Rise again. Should you lock in your rate right now . We begin with what we told you about. Crude is soring and we are currently at 3 . And its in the past month alone. Everyone wants to know. Hey there, jackie. I will start with the question and i will answer it right there. We are over 60 today. Traders are telling me they think i could go to 65 by memorial day. That is because we made the run for 60. There has been a lot of resistance and geopolitical events are taking us over the edge. There was closure of a port in libya by protesters and we have seen skirmishes for sometime. People are focusing on saudi arabia and the situation in yemen as well. Geopolitics was the one thing we said could bring us higher despite the fact that we have a global oversupply situation. Right now traders are shrugging that off for the most part. You have a weaker dollar and that is adding support as well. I will say this. In terms of prices at the pump this is not a good thing for consumers. 2. 63 is the National Average according to aaa, up a quarter in the last month alone. If we continue to move higher the prices are going to increase as we head towards memorial day. Having said that traders are saying when we get to that 65 mark, this rally account peter out. Consider that. Back to you. Thank you very much. One other thing to consider trade data weighing on the economy and the markets today. Lets look at the chart there of the dow jones industrials. S p, off. 75 . The nasdaq is off 1. 25 . New forecasts on the gdp. We have gone negative . We have gone negative. The shrinking growth has no disappeared all and gone negative. The trade number showing a bigger deficit than sumd. Heres the cnbc update. Q1 tracking minus 0. 3, down 6 10 of 1 . Not a lot of effect on q2. They are banking on a rebound. They are saying q1 could track thanks to Mother Nature and the port disruption would not come in and if imports continue to rise, there is Downside Risk of q2. Steven stanley at the Security System said a significant portion of this move had exports caused by the stronger dollar. Its hard to imagine they will be sustained. Heres the trade data. 51 billion. A blowout number. Havent seen a number like that since 2008. Imports surging as stuff finally could get through the port system. Export, not sure whats going on. Maybe a dollar effect. We can see that we have a negative down 1. 1 billion. Consumer goods and cars and capital goods came pouring through the ports. Hard to know if its just west coast port noise or lasting effects of a stronger dollar in the form of imports flooding into the u. S. That challenges exports. One piece of good news todays ism share report with more recent data and much more upbeat suggesting we could be leaving the winter doldrums behind. I am here to tell you i have a two for. We have tim geithner. And charlie evans. Appreciate it. Mandy. Thank you very much. Stocks are trading lower and they are still very near their all time highs. Yesterday billionaire investor Warren Buffett said the market wont be cheap anymore. So are stocks looking expensive. Lets have a chat with the top Portfolio Manager and michael is president of far miller and washington. Great to see you once again. Do you think that the markets are expensive at these definitelies . They are getting fully valued at the levels and i have been saying that for a while. You have. Well you know i think the big random factor here that has been separating us from the underlying valuations and fundamentals has been the fed. As long as the fed supplied money, markets have increased. We have seen increases in europe and asia and we can start to see some in australia. They lowered rates overnight. I think as long as the fed stays at the table, this market stays reasonably wellinflated and given what we are seeing from Economic Data i think they could stay longer than most expect. I will push back on the rate cut issue and they are done at the bottom and probably the next move will be up eventually. Kevin, we will see. We will see. Kevin, you are under weight equities. When did you go under weight . We did this in the Fourth Quarter and we tie it to a barometer that we used that we developed that tracks a variety of macro indicators. A short list of the things we began to see as recently as september last year that was stocks began to under perform and we saw blowout and spreads in the Corporate Bond market place. The 10year dropped to a record low not so long ago. Stocks under performing and bonds is typically a risk off trade. Our interpretation of all of that is that we would see thrower growth. Here we are in the First Quarter and when you put into the trade data we got this morning, we would be looking at a negative print for the First Quarter gdp and a slow start out of the gate. When you are waiting for that what would make you more favorable . Is there one particular thing you are looking for here . We looked at the barometer earlier. If we see that begin to improve and see evidence of improvement, that would lead us back to a balanced approach and back to overweight. We are not quite there yet. The barometer is below where we would like to see it. Some of the things we have seen are encouraging. We have seen that Inflation Expectations that have been perking up and taking the deflation worry off the table. The stabilization in oil prices is upon hadding to take the pressure off of the credit issues. If that continues, i expect to see a bounce back in terms of the barometer and risk app tide and the economy as we move into the second half year. We dont have the data yet. We are not there yet. A lot of multinationals have been beaten up but i dont know about that. It seems to have peaked out for a little while. Would you be more favorable towards them now . Consistently. I listen to kevin and hes a very smart guy. I dont know how to do what he is talking about doing. I dont know how to read the economic tea leaves and say now is the time to reduce exposure. I dont know given what the fed has been doing in terms of quantitative easing. To me that has been a game changer. Every time they have actually looked like they would go away stocks returned towards fundamentals and as long as they stayed at the table, stock values remain elevated. The indicators as to where you should be dont matter. Im not sure how you can do it. We have to leave it there. Im sorry. We have run out of time. We have so much to power through. Dont worry. We have more on what michael and kevin are seeing. You can go to our powerlunch. Cnbc. Com website to find out why michael is cautious on retail stocks. Over to you. Mandy, big day for earnings. Disney posting the latest results. Profit soaring thanks to parks and the consumer business. The stock is higher up about 20 so far this year. Ceo bob eyeinger is speaking about the latest numbers and Julia Boorstin is in los angeles with the details. Disney beating expectations on the top and bottom line. The ceo sounds confident that growth will continue. They prepare for the launch of star wars in december he announced plans to debut merchandise in september to unprecedented demand. We certainly have grand plans for star wars merchandise. We are talking about the number one franchise in the world. It hasnt been a film release since 2005. We have seen interest in this film starting to generate increased interest in the merchandise for the film. This past quarter driving upside is a surge in attendance and spending at disneys domestic parks. They were not slowed down by ticket prices spending more on food and beverage as well. I think you have to look at the product they are offering and the experience they were offering and how much in demand is it . Clearly over the years, demand for our parks and resorts experience not just in the United States, but globally is increasing. Higher sports cost weighed on network results, espns costs will flatten out and he pointed from selling shows such as the dare devil to netflix. Thank you very much. Disney stock as you mentioned almost 20 higher this year. Up almost 40 over the past 12 months or one year. They are gearing up as mr. Eyeinger just said for the latest star wars movies. Is the stock still a buy even given how far it has come . Ivan said the chief Investment Officer at tigris financial partners. Welcome and good to have you with us. What do you think . Would you buy disney here . Absolutely. I think it has a long way to run. Intrinsic value is in the mid140 range. Not only is the success they just had for this past quarter going to continue but it will continue to the end of this year and well into next year. What would the nit be you would pick in the numbers today . Probably the only issue would be the potential difficulty in broadcastbased advertising. They have such strong content. Revenue will come and they have the content. What about espn. They pay more for rights and fees. Is that a worry to you . Not necessarily. They paid up for a number of Properties Like marvel and like star wars. Its already shown it will pay off big time. They have shown they pay up prudently and pays off well for them. Do you have a price point on the stock . We dont use price targets, but its probably in the 140 range right now. Quick answers and we appreciate it. We appreciate concise guests. The giant being sued for fraud and taking advantage of customers. We have the full story. Kayla. A lawsuit filed by the l. A. City attorney alleges the nations largest mortgage provider encouraged a Pressure Cooker sales environment that caused employees to engage in what they called unlawful and fraudulent conduct that was actually first exposed in 2013 investigation at the l. A. Times, detailing how branch employees would open unnecessary accounts and credit lines for customers without their consent. It resulted in more fees for the bank and suspects sales people meet steep quotas. Wells fargo said they engaged in such activities and were fired. They will defend itself against the current lawsuit. The statements saying the culture is focused on the best interest of its customers and creating a supportive and caring ethical environment for the team members. This includes training audits and processes that Work Together to support the vision ask values and the commitment to customers receiving only the productions and services they need and will benefit from. To be sure the socalled cross selling has been a popular strategy and a point of pride for banks. Its a way to draw from existing customer bases for revenue as loan demand stalls and Interest Rates remain low. They said the average household had more than six products with the bank up by two products since 2003. Since so few break out this number or calculate it the same way, its hard to know where they stand among the competition. The last time we should note they mentioned cross selling in 2013. It touted 7. 2 products per household. Morgan stanley, bank of america going in the route too. Im sure every bank in the space is going to be keeping the culture in check as it seeks to compete. Back to you. Thank you very much. It is quickly becoming the biggest bird flu outbreak in american history. Morgan brennan is here with the latest. This is very serious. This is very serious. This is actually now the biggest bird flu outbreak in u. S. History. The cases keep coming. Its getting worse. It will break down what it means for the 48 billion u. S. Poultry market and for you and me the consumer when power lunch returns. Blap 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. Lets get you up to date. We started off with a negative day and lost steam to the point where we were sitting right now. We are sitting at the lows of the day and in percentage terms. The biggest is the nasdaq being dragged around. A full reportsoming up shortly. Jet blue partnering with Amazon Amazon prime on the flights. Passengers can rent or buy movies and prime members can view them free. Morgan stanley with 292 million loss by deutsch bank. Thats in regards to false representation of the fality of the mortgage securities. Davita agreeing to pay 450 million accusing them of wasting drugs to receive higher medicare payments. Tyler . Big news in the bond world. Pimco losing the crown as the worlds biggest bond fund. The total return fund. Two very different investing styles at play here. Taking a closer look at the bonds. These are massive. Talking hundreds of billions of dollars. Mutual fund assets and not the trade funds. They are pooled investment vehicles for mutual fund assets. The total market lets go through what makes it different. What the key characteristics are here. It has 117 billion in assets. It is an index found that tracks it and it is passively managed. It tracked a Broad Based Fund and mostly investment grade. Thats the van guard fund. Compare this to what used to be the biggest. Its now 110 billion. It is actively managed, meaning people pick and choose what bonds go into the funds. It can buy u. S. And Foreign Investments and has a lot of exposure right now. It can buy junk rated or noninvestment rated securities. If you look at the two styles performance has been interesting. We know that the total return fund has under performed recently, but overtime the total market fund per morning star over the last 12 months through april 30th one year up 4. 5 . Up nearly 5 . You compare that to an actively managed fund. Just about in line. Five year and slightly better. Years, you can see outperformance. The real issue here is the fund fees. When it comes to the institutional van guard fund it trades at about it manages around seven basis points. Thats it is how much it trades in terms of fees. This guy here the pimco one is more like a half percent. Feewise, its going to be a big deal. These numbers that we are looking at here in terms of total returns, those are number one. The net of fees. That takes that out and normalizes it for the differences. Are the 10year numbers and theyear numbers averaged annualized total . Total returns for the 12 months and through april 30th in theyear trailing and five years trailing andyears trailing. Not annualized. Those are gross total returns. In the oneyear going into april 30th. All right, thank you very much. Interesting number work there. Yeah. Very interesting. In the meantime it is becoming the biggest bird flu outbreak in u. S. History and the numbers keep on getting bigger and bigger. We have three governors declaring states of emergency. Sorry. Right behind me. Im Photo Bombing you. Cnbc bombing me. Several companies have been impacted. Morgan brennan with the latest. Morgan . You can walk in front of us if you need to. From bonds to birds. We need to Pay Attention to birds. Both iowa and minnesota reported more probable cases since last night. That brings the total of birds that have been affected by this strain of bird flu up to 25 million. Federal officials stress that the strain poses little risk to humans but it is affecting the 48 billion poultry market specifically eggs and turkey. There three poultry categories. We have broiler chickens, the biggest. 8. 5 billion birds and 68 of the market. Eggs on the other hand about 21 of the poultry market. 362 million layer hens last year. Turkeys, 238 million turkeys, about 11 of the poultry market. Broilers have been largely unaffected. Most are raised in the south. We are seeing about 6 of the layer population has been taken off line. That is expected to push egg prices higher. Anywhere from 15 to 25 cents depending on who you speak to. For turkey about 1. 5 of supply. They stockpileed from september to august, so far that piece pace has been normal. It slows down and expect to pay more for thanksgiving. Right now, not an issue. The other thing is exports. Broilers have not been infected but thats the main exports. With the trade partners like mexico and china putting trade restrictions on poultry. Being sent there from the u. S. We are starting to see whole sail dark meat chicken prices fall. Those are about 30 lower than they were a year ago. Mandy . We hope the situation starts to be resolved soon. Thank you very much. Morgan brennan. We know the Top Hedge Fund players make a lot of money and you wont believe exactly how much they earned. We have the jaw dropping numbers for you and the sexes that are winning and losing in this earnings season. That is next. Dont go. Nice long life ahead. Big plans. So when i found out medicare doesnt pay all my medical expenses, i looked at my options. Then i got a Medicare Supplement insurance plan. [ male announcer ] if youre eligible for medicare, you may know it only covers about 80 of your part b medical expenses. The rest is up to you. Call now and find out about an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement insurance plans it helps pick up some of what medicare doesnt pay. And could save you in outofpocket medical costs. To me, relationships matter. Ive been with my doctor for 12 years. Now i know ill be able to stick with him. [ male announcer ] with these types of plans, youll be able to visit any doctor or hospital that accepts medicare patients. Plus, there are no networks, and virtually no referrals needed. So dont wait. Call now and request this free decision guide to help you better understand medicare. And which aarp Medicare Supplement plan might be best for you. Theres a wide range to choose from. We love to travel and theres so much more to see. So we found a plan that can travel with us. Anywhere in the country. [ male announcer ] join the millions of people who have already enrolled in the only Medicare Supplement insurance plans endorsed by aarp an Organization Serving the needs of people 50 and over for generations. Remember, all Medicare Supplement insurance plans help cover what medicare doesnt pay. And could save you in outofpocket medical costs. Call now to request your free decision guide. And learn more about the kinds of plans that will be here for you now and down the road. I have a lifetime of experience. So i know how important that is. Man you run a business. Could be any kind of business. And every day youve got important decisions to make, like hiring. Where are you gonna find those essential people you need . With ziprecruiter, its simple. We post your job to over 100 job boards with just a single click, so you can reach millions of qualified candidates. Then well give you the tools to help you manage, screen and rank your applicants all so you can find the right one. Try zip recruiter for free today. They are the Richest Hedge Fund managers on wall street to. Find out how rich they are and how much they are making. Thanks so much. It was a good year for the industrys best performing players as calculated by institutional investors. Topping the list founder and ce oken griffin who made 1. 3 billion where the flag shift funs generated over 18 returns apiece over and above between 11 and 12 . He was followed by ted simon who is took home 1. 2 billion. Head of bridge water, the largest hedge fund. Bill ackman and Israel Englander came in fourth and fifth, pocketing a remarkable 950 million and 900 million respectively, but just missing thefigure zone. They came in a year where the average was up just 2. 5 versus overall stock market rallying hard. Many of the magazines past best paid managers off the list entirely. That includes names like leon cooperman and john paulson. To make the list a participant had to generate 175 million in profits and pay estimates where they were taking the model and each hedge fund is some variation on the two and 20 that is the typical set of numbers. If there is no profit no performance to cut fees from. The big paydays can be tougher to come by if you are in the roll or flat for the year. These numbers are what the individuals pocketed. Not what they made at their fund. Exactly right. This is an estimate. 1. 3 billion is the estimate of what ken griffin personally took home. If you assume that citadel has the relatively standard model of 2 and 20. They charge a bit more for expenses. Usually between two and five. Not sure exactly what it is. The performance fee is 20 of the profit. Again, i think citadel uses nonstandard numbers. They have been a bit on the higher side. That may have benefitted him as well. Thanks. I feel like a positive slacker. You know the hedge fund businesses. Gold prices are moving higher, creeping up back forward towards that 1200 even mark. Look at the other metals. Silver copper and palladium are moving higher. Copper is at a 4 1 2 month high. Other metals like zinc and nickel have been recovering. Boy, has there been action lately. Its where all the action is. The intersection, if you will. That is unchanged. Lets use all the charts. There have been only two sessions where we have settled with the yield higher than we closed the end of the last year. This could be the third session. Its a significant if we settle above 217. There is only one point above us. 224, the high yield of the year made on march 6th which by the way was at 295,000 jobs day which is very important when you look at the contest of where they are this week. The end of the week. Look at boone yields. Same chart. Lgd and etf on securities turning south and maybe the wild card. Is the dollar index losing ground and if equities go down it might be the one thing that can pull them back closer to where they were last week. Tiler and mandy, back to you. Thank you very much. And along with the yields on treasury Securities Mortgage rates are spike, now at 4 . That is a spike compare to where they were. What this means are readies headed higher. Should you lock in now . Who are the big earnings winners and losers. Dominic knows. Earnings season is not great, but its by no means as bad as we thought it would be. We have details on power lurch. Keep it here. Im sue herera. Jurors deliberating in the murder trial of a 6yearold are deadlocked for a second time. The judge told them to keep trying if are a verdict. The defense again called for a mistrial, but it was denied. Saps chief executive said his company has zero interest in acquiring sales force. Com. He made the companys annual user conference in florida. Thousands of teachers and students took to the streets of rome to protest against the government. That law would call for the dean of the school to choose teachers directly. They would not be able to ask for a specific school and they have have to do 50 unpaid hours per year of training. Manny paquiao suffered a shoulder injury before his fight with flight mayweather and now he might face disciplinary action for not disclosing it. The nevada state Attorneys Office is conducting an investigation chlg he could face a fine or suspension from the athletic commission. Back to you. Thank you very much. Lets take a look at the market with stocks near a session low. Apple dragging down the dow losing the most in percentage terms down by 1. 4 . Bertha coombs at the nasdaq. Bob pisani and bertha, you are first. The nasdaq showing a lot of technical weakness. The small cap intext and the midcap index are below the 50day moving average. We are watching them trade here on strong volume. The qqq at the etf for the nasdaq 100 at the days full volume here midway through the day. Biotechs as usual among the worst performers. Biotech and chips are pacing one anothers declines. Biotechs yesterday were among the biggest gainers. Giving back the gig gains they had yesterday. The biotech indeces are about 10 from the all time highs back in march. They had trouble getting above that level. In terms of the big lek losers the chips are among the big decliners. Apple off 2 . And today buck it is the trend is netflix on an up great over at b of a hitting an all time high. Back to you. The dow did down by tripledigits. The losses have been accelerating. What is pushing them down . They are having a hissy fit over higher Interest Rates. Take a look at 10year bond yields. Remember what happened earlier this morning . The Services Number came out and components were strong there. Good nonfarm payroll numbers. Look at bond yields and they went up immediately. Look at the s p 500 and they trouble after the report came out over higher Interest Rates. Thats important. We had trouble right after that. High volume that would be affected by higher Interest Rates like the russell 2,000 and the midcap. Bond atfs. Treasury etfs and high yield etfs and Corporate Bond etfs are under pressure today seeing heavy volume there. Yield curve is steepen, good news for banks. Jpmorgan is breaking out. The 15year high. Bank of america is strong. Citigroup has been strong. Down a little bit today, but the trend is up there. Interest rate sense groups are obvious. Home builders are under pressure. Back to you. Thank you very much. Lets bring in oneal securities and also a cnbc contributor. Good to see you. A few minutes ago i heard scott wapner saying a couple of months ago or less than a month ago, it was all about the rising dollar and falling oil and now to him it feels like its all about Interest Rates. Do you share that view . Its an overreaction and bob said it. Where are rates really going. The market and talking about the massive spike in rates. We remain stuck in that very, very narrow channel of the 50day support and 2120 resisted. We have been there for the seven or eight weeks unable to break up through because there is no real catalyst. I think all we are seeing is continued churning as the market really reconciles after we went through the and saw negative growth. Whats the going to look like and the future . This is a shortterm phenomenon. You are in the pisani this is a hissy fit category. Absolutely. What about oil . Its 60 now and we havent seen that number this year. What does that do to the market . Oil will stabilize in here. Thats what a lot of guys had been talking about. We saw oil in the 40s and we thought it would find stability in the 60s. Thats where we are. It has gone much higher. No. Its a positive sign that oil has risen and stabilized. I dont think its going to be a detriment to the economy. Gas is still much cheaper than it was a year ago. They are talking about the gas inflation. Off of what . Its cheaper than it was. Im not concerned about it at all. I think its more churning for the market as it gets ready for the next move higher. I will fuel up my big old suv. Mandy . We will be watching that oil close in about 50 minutess time from now on the second hour of power lunch. The stock market seems to be coming off the lows right now. We will see if we can continue to recover. In 4 x after an ugly april for the dollar will they resume the rally . Sarah eisen is live. What said the currency princess . Not today, but when it comes to the strong dollar many top strategists think that will be here for a while. After nine straight incredible months of strengthening, more than 20 in all, the dollar reached parody with the euro and the surge came to a screeching halt in april. They took the best month for the euro in years. What now. We talked to a number of strategists and traders. The europe overwhelmingly is the rally will resume in think lower term. Watch for the data to drive it. It starts with the jobs report. It started a little bit in the services and if the data turns better a little bit, that will help convince the market. The fed will raise Interest Rates even if its not as early as this summer. And importantly, the European Central bank is still in simulous mode. That should keep and a few weeks ago, everyone was betting that the dollars rise would continue. Over the last few weeks, some of them have been shaken out and now you necessary that long position in the futures market with the speculation and since last fall and could pave the way for another move up. Now i said this was a hot debate and it really is some of the biggest names on wall street. Deutsch bank and goldman are predicting that the dollar will continue to strengthen and many are not. I have been hearing from a lot of them today. A wellknown strategist said no more strength for the dollar because all of that is priced in. The fed moving towards higher rates before the ecb. Already in the price. Thats what took the dollar up to begin with. He thinks those who are bullish are being stubborn by the trade. Clearly its a debate that is important as it Impacts Companies around industries. Impacts the economy you saw in the export data today and tyler, its not just a oneway bet that the dollar will strengthen. Thanks very much. Time to check on the earnings score card. We have a look at the winners so far. Through today, it said may 4th but through today, that means that almost 4 5 of them 80 have reported. Generally positive although i know the caveat here is on lowered expectations. 68 of companies in the s p 500. They have beaten analyst estimates and 10 met and around 22 have missed. Thats the broader picture if you look at it overall. Lets take a look at what happened with the revenue side of things. Take a look at this. In terms of the earnings blended growth rates. Health care is the best one up there, up about 17 . We thought it was only up by about 7 at the start. Health care has been a bright spot for earnings season in terms of growth. The real lager we talked about it before. Energy stocks we thought they were going to be town in terms of earnings. Declines. Its only down about 59 . Energy is slightly better and still not good. Slightly better than expectations. If you look at the revenue side, this is the interesting part here. Health care is the best growth for sales. Top lineup about 10 . We thought it was up by 8. 5 . Health care remains strong and energy is the weakest one out there. Down about 34 . We thought it was down about that much at the start of the season overall. Heres the interesting past. If you look at the overall picture, we thought we would see declines of around 3 in earnings for s p companies. If everything stays the same and meets expectations for the rest of the reports, we are showing a 2 gain. Thats not great, but its still better than a 3 loss that we were going to see there. On the sales side this is where it gets iffy. A two to three decline, we will see that if they pan out as expected this time around. Sales not growing. They are clinking and profits Getting Better that told you maybe the growth is still am coming from cost cutting. A lot of that sales shrink is in energy right . Thats correct. By far it was the worst earnings decline and the worst sales decline for any other sector. Thank you very much. The new york subway worker has a terrifying encounter with the third rail. We will show you what happened. That is straight ahead on power lunch. We will look at workplace dangers. Blap metro work trying to move a metal garb an can that was lodged on the track. The can makes contact with the third rail and sets off an almighty explosion. They had protective gore and was uninjured. Wow. Thank goodness for the protective gear. Not every worker is as lucky as that. You see them explode. Each year nearly 100,000 suffer injury on construction sites. Charlie was part of the team that built our headquarters here more than a decade ago. Good to have you with us. How do you get a construction workers attention focused on being . We all get the lecture about do this. Wear the helmet and the eye protection. How do you get the protection . Winning over their heards and minds. We all have families. Moms and dads depend upon us. We actually go through an orientation yesterday and watched the video. We had them write a personal letter to their loved ones upon tragedy in their life. Whether they are disabled or worse than that a fatality. You can hear these tough iron workers. People that you hear. You will hear them sniffle and wipe their face. There is a reason why we have this. It hits home. You want to call it that and started on a personal level as well. Your grandfather eight fingers on the job. You saw coworkers. My grandfather had to live his entire with that handicap. I didnt realize as a child what hay lived through, but he had to deal with that disability and it was tough. Early on with my previous employer, it happened like that. We realized we had to change. Its great to provide all this equipment, but you have to win over their hearts and minds. I want to draw attention to some of things here. We have seen helmets and face protection and vests that make you more visible. What can these things do to save lives. If i wear this i will be protected. I can put on a hard hat. Things like harnesses though. We have 100 protection. This goes around the workers body and they will clip off to something that is solid. They are protected from falling. This saved numerous lives. Mandy needs this. It gets very dangerous. Remember this scene of the scaffolding coming down. Those were window washers and not construction. You have to get management behind this too. Thats the amazing thing. Safety is going on. From the standpoint and major corporations. We sit back and talk about learning together about safety. Recharging the batteries and incidents happened and how do we keep correcting the industry . You are doing something right because of 2006 they are down 36 . Keep up the good work. Thank you very much for joining us. Thank you for a you log me to join you. Facility services. And Manny Paquiaos hidden shoulder injury could turn into a headache for the boxer and everyone else involved. Should bets be honored . Well, should fans get a refund for all that money they spent . His shoulder looks good right there. Thats still ahead. E, 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. [ female announcer ] who are we . We are the thinkers. The job jugglers. The up allnighters. And the ones who turn ideas into action. Weve made our passions our lifes work. We strive for the moments where we can say, i did it we are entrepreneurs who started it all. With a signature. Legalzoom has helped start over 1 million businesses, turning dreamers into business owners. And were here to help start yours. You can call me shallow. But, i have a wandering eye. I mean, come on. National gives me the control to choose any car in the aisle i want. I could choose you. Or i could choose her if i like her more. And i do. Oh, the silent treatment. Real mature. So you wanna get out of here . Go national. Go like a pro. This hours power points the worst deficit is 2008. We are on track to be negative. 25 million is the number of birds infected by bird flu expected to push egg prices up 15 to 30 cents and 68 of s p 500 companies have beaten estimates. Health care leading the earnings growth. If you missed any of the big stories, visit them. You know the drill. Starting a business in your 50s and kate rogers has that story. We will tell you how two enterprises made that happen up next on power lunch. At chase, we celebrate Small Businesses every day through programs like mission main street grants. Last years grant recipients are achieving amazing things. Carving a name for myself and creating local jobs. Creating more programs for these little bookworms. Bringing a taste of louisiana to the world. At chase, were proud to support our grant recipients and Small Businesses like yours. So you can take the next big step. Welcome back here. A farnlg family shakeup could keep the middle east hot for years to come and what it might mean for the price of oil. Are investors getting out of american stocks . One fund manager gives his picks and i girl an tee you have probably never heard of most of them before. New revelations about Manny Paquiaos health ahead of the big fight. Anyone who paid to watch it will want to hear and may start screaming for their money back. Absolutely. Launching a business later in is not uncommon and older entrepreneurs have higher success rates than their millennial counterparts. A look at two entrepreneurs who offensed businesses in their 50s. They absolutely did. Although we often hear about young entrepreneurs in the past few years, ages 45 to 54 were launching more businesses than their younger counterparts according to the most recent data from the kaufman foundation. This during a time when they said business creation fell off all together. They turned to entrepreneurship out of necessity. When his Home Business suffered in 20009, he turned to ukulele making. He makes guitars out of his North Carolina home and ships them all over the globe. It brings him six figures annually, enough to never have to build homes again. I was so much happier than i had been building houses and the stress level was so much less i was willing to take a gamble and even if somebody called and wanted to build a house, you know what im not available right now. Sandra carter also 59 left a career in health care to launch her medicinal mushroom business in 2010. Now her company mushroom matrix sells products all over the country including at whole foods. They are on track to do more than 8 million in sales this year. Her age has given her perspective in running a business. One of the wonderful things of age, you learn about it as you go through life. You learn from others and your mistakes as well. Foundation researchers say entrepreneurs who launch businesses later in life find more success and they are more established. More experience in the workplace and a wider net of connections. Despite all the risks associated with starting your own business they are happier than they have been. There is no retirement for them in the cards any time soon. Are those mushrooms magic . She grew up in the 70s and it was mushroom powders. Your health and eyesight and even your horses and pets. She got into whole foods which is not easy. Thats a huge accomplishment. Good for them. Thank you. The topic of innovation hip is what cnbc will be bringing you in the first ever iconic conference may 19th in chicago. We are bringing influential entrepreneurs. You can join us there live and head over to iconic in a couple of weeks. It will be fun. Mark cuban is always good. That will do it for the first hour. Over to you sir. Magic mushrooms and ukuleles. It is 2 00 on wall street and 2 00 in miami where we find melissa lee at the emerge americas conference. We will get to her in a moment. Stocks to the lows of the day. The dow down about 100 points. Gold moving higher although onl up about 1 half of 1 . We begin with oil. Cheap gasoline may be a thing of the past. Crude topping 60 a barrel for the First Time Since december. It currently stands at 6055. Gasoline is sure to follow higher. It is not the move that is making moves. Interesting from the soughty oil minster. Let us bring in hadley gamble who is live from saudi arabia and she spoke with ali earlier today. Hey, brian. Apparently when it comes to setting the price of oil, no one has control of that except the long time oil minster here in saudi arabia. I had the chance to catch up with him and in an interview, he was on the way out the door hadded to a minsters meeting happening today. I asked him about the price of oil and if he is worried whether or not this deal with tehran will mean a flood of crude on the market and what that will mean for pricing. Take a listen. I am not worried about iran crude. Nor will i predict the prices. If i was to predict, i would be somewhere else. Now of course we are talking about a gamble here. When you are talking about Saudi Foreign policy saudi oil policy, they are taking a bit of a risk here trying to get the market share under control. You have to remember when it comes to saudi Energy Prices are 90 of government revenues come from Energy Prices and saudi arabia is already dipping deeply into their reserves. They are gambling themselves. Thanks so much. Lets go to the phone. The global head of strategy at rbc Capital Markets. We had what he was talking about, what the saudis are doing to oil prices and sold to the u. S. And europe. Whats going on with the libyan port. About 14 of total shipments, up to 14 could be cutoff at this point. Where is the support for them . Like instability, its that support. We had four active wars going on in the middle east. Thats unprecedented when you combine yemen and libya and syria and iraq. One of the things they are talking about is improving the supply and demand and should bring prices higher. They need higher prices because as hadley mentioned, they are dipping into the reserves to finance their military spending. The campaign took 30 billion out of the reserves in february and march. Thats an enormously large drawdown. Worry oil prices where they are right now, how much is that middle east premium embedded in that barrel of oil and where could we go where they are in the same month . I think you move a significant leg higher. We need to see the physical supply disruption. They had almost no premium in the market earlier this year. They are starting to creep back but its a story still of expectation and slowing u. S. Demand combined with the new adage in libya. To move higher in the shortterm i would think we need to see some type of physical obstruction from one of the conflicts in the region. Its not on our radar like yours, but you have written about a shakeup in the saudi royal family. Its not just the new king. He is putting his family members in key positions. This could heat up the middle east even more. Why . With the consolidation of power in the branch of the royal family, they dispresence with the crown prince and foreign minster is out. We are seeing a more hawkish foreign policy. The campaign in yemen is continuing and the saudis are talking about the activist effort to confront iran. We are really in for a period of heightened risk in the middle east and instability and the saudis saying they will take whatever steps necessary to protect their interest regionally. Rbc Capital Markets and a pleasure to get your insight. Thank you very much. The jump in oil has gas prices spiking again. The National Average for a gallon of unleaded is 2. 63, 22 cents higher than this time last month, but 1. 22 lower than what many of you are paying in california. With gas buddy. Com, over the past three months oil is up 20 of the futures are up 33 . Why the gap . I think a lot is of course the refining season. We have seen a lot of maintenance taking place and for those on the west coast, explosions certainly making a big deal on the widening of the gap and the transition to summer gasoline adding up as well. You talk about the exxon and the strikes, and are you surprised that gasoline is not more expensive nationwide . I think with demand rising the pries at least nationally are right where i would have expected. On the west coast, they are escalating far quicker and prices will begin to come down after the refineries grapple with all the issues. Maintenance is ongoing with the refinery as well. They will cool off andy woo will see the west coast cool off a little bit from the searing temperatures they have seen at the pump. Things will continue to rise as gas prices catch up with the increases again. We are seeing that in crude oil. If im thinking about packing up my car, is it too early to put out a forecast for wa i might be paying at the pump . Its never too early to put out a forecast, but what we are looking at for june is an ideal time to hit the road. Gas prices likely will turn around here in the few weeks ahead by 34e78d. The National Average should be in a downward trajectory. July and august keep an eye out for Hurricane Season. The take away here is that average prices nationally will be in the mid2 a gallon for much of the summer with a potential to skew higher in july and august because of Hurricane Season and the potential issue there. Patrick, a pleasure buddy. Good to see you. If you are wondering, the most expensive gas in america is in los angeles followed closely by Orange County and san francisco. The cheapest gasoline on average is fargo, north dakota and greenville, south carolina. Big energy names are out with the earnings after the bell. None as big as pioneer natural resources. Not because the company itself is that big, but because the market will be watching to see if they address David Einhorns scathing criticism yesterday. Kate kelly joining us now. What are we expecting from pioneer when they report . A day after that hedge fund manager, you mentioned David Einhorn blasted them in general. Pioneer natural resources, the dallas area of oil and gas company he referred to as the mother fracker is due to report First Quarter earnings after the bell. On surprisingly given the slump and crude over the past year analysts are expecting a downturn from the same period last year. Specifically net income of 8 cents a share and revenue of 758 million. As with other Oil Companies where pioneer stands with the rig count and extending at this point will be key to watch. There is recent evidence that the cost cutting continues there. Just yesterday pioneer announced the closure of a Denver Office and related layoffs around the colorado region attributing those to continued weakness in prices and all these companies are coping with. Shot sheffield has said in the recent past he thinks oil may have bottomed and he may be adding more rigs as soon as july. Another thing to watch, whether their 4 cent per share dividends average. We may get more commentary then after the earnings report. Pioneer was not the only fracker that einhorn singled out yesterday. He talked about eog which he nicknamed the father fracker. Resources and others. Those two reported earnings but after the bell we will be hearing from a bunch of others including dan lobes portfolio. Claims all american and others. Another long night for kate kelly. Over the past month, the dow is up 1. 3 . That is paltry compared to the gains around the world. Even egyptian market is up nearly 3 in one month. Even with gains like that opportunities abound around the world. Lets bring in paul, Portfolio Manager of the huntington global selects market. Welcome. Going through the list of what you like tyland taiwan, korea, indonesia and obviously all asian nations. There is a lot of fear about china slowing downright now. If chinaic tas a turn for the worst, do you revisit what what like or will it bring down the region . China is a major country to watch. My concern is the equity markets in china are ahead of the economic realities. It is soring. They are up 13 year to date or something . The shanghai composites and a lot of them driven by Monetary Policy and going down the road. I am a little bit concerned with the Economic Activity may not pick up as quickly as they are looking for. Im looking for a pull back and at least clearly a sign of economic growth. I promised viewers names that they have never heard of before. All three are brandnew to me. Lets go through a couple of ones that you like. Kce electronics. Thaibased companies. Commodity business. They are importers and help the Profit Margins that are expanding and manufacturing. Revenues are going to increase. Valuation is low around 15 times earnings. 15 growth. They are probably supplies to automotive and the industrial areas. Even growth record. The other is vip stocks. You can buy that more easily. Tell us about pt tower for some. I hope i am pronounceing that correctly. One of each. I was going to be right to hedge my bet. Thats one of the favorites. Thats for a long period of time. The reason being the company is typically around 20 . Maybe the highest in some parts and larger points of the world. The pt tower is they buy, build, lease cell towers. Like a crown castle. Exactly right. I think in indonesia, they have the most favorable demographics in the world. A good sized pop rulgz and secular backdrops. That was a pleasure. Thank you very much for coming in. Appreciate that. Hooer is what is on your menu. Meet the king of fast food. It is not a restaurant, but an entire cuisine. Mortgage rates trying to lock in now. New details on moony paquiaos health that has boxing fans feeling sucker punched. We will explain when power lunch returns. Blap military families are thankful for many things. The legacy of usaa Auto Insurance could be one of them. Our worldclass service earned usaa the top spot in a study of the most recommended Large Companies in america. If youre current or former military or their family, see if youre eligible to get an Auto Insurance quote. We will rock you anthem call 1800royal caribbean or your travel agent today checking back on the marks and down by 1 after a fairly sizable advance. We are about three points off the session lows. 2095 is the level there and the nasdaq is where more of a pain is being felt. We are a few points off and look at the nasdaqs biggest losers. Brian . Thank you very much. Apparently tacos are the new fast food king and text mex is. The publicly traded restaurants so far this year the best three right now. El polo loco up 30 and chewys a text mex chain started in 1982, but a Small Company in market caps under 400 million. A lot of Analysts Covering it, up 31 year to date. Thats the best performing restaurant stock this year. Yum brands is up 24 this year. Chipotle is down seeing a market share shift in that space. If you are wondering and someone said whats the worst performing stock this year . You are going to tell them its dell frisco. Thats the steak house chain, the worst performer this year. You have mcdonalds problems wellknown. What restaurant stocks right now are a good bet for your money . Let us bring in nicole from piper jaffray. First to you. I want to talk about chuys. A Small Cap Company and you and others have a told but the clothe story has been unbelievable. He and his team have done a great job. There is a level of skepticism after the company had tough times over the last roughly year or so. They would continue. But to give steve and his team some due they used a best practice approach and focused on stores that have been under performing and thats what is delivering the pay load in the most recent quarter. It seems that restaurant stocks are often like retailers. Hot one day and not the next. Why do you have an under weight on panera . We look for Human Capital and its hard to go into the community and suggest owning a stock when there isnt an executive team. That being said they wooed on that recently and we are comfortable with that in tabling that issue. For now its part two, the fundamentals. Its not really debating 2. 0. They have to do the remodels but we dont know what the return is going to look like. Im wondering because yesterday we got a glimpse of the turn around plan. Investors were under wellmed by what was unveiled. Jack in the box is one of the top picks. Is that benefiting from the losses . To be fair i think a lot of the fast food names are benefiting from mcdonaldss lot of directionment there is a lot of market share that has drifted. For the restaurant chains it has to come down to cravable food. Thats something that mcdonalds as struggled with years. They have thrown a lot of things on the menu and value and convenience that they have strayed into best. They havent worked very well. Which names in your coverage have benefitted the most and continue to benefit as mcdonalds continues to cope with its turn around strategy. I see it this way. Anyone in the limited service arena. It doesnt matter whether its Quick Service or fast casual. They are ahead in technology. Those that prove you can nearly eat online and that could include starbucks, but it would include burger king and would include sonic and even popeyes. To clear this up if you can, nicole kind of laid it out indirectly, the argument i was going to make. She talked about sonic and burger king and im not knocking the chains. You can eat healthier if you want. But the hot stocks are the ones that i do not look at. The ones that have done well are the triple burger beef thing. Mcdonalds is losing share because its not healthy, but i wonder if its not unhealthy enough. It am cans down to the old axiom. Its the food stupid. To be fair its got to be a cravable products that consumers enjoy. Yes, sometimes the health matters. On the other hand there is a number of consumers who want to have a good skprns have a fair return for the money. By the way, we have to leave it there. I went to jack in the boxs website just now and the main page is the late night munchy meal with two tacos, onion rings and a drink and its like a fourth meal. I had that last night. What is that targeted to . Are. Common who might smoke something that is available in denver. Bob and nicole there, thank you very much. Welcome to jack in the box. The ceo of panera bread is coming up on the closing bell. You can catch that important interview. Up next a milestone in the fight on cancer. It is a big dollar figure. Plus americas growing appetite for the other other white meat. We are not talking about chicken or even possum. The latest culinary craze that some are calling cold blood. 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. Welcome back. Stocks holding the session lows and utilities the ten biggest that we track. Wisconsin energy and resources and Sempra Energy all in the red. People going back to bonds, melissa. Thearchgs a lot for that. Hitting a new milestone topping the 100 billion mark. We have the details on this story. There is a couple of things driving this growth. First the numbers. They rose more than 10 to 100 billion globally up from 75 billion according to a report from the ims institute for health care. That spending is expected to increase. Hitting as much as 147 billion in 2018. A few things are contributing to this. More cancer drugs are getting approved. They hit the market between 2010 and 2014. Many are targeted therapies, honing in on the drivers of cancer. They are priced atd more than 12,000 a month much thats not typical for cancer drugs getting approved. They are in many patients helping them live longer. They are taking the drugs for longer too. All of this drives up cost. 2 3 of patients live at least five years. May may see the introduction of less expensive copies that could help temper the acceleration in spending. The pressure has been mounding with Drug Companies over the cost of medicines and its bound to be a big topic as we approach the Biggest Research concerts in chicago. Brian . Much more ahead on power lunch including why boxing fans feel they are being sucker punched. We have jane wells in the house. But first we are headed to have another big day. Jacky is not as big as it was earlier. Hi there, brian. We are off the session highs and well over 60 and traders think this is going even higher. Im going to tell you where crude oil prices could be by memz when power lunch comes back. Blap heres your cnbc news update. Lo rhett is lynch met with freddie grays mother at the university of baltimore. She went to city hall to meet with the mayor and the citys police chief before meeting with the ranking file officers. Secretary of state john kerry made a surprise visit to somalia where he was greeted by somalias president. The u. S. Will begin the process of reopening an embassy in that nations capital. He is the first secretary of state to visit the east cav can nation. Imt health said 1 bill kron was spent on cancer drugs, a 10 rise from 2013. The increase is due to newer personalized drugs that target the immune systems of cancer patients. The new York Department of National Services announce that a 17th century painting lost as a result of nazi persecution is being returned to the rightful owner. It was held at the louver in paris. That is your update at this hour. Thank you very much. Oil is set to do something it has not done in months. We have not seen that level since december of last year. Setting new highs for the year they have a close over 60 and that has paramounted this point and that will take us to the next level. A port closure got us over that hump today. We could see a steady climb higher. Traders are saying that 65 by memorial day is not necessarily out of the question. Then they think we are going to peter out somewhere around there. At that point of course its going to impact gas prices that are already up a quarter from a month ago according to aaa. Mem is more than two weeks away and at start of the driving season will heat things up as well. We are borrowing the demands from the drive driving season and we could suffer for that later. Back to you. Thank you. Time now for street talk every day we do it. Or six stocks. Five analyst calls. Lets go. The first is Eastman Chemical company to a neutral. From 90 to 35. They upgraded avery dennison. They raised the target to 83. They have to sold the low space product line and its been a lot of free cash and it is expected to generate up to 900 million. Its from 105 to 115. They conducted a survey and found a large portion of people who respond to the survey merchants saw the volumes decrease because of policies surrounding counterfeiting. They are seeing the impact in the crack down. Shoulda woulda coulda. It has been on away slope down since the highs of 120 in november. The third stock, Motorola Solutions coldman stocks down from 57 or 257 from 66. He said they had a huge sele call. A sell 23407b the less. A lot of people are throwing in the towel because it had been reported that they were looking for a buyer and could not find one. Thats why they have it at a sell rating. They have 30 in a single day. That is what is happening with the stock. Being a contrarian call they are upgrading to the 50 price target. They have a Cloud Computing and how to take down the guidance as well. There three new guidance and that should provide the stock. The they have the buzz. They have web. Com and the ticker is w to the fourth pour. The Internet Services company, roth capital to a buy goes to 27 from 17. Just over 2o and upside. 13 analyst at about 2167 a share. Had you heard of this company . I have. It had a really, really rough go of it. A lot of misses and warnings over the past year. They got more than half but it has had a tremendous upswing from the bottom up about a 30. You have to wonder if the analyst is late to this one. All right, melissa lee. Thank you very much. We wrap up street talk on a tuesday. Meantime, im sure they will talk about it on fast money. Netflix surging and they have a big time upgrade. The analyst there more than doubling his price target to get this 722 a share. That much upside really in the cards on netflix. Lets bring in the trading nation team. They specialize in options. Head of equity sales trading. David, netflix is up 66 this year. You have a great analyst team as well. What do you say . Look it had a massive move and the momentum is there. This stock hassed the potential of 750. Over the next five years, two to three trading. They have the u. S. Numbers are tracking and been in the last year. The International Numbers are off the charts and tracking very well. Content is am can be in superior. They are looking at double that over the next year or so. Pritsing power they have which is something that i think is key here. If you do it back in the envelope here lets make the assumption they can get you 150 million paid subscribers in five years and move the price from lets call it 999 to 12. You are looking at 4 billion this earnings. 20 multiple, you are looking at a 1300 stock. You are looking at a 1600 stock. I say look i cant time it day to day, but i can say this stock is going higher if they execute the way they are executing, i would rather pay 570 than 1300. The stock definitely has momentum behind it and it keeps rolling. What does the Options Market tell us about netflix . People are not short this stock, but they are under weight this stock. With netflix outperforming so much and if you are not a true believener this, how do you get exposure to it. People come into the Options Market and buy upside calls and options. You have a limited exposure to it but if you get the type of numbers that they were caulking about, you see the hedge fund trade. And they are buying upside exposure similar to what we saw in apple. We dont really have a lot of time to talk about the options, what do we do . Something we need to watch for . We watch for lets trade very cheap relative to calls. And people are not buying and a large volume of call buying in netflix. We appreciate interesting on a number one performer in the s p in a trader favorite. Thank you both very much,much for more trading nation go to trading nation at cnbc. Com. This is a 10year yield. Mortgage rates could be on the rise. Will they rise enough to hurt housing . Plus, many fired up about the evolving Manny Paquiao story. If he was hurt did he lie about it . Should people who bought the pay per view get a refund or a credit some tdd 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. 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What has the jump in rates done to the housing market. Diana, has this lit a fire under the you know whats of potential home buyers . Maybe, but not yet. It is making housing more expensive. They followed the housing rates and they are climbing higher. The 30year fingsed is at or below 4 for the last six months because low rates give buyers more purchasing power. Now, go back two years. The first big rate spike was in june 2013 when the fed hinted at a taper. That was what we called the taper tantrum. We went above 4 in home sales for the rest of the year. Rates then trailed down ever so slightly with home prices higher. Sales dropped. Then to this year a slight jump and then another pull back. Just in time for the start of the spring season. Take a look at that. See how its going up. In the past two weeks, big gains. Rates have a direct effect on affordability. In the last 15 years, they allowed home sellers to raise prices 12 . Thats according to the real estate. That told you what the rates really can do to prices. Brian . Stay with us. Thank you very much. What is the priple effect if Mortgage Rates rise a bit. The professor of real estate and finance at the horton school. We were the team debating this this morning. They would have gotten involved and saying Mortgage Rates are up. I said up to what . 4 which is near historic lows even if we go up, is it a bad thing . Are we that sensitive . Its bad if it goes up beyond affordable levels. This is historically low and another 10 to 15 basis points i see no impact. In fact, it might have a positive and an interesting way as people get ahead of the big rise they sigh hate of them. However if we start hitting really ig 95 cant increases, the back to normalcy in housing can be derailed. I guess the problem i have got with that and i know you are telling the truth, are we that much on the edge of what we afford still . If a half percent is going to determine whether we buy a home or not. That tells me they are borrowing every penny they can. Im not saying that. It will be a pull back in buying. Particularly they will hit the construction site. Those who have these great low mortgages will be in better shape and locked into their homes and less likely to trade up. Hits construction and construction is still low and its coming back to normal levels. Maybe this will stop and thats the problem. But brian, i will argue that buyers are just that sensitive. They are very competitive in the market place where prices are skyrocketing due to very, very tight supply. Unlike during the housing boom, you dont have the products. The 0 down and the teaser rates. You are looking at 30year rates and they have higher premiums. They are sensitive to every rate move, even the slightest and even though we are close to historic lows. I agree with that and the direction could be the reverse. A small rise could be a positive. More than that, its a negative. In terms of the other side of the equation, tight inventory already. That is stopping you in the report that got to me. Every 1 move and decline in Mortgage Rates allows a 12 increase in home prices. Do you think sellers would be more reluctant to sell because they cant get as high of a price . I dont know if they are quite that savvy when you put look at the rate point of it. We are not seeing enough put their homes on the marks. They are afraid they wont be able to find anything they can afford. It is a doubleedged sword. That inventory has to come from the builders who are producing at very sluggish pace. Sellers right now are worried. What are their finances. Do they want to trade up or sit tight with their 2. 5 fixed rate loans from the good old days and stay there rather than gamle on a higher rate themselves . Thats go ahead. Thats the key. If in fact we get into another problem. The under water borrowers, it could be the locked in borrowers who will sit tight on the low rates and not go to be the trade up. That means the problem is far worse. I think both can be correct. Correct me if im wrong. I dont know if you own a home. I do own a home and im not sure if are a renter or buyer in new york city but when you are a buyer, all you care about is the Monthly Payment. If i sell my home the only thing i will care about is the price i get. They are looking at very different things. What are you going to move to . What is the seller moving to . I dont know. Am i going to rent or buy Something Else . Most people are move up buyers unless they are downsiding baby boomers. Even they are buying condos in the city. You have to cover what you owe. Thats a price issue when you buy. What can i afford. Thats a Monthly Payment issue. Whats your Monthly Payment when you buy new. How much does it hit you . It depends on the rate and what i borrow. Everybody is borrowing everything. All they can afford. Except for the 30 who pay cash. Not everybody is borrowing everything. What i am trying to say is people are cashstrapped. They are sensitive to what the rates are. You say they buy that Monthly Payment, the question is can they afford that given what they have to put down now days. 20 down to get that incredibley competitive rate. A compelling debate on housing. Appreciate it. Tesla shares rising on another bold call. We will tell you how high they think the stock might go. The food craze that is just coldblooded. Stick around. Blap. There is an ancient rhythm. [ ] that flows through all things. Through rocky spires. [ ] and oceans swell. [ ] the endless. Stillness of green. [ ] and in the restless depths of human hearts. [ ] the voice of the wild within. Shares of tesla turning negative in the past 20 minutes or so. Had been as much as 4 higher than where theyre trading now. One analyst is getting bullish on tesla the day before earnings. Jeffrey specifically. The price target 350 a share. Lets get to phil lebeau with the details. Thats only part of the story. Have you seen the bull Case Analysis . He says it could go as high as 450 a share. When you read the jeffries note it boils down to this in terms of optimism were seeing from jeffries. It believes there will be demand for 500,000 vehicles annually by 2020. Thats the target thats been set by tesla. The china concerns weve heard so much about over the last six to nine months jeffries says he believes those concerns are overblown and they also believe that tesla has a pure advantage relative to other electric Vehicle Companies when it comes to battery technology. The tesla predictions also outline a few other reasons why jeffries believes that this is a stock and a company that will have some staggering growth over the next few years. 36 annual growth in terms of revenue. The model s and x margins are in the 20 to 30 range they believe will get as high as 32 . The ev market sales are supposed to surge. The tesla earnings coming in tomorrow at the close of the day. Its interesting to seat numbers and the conference call. Thats what everybody will be focused on especially with so much riding on the second half of the year with the model x and the ramp up in production. That comes after the bell tomorrow. Back to you. Thank you so much phil lebeau. Dominic chu has a market flash. I do. Its going to be on aol, brian. Shares are down 2 right now although theyre off their worst levels today. A Goldman Sachs analyst downgraded the media company. Thats amid concerns over growing competition in that space. Again, aol shares down by 2. 3 . Brian, melissa, back over to you guys. All right dom, thank you very much. Melissa, i think were going to say an early adieu today. Ill see you on thursday. Tell pitbull we said hello. I will. His keynote, 5 30 tonight. The crowds will be unbelievable guaranteed. He might break into song. Melissa, have a good time at emerge. Coming up, why many pay per view buyers are not only fighting mad theyre filing lawsuits. Just breaking now. Somebody filing a lawsuit because they paid to see the fight where pacquiao may have lied about an injury. Jane wells in the house with breaking news right after this. At chase, we celebrate Small Businesses every day through programs like mission main street grants. Last years grant recipients are achieving amazing things. Carving a name for myself and creating local jobs. Creating more programs for these little bookworms. Bringing a taste of louisiana to the world. At chase, were proud to support our grant recipients and Small Businesses like yours. So you can take the next big step. Welcome back to power lunch, here is a news alert on Pershing Square holdings of bill ackman. His best holding, best Major Holding so far this year appears to be valiant pharmaceuticals, a stock he talked about at the Investor Conference yesterday, at some length talking about the performance of Platform Holdings and why theyre chronicalliunder valued. And a news alert on salesforce. Com, that stock halted once again for volatility. Crm halted last week. Reports out there that perhaps it was fending off an offer that somebody tried to buy it or approached it. Crm speculated all for a week on who might want that the company if indeed anybody. Its halted as new developments cross on crm, if and when it begins trading, well bring you that right away on cnbc. If you paid 100 bucks to watch that boxing match saturday night or more for aette you have a right to be angry. Jane wells joining us now. Break within the last hour jane some people are more than mad about it. We have our first lawsuit from some people who paid on pay per view. The fight of the century has become the fraud of the century. Turns out it may not have been a fair fight. Manny pacquiaos torn rotator cuff injury. He may face charges that he lied by checking no when asked if he had injuries. The daily mail says it got a copy of the form. While he signed it his team said an adviser checked the wrong box. They say they disclosed his injury to boxing officials and approved treatment ahead of time. Officials said we didnt find out about it until hours before the fight. He fought anyway. Heres freddie roach. We thought about one time you know postponing the fight and so forth but as the weeks went on it was Getting Better and he was throwing really good in the gym. I was happy with his performance and he was doing a lot better sparring. I didnt think it was i think he could get through the fight. A couple in las vegas filed a lawsuit seeking classaction status which would include people like me against pacquiao after they shelled out money for pay per view. Mayweather says hes is there a preshow medical form . Punch me any time. Youve got it. We have to go ahead to power lunch. Closing bell starts right now. More on crm. Welcome to the closing bell, im sara eisen here at the new york stock exchange. Im scott wapner. Red arrows across the board on wall street today following mixed Economic Data in the United States and the ongoing greek debt drama. Just one of the reason that people are pointing to the biotechs index is dragging down the nasdaq which is the worst performing of the major averages. Biotechs have been hard