Transcripts For CNBC Power Lunch 20140616

And were going to talk about obviously one of the major implications, supply from the middle east of oil and the threat of massive disruptions there. With us today is lord john brown, former ceo of bp. He has a new book out entitled the glass closet. He also will respond to governor perrys comparison of alcoholism and homosexuality. A big hour coming up. The meltup weve been talking about recently has kind of melted away. The Dow Jones Industrial average is off about 15 points on the trading session. The s p 500 is traded up just a fraction. The nasdaq composite is up about a tenth of a percent. As for the transports, last trade was down about 14 points on the trading day, and the russell 2000 has been in negative territory as well. Theres the transports, down about 15 points on the trading session. Russell 200, well show you that in just a sec. Now its turned positive by about 1. 7 on the trading day. Seema mody is in times square, bob is here at the exchange. Bob, were coming off our lows, so we could see green at some point . We could. In fact the trend was to the up side, but we had one of those and thats oil. A look at brent, this is whatsing going on recently. Brent moving up late in the morning, and then that tends to have an effect on the market. Take a look at the s p 500. It doesnt have a dramatic movement. These are thin markets. So the s p 500 that was trading up at the open, moved down, and you can see its just now right this second going into positive territory. When they had this effect with brent moving to the up side suddenly, you get a predictable series of events. Airlines immediately start dropping. They all moved to the down side. Thats predictable. Another predictable thing, natural gas stocks. Any energyrelated group moves up. Theres your market leaders in some of the energy group. One of the things that bearing watching, is bank stocks have been weak to also move to the up side. Banks, though, not related to energy, but banks have been weak the last few days. Regional banks have been weak along with the big banks. This has been going on for three or four days now. Zions down almost 1. 5 . Thank you, bob. Now to seema uptown at the nasdaq. Hi, sue. Modest gains not nasdaq. Traders still watching the situation in iraq very closely. With that said, a lot of the big tech stories to watch. Sandisk to buy fusion hio in an effort to strengthen the flash business. Remember a fun fact steve wozni wozniak, works as cofounder for fusion hio. Another big talker today is ali baba. Its updated ipo filing shows a slow down in quarterly revenue growth. Yahoo which owns a 22. 6 stake in alibaba is under pressure today. And obvious called the so this will be a space to watch, especially as we get closer to it going public. Still no word on whether alibaba will list on the New York Stock Exchange or the nasdaq. They have their fingers crossed down here, ill tell you that, seema. So dom for a market flash. So youve got those chinese internets on the win side. Check out the utility sector on the other, which is the leading sector, having its best day in over a month. The utility is up about 2. 5 . Leading the way higher is centerpoint, and tigris, am run, utilities are the best performing sector in the s p 500, still so far this year, so there is some attractiveness for the defensive type of stocks. Back over to you. Thanks, dom. Volatility is back in a big way after staying dormant for months. The fear gauge rising against today, up another 2. 7 , but up more than 10 over the past week. Bill stone, hugh johnson charm and chief Investment Officer at hugh johnson advisers. Jim, are you actively playing volatility after a few months of basically no volatility and low volume . I wouldnt say were actively playing it. To be honest, i think we expected it to be higher than this. You know, i think just by the very nature of what you would expect in the world, it was, i think to all of is kind of surprising it had stayed as low as it had even in the face of ukraine and all of that. I guess we had gone into the year planning for a little more volatility. So, hugh, is the meltup that we have seen for the past few months changing now . Or do you think we still have more room to the up side snimplgts i think we have a bit more room to the up side, but when you particularly take into consideration the incredible returns we had in 2013, were looking at a very low return environment, with a bit of volatility, as bill suggested, a level of volatility kind of close to what were seeing right now, but the most important thing is were go ahead the. And i think investors have to play it that way. Where do you put cash to work . What areas of the market still look attractive to you . I think generally we would say, and it may play into the volatility, because you may get some opportunities, there are these more sickly cad. Despite what you may here and what youll end up seeing, is that things are actually Getting Better economically speaking, so we would say the industrials, even the financials, i think those are two spots we think are interesting. Hugh, what about you . Well, i think its great to like equities, and i think you should say overweight, but i any what you have to do, sue, right now and this is the message of the markets, is build a little defense in your portfolio. Im a little different from bill on this. You want to underweight consumer directiaries, a very economically sensitive sector, overweight xwumer staples, and move into things like especially if the large capitalization stock paid different. Deep dividends are going to really count, and the last thing i would say is underweight emerging. Emerging is not going to perform well this year. Gentlemen, great advice. Thank you very much for joining us. Good to see you. Sue, thank you very much. Delivers alpha, thats the cnbcs conference for the worlds biggest investors. Cale kelly looking into 11 months ago, and these folks make money for the people who took their advice . And we have an allstar roster last year, and also some macro perspectives from major hedge funds, but that was a great question. Did the ideas pan out . It turned out it was a mixed bag. In the 11 months since then, our experts had some doubledigit successes, but also serious stock spirals, if thats enough illiteration for you. Larry robbins was one of the most prescient stock pickers. He discussed a number of names in the health care sector, and one of his ideas, miskecken corporallied 5 in the aftermath of the conference. Walgreens and thermofisher performed very nicely also. Activist nelson peltz also scored with an investment in dupont that he only reluctantly disclosed to andrew sorkin, if you remember that moment. And he also had mon democratic olis which he wanted pepsico to buy. Both stocks are up. Other ideas proved disappoi disappointing, lost out with his expectations of a toyota comeback. Instead that auto stock has fallen about 11 . Other aspects of his japanese car maker theme did only slightly better with fuji heavy flat at this point, and mazda up about 7 . To be fair some of those ideas may yet need room to run, and whether its right for the portfolio is depending on the goals, the amount of capital and so on. They do get paid very handsomely to make these picks. Kate kelly, thanks very much. And delivering alpha, on cnbc, just a month ago. If youd like to sign up and attend, go to deliveringalpha. Com. Weighing in on the Housing Market today. Diana olick has the data. A better than expected jump in Homebuilder Sentiment despite still lackluster sales and starts in april, so maybe a sign that may numbers coming in next week could be stronger. Builder confidence up to a 49 on this after barely moving since february. 50 is the line between positive and negative territory. The builders, however, still cite strong headwince, including weak consumer confidence, limited availability, and tight supply of available lots. Singlefamily Housing Starts are running at about half the Historical Rate form the el throat index component, all posted gains, but the largest was in current sales. Crossing back into that positive range, gauging sales expectation rose three points to 59, buyer traffic increased to 36, still, though, the weakest component of the index. Regionally, Homebuilder Sentiment is strongest in the south and west, weakest in the northeast. More online, realtycheck. Cnbc. Com. Thank you very much, diana. Shares of Lockheed Martin today . What are they doing . Theyve had quite a run over the past year, up about 52 . Now, however there is trouble on the deck. Jane wells is live in l. A. An oil leak caused an emergency during a test flight of the f35b overiuma. Here is earlier video. After the pilot shut down the engine and landed the plane safely, the pentagon grounded the entire fleet of f35s, as, bs and cs, so the oil Flow Management valve could be checked. This is the second time an engine issue has grounded it. The earlier one Pratt Whitney, which makes the engine tells cnbc this move was precautionary and as of saturday evening, nearly all aircraft have been expected and returned to flight status. We anticipate concluding inspections by the end of the day, monday. Its now trying to determine the cause, Lockheed Martin, which tells the plane, tells us engines and other appear fine. At yuma, quote, there have been three suspect findings. Now, the Pratt Whitney engine is one reason the plane vastly exceeded initial cost estimates. The company says its been designed for survivorability, has redundancy which kept it available, i guess that means working. The marines are the first, and the jet will be making its International Debut next month at the farm borough air show, where our phil lebeau will be. Oil is up against today, um more than 3 a week. The Iraqi Air Force now getting involved in the fighting in the northern part of the country in a big way. Will it turn the tide of terror . And you know who else is arriving in the area . The United States navy, complete with an aircraft carrier. We will go live to iraq in two minutes time, as power continues. Liable it Services Like multilayered Security Solution to keep your Information Safe secure. Century link. Your link with whats next. Century link. Your link with whats next. [ male announcer ] if you cant stand the heat, get off the test track. Get the mercedesbenz youve been burning for at the summer event, going on now at your authorized mercedesbenz dealer. Hurry, before this opportunity cools off. Time to take care of business with century links Global Broadband network and Cloud Infrastructure. We constantly evolve to meet your needs every day of the week. Welcome back to power lunch. This is something we dont talk about every day. The argentinian stock market has taken a hit after the u. S. Supreme court ruled that creditors can seek information about argentinas nonu. S. Assets, part of litigation over argentinas obligation to Bond Investors for their particular payments. Theyre currently down about 7 . The index is up nearly 40 year to date. One way to play the market is through etfs. Check out the latin america 40, you can see theyre currently down by about a third of a percent. Still very much in a stock market downturn, at least for today. Back over to you. Dominic, thank you very much. Iraq in crisis, an claend Splinter Group seizing more city there is, but the Iraqi Government says its stopped the groups advance on bag dan. Michelle carusocabrera joins us live from Northern Iraq, with the very latest. Hi i. Michelle. Reporter hey there, tyler, another town taken in Northern Iraq today, this time tal afar. This was the scene back when the u. S. Invaded in 2030, now in the hands of an al qaedainspired group. At the same times shiites have been rallying for days. It appears for now the ad hoc shiite militias have blunted the sunni march toward baghdad. The Iraqi Air Force joining the fight from above. This video was released by iraqs Defense Ministry this morning, reportedly showing an Iraqi Air Force jet successfully attacking a building. Iraqi military helicopters also on the hunt. Take a look at this chopper fires a missile at the target, scoring a direct hit. Its difficult to say what the targets are and how theyre related to the sunni insurgent fighters, but northern and central iraq, its safe to say, has been transformed into a killing field. Sources on the ground say despite the attack from the air, iraqi forces have not been able to turn the tide. American ships arrive just in kay theyre called in to assist. The george h. W. Bush along with a missile cruiser you now within. And the world woke up this morning to images of mass executionses of the sunni insurgents by captured iraqi troops, and those pictures have not been verified by nbc news. Were also learning today these insurgents could be extremely wealthy. The guardian of the United Kingdom reporting, quoting intelligence sources q. That a huge cache of zip drives were discovered in the home of an arrested insurgent, 160 of them containing detailed Financial Information about the group. In addition to that nearly half million that they allegedly stole from the mosul central bank, apparently theyve been able to sell a lot of syrian oil that theyve captured, some of it back to the syrian government, making them potential worth 1. 5 billion. Tyler, sue, back to you. Thank you very much, michelle. Lets kell one United States marine corporate commandant, who served during the iraq invasion, general michael hegge. Welcome. Thank you very much. I wonder as you look back on our mission there in 2003 and following you would consider it now a success or a failure . Was it a waste . You know, that type of question i remember talking with marines, and i would tell them were here in a dire situation, it probably doesnt help too much to talk too much about how we got here. As your reporter just outlined, good things are not going on in iraq right now, theres a crisis there. I think our National Command authority absolutely needs to address that in some way, and we need to stop the fighting. In some way we need to bring the parties together to form a true, true government there, but one of the things, when you talk about iraq, and as i was listening to your reporter, it was brought home to me is because of our dependence on oil in our transportation system, we are in our Foreign Policy is constrained, and were going to have volatility in our economy subwe do something about that. Its also quite amazing to me here im in texas, and we are here in the United States we are producing about 8. 5 Million Barrels a day. Thats up from about 5 billion in 2008. I think one of your previous speakers talk about the problem we have getting oil from places like iran and other areas, and thats the total market is down around 3 Million Barrels a day. In fact, thats how much were producing. So even though were producing more and we have energy abundance, we are still subject to volatility. Every barrel we produce of our own source and supply is one fewer barrel we have to depend on somebody else for. Let me turn back to the question of the situation on the ground in iraq today, general. Would you would you say that we should still be there . Were we right to leave when we did . Im sorry, tyler. Im going to come back to the same point. We are where we are today, and we need to address the situation on the ground now, and i truly believe that our National Command authority is doing that. But i so let me turn you, then, i understand and respect your point of view, but then let me turn you to the attention of how would you respond to the situation on the ground today in iraq with u. S. Power . Or would you . I believe in such a situation, one needs to bring all elements of power to bear, and the military is obviously one of thunderstorms elements of National Power, but our diplomatic power, economic power, all those elements need to be brought to bear. Im at somewhat of a disadvantage that i probably know just as much as you do. I have no special intelligence, i am reading the papers. I do no in the past we have led with our military more often than not, and i think on most situations, it needs to be a builded approach with all elements of National Power being brought to bear. General ha good. Ee, thank you very much. We appreciate your time, and we thank you for your service. Thank you, sir. Sue . Ty, thank you. Youve been talking about this, the crisis in iraq. It is fueling oil to move higher. What does it mean for prices at the pump . Well head to the nymex to fix on you what traders are saying, and well talk to sir lord brown, and well take you inside his new book the glass closet. Hes giving his reaction to governor perrys comments as well. On homosexuality and alcoholism. Thats next. The competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. But what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. I make a lot of purchases foand i get ass. Lot in return with ink plus from chase. 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If youve never heard of them, this is a Company Based on the west coast and says its the eighth biggest dealer. It has a mark cap of around 2 million. Its giving it a presence on the east coast for the first time ever. Investors do like the deal, and you can see those shares up 14 in todays trade. Tyl tyler, back over to you. Dch a major player in this particular market. All right. The crisis in iraq sending oil prices a little bit higher for brent crude, about half a buck so, but west texas is basically flat off 007, mr. Bond, at 106. 85. Does this mean were to see these rises in oil over the past week or so . Jackie deangelis is at the nymex with what we can expect for the summer driving season. Reporter the short answer is yes, but let me give you context in terms of where weve been. The National Average for a gallon of regular is 3. 66 according to aaa. Thats only up a penny from last week, two cents from a month ago, five cents higher from the same time last year. Traders saying theyre watching the situation in iraq closely. Prices flat today, because theyre not sure which way this trade is going to go, but they are bracing for volatility. They say if that volatility does come, youll see retail trices climb anywhere from five to ten cents within the coming weeks. West texas interneed just until 107, up around 5 in the last month. At around a ninemonth high. Meantime brent up 3 , the problem with the hike in retail gas prices is that prices tend to go up very quickly, but then they come down a lot less quickly. If the conflict in iraq is resolved we could see these prices stay elevated for quite some time. Theres also a trickledown effect. When they are paying more at the pump, they do start to spend less in others places. That has a broader impact on the economy. Sue, back to you. Jackie, thank you very much. We have someone right here with us to talk about that. The white house says that president obama plan toss sign an executive order banning federal contractors from discriminatinging against employees. In his new book the glass closet lord john browne explains what its like to be a gay ceo and why an inclusive Corporate America makes very good sense. Welcome. Nice to have you here. Thank you very much. Jackie just kind of set the stage for us. Your thoughts on whats happening in iraq and the role that it might play for u. S. Oil price it is loam ever term. I think the single most important thing this time around with another concern about oil supply is diversity. The United States has done a superb job, bringing on more sources of oil, so there are more choices in the market, which i think is demonstrated by the fact that prices havent gone up that much so far. Everything is uncertain, but the u. S. Is producing as much as was shut in through other political actions in libya, iran and so forth. And theres still enough capacity to offset some reductions in the supply in iraq. But i think for the moment i would say be very wise not to panic and lets see how this develops. Would it be wise for the United States to perhaps reach out and partner as some have suggested with canada, mexico, build those relationships . We already have certainly political relationships that are very good, but what about an Energy Relationship . Theres been a long assistant been Energy Relationship with canada. Not always smooth, but a significant relationship. Mexico does look like its and i would expect u. S. Companies to be big players in that reform, and therefore get supplies coming to the United States. Do you think it mitigates the situation in iraq, mitigates the somewhat contentious conversations that have been going on about keystone pipeline, fracking, things like that . Yes, instead. I hope it remends people that you have to find all sources and get them to market efficiently. Certainly fracking in the u. S. Is going ahead, but in qulurp this is a reminder this is very important thing for the world as a whole. The u. S. As big as all these markets have to work together. I think tyler has a question. Lord browne, i want to turn to your book, which i think promising to be a big book in just a moment, but if i might, the prospect of the United States and iran collaborating with respect to whats going on in iraq seems ironic at the very least. Do you think the United States should engage with iran over this . Well, ive im not a secretary of state, so i have to defer to their opinions, but my view is that iran has an interest in making sure there is a degree of stability in this area. Everythings been opened up by a slack consume in syria, allowing people to regroup and then go after the places in iraq. I think everybody in the neighborhood wants to make sure that this doesnt carry on and get worse. Lord browne, let me turn to the glass closet and ask a simple question how hard was it for you to be a gay ceo in the oil business . Strangely i probably never noticed it, because i got to used to it, but it meant i had to have two different lives, a public life and a private life. I tried to make sure they never met, and that was quite exhausting and theyers of course did immediate when a former boyfriend sold a story to a newspaper, and they collided and exploded. Let me get you to react to governor perrys comments. We have the full screen of that, the quote, then he was also on squawk box earlier this morning. So lets play the sound bite if we could from earlier this morning on squawk. I dont necessarily condone that lifestyle, i dont condemn it either. Were all children of god, and the fact is that people will decide where they want to live if washington will respect the tenth amendment. I think that will make america happier, if they will respect that and i allow people to decide how they want to live and under what rules and regulations. What do you think . Well, its not a choice. This is the same as most people cannot choose the color of their skin, and they cannot choose their sexuality. This is not preference, this is part of you. To suggest anything which may suggest segregation or change of location is absolutely wrong, and i disagree with it. Your book is the glass closet why coming out is good business. In reading the book, the Common Thread throughout the whole book seems to be you need to be authentic to yourself, and you neat to be authentic to others. Can you do more good by being honest and authentic, ultimately that is good for business. Absolutely. That was the one, i think if i replay my life, by leading built p without actually telling people about myself set up a great mirror, a great piece of glass between me and all the team. I was very reserved, and had i shown myself, i believe i could have led them in a different way. Authenticity is important. I was going to ask you, lord browne, do you think you had been authentic, and true to yourself, you ever would have become the ceo of bp . Very good question. Given the time period i was ridesing through the ranks, when i started, of course, hock osexual acts were only just legal in the United Kingdom. I think plenty of places in america, there were plenty of laws against them, so i think circumstances were different then. There was a legality problem, and people hadnt accommodated the fact that people of different sexuality, different race, different all sorts of differences could be in business. After all, when i started, women were not really in business. Absolutely. So things have come a long way. I think now its very different. Then it was probably it probably would have been very damaging to come out. You also lay a lot of the fault of your of peoples inability to come out at the boardroom. Board rooms are very conservative. When it comes to out i think you have to get to around 700 in the s p list to find someone whos out. So this is extraordinary. It cannot be right, and we do need some role models. One of the reasons i wrote this book was to appeal to straight people to say, make it possible for people to come out, to ceos to say youve got to send the right signals, and to give people role models that they can feeli okay to come out. You also make the point in the book that when you are authentic, you are true to yourself, and you do come out, that youre more productive, that youre more of a risk taker for the business, because you dont have all those other worries. Thats right. I think you dont want people spending half their time worrying about half their time no one can see. You really want them to bring the whole person to work. I think all studies seem to show that having the right climate where people can be themselves improves product activity enormously by 30 . This is a product activity issue as well. I want to address something we mentioned in one of our promos for the interview, lord browne, and governor perrys thought that homosexuality was rather like alcoholism, in that individuals have a predisposition i may have the genetic coding to be an alcoholic, but i have the desire not to do that, and i look at the homosexual issue the same way. I presume you disagree with that when you want earlier you are who you are. I really do disagree with it, and i think that sort of thinking was dangerous in the 50s and beyond. Weve had a lot of recent discussion about alan touring, the father of the computer, who was subjected to treatment because he was thought to be curable, and then of course committed suicide. We lost a very great mind for humanity. Id like to wrap it up with a quote from the book. Its in the deeply hidden chapter of the book. The double life i led should not be seen as a workable blueprint for a business career. It should be viewed as a cautionary tale. Exactly right. Thats what i meant to say. Lord browne, a pleasure. Thank you very much. Thank you. All right. Former bp ceo john browne the glass closet. Segue to metals markets which are closing. The gold market is only up about 40 cents. And platinum is up 3. 30. Ty . Thank you very much, sue. A volatile day on the street. The crisis in iraq, a fed meeting also in focus this week. Chair janet yellen set to give a News Conference as well. At major target glitch. What consumers and investors need to know about this one. [ male announcer ] if you cant stand the heat, get off the test track. Get the mercedesbenz youve been burning for at the summer event, going on now at your authorized mercedesbenz dealer. Hurry, before this opportunity cools off. [ girl ] my mom, she makes underwater fans that are powered by the moon. [ birds squawking ] my mom makes airplane engines that can talk. [ birds squawking ] my mom makes hospitals you can hold in your hand. My mom can print Amazing Things right from her computer. [ whirring ] [ train whistle blows ] my mom makes trains that are friends with trees. [ train whistle blows ] my mom works at ge. Welcome back to power lunch. Macys stock is down, a new York Supreme Court that it interfered with the contract with Martha Stewart omnimedia. You can see theyre flat on the day, well off the low. J. C. Penneys is down as well. Martha stewart omnineed. How did inglewood cliffs compare to pinehurst . It doesnt compare at all. Lets take you to bakersfield where hundreds have been forced for flee their homes. 115 miles north of los angeles. The fire covers about 1,000 acres right now, and it is expanding. It is windy in that area, making life even more difficult for firefighters. Early start to the fire season. Early start. Its been so dry. The Dow Jones Industrial average up about 18 points on the trading session. Bob pisani joins me here. And rather predictably, we came off of our highs, briefly went into negative territory, but moving up today. The xop is at a history high, but were Sees Movement in the etfs. Look at the in etf, the iye. I mean, like four times normal. Somebody is moving into energy, but elsewhere somebody is moving into industrials as well. Thats had very big volume, coming off the lows. Technology, iyw, very heavy volume in that as well today. Thats not far from historic highs. Health care even has had almost four times volume. And finally a note on utilities. Xlu, up 13 year to date. In a year when when utilities lead the market. Its hard to get excited. Its the reach for yield, though. Bob, appreciate it. Seema mody is back with us. The nasdaq is trading in a nair ro range, but keep a broader picture in mind form the nasdaq had been on a run up up with 5 outperforming the s p 500. Apple, a big bright spot for the index. Ceo tim cook with a profile in New York Times focusing on his impact on the company. Chips have also been a source of strength. I feel like a broken record, but you cant ignore the resurgence in this sector. Back over to you, sue. Thank you, seema. Lets go to chicago, shall we . Rick is checking Interest Rates for you. Hi, sue, definitely come on over to chicago. You havent been here in a while. If i look at rates across the spectrum, 5s, 10s, 30s all up about a basis point versus where they settled on friday. Geopolitics is the talking point, but it certainly doesnt seem to be the hyper point in terms of propelling yields. Open the chart up for the last fed meeting 29th and 30th of april, were close to the same spot. At that last meeting, and the central bank thats most watch right now, Monetary Policy committee of the bank of england, they talk about higher rates, look at the currency. Hovering at fiveyear bettss, flirting with the 170 level. Tyler and sue, back to you. Thanks, ricky. Watch out, im going to head to chicago soon. I promise you. Lets go back to dominic chu. Check out whats happening with tesla motors the Financial Times says the electric vehicle rivals nissan, bmw, are keen in talks to charging networks. Tesla last week said it was willing to share the patents with those who have good intentionses for those, honest intentions, theyre up 6 , tyler on todays trade. Work at stark bucks . Get a free college education. Ive got to call my son right now. Plus target again under fire for another major glitch, and going rouge. Environmental Group Greenpeace losing millions of dollars from green to red on a bad currency bed. Thats the power rundown, and its next, right after this. 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If you have any sudden decrease or loss in hearing or vision, or any allergic reactions like rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a free 30tablet trial. Check out whats happening with shire. Reuters is reporting its hired citigroup as a brace for a possible takeover offers. Off session highs, still up about 3395 in a decent spike in the midday, tyler. Power rundown time. Morgan brennan is with us, so is jane wells, a bicoastal edition. A glitch at target stores sunday causing long lines, irate customers. Is target just snakebit, or is there something worse going on here . Well, i think this specific situation is not a security relation. Its reportedly due to a hardway glitch, but this is one more thing for target. We had 9 historic hacking. Just last week the actual multiual shareholder meeting. This is one more thing that consumers and investors are looking at, questioning the company. Jane its one of muir favorite stores. Is it still your favorite . To me theyve become like the chicago cubs. It used to be they could do no wropg, now they can do no right. They had need to come up with a new buick ad campaign, hey, come back to target, its not like target anymore, which i thought was an odd campaign. Buy our car, youll never know its ours. Starbucks doing something interesting. Announcing free tuition for its employees at an Arizona State university through the Online Program there in todays Yahoo Finance question of the day, we asked should ought businesses offer it . 5 say yesterday, its not their money, anyway. 19 say no, it should be an employees responsibility, and 26 say only if the degree is necessary to a job role, a degree in barista science. That would be a b. S. Degree, jane. It is your money if youre expecting maybe some dividends. Say 10,000 starbucks employees did this, and they think easily this could happen. Full retail online is about 500 a unit, so a full load would be about 16 grands a year. Thats real money. I dont know what kind of discount asu is giving starbucks, but Howard Shultz said this is not a pr stunt, but good for his company, and a bit of a steve jobs love fest going on. Its the growing previousens of Online Education as a viable platform for college degrees. The second is the fact weve seen more americans going to college, racking up student debt and not finishes or dropping out before they gets their degrees, Something Like less than two thirds of College Students actually get degrees. This is going after those students. Lets talk about greenpeace, which has apologized after an employees lost more than 5 million on foreign currency trades. The employees parent has since been fired. Morgan, you first. The employee has been fired, arguingly acted above and beyond their given duties one the company. Pli question is, if this trade had gone in favor and greenpeace had made money instead of losing money, would it be handled the same way . The guy wouldnt be working for greenpeace if it went fair favor. This is like a Goldman Sachs employees getting fired for, you know, ramming a whaling boat that Goldman Sachs financed. I dont know why i love this story so much. I envision a young person who did well by doing good. Im a horrible person, i love this story. Jane and morgan, thanks very much. Well, guys, two big commodityrelated stocks are flies high. Well name names. Plus netflix with another by plague. Details in about two minutes. Weekdays are for rising to the challenge. Theyre the days to take care of business. When possibilities become reality. With centurylink as your trusted partner, our visionary Cloud Infrastructure and Global Broadband network free you to focus on what matters. With Custom Communications solutions and responsive, dedicated support, we constantly evolve to meet your needs. Every day of the week. Centurylink® your link to whats next. Thats why i always choose the fastest intern. R slow. The fastest printer. The fastest lunch. Turkey club. The fastest pencil sharpener. The fastest elevator. The fastest speed dial. The Fastest Office plant. So why wouldnt i choose the fastest wifi . I would. Switch to comcast Business Internet and get the fastest wifi included. Comcast business. Built for business. Welcome back to power lunch. Jeffries is giving its analysis of the entire Industry Group saying abercrombie and fich and chicos look like the best buyout candidates. Heres how all three are trading. All up in todays session. Dom, thanks. Shares of ak steel surging today. Basic of america and merrill lunch upgrading from neutral, citing better Global Demand and lower iron ore costs. Shares of Williams Company soaring, paying for the stake in midstream partners. And netflix and mattel teaming up to make a new original series for kids. The animation based on mattels franchise ever after high. Three big losers coming up next, but first whats up on street signs at 2 00 p. M. Happy monday to you, sue. Our guest says what were seeing in iraq could unhinge the World Energy Markets with the potential to threaten the economic stability of the world. And how a bionic pancreas could change the lives of millions of diabetics. So lots of things at the top of the hour. Now its back to power lunch. [ male announcer ] this is kevin. To prove to you that aleve is the better choice for him, hes agreed to give it up. Thats today . [ male announcer ] well be with him all day as he goes back to taking tylenol. I was okay, but after lunch my knee started to hurt again. And now ive got to take more pills. Yup. Another pill stop. Can i get my aleve back yet . For my pain, i want my aleve. [ male announcer ] look for the easyopen red arthritis cap. [ male announcer ] its one of the most Amazing Things we build and it doesnt even fly. We build it in classrooms and exhibit halls, mentoring tomorrows innovators. We build it raising roofs, preserving habitats and serving americas veterans. Every day, thousands of boeing volunteers help make their communities the best they can be. Building Something Better for all of us. Checking the markets, we are basically losing our gains. The nasdaq is up just under 2. The s p 500 is almost flat. Tenyear yield is now 2. 60 , and brent cruelde up almost half a percent. Three big losers here, with vertex leading the way down. Ty, up to you. That will do it for this edition of power lunch for a monday. Thanks so much for watching. See you tomorrow. Street signs begins right now. Iraq flares up are World Energy Markets about to become unhinged . Our first guest says, yeah, they might be. Plus the statistic about health care in america that may make you feel ill. And the real estate related stock you probably never heard of that one big bank says has bigtime up side. The s p you can see here is pretty much flatlining. What its actually doing is trying to avoid a fourth loss in five sessions