. What a day for stocks. Its all gain today, the dow, s p and nasdaq all up big. Just over 1 lets get down to bob pisani where for a day, it appears, that greeces problems have been forgotten. Yes, and we are back to worries about earnings and the earnings up side. Were in a narrow ranges here. Since just after the open. I want to show some highvolume etfs. Those are oil etfs, ixe, and that tracks oil. Oil is breaking out today, heavy volume in the etfs, and in china, chinas made it clearist going to big day for tech stocks. Apple doing well today, below the 200day average. For the moment the best advice im hear is very simple sell the rally, buy the declines. Were at the higher end of the range. I think some people light lightening up here. Nothing even close to a panic. We had a slight move up on friday but were right back down to 13 on the vix. Thanks so much regardless of whether you think the fed rate hike is going to be in june or september, its going to go higher, is your belief. Where is the value here . Theres a lot of value especially in europe. Theres no headwinds. One is the counters shuck of the fed action balance sheet. It is second one is the strong dollar. Those two themes will happen throughout the rest of the year. Once again. European equities are cheaper as well as the headwinter of the europo. Marshall, youre im thinking i dont know if any of your Top Ten Holdings is doing any business internationally, with the exception of american airlines. Do you care about all the this stuff going on in greece or china . I think you get swings ahead of earnings where theres almost an information vacuum. I think it will give investors more confidence and we would this volatility as an opportunity to go in and pick out stocks that we are highly convicted in based on what we see going on in the individual businesses. At the same time, eric, i would imagine having a small cap portfolio is part of that does not more domestically oriented. They dont have that headwind. Thats true for the most part. However, there are Smallcap Companies that have that International Exposure but i think in many cases analysts have really pulled back their expectations here for the First Quarter. We think in a lot of cases were seeing top line impacted but earnings are not being impacted as severely as some may have worried, because a lot of those outside revenues also have costs denominated in those foreign currencies, so the really important impact isnt just what happens on the top line but also what happens with the bottomline earnings of these companies. Tell me where in europe are there sectors we have s. A. P. Coming out with earnings later this week is that the type of country you like . It is and youre hitting the nail on the head. You want to look into germany. Its the economic lock motive. They have the lowest unemployment. Actually german consumers are spending more money now, s. A. P. Earlier this year mentioned how the stronger dollar will hurt the american counterparts and they expect sales to grow. Look at continent, a german dax component. Theyre getting into the mobile. Theyre seeing revenues increase. All the multinational corporations are seeing topline growth between 10 and 15 , and they tend to underpromise and overdeliver. And our thank also to Eric Morgan Stanley a big winner on the day. Well be live on cnbc tomorrow at eastern time. In the meantime lets bring anton, great to have you with us. Always a pleasure. A lot of your picks seem to be in the regional financial world. We got a couple data points already through earnings season. A loot of these banks actually sold off on these reports. Thats right. The bigger banks are kind of stuck right now. The Capital Market providers had the best quarters but interest margins are under pressure. They need rates to actually rise to help there. Loan growth really wasnt there. Theyre picking off employees, picking off loans, and theres a lot of m a going on underneath the radar inch i want to get to some of your picks. I dont know if theres a term for it but they seem like super regional, very concentrated on very specific areas. One is in the south primarily . I like the carolinas. Theres a low of good demographic things going on. A lot of corporations are relocating there. Charlotte has been on fire its the largest Independence Bank in north carolina. That allows you to have this company with really nice growth characteristics and is a valuable franchise. If a Bigger Company would like to food a foothold this is you brit in some of those mighty mighting in theyre. Yadconditions, and others. Should we also infer that you hate the big bankses . Or just like these better. I dont like the big barracks we do note citi and bank of america, but these banks have performed for quite a while now. South state, every time they do a deal their valuation rises. Theyre very shareholder friendly. The sore two have been growing through some acquisitions but theyre both valuable and i love the optionality, and yet the Economic Activity is just great. Its not that i hate the big banks, but i like these better. South street 1. 6 billion, its a real pleasure buddy. Good to see you. Always great to be on. That rumbling sound you here, rolling out their earnings this week. Joining us and joining us. Is usefz squally at kanter fitzgerald. Ed, were going to start with you, and focus on a name i did not mention yahoo. It continues to transform. Ed with your expert eye, tell our viewers what it is. Is it a Search Company . A Media Company . You hit the nail in the head with that question. People are still trying to figure out what yahoo wants to be. They have a lot of readers, eyeball, search, content, email is part of their business. Until marisa mayer tells us its hard to know. At this point,ali baba spin is all out there bejoined the cashes thats in the stock, why they should own yahoo, and what the value is beyond that theyve got a lot of cash as well. They have to start using it in . Way thats helpful, thats efficient. Yousef i want to turn to you. Where do you find the most potential up side in the universe you cover. It wont be we think its going to be probably more on facebook, it remains our top pick. We see theres a number of things helping short term youre seeing more and more video ads in the news feed. You know the format is coming at a higher practiced, and the ad load for videos this quarter has gone up. Longer term at least three vet instagram probably in 2016 whatsapp, and messenger. You look at the nasdaq its done well but qualcomm is down about 15 , a huge disappointment for its investors. When you look look at it, any im of a turnaround . We dont seed one right now. The stock got pressured last year because of the regulatory issue. The more recent issue is by samsung to go internal with a lot of the chips that are used in their phones. As we look into this particular quarter, i think this was news to programs investors. All right. Cried, ed and yousef were going to have to cut it short hair target after a hike weejend. Courtney reagan is here shoppers went crazy over this stuff. They went looney for lily. Out of 150 designer collaboration that target has done Lily Pulitzer has created the buzz. Most had merchandise gone within minutes of opening early sunday. Many tonight signs down quickly, because there is nothing left to sell. Because of black friday comparable traffic levels it wasnt fully loaded until about 5 00 a. M. The retailer metered traffic or limited how many people could access the site at one. Target says the site never crashed, but did have to take it down for 15 to 20 minutes. Targets is apologizing for the inconsistent but not for running out of items. She planned on that product lasting into pay. So much for that. There are some hoping that theres a resale market. Some were asking a thousand bucks for a 60 chair on eebay . Win for the retailer who is hoping to regain its cachet. Theyre talking about it. The last time they had this sell outwith the missoni collection. Thats whats interesting. It doesnt help with the buzz. The buzz though is still important thank you. Bri . Who doesnt need pink green and yellow dresses. Lets set the table for the rest of the hour. Two pros talk about how theyre playing todays surge. Plus a big upgrade in the oil world. And the, squad is back in action. Well get a preview of ibm, big blue after the bell. First ed headed back to the 2k3wu68 of mexico on the fifth anniversary. Jackie deage his is live with the big changes that have taken place. Jackie . Good afternoon. Companies are investing big in technology to make sure its still of this mag any further never happens again. Whos doing it what theyre doing and what the government is saying, thats all next on power lunch. 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 mercedesbenz dealer for exceptional offers through mercedesbenz financial services. 26 of the dow stocks are hot. Unitedhealth and pfizer have joined the red. Apple is up 2. 5 . Its unbelievable. Apple is up 15 this year the market cap, america, is now 726 billion. Thats almost exactly double the next most valuable company in the world, which is exxon mobil. Apple twice as big as exxon. Incredible. Speaking of big oil companies, jackie deangelie is in nor ko louisiana. A lot of changes. Is there real talk that the rigs they are building and operating now will be safer five years out than five years ago . Reporter we certainly hope so brian. While its not business as usual here in the gulf of mexico i will say business is continues and offshore drink is continuing as well. Since the spill about five or six new rigs are online and they say think expect 15 to 20 new platforms come online in five or six years. Companies are investing in technology. Whats key right now in that technology, to make sure that wells are designed better. Also, to increase blowout prevention, and also better contingency equipment. Remember, it took 87 days to contain that spill. That was a big part of the problem. In preparation for this anniversary coming up Companies Like houstonbased marine well containment theyve been touting that you are advancements and talking to companies about adopting some of that technology. Big oil will tell youly 20 to 30 less official to drill in the gulf theyre keeping up with the advancements. The Obama Administration recently proposing new rules to strengthen the oversight of blowout preventers. The reports is that it costs about 800 million over the course of the next ten years, but companies are saying they have adopted these measures already, because they dont want to see this happen again. Speaking of bp, by the way a big interview tomorrow. Im going to be speaking with bob dudley the kreismt off of bp. Im flying to houston. Theoretically im flying to houston, but if you look outside, i might be walking to houston. Still ahead, do not expect to see many new models at this years shanghai show and were not talking about cars. Interesting video. Thats coming up next. The bulls are in force on this monday. They are all in the green. We are right back. Male 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. Stloo check this video out. Cash goes flying after a car descend. Its all caught on video. Two men collide with a silver car sending nearly 42,000 worth of chinese money spilling onto the streets. The men were supposedly carrying the money as part of a business deposit deposit. Amazingly no one was seriously injured. Thats scary video. Glad theyre okay sticking with cars in china, the shanghai auto show kicks off this week. We know geneva the detroit show. What is shanghai known for . What are you looking for . I know people in detroit and frankfurt say, wait a second our shows have been around for generation, how can you say that . It is bigger but all the of the makers are there. Some serds introducing some crossover vehicles. Why are they doing that . Thats because youre seeing huge growth when it comes to suvs there. Part of their Global Expansion when it comes to suvs, 300,000 in annual sales in china for mercedes. That is a huge market for mercedes. When you look at what were seeing when it comes to suv demand, these numbers will blow you away. Last year sales up 37 . Theyll be making over 7 million annually by 2018. Growth in this chart is astounding. Thats just the suv market. We are talking earlier today about the growth of suvs in china. Like in most other parts of the world we see strong dynamic, clearly growing stronger than sedaning and other body types. Therefore, that market is the place to be. Whats driving all that growth . Look to inner china. We were there a couple years ago. This is about 4 hours away from shanghai and beijing. A lot of that because of the surging demand in inner china, but we are starting to see auto inventories rising is it possible that chinas auto market is facing a bubble . I dont think you have any type of bubble where all of a sudden people say, my god, this is the end of the growth of this market, we just need to get rid of what we have. And that rising inventory is a concern. People are looking at it saying youre going to have 7 oar 8 growth this year nice but not doubledigit growth yet you still have more production coming online there. You were sort of joking around. Brian was making some very oblique references to what shanghai has been known for, but phil, lets get down to the heart of the story. Theres big changes going on on the floor the the shanghai auto show. This is from a couple years ago. Thats not what i was referring to. This is primarily at the china auto makers stands. If you go to a gm a ford a mercedes stand, you will not sigh it but the chi ease auto makers was over the top. The less they were wearing, the more interesting it became is the mantra. They have told the automakers tone it down so i havent seen as much video this year of those models. I have seen more of the car model out of shanghai. It was an eye opener the first time el went over there in terms of what the automakers were doing. Melissa, i just want to be clear, i swear, i honestly just meant the types of cars. Geneva is known for the crazy concept cars. Droid you get the new okay brian, whatever you saying. Youre not going to believe me are you . Im not going to believe you. America still doesnt believe you. Phil . No i dont. Have you driven the new ndong fang. Sing im not in china, i have to be honest i have not. Okay. Soon. A big upgrade in the oil world to talk about. We call it street talk coming up. Speaking of oil. Final trades are crossing and crude oil having a heck of a month. Another big day today. Power lunch returns after this. Ideas come into this world ugly and messy. They are the natural born enemy of the way things are. Yes, ideas are scary and messy and fragile. But under the proper care, they become something beautiful. Im Mary Thompson heres your cnbc update at this hour. Illy Prime Minister is comparing the to slave trade off the african coast. He was speaking with maltas Prime Minister. Iran is charging a journalist jason rezean the post bureau chief in iran was detained last year. The charges carry a maximum penalty. Bmw recalling nearly mini coopers to fix a problem with front Passenger Air bags. The recall affects cars from the 2005 to 2008 model years kraft says its revamping the macaroni and cheese removing synthetic colors and and that are perceived as being healthier for them. Thats the cnbc Business News update at this hour. Back to you time for street talk analyst recommendation on talks need to know about. Marathon Morgan Stanley upgrading it. Up 20 up side. The analysts say they like the discount that marathon has. And others upgraded marathon last week. What a performers over the last month. Going into the cash the company reporting on may for 2015 and 2026 going to the quarter. But it says it sees declines more normalized rates, and they say apple is fairly valued at current levels. I have to say it apple up i should call it uple. Its uplle. It is worst two exxon mobils twice as business as exxon. Thats big. Like the yankees versus the royals payroll. Another Morgan Stanley call with an overweight they have a 41 target, they called the cash flow robust and said its high leveraged to any commodity improvement, of course assuming we get one. Just this month theft doubled their electricitygenerating capacity. And so that, of course will save them. Thats something that analysts are looking at. Ngic, a new 52week high on an upgrade from Credit Suisse. Final version of she tried to say eligibility requirements and they were more favorable than expected so mtg legacy insurer, as well as radiant check see, i screwed you up with the uplle thing. I know the average rating on the stock is overweight at 1150 not everything wildly bullish the last stock always the under the ray day. Platform special products. Pah, really a miami, Credit Suisse starting coverage with a 32 target. The average rating is overweighted. I have never heretofore heard of said corporation. I was going to say the same thing. Well get more information when they record earnings on may 12th and ill be looking out for them. It mike merit a weeklong jaunt to miami to seek them out. Maybe. All right. It is time for trading nation. Traders do trade better together, and we are looking for the best sectors to buy right now. Todd gordon specializes, and Andrew Berkeley is open hyper, well start it first. What would it be . Sure brian, the strongers sector is the xly. If you look back at about a sixmonth change youre going to see the health care and Consumer Discretionary are the two top. I think discretionary has held in very well. We have seen a period of twomonth consolidation, which led to a nice breakout in the topside. The we have a cup 8 more week under were at that twomonth mark. Im long xly with the call spread. Im looking to add once we break at about 78. All right. Andrew berkeley your favorite sector from the fundamental standpoint or technical, whatever you want. I think longer term or favorites techbd to be overweight. In terms of Earnings Growth theyll be earnings leader again, but how about the xle . That might be the best play so kind of nearterm perspective. I like the pattern im seeing where estimates were just slashed so much coming interest the earnings season. Weve seen a couple big names already, so i think energy could be the surprise for the second quarter. I did not know you were going to say there. Im going to be flying to houston, spending a couple days there, a bunch of bigenergy cos, and get to the bottom of whether this run up is just a shortterm rebound, or did we really find a floor and have strength as well. So andrew todd thank you very much. For more tradingnails nation at tradingnation. Cnbc. Com if you look at a chart of crude oil in the past month, weve up 24 shares of hall burg aren rising today. Revenues fell, operating income was down 54 . All because the drop in drilling rig activity, and halliburton says it could continue to see pressure until the rate count stops falling, as Oil Continues to rise. And i am headed to houston tonight theory kale one of the biggest Oil Conferences in the world. What you need to know is well be speaking with some of the biggest names in energy over the next two days include the cos of pioneer, bp its a truly global conference. You want to tune into cnbc over the next couple days. In fact my flight is so soon im going to leave now. Oh, no dont say that brian. As you pump your fist offcamera. Yes, hes gone. Its going to be a great couple days. Safe travels. Ill have eight, nine hours at newark so if youre there, come out and say hello. Im a friendly guy. Sue you later, brian. Thanks. Well wrap up all big movers of Health Care Plus what age can you retire . In fact many are financially unprepared to retire at all. How to figure out your real retirement age, next on power lunch. 18003452550 [ male announcer ] your love for trading never stops tdd 18003452550 even on the go. Tdd 18003452550 open a schwab account, and you could earn tdd 18003452550 300 commissionfree online trades. Tdd 18003452550 so if you get a trade idea schwab can help you take it on. Tdd 18003452550 were getting a lot of questions tdd 18003452550 about organic food stocks. Tdd 18003452550 [ male announcer ] sharpen your instincts tdd 18003452550 with indepth analysis by schwab experts. 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So in this crash test, one things missing a crash. The 2015 eclass. See your authorized dealer for exceptional offers through mercedesbenz financial services. Its more than a network and the cloud. Its reliable uptime. And multilayered security. Its how you stay connected to each other and to your customers. With centurylink you get advanced Technology Solutions, including an industry leading Broadband Network, and cloud and hosting services all with dedicated responsive support. With centurylink as your trusted Technology Partner youre free to focus on growing your business. Centurylink. Your link to whats next. A noise moment today. Winning the race in 2 hours, 9 minutes, 17 seconds. This time he gets to enjoy it. He won two years ago, the race that was marred by the bombings. He gave that medal back to the city of boston. On the womens side caroline from kenya was first to cross the line. Shares of jean otherapeutics, based on news out of that big cancer conference over the weekend. What is going on . Yeah these are stocks in a basket known as cart therapies. Youre actually taking a patients cells out of their body beefing them up to better detect and fight cans and reinfusing them. These volatile names in this huge runup. You saw last week some of these names, juno kite and novartis is a very big name in the space and not quite as volatile. What people were looking for was data to see how well they could work in solid tumors like lung cans are, because so far theyve shown great elf indication in blood cancers. People are saying maybe the efficacy wasnt quite at strong. Really this is an early study. So it looked basically good on the safety points analysts are saying, and coming up saying its hard to compare to the solid tumors with the blood tumorses, but everyone is excited about some of these developments. All of those are very positive data, seeing merck up more than 1 . They would go head to head with bristolmyers, and their drug is already out on the market. Theyre both on the market. Merck has approval in melanoma so far, and theyre all trying to expand in different ways you seeing this come down to a head to head so those are some of the questions coming into the next big cancer comfort in may. Were going to ask you how do you position yourself to win here . And juno are a kite are clearly the lag guards. Are analysts defending them . Says a death nell for what is being developed . You knee the gains theyve had. And theyre all up around 10 last week leading into this so maybe given about that much back today. Nobody is saying theyre not going to work in solid tumors but its incredibly early and these are volatile names. Can you retire early . Nearly 3 out of 10 expect to retire before 65. Unfortunately Many Americans are unprepared to retire at all. How to figure out at what age you can retire. This is a question that Everyone Wants to try to answer. Your retirement age shouldnt be left to chance there are important variables. First is how is your health . Poor health can have a greater influence than finances and a couple rye tires will need as much as 320,000 to cover medical expenses in retirement according to health view seniorses. A 55 years old couple retires at 65 will need 465,000. If you dont have Health Care Costs factored in you may want to consider delays retirement until you do. How long to live. How much income will you need . Estimate how much income ute get in retirement and subtract the debt youll pay off. How long will it allow you to maintain your lifestyle . You may find out you node to ramp up your savings. The center for Retirement Research at Boston College says if you save 15 of your salary over 30 years, youll be able to retear comfortably. Save more and you can likely retire early. It can help you figure out what hang can you realistically retire. Sharon there are a lot of people who already less than 30 years away from retirement so the advice about saving is falling on deaf ears. At this point what can people do when he go through the calculation and find out they didnt factor in Health Care Costs or a life expectancy. The answer is relatively simple, they need to save more much more than that 15 , or continue to work longer or think about how they can reduce their cost of living. That could be cutting back on the lifestyle that they have right now, where theyre currently living. That could be moving to a place thats less expensive. Also think about some of the factors that contribute to your lifestyle today, may be very different from when you retired. You may not have the same expenditures or as high expenditures, so you may not need quite as much money as you think, but many people frankly havent saved enough. Its not too late. You just have to be austere to figure out what can you cut back on and how to save more. Great advice. Sharon, thank you. Ahead of its Earnings Report after the bell. The earnings squad will tackle that one next, bus the reallife house that inspired the movie up is up for sale. Well go there live when power lunch returns. Dont just visit new york. Visit tripadvisor new york. With millions of reviews and the best hotel prices. Book your next trip at tripadvisor. Com today. 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. Welcome back to power lunch. The dow gaining back a lot of what it lost on fridays selloff. Take a look at the individual stocks making big moves. Hasbro sales beating expectations transformers the area of growth. Royal caribbean moving in the other direction, reporting weak Fourth Quarter earnings. It blames an increase in fuel prices compared to january. An iconix brands they license joe boxer, london fog and many others. The companys coo announced his resignation late friday. It is not going to search for a new coo right now, the company says. Today we are joined by josh lipton, as well as fast money trader, brian kelly. The 13 of s p 500 firms reporting so far, 76 have beat estimates, 12 met estimates, 12 reported below forecast. Ibm is reporting after the bell today. Josh, what are the analysts looking for in their earnings estimates . Well, melissa, when ibm reports after the bell, heres what analysts will be looking for in the Earnings Report one, how quickly is ibm scaling what the company reefrz to as its strategic imperatives, spekt live cloud around liftic ic analytics and businesses. These business lines generated some 25 billion in revenue. Two, investors will want to see a strong Free Cash Flow number. Rbc is expecting a number north of 2 billion for the First Quarter. That gives big blue the flexibility, of course to do buybacks and make acquisitions. Three, signings which reflect future Revenue Growth in the services business. That number in recent quarters has been lumpy in q1 the street will be looking for 12. 66 billion. Guys, back to you. Thanks for the lowdown, josh. Brian kelly, out to you. Josh mentioned buybacks. Ibm reduced the amount it was going to buy back in the First Quarter. That had always been a floor underneath the stock. Whats your general view here . That makes me more bullish that not everybody else is bullish. You have to look at ibm, one, the fact that they have financially engineered earnings for the last year theyre probably the poster child for that. That is no longer being rewarred by the market. So when you look at ibm, you have to say what else is there out there thats going to boost those earnings and change those analysts minds . To me josh hit on it, analytics, watson. Thats the future of the company. If youre buying ibm, you are making a bet that theyre going to be able to pivot and watson will be their pivot point. Its all on watson. Right now, isnt that a small percentage of revenue . Everybody says cloud is where its at. At the end of the day thats a small percentage of revenue. These are strategic growth initiatives. A lot of people saying shes overstretching and overpromising. Thats the real question can they financially engineer long enough to keep the core businesses going and keep beating lowered estimates or regular estimates to get these things ramping up . It hasnt been rewarded recently but look at the stocks traded. Weve traded sideways for a couple months. I think a lot of the bad news is price into ibm. You have the potential after this Earnings Report that wall street starts to pick up on, maybe some of these Strategic Initiatives are working. Look at what meg whitman did with hbq. She set out a fiveyear plan but the stock ripped. Its all about analysts getting on board. Brian bullish on big blue going into tonight. Well see on fast money tonight. Thank you. Yep. That does it for the earnings squad. The house that inspired the movie up is up for sale. Well take you there live. Lots of green squares on the s p 500 heat map. All over the markets, straight ahead on power. 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. Bring us your aching and sleep deprived. Bring us those who want to feel well rested. Aleve pm. The only one to combine a sleep aid. Plus the 12 hour pain relieving strength of aleve. Be a morning person again, with aleve pm. Anything worth pursuing requires knowledge, hard work and a plan. At baird, we approach your Wealth Management strategy the same way to create a Financial Plan built to last from generation to generation. Well listen. Well talk. Well plan. Baird. In the us, three in ten College Students drop out. But how can you spot whos at risk . The one who lives far from campus . The one who works the night shift . The one with new responsibilities . One thing cant tell you, but the right combination can. Universities are using ibm analytics to understand pressures in and out of the classroom some expect to cut dropout rates by twentyfive percent. Ibm analytics is working to make education smarter every day. Two big named stocks you know increasing dividends. First, Procter Gamble upping its pay outby 2 cents a share. The stock had a yield over 3 and costco raising its dividend to 40 cents and announcing a new 4 billion stock buyback program. Homeowner refuses to sell, developer builds a mall anyway surrounding we house. The house is in foreclosure. Diana olick is there in seattle. Reporter melissa, in just about six hours, the fate of this tiny house with a very big story will finally be decided. Thats when the auction bidding closes. The folks here in seattles ballard neighborhood call it the up house because it so resembles the movie up. In this story you have to start with once upon a time there was edith maysfield. She grew up in this house for many decades. When the big Mall Developers came knocking on door. She did not answer even it is reported for 1 million. The mall went up around her, walling her and her 600 square foot home in. After she died in 2008 in 86 years old she willed it to a construction worker she got to know as the mall was built. He then sold it to an investor who defaulted on the loan. The house is being sold by the lender in a closed bid auction. Martin says the story became so much bigger than edith and because of that the value now is really anyones guess. Its turned into a lot bigger than what anybody would ever thought. What edith would have thought. Exactly. So its im not quite sure. It will be very interesting to see what actually comes of it. It could really be anything at this point. It could be a restaurant. It could be an offensive or it could be demolished and just be taken over by the development. A lot of folks are hoping someone will come bit house, lift it out of the lot and put it somewhere else. The lender the seller says there must be some tribute given to edith maysfield for whoever i booze the home. What a remarkable story. Thank you very much. Diana olick. Once again, we are watching the markets to rally today. Technology is a strandout. Check out the nasdaq 100 heat map. This of course ahead of a big week for tech earnings. Tonight, ibm after the bell and an exclusive with the ceo of lionsgate. Closing bell starts right now. Welcome to the closing bell, everybody. Im kelly evans at the new york stock exchange. Ill show the wires. I couldnt hear a word what kelly said. She was going to say shes at the new york stock exchange. Im bill griffith. Im at Global Headquarters because youll see me later on pbs. The stock market is down sharply on friday. The finishing down 279 points on the dow and friday because of concerns about greece and