Sequester crisis such as it is being told. Whether it is a crisis or not is another debate for another day but it seems that the republicans do have a plan they will put on the table today as well. You have to wonder, was it, the sequester talk or italy that really took the markets down today . With that lets go to Nicole Petallides at the new york stock exchange. Volatility certainly back in the markets bigtime today. The vix rallying more than 17 , nicole. Thats right. The vix has taken off. You have a very strong dollar. Flight to quality of gold. Watch the euro and ten year. The dow is down00 points on wall street. Worries about europe and worries about wall street. [closing bell rings] barnes noble. Go, nicole. Barnes noble, the chairman of the company, just like we saw with best buy. Like his baby and not let it go in this case the superstores. David we have the dow accelerating the downward trend right up until the ringing bell. Well go to s p to find out what happens with futures in terms of tomorrow. Look at that, a 214 point drop. Looks like it might settle if this is the session lows this is the low. All the intoday tease hit hard. S p was hit harder than the dow. Blue ribbon stocks held on better. But even they were knocked down. Very tough day for the s p and dow jones. Nasdaq down significantly about a little less than the dow. Getting hit hardest are the small and midsize caps represented by russell 2,000. That was down 2 . Lauren shares of ryland were down significantly. Two key homebuilder etfs saw a decline as a result. Ishares, homebuilder etf and the s p homebuilder etf. David despite news that hedge funds cut their bullish bets on gold by the most since 2007 last week, gold rebounding today and posting its biggest oneday gain this month. Gold rose 13. 80. As you wan see, settling at 1586. It looks like i is moving up afterhours. Lauren as expected but the market likes this. Uncertainty mounted about the outcome of italys election investors fled to safety. Treasury yield fell eight basis points ending the day at 1. 88 . That is onemonth low. David adding to all the cop fusion that led to a downward day in the markets we still have no budget deal in d. C. Were getting dangerously close to the aumic cuts kicking in. How dangerous is a matter of opinion. Are we any closer to some kind of a deal or is the divide growing. We should get some clues in just moments from now. Well take this live when speaker john boehner. As you can see, just introducing the lineup of guests there. A lot of republicans. You can see john boehner to the right. Well listen in here. s listen in now to the warmup to john boehner. Come up with a plan to replace these cuts with more, with smarter cuts and reforms. And yet it seems that the president is more interested in doing his campaignstyle rallies rather than actually sitting down with the Democratcontrolled Senate and coming up with a plan. Tomorrow the president is traveling to newport news, virginia, a 180 mules from washington, d. C. In order to hold another rally. Instead of traveling a mile and a half up here to capitol hill and sitting down in harry reids office and coming up with a plan to replace these cuts with smarter, smarter reforms, smarter approaches. The republicans, over the last ten months, the republicans have been working. We have passed two bills to replace these cuts. Now we need the president to stop campaigning for higher taxes, come back here to washington d. C. And lead. You know the president proposed this sequester yet he is far more interested in holding Campaign Rallies than he is in urging his senate democrats, actually to pass a plan. We know there are smarter ways to cut spending and to continue to grow our economy. That is why republicans have acted twice as cathy said to replace the sequester what we would argue are smarter cuts. Listen, the president says we have to have another tax increase in order to avoid the sequester. Well, mr. President , you got your tax increase. Its time to cut spending here in washington. Instead of using our military men and women as campaign props, the president was serious he would sit down with harry reid and begin to address our problems. The house has acted twice. We shouldnt have to act a third time before the Senate Begins to do their work. Good afternoon. You know we heard the president say last week that he was going to be forced because of the sequestration to let criminals loose on the street if he didnt get another tax hike. Today were hearing discussions from the secretary of Homeland Security that somehow were going to have to sacrifice Homeland Security efforts in keeping our country safe if we dont get another tax hike. This is a false choice. And the president has been engaging in this rhetoric of a false choice for weeks now. As speaker just indicated, we in the house have acted. There is a smarter and better way to go about trying to achieve the reductions in spending so we can get control over the spending. And in the house we even included measures that the president has proposed in his own budget but yet the president wont support even his own measures unless theres a tax increase. So the president really ought to stop campaigning and come back to the table and work with us. We care about what happens to this economy and people who sent us here. We have proffered alternatives and solutions. We dont adhere or agree with this false choice the president is putting forward and as cathy said, president s is off campaigning in my state, in newport news, virginia. Yes, were very, very concerned about the impact on the commonwealth as we are on all states and theres a way to effect the right changes and reforms so we can avoid that. And we must set aside this false choice the president is proffering. David eric cantor, john boehner, other republican leaders, talking about their solution which does not include any tax increases to these automatic spending cuts that are coming in. By the way we should mention even if all the cuts do go into place the federal government will still be spending 15 billion more in 2013 than it did in 2012. And rich edson, that is making the president s point of view a little harder to make the numbers add up if you will. And this is all following what has really been a media blitz by the white house, bringing up a number of cabinet secretaries over the past week to talk about the effect. Food safety, security, airline travel. Youre seeing that right here, the republican response to that, pushing bills they had passed last congress which technically cant apply anymore since the congress turned over to the 113th. So the house doesnt have anything that could be passed by the senate right now. The action goes to the senate the day after tomorrow. The house or a Senate Democratic and republican proposal will be voted on. Republicans say they will have no tax increases. The democratic plan has half tax increases. That adds up to no negotiations to avoid these automatic spending cuts on friday. And it appears at the very least well head to the beginning of the spending cuts which start on march 1st. David the irony is of course, the congress and the president could get together to make the kind of cuts that would not jeopardize individual jobs that the president has focused in on, as having be sort of some automatic cuts that happened with sequestration. Right. There are ways that you can play with this law known as sequestration, these automatic spending cuts. Which one was raised by the agricultural secretary tom vilsack you could allow what is known as transfer authority. The way that this current law works it takes every government account that applies and cut as certain amount, a certain percentage from that. You have to cut where maybe it would be smarter to take money from one account to move it to another, this law doesnt allow that. What vilsack called for along with others is saying, give the authority for the administration to move money around so you dont have to get rid of some folks youre talking about, furloughing air Traffic Controllers and things of that nature. The administration has been somewhat cagey whether or not they would accept that we asked them directly today and they didnt get back to us. Whether or not the administration would go for that or even if House Republicans would cede the authority to the white house. They might consider it but still havent made up their mind on that. Lauren rich edson, thank you so much. Thanks. Lauren lets go through it with our market panel. We have john manley, wells fargo advantage fund, and david kulle. Larry at the cme group, the every monday this year the s p 500 has been lower but it was bigtime today. We saw for the dow industrials the biggest point drop down 216, since november. Why were we selling off . Was it the idea of the sequester . Was it tally . Was the big selloff today . I think it is the sequester. Were getting closer and closer to the situation. Everybody is reporting, you guys are talking all day long. What will happen had that happens come friday. It is not a good situation. The market is finally reacting to it. All this time the market felt like our government would come to some kind of a agreement or at least kick the can down the road. Now it looks were not even that close as you listen what was said by all the politicians. Theyre not close to getting together. Lauren we always get a deal in the left vicinity hour . We always do but the market is scared we wont now. Likes you said in the biggest down day in quite a while. S p is while it is a little quiet, were into cash close last 15 minutes of trading were sitting at the lows. That is how it is feeling. David larry, the market was downturn was accelerating last half hour big time. What do you think in terms of trading tomorrow . Do you think it will open to the downside . I do. I think we test lower where we are now. I watch 1480 in s p and six points lower than the low. If we stay above level. People want to buy the breaks. This is pretty harsh one and scary to do it. This may be the very best trade if things look good. I dont think they will tomorrow maybe buying on the cheap is a good idea. I dont think you will see that tomorrow. I think well see lower prices and test below the 1480 on s p. Watch for that very carefully. Lauren larry, well see you in a few minutes. Stay with us when the s p futures close. David bring in the market panel. We have john manley and david. David, first to you, we begun to see this acceleration of the move out of bond into stocks and there are some concerns there that if theres a bond collapse we may see Interest Rates spike up but perhaps before that happens we may see the big selloff weve been hearing about on stocks. Looks like that may be whats beginning today. Well, i think the volatility today started with the elections in italy. Maybe near the very end of trading there was word that the congressional leaders would be coming out and speaking which, that always send some jitters through the market. We saw that accelerated selloff near the end of the day. But with the sequester, just like with the fiscal cliff debate the end of the year. There was a grandstanding, political posturing right up until the 11th hour. As far as elections in italy, whether berlusconi is smiling or not tomorrow i dont think has a big impact on the markets, not even as much as what happened in japan last night. Lauren john, you say that well have some quick pullbacks in stocks. 5 here and there but youre relatively bullish for not only 2013, your s p price target there is 1600, but youre saying 2000 as the level for 2014. Youre Still Standing by that, john . I am. These are very typical of selloffs in a bull mark the can. Usually in bear markets you have quick, sharp, upward rallies. Exact opposite is true in bull markets. This is classic bull Market Correction in that respect. I also think the fundamentals are reasonably good. The fed is still positive. Stocks are not unreasonably value. Where will you go for yield . I never called a 5 correction in my life correctly and everyone seems to be doing it right now. David david, lets get specific here, where you go, particularly with these stocks now. You have a couple of examples. Some interesting examples. One, jpmorgan has an algeria mlp, Master Limited partnership. Tell us about this. Well, its a play on energy, without all the volatility, with the mlp, it is structured as an etn. Helps from a tax standpoint, tax reporting standpoint, 1099 versus k1. The advantage of it is like a toll that is paved to paid to move gas and oil around the country. With energy use expanding, infrastructure expanding, we continue to get a good yield in this investment and a good total return overall. When we look at our barbell approach we talked about on air before, high growth on one side, high yield on the other, this is in addition to our high yield side of that barbell. Lauren real quickly, david, your thoughts on financials and then john, your response to that. We like financials. That is our most favored sector for 2013. We know, weve seen a selloff here recently. But we think that regional banks, financial, financials in general will do very well in 2013, coming off the incredible low from a few years ago. Lauren john . The region will do all right but you have to worry about regulation. Fundamentals are okay. Evaluations are okay. Spreads with other Corporate Bond have narrowed. So im not particular positive on the overall financial sector. Lauren thank you, john and david. David thanks, guys. Good to see you both. The bulls came out of the gait running this year but are the bears about to step . In it looked like that today. The editor of investor place. Com are seeing signs of bigger pullback than what we saw today. He will tell what those signs are. Lauren plus looking for innovations for profits . Find out industry going through significant change and stock plays that go with them. [ indistinct shouting ] [ indistinct shouting ] [ male announcer ] time and sales data. Splitsecond stats. [ indistinct shouting ] its so close to the options floor. [ indistinct shouting, bell dinging ]. Youll bust your brain box. All onhinkorswim from td ameritrade. I honestly loved smoking, and i honestly didnt think i would ever quit. [ male announcer ] along with support, chantix is proven to help people quit smoking. It reduces the urge to smoke. It put me at ease that you could smoke on the first week. [ male announcer ] some people had changes in behavior, thinking or mood, hostility, agitation, depressed mood and suicidal thoughts or actions while taking or after stopping chantix. If you notice any of these stop taking chantix and call your doctor right away. Tell your doctor about any history of depression or other Mental Health problems, whch could get worse while taking chantix. Dont take chantix if youve had a serious allergic or skin reaction to it. If you develop these stop taking chantix and see your doctor right away as some can be lifethreatening. If you have a history heart or blood vsel problems, tell your doctor if you have new or worse symptoms. Get medical help right away if you have symptoms of a heart attack. Use caution when driving or operating machinery. Common side effects include nausea, trouble sleeping and unusual dreams. With chantix and with the support system it worked. It worked for me. [ male announcer ] ask your doctor if chantix is right for you. David yes, s p futures are closed right now. Lets go back to larry levin in the pits of the cmme. It ended 16 on the dow. Was it going to the plusside on s p futures . Were close to that. Were down 27 points today down on the day. I would watch the vix very carefully tomorrow, david. The issue is the vix was up 17 yesterday. If it is up 17 tomorrow it wont be because were going up. It is because were going down. Lauren how hard is it right now to make a bullish commentary for this market . I dont think it is that difficult if we get the sequester situation out of the way. Even if we kick the can down the road the market will recover quite a bit. If we dont get the situation and cuts go into effect at the end of the week we may have a very bad situation on our hands. David if berlusconi is next Prime Minister of italy, what do you think . That settles things down a little bit. Thats a plus. But the sequester to me is the biggest thing. If we get that pushed down the road the markets recover. These are not the lows well see for a while. David larry levin at cme. Thank you very much. Thank you. Lauren shares of Chesapeake Energy falling today. Lets head back to Nicole Petallides on the floor of the new york stock exchange. Nicole, hi. You talk about a deal. You talk about selling assets, it usually means good news for the stocks and companies that are doing that. In this case not necessarily good news. Look at chesapeake today. It is down almost 7 on this news. Chesapeake agreed to sell the stake in norman, oklahoma, and 1. 2 billion dollar deal in cash. This as they are trying to focus on the liquid rich plays. However the analysts think the deal is below the analyst expectations. On the other hand, is it really because the mississippi line assets they are selling have not shown such great results. It really is questionable how much they were worth. In the meantime this is over obviously a billion dollar deal and in the meantime we saw the stock selling off exponentially, down about 7 like i noted. Sometimes selloff of assets doesnt necessarily mean the stock will shoot straight up. Back to you. Lauren Nicole Petallides, thank you very much. All signs point to a Housing Market rebound. So is it time to buy or rent your home . Later this hour find out what a top real estate executive says and why it may surprise you. David the dow is few hundred points from breaking its alltime high but look what happened today. Will it get back there . Will it bounce back the way it did on friday . Maybe not especially like days today. The editor of investorplace. Com shares his signs that are telling him stocks are about to slide even more and todays slide was nothing. Thats coming up. [ male announcer ] how can power conmption in china, impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u. S. . At t. Rowe price, we understand the connections of a complex, global economy. Its just one reason over 75 of our mutual funds beat their 10year lipper average. Twe price. Invest with confidence. Request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. David well, todays selloff is yet another example of that frustrating roof we keep hitting. While stocks remain close to multiyear highs, we cant seem to crack the ceiling of 14,000 on the dow. While our next guest doesnt see a crash but he does spot some very clear signs were due for a pullback. Joining me, jeff reeves, investor place. Com. Jeff, good to see you. Is this it . Have we begun the slide. Thats funny i started to write an article about a contraction, what i saw was systemic signs. Weve seen excuses, maybe excuses isnt a nice word, fed or italian election. That is definitely what weve seen last trading days. I dont want to scare people. I think it is only the beginning. We have more before the dow stops the selloff. David 14,000 is the number literally, 14,and change on friday it ended at. 14,000 is just a number about. I dont like to get into these technical number things, but that does seem to be the ceiling we keep hitting, right . There is reason Technical Analysis gets out there. It is hard to understand sometimes. It is not only way to use Market Analysis but it is valid. Whether there is ceiling or sentiment or charts, it is a nice round number that is hard to break through. The fact of the matter weve seen decent good news over last several months but weve had a great runup. The question is the what the next hand hold to climb up the wall . We havent seen headlines. Nothing i see will catalyze another leg up. That is reason i think we have some complacency. Were due for a pullback in the rally lasts later into the year or through 2014. David lets get to specifics in terms of what might lead to a big pullback. One of the things all the bloggers and newsletters tell you have to go entirely into equities. You dont think thats a good sign. Why not . Yeah. I mean, you got to understand, i have a lot of people who are friend of mind, who have knew letters or are stockpickers. Its a tough gig. I dont want to paint them all with a broad brush. The fact of the matter they have a vested interest for making you bullish. You will not buy their products for 1,000 a year if you dont think the markets go up there is rosecoloredness on the markets they see. Last time they were bullish was in 2007 and 2008, for a reason. They make more money when investors want to buy stocks. This is a little tail wagging the dog. I would be wary if people that sell stocks related products are bullish. David when everybody is in, the advantage goes to the seller, right . People have a nice track record when you seen a good runup. Some of the markets messages look at my three month return. Doesnt mean the next three months will be decent. You might get a you can iser in the door now but wont guaranty any returns. David we saw the on the blackboard why you see a pullback. Options activity is pointing to a selloff. What is going on with options activity that points to that . This is a little complicated but sku options and pricing and volatility and shows you whether traders generally favoring puts or calls. If you look at way things are playing out it is hard to find people buying calls on stock and a whole lot of people are selling calls. People are favoring puts. Doesnt mean the sentiment indicator is a tellall for the market. Generally speaking option traders favor put side or downside of the market. You could see it as opportunity if youre really, really bull. Buying calls is really cheap. Nobody is doing it. You have to realize nobody is doing it for a reason. David one of your points was complacency. But when you have a day like today, with a 200 point dropoff doesnt that shake complacency to its core . We were complacent a week ago. I dont know whether that point carries through now. People were confusing complacent which optimism. That is what we saw. In the as sense of news we didnt necessarily crash. That didnt mean the rally was sustainable and we had another leg up. People were looking for reasons to sell, whether the fed minutes or italian election or boehner speaking today. It was many could place send i. As soon as something shook that the market got shaken too. Dont confuse complacent which optimism. David just the opposite side of optimism are pessimism. There are people that are very pessimistic. Once they see a selloff begin, even if it is todays activity, one days activity they might start accelerating their sales . Thats right. In the last couple weeks or so it has been very specific. People came out and bearish on housing stocks and housing is screaming a shot. They made a lot of money today. Housing stocks sold off across board. People were talking about a death cross for gold and we were in store for trouble. Gold sold off. I look what other people are talking about. They were very specific on Asset Classes before. People think there is money to be made shorting generally. That doesnt mean there could be a short squeeze and short is can be wrong but know where to place your bets. David jeff reeves, thanks for coming in. Thanks for having me, dave. David lauren, over to. To rent or buy, when it comes to picking a home it is one of the toughest questions to answer. Up next we look at what gives you a better bang for your buck right now. Dont forget to log on to facebook. Com afterthebell and click the like button and let us know if you plan to move into a new home this year. [ engine revving ] [ male announcer ] every car we build must make adrenaline pump and pulses quicken. To help you not just to stay alive. But feel alive. The new cclass is no exception. Its a mercedesbenz through and through. See your authorized mercedesbenz dealer for exceptional offers through mercedesbenz financial services. Through mercedesbenz you know it can be hard to lbreae, and how that feels. Me, copd includes chronic bronchitis and emphysema. Spiriva helps control my copd symptoms by keeping my airways open for 24 hours. Plus, it reduces copd flareups. Spiriva is the only oncedaily inhaled copd maintenance treatment that does both. Spiriva handihaler tiotropium bromide inhalation powder does not replace fastacting inhalers for sudden symptoms. Tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. These may worsen with spiriva. Discuss all medicines you take, even eye drops. Stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain, or problems passing urine. Other side effects include dry mouth and constipation. Nothing can reverse copd spiriva helps me breathe better. blowing sou ask your doctor about spiriva. But we can still help you see your big picture. With the fidelity guided portfolio summary, you choose which accounts to track and use fidelitys analytics to spot trends, gain insights, and figure out what you want to do next. All in one place. Im Meredith Stoddard and i helped create the fidelity guided portfolio summary. Its one more invative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. Time for a quick speed read of the other headlines. Five stories, one made. General motors partnering with at t to offer the 4g service. Available in the u. S. And canada. Americans are feeling more pain at the pump. Nationwide gas prices jumping 0. 20 in the past two weeks. The average price of 3. 95 per gallon. Bp is facing serious civil charges for the role in the 2010 gulf oil spill. The trail begins today in new orleans determine how much more the oil giant could pay for the environmental disaster. Zynga closing for offices to consolidate the workforce. They will close one office in new york, one in maryland and two in texas. Mastercard allowing users to make payments from anywhere instore or online. Launching next month in australia and canada. That is todays speed read with four seconds to go. David housing data has been a little spotty recently. Mortgage rates are so low a lot of investors are being advised to jump in and buy a home. Lauren our next guest says not so fast. You may be better off renting. Hi, kevin. Thank you for having me today. Lauren we have a lot of housing data coming out. Do you expect it or are you looking at all the little pieces of information . Do you expect them to underline the trends the Housing Market is Getting Better or do you see what we saw in january, indicators not being as solid comedy Homebuilder Sentiment study. Go ahead. What we do is we take a longerterm view of what is going on. Look at trends that will stay for a long time. One of the trends we see specifically the shiller index is housing prices looks like they have had some sort of a level of stability since 2009, 2010 they have gone up and down around a stable number at that point. We are however concerned about the risks of housing prices Going Forward and we do so because of three reasons. One, we continue to see very anemic job growth in the united states. If you dont have job growth, it is hard to envision how youll have a real housing recovery people have trouble getting jobs. The second reason is supply. We see over 2 million Housing Units that have been foreclosed on sitting on the Balance Sheets of banks. We have issues with houses actively been foreclosed on, and we have a significant amount of people that are delinquent on their mortgage. Why have housing prices stabilized the last couple of years and what is the one variable . It seems to be mortgage Interest Rates. If you look at rates, they are at a record low. I believe because you have weak demand and a lot of supply, people are at great risk who own homes, and i am one of them. David generally i agree with your analysis and certainly Interest Rates wont get any lower than they already are, but lets talk about two sides of supply issue here. We have a record low number of Home Contractors out there now. We have seen that number cut in half from 2006, but look at these numbers, in 2012 we have literally half as many, lest than half as many Home Contractors. There are a lot fewer houses being built and that diminishes the supply quite a bit. On the other hand we have a lot of people who wanted to buy for a long time, waiting for the time to go in. The supply and demand issue could lean towards the Housing Market, could it not . It could. One of the things they are seeing is the same thing a lot of us are seeing. We are seeing what is a real shift in preferences of where people want to live and if you focus on generation y. , theyre living in acting differently. They need more mobility. Average tenure of a job is two years. That doesnt match well with buying a home and staying in place. A generation ago it did when you get out of high school and you get a job and buy a house. They are also economically strained. Underemployed, unemployed. They have a lot of Student Loan Debt on their Balance Sheet doubled since 2005. It makes it very hard for those young people to get a mortgage. And lastly, david, the most important thing is these young people have witnessed with their own eyes the effects of the housing bubble and how risky it is to buy highly leveraged asset like a house. This generation is saying not so fast, im not sure we will have homeowners like prior generations were. Homebuilders are holding back because they recognize there are trends changing an easy multifamily rates and rental rates going up so strongly because a lot of people coming into the multifamily sector to rent apartments as to owning a home which has been what most people did in prior generations. Lauren you mentioned the caseshiller home index. If you look at the return of a home over the past century, 0 . That is right. That includes taxes, maintenance, insurance and holding cost of holding a home. A home is an asset every year gets lesitgets less valuable. Its deeply sheets as it gets older, the appliances become old, the roof becomes old, one would expect not to see a lot of growth in the value of home prices. It was a smalltime at the beginning of the 2000 people expected home prices to move up quickly over a long time. In the prior decade it has not demonstrated that. Investing in a home from a financial standpoint has been a terrible investment for a lo lof people over the years. It can be a great emotional thing, but generally a lousy investment. Likely the equilibrium for housing Going Forward will be reverting back to the historical norm, 0 . Those people renting can take the money otherwise no down payment and put it in the s p s p 500 having a return of a real rate of return about 5 , and so this is what generally from an economic standpoint owning a home is not a very smart investment. David it is usually the decision made from the heart, not from the head. Real estate executive Vice President , we should disclose you own 24,000 apartment units, so youre talking your book a little bit, but very good points. Thank you for coming in. Lauren are we experiencing a silent but innovative revolution . Up next, he shares the top industry showing significant change and tells us the stock plays that can make you not only some money, lots of money. That is what we are talking about next. Dad, id put that down. Ah. 4g, huh . Verizon 4g lte. 700 megahertz spectrum, endtoend, pure lte build. The most consistent speeds indoors or out. And, obviously, astonishing throughput. Obviously. You know how fast our home wifi is . Yeah. This is basically just asast. Oh. And verizons got more fast e coverage than all other networks combined. Its better. Yes. Oh, why didnt you just say that . Huh what is he doing . Adam i am adam shapiro with your fox business brief. A sharp selloff in the united states. The dow finished 216 points lower. According to documents obtained by fox business, General Motors and former finance company allied financial are seeking approval from the government for multimillion dollars pay packages for top executives, though the companies have not fully repaid their taxpayer bailouts. The proposals are being reviewed by acting pay czar who is scheduled to testify on executive pay at bailout committees subcommittee tomorrow. Ikea has stopped all sales of thesmeatballs after they found e meat in meat labeled beef. Giving you the power to prosper. Lauren welcome back. Good innovation revolution be taking place without investors even realizing it . One money manager thinks absolutely. David moneymanagement cio says some in his physical and under innovation to present good innovation for the companies. Rob, it is a great sector. I love the fact some of the most Innovative Companies started in the doldrums of the 1970s like fedex, microsoft, apple. I think youre right on point. One industry, energy. We have seen fracking and other techniques. What companies i are positionedo take advantage of this . Volumes of drilling are expanding. Natural gas will expand about five to seven fold from where it was five years ago. I think some of the companies we selected are in these really productive areas. 9 stock, we seem to have the potential to earn over 1 per share next year. We think it is about 20, 30 undervalued. Their volumes will go up t 40, the next two or three years. That would be a great way to play that innovative fracking. It is amazing our economy is the most adaptive, resilient and innovative. One industry that is renovating and reinvigorating themselves. Lauren productivity is another one there. Im assuming you mean security and data, think of all the chinese hack attacks we have talked about. Right, right. Lots more data online, the networks are important, they have to be protected. Solar fire is a company we have selected. Growing 30, 40 per year, and really about protection of data the company has available on their network. They need much better protection. If you look at what they are interested in the information offices say it is keeping the data away from the bad guys and there are more bad guys looking for it today. David biotech is one of those things we have seen a lot of smoke but not a lot of fire yet. There is one company, im not sure if i am pronouncing it right, why do you like that as example . Were working hard to find leading Companies Taking advantage of the new dna mapping data technology. For example, cancer. They are developing colon and prostate, but they help doctors find out what is medicine to use to come up with better results for patients. Lauren transportation and hybrids and tesla motor. I have a feeling david is going to want to jump in here. The auto industry, most vehicles are still using combustion engine, the same one henry ford brought out about 90 years ago. Tesla has come up with a new way to develop the electric vehicle, and we think they will be 1. 8 billion in revenue this year, 2. 5 billion next year, it is all about battery innovation. They figured out how to take that battery and make it last longer, more efficient and drive the cost down. We are at the of a major change in automobiles. David i dont know, down 5 today, lots of those projections, a lot of investors doubting if they will make it. Great suggestions, thank you very much. Lauren thank you. David great to see you, my friend. It wasnt just hollywoods big night, whose advertisers big night as well. Abc bringing in more money than over a decade. Dennis kneale takes us through some of the winners and losers coming up. [ kitt ] you know whats impressive . A talking car. But ill tell you what impress me. A talking train. This ge locomotive can tell you exactly where it is, what its carrying, while using less fuel. Delivering whatever the world needs, when it needs it. After all, whats the point of talking if you dont have something important to say . If you dont have something important to say . We asked total strangers to watch it for us. Thank you so much. I appreciate it. Ill be right back. They didnt take a dime. How much in fees does your bank take to watch your money . If your bank takes mor money than a stranger, you need an ally. Ally bank. Your money needs an ally. [narrator female] quiet please. Wait a sec. Ill take one. Oh yeah. Alright. All good. Take care. Way to go. Nice. Bring it on. Gotcha im here for you. Oh no. Please, please. Please. Im waiting. Interesting. Not buying it. Not fair. Thats it. This conversation is over. Oh, brother. [narrator male] body language n tell you all sorts of things. [narrator female] im having a stroke. Im having a stroke. [narrator male] know the sudden signs. Learn f. A. S. T. F face drooping aarm weakness s speech difficulty t time, time to call 911 immediately. The sooner they get to the hospital, the sooner theyll get treatment, and that can make a remarkable difference in their recovery. Learn the body language, the sudden signs, and spot a stroke f. A. S. T. David hollywood certainly got its moneys worth at the oscars last night, but what about the advertisers who shelled out big bucks to be part of the broadcast. Lauren lets ask our mediaman, dennis kneale. Dennis Hollywood History and have our celebration of itself last night drew 37 Million Viewers for abc network. Up almost 20 from the year before. And the biggest oscar audience in six years. Disneys abc charging up to 1. 8 million per 32nd ad to reach those viewers. Less than half of the cost of an ad on the super bowl this year placed a 3. 8 million. The super bowl brought in 108 Million Viewers, so the big game costs over double the price of an oscars had to reach almost triple the oscar audience. If you missed the intolerably impermeable show last night, not to worry. For the first time you can watch the rerun online at abc. Com. Abc on demand will also carry it with ads you cannot move past with sponsors including diet coke, on samsung. Fast forwarding is a must for this oscars ego binge. Did we need a number from the musical chicago which came out a decade ago or a theme song from james bond from today and from a star long ago who first sang goldfinger in 1964 . I couldve done without the host Seth Macfarlane ode to actresses who show their breasts a movie love scenes. Washington post called him only soso at standup. No one film dominated. life of pi won four awards. Argo won three awards. And to awards apiece went to three other films as you see there. David i think Seth Macfarlane was funny and i think shirley nailed it singing goldfinger. Belting out the way she did. Dennis im happy for her, but i wanted to see more awards. David dennis, thank you. Lauren you forgot to talk about the fashion. Things got a little messy in miami over the weekend. That story next when we go off the desk