Transcripts For CNBC Power Lunch 20150217

Diana will tell from yous snowy washington. Wow. Well tyler, look builders are blaming it all on this. Just like they did last were. Take a look. Homebuilder sentiment slid two points month to month on the monthly nahb survey but at 55 its still in the positive and well above the 46 level it was last year. Last were builders blamed the harsh winter. The slowdown continued into the summer due to the price jumps. Builder prices are still very high with big premiums to existing homes, and that may be why traffic fell dramatically. Down five points while sales expectations were flat and current sales were only slightly lower. Builders still pushed the president s day open houses though. That is the unofficial start to the spring season. Not much action over the weekend, though. Again, builders are still pricing very high and Housing Starts are still well below the current demand. This is going to be a very interesting next few weeks. The real Market Dynamics fight with the urge to blame it on all this snow. Chief economists say sales this month in frigid minneapolis, numbers of home tours and offers have been soaring. Its the price points she says not the temperature that is chilling those home builders. More online as always. Realty check. Cnbc. Com. Back to you. All right, diana. Thank you so much. Lennar dr horton, and kb home there are a mix of winers and losers. Pressure mounteding now for greece in the euro zone after those bailout talks suffered another setback yesterday. Basically a breakdown in them. Some new developments though. Our chief International Correspondent Michelle Caruso cabrera has the latest from the New York Stock Exchange. Hey, michelle. We are getting reports that greece is about to ask for a loan extension. Not a bailout extension. If it sounds like were talking semantics and parsing words, its because we are. We havent got confirmation on this. Lets see how this plays out. Its certainly led to the market coming off of its lows at this point. Have you to understand that both sides have very different views of the outcome of the potential greek exit or gregsit. We have an explainer that weve done for the wall at the studio that we can show you. Greece says look europe is a house of cards. If you let greece go its all going to come tumbling down. Over in berlin the view is a little different. If you look to the right, i think, you know there are 19 of us climbing up this mountain. Were all connected by one rope. Do we all strug and help them along . Do we let the weak player pull us all down . Or do we just cut them loose . And the answer to the question of which is right is really whats driving the situation here. Theres a lot of focus on key dates. Theres critical factors. Both sides are watching right now today. What are italian and spanish yields doing today . Not a whole lot. Investors might start to price in the possibility that theyre going to leave as well. Thats crucial. It hasnt happened. That gives more leverage to the german side. Knee been leaving for the last month. Theyve been leaving. The more and more deposits leave, people take the money out, and they literally put it in their house, put it in a mattress. That weakens the bank system more and more and more, and that puts pressure on finally the third factor. The European Central bank the ecb. What do they decide . At what point do they say, you know what greece has become such a tough credit risk were just not going to fund the banks there anymore. Thats going to be the critical moment, guys. Thats when you potentially see what we call capital controls where youre told, you know what, you cant take more than 100 euros out per day because theres just not enough cash in the system, and you really start to squeeze the greek economy. We dont fn it will come to that. Maybe theres progress today. Thats the way both sides are really looking at it and those are the key factors that are going to drive things from here. Michelle hang on. Were going to bring in ron insana to further the discussion here. Ron is the editor of insanas Market Intelligence at market buy. Com. Cnbc contributor. Ron, welcome. You know one of the things you might expect to see if the dire predictions are true would be a flight of capital into u. S. Bonds. Individual Central Banks around europe will be buying their own debt as well. If greece were to leave the e. U. They can buy their own debt and hold down their own Interest Rates much unlike 2011 when we saw rates skyrocket in italy, in portugal in spain, and other countries of europe. Theres a deal. Every day that goes by and weve been closer to greek exit than we ever have before. More and more it seems to suggest that the markets arent necessarily so worried about it. Exactly to rons point. Dont get me wrong. Greece leaving the euro would be a huge water shed moment for europe. It would probably lead to some volatility. Is it going to be a huge market story . You know the markets are saying so far is the u. S. Stock market either pricing in that theres likely to be a deal or if there isnt, its it doesnt matter all that much. I think greece gets to suffer its own tragedy here. If they pull out, then however many greek metaphors you want to use. Theyre really going to be cut adrift. I dont think the contagion effect will be as dramatic because, listen theyve had some time to adjust to Cross Holdings of various types of peripheral country debt. Again, the Central Banks of italy, spain, and port cal guy their own debt in. Michelle thanks to you as well. Now to mr. Chew dominik that is. S market flai flash. Tyler, check out whats happening with the tenyear and 30year treasury notes and bonds. Theyre falling in price, which means Interest Rates are on the rise. Now, as a result some of the Exchange Traded funds that track treasuries are on the move. You look at the tbf, the tbt. Both are short plays on treasury bonds. They go up in value as rates rise. You can see there both of those are up in trading today. Remember, susan, just about two weeks ago we were up 1. 68 on the tenyear yield. Now you can see back up to 214. Back up to you. Dom, thank you so much. Lets get to the problems out west impacting toy makers throughout the country. Morgan brennan is live in new york at the biggest Toy Convention of the year, and morgan, what are you hearing there . I got to tell you, this is a big topic throughout this toy fair the last couple of days. So the entire toy industry is being affected by the west coast gridlock, and thats largely because so many of these companies manufacturer their products overseas in asia. Experts here are telling me that the biggest toymakers have implemented contingency plans. Basically theyre rerouting their shipments to other ports. As for the smaller toymakers, theyre feeling the pain even more. Take yacht toy. This is the u. S. Toy licensee for Paddington Bear. Port congestion has been a huge nightmare for us. From the beginning of last year it progressively became worse. We hope that the u. S. Government and the unions can work it out asap. Yacht toy says its even been asked to pay additional charges to get containers, and theyve had to shell out for air shipments to get this really comes for at a crucial time for this company because keep in mind Paddington Bear just came out recently as a movie. Very successful movie. In turn yacht toy is seeing these guys just fly off the shelves. Its important to get the inventory to their retailers. Back to you. I think you should interview Paddington Bear. Please interview him. He seems a little shy. He is a little shy, and he is missing his marmelade stand. It is power lunch, and im hungry. I guess the cat has his tongues. Port problems. Toymakers. Thanks. Lets talk to one of the importers. We are talking about 29 ports to handle 70 of the u. S. Imports, and asia cabani is with the 5 billion as seen on tv industry. Your products are getting caught right in the middle of the strike. We have hundreds of thousands of hes. People are not able to shave their caluses. Thats the big problem for i make light of tshg but you were just saying to me that if you have to bring these in by air freight, the cost per item is what versus by sea . The cost by sea is 10 cents a unit. The cost by air freight is 2. This is a product that retails for 15. Its a huge percentage of the selling price. In fact thats most of our profit. What would it mean if you diverted ships and brought them to east coast ports, savannah, baltimore, philadelphia, jacksonville . Of course the east coast is 3,000 more per container right now because the cost of containers to the east coast has gone up because of supply and demand. Its much more demand the ship containers to the east coast. Obama to california for negotiations. Do we see any breakthrough any time soon . All we can do is pray. I really dont know. Sfwla we literally sell to millions of pieces of products like the pet egg and grab bag, our pocket hose our hurricane spin mop. All these great infomercial products. You see we sell millions of each. Theyre sitting at the port. Cant get them out. 400,000 a day in lost revenue for you every single day. Every day. While were waiting for this to be resolved. A. J. Thank you very much for coming by. We appreciate it. Good luck. Hope you get a quick resolution to it, and all of ours. The f. A. A. s new drone rules. Who can fly and where can you fly them . Why its bad news for amazon. Power comes back in two. I make a lot of purchases for my business. And i get a lot in return with ink plus from chase. Like 60,000 bonus points when i spent 5,000 in the first 3 months after i opened my account. And i earn 5 times the rewards on internet, phone services and at Office Supply stores. With ink plus i can choose how to redeem my points. Travel, gift cards even cash back. And my rewards points wont expire. So you can make owning a business even more rewarding. Ink from chase. So you can. Shares for transocean have dropped some 76 pefrz since newman took over as ceo back in 2010. Starwood hotels jumping on news that its ceo is calling it quits at a mutual decision with the board. Board director serving as a temporary replacement. Kraft foods naming Company Veteran james kehoe as its new cfo. He spent a twomonth run as cfo at guilden active wear. The stock up 13 berz over the past six months. On sunday the faa proposed that it would allow drones weighing up to 55 pounds to fly within sight of their remote pilots. The drones must weigh no more than those 55 pounds and fly no higher than 500 feet altitude. Robert mark the commercial pilot, thinks that this is still a threat to the airspace and andrea james of dougherty and Company Believes that more good than bad will come of this. Welcome to both of you. Robert, let me start by asking you what you would like to see ideally with respect to the regulation of who, how, how high how close to airports drones can fly. Well you know i dont think theres anything wrong with the regulation in terms of the data. You know stay away from airports. Dont fly above 500 feet. How do we enforce that . I mean its kind of like the laser thing. You know i mean no one ever thought that people would be stupid enough to start pointing green lasers at airplanes, but there are people out there. How do we stop that . How do we prevent a problem before it occurs . Sflo the rules arent instruct enough, and there are companies leak appear zon saying the rules are too strict. It seems like the faa is trying to go right down the middle with what they came out with. I guess i identified five industries that i thought might benefit from this rule. Police and fire, so Law Enforcement would be one. Agriculture would be another. Oil and gas. Real estate and insurance. I think those five industries are the ones that are going to be somewhat satisfied with the rule. The company thinking that amazon is most materially affected here even though they havent got really drones doing the business. Those would not be flying within sight of their operators. I mean, if you are using a drone as a Package Delivery device its way out of sight of the operator. Well, thats true. You know just to be fair i mean, i completely agree with the uses that andrea mentioned. I mean these things are going to be marvelous. They really will. Theyll allow us to be in places where we cant risk the life of a pilot. All im saying is as a commercial pilot, people who are in airplanes are actually going to be in danger if the faa does not figure out a way to spralt drones of 55 pounds or less from manned aircraft. You should see what happens to an airplane if it gets hit by a 14 pound canada goose. Its not pretty. Right now that hasnt been figured out yet. Andrea what about licensing the operators of these things . I assume obviously if somebody is fire or police, a first responder, those are, you know thats one kind of use as opposed to the amateur user of these things. Thats why i think the faa is separating out the commercial market, and im kind of with robert. I dont worry so much about the commercial users because the farmer or the Real Estate Agent or somebody who has to have a pilots license to fly it and keep it within sight, the hobbyist market which is actually kind of not what were talking about here but the hobbyist market just the average joe who can go out and buy one of these, that seemsation bit more lawless. Its harder to control. From targeting the elderly to women, and you wont believe the tricks of these scammers and what theyre using. A widescreen multimedia center, and a headup display for enhanced driver focus. All inside a redesigned cabin of unrivaled style and comfort. The 2015 cclass. At the very touchpoint of performance and innovation. See your authorized mercedesbenz dealer for exceptional offers through mercedesbenz financial services. Im angela and i quit smoking with chantix. My children always wanted me to quit smoking but i resigned myself to the fact that it wasnt going to work. But chantix helped me do it. 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Common side effects include nausea trouble sleeping and unusual dreams. Im a nonsmoker. Ask your doctor if chantix is right for you. If youre running a business legalzoom has your back. Over the last 10 years weve helped one million Business Owners get started. Visit legalzoom today for the legal help you need to start and run your business. Legalzoom. Legal help is here. Anything worth pursuing requires knowledge, hard work and a plan. At baird, we approach your Wealth Management strategy the same way to create a Financial Plan built to last from generation to generation. Well listen. Well talk. Well plan. Baird. Welcome fwook power lunch. We are off our session lows and then now in positive territory with the s p 500. We have actually equipped the 2,100 mark. You can see it there for the s p 500. That is, again, a record high in trading. Susan, whats leading the way so far today, Health Care Stocks financial stocks also material stocks doing well in the trade today. The notable lagger and it has been for a while, has been the Energy Sector so susan, a nice move higher for the s p 500. Back up to the record level theres. Dom, thank you so much. Now, recently one of our very own, our News Associates zach guzman received a suspicious phone call right here in the newsroom. Well let him tell you what exactly happen next. Im zach and news associate here at cnbc. Recently i got a phone cal from somebody saying they were from it and needed access to my computer remotely wri. I handed over my ip configure. I saw a mouse start moving and then they asked me for a credit card. Thats when i knew there was a problem. Hacking and Identity Theft may seem to be new, but scams like the one that zach had to deal with goes back centuries. If you ever received an email from a nigerian prince with a Swiss Bank Account well you have seen the latest version of the spanish prisoner scam. Letters of this type date back to the french revolution, but became notorious here during the spanishamerican war. Now, most people attribute ponzi schemes, youve heard of that term, to Charles Ponzi in the 1900s, but one of the first mentions of a ponzi scheme is actually in the works of charles dickens. Yes. In his 1844 novel the life and adventures of martin schizelwit. He pays claims using the premiums of recent buyers. If you have seen the wolf of wall streets you are familiar with the pump and dump scam. Artificially inflating the value of a stock and then selling it before it collapses. Now, in 1720 the company of london hit hid the fact it had nearly for capital using reputable share hold efrz and partly he wants as advertising. Now, the price of a stock leapt from 100 pounds to nearly 1,000 before collapsing in september of 1720. Now, for more analysis on the history of these scams, weve got an article up now on power lunch. Cnbc. Com. Dont forget to go on our website to check it out. In a recent study, one in 20 older new yorkers reported being financially exploited later in life. Financial scams are reality. Many americans have experienced it. New data shows that women and the elderly are frequent targets. Cnbcs Kelly Holland is with us in the studio to tell us more. Kelly, welcome. What are the hot scams these days . Well there are a few trending right now. One in particular is the sweetheart scam. Whats that mean . Just in time for valentines day. Its a scam when someone comes online. You are usually online on a dating site and someone comes on and pretends to be besodded with you, and theyre wonderful. Theyre better than you could ever expect. Theres one hitch. Theyre stuck in their hotel room in dubai, and someone has stolen their breech case, and they just need 5,000 to get their passport processed, and then from there it goes on. I spoke to one woman who had heard from an elderly woman who lost 180,000 on a scam like this. My goodness. The scammers play upon peoples fears. Yes. And insecurities. And loneliness. And loneliness. To the exat the particular time they target the elderly or females, this is what they would prey on . Exactly. The typical victim is an older woman usually between 70 and 89. Shes got some cognitive impairment, and she tends to either live alone or feel lonely or isolated. Shes more likely when she gets that supposedly friendly phone call to get on the phone and engage sfwloosh what are the telltales that you know you are to something . In zachs case it was when they took over his computer and he lost control of his mouse and then asked for a credit card. What should i be listening for . Well any time someone asks you for your credit card information, you just ob your guard. You should know exactly who is asking you for that. Its not about bad idea to hang up and just try to call the person back on the number that they have. See if you really get through to them. Or disconnect online and try to go back on the legit site that you know it is. Go on your actual Credit Card Company site if someone is pretending to be from your Credit Card Company and see if you can get through and find out. Also, just check your gut. Your gut instinct is a really powerful thing here. If is t seems too good to be true, it probably is. Knowing these things are out there, it puts you on notice. Thanks very much. Check out her article. Kellys article on what to watch out for. Its on power lunch. Cnbc. Com. Do you know your value . Nbc universal along with morning joe nina launch aing series of live events and it is all about empowering women at work. Mica stops by live next on power lunch. Know that chasing performance can mean lower returns and fewer choices in retirement. Know that proper allocation could help increase returns so you can enjoy that second home sooner. Know the right Financial Planning can help you save for college and retirement. Know where you stand with pnc total insight. A new investing and Banking Experience with personalized guidance and online tools. Visit a branch, call or go online today. West coast sports they were closed to incoming cargo vessels during the weekend. Reopened in full today. This as labor secretary thomas perez arriveed in San Francisco to try and broker a settlement to end months of shipping disruptions. New defense secretary Ashton Carter was sworn in by Vice President biden in a white house ceremony this morning. Carter called for better use of tax dollars. Dupont has struck back at triumph fund manager in a letter to shareholders. It accused the activist firm of using misleading information to gain seats on its board. Anthony bosh the fake doctor who sold illegal steroids to Major League Baseball players, was sentenced to four years in prison. Bosh apologized for his actions. Coming up on mad money the ceo of ethan allen, 6 00 p. M. Eastern time right here on cnbc. Thats the cnbc news update at this hour. Back to you. All right. Thank you very much. Lets take a look at where gold and the other metals are doing, what theyre doing right now. There you see gold down about 1. 5 on the day. Lets check out silver, copper, paladium and platinum. Red numbers against all of them. Silver down more than 5 today. Platinum down about 2. 5 . Copper up 1 loss and ditto for puladium. Rick santelli tracking the action at the cme. Tyler, big action. Big moves on this shortened week of trading. Look at the intraday of tens. Yes. Youre seeing correctly. Were at 214 yield. At 1 00 in the morning we are at 199. Its been a large move. How large . Lets look at threeyear charts up and down the curve. If you look at a threeyear chart of twos well youll notice we said last year at 67. Were now at 68. Weve taken out last years close. Five settings at 165. Theyre three away at 162. Tens theshgs settle at 217. Remember all those santelli exchanges over the last three weeks . The magnet worked. Were about three basis points away. If you look at 30s, they settle at 275. Also three basis points away. Why is this so meaningful . Because unlike last year we never ever saw the light of day on the yield closes from 2013. This is breaking the mold and indeed, it may tell us more about europe than it does about the u. S. Lets go to dominik chew. A flash. Breaking news coming through. What we have is the latest update for the 13 filings for the securities and exchange commission. These are holding that is top Money Managers have as of december 31st of last year. This case leon cooperman, notable trades that he has made during the course of the Fourth Quarter. First of all they have completely sold off their shares in alibaba. Also halliburton, sprint Intercontinental Exchange and thermofisher scientific. Theyve completely exited those positions there. Theyve also reduced their positions in apple. Notably it was about a 1. 2 million share position. They have 84,000 shares now. A large share of the apple stake. Also aig reduced from about 5. 25 million shares to 4 million shares. Citigroup is reduced from 5. 16 million shares to 4. 2 million shares. Now, notably, he did increase positions in groupon, type offist, and anadarko petroleum. Not completely out of the oil business. He sold off completely the halliburton stake, but added to an anadarko position he already had. Interesting moves from leon cooperman, omega advisors. Back to you. Theres definitely a buy in equity markets. Stocks have turned positive. The s p 500 reaching a nigh record high. Surpassing 2,100 for the very first time. Guys whats turned around sentiment today . I think the big thing is the market has been very complacent around the whole greek issue. It didnt go down much this morning when news was out that there wasnt an agreement. It didnt go up much when there was word from an unnamed official that maybe they were going to get an extension. I think the market is a little bit complacent on this. I think the possibility of some undesirable outcome where they default is getting higher every day. I think what the market is telling is that its betting on the fact that there is going to be a solution. This action that were seeing in whether you call it complace ensy, is just not recognizing the fact that a potential greek exit is really an option. Now, if that happens, what i dont understand is people are not concerned about it because they say greece is only 2 . Think about the difficulty this will impose upon the greek citizens, if in fact, they default. If they think its difficult now, its only going to be more difficult then. I think the problem isnt the theory. The outlij is very obvious. The greeksment most of all this kind of stop to the austerity. Right. Germans, most of all, want no debt relief. Now, the outlines in the deal are there. Extend the deal out to infinity. The payment out to infinity essentially, and give them some release on austerity. Yet, they cant go back on the promises they made. Thats the problem. Well but i think listen i think in the end greek is going to blink. I think theyre going to have to. When they really when they really think about the outcome, then i think theyre going to realize sxwshgs thats why i think the market is telling you that. We tested 2,100. There doesnt seem to be enough momentum to take us up and through, and nor is there any reason for people to say, you know, i got to get out. The big thing on the floor is the rising u. S. Bond yields. Right. That may be completely independent for greeces situation. On wednesday, tomorrow were going to get the fomc minutes. You have a lot of people sitting on the sidelines waiting to hear if they change the language in tomorrows statements. If they take the word patient out, what does that mean . Does that mean that june is a go, or does that mean potentially june is a go . 1. 6 . 2. 1 on the tenyear. Thats got my attention. All right, guys. Lets take a look at those yields. This is a big move that were seeing in the treasury space right now. Three points away from 2 once again on the tenyear notes, and also moves in the 30year and the shorted end of the curve as well. Lets get back to the equity side because it looks like some of the money might be rotating into stock markets. We have two bulls joining us now. We have phil chief equity strategist and jeff chief investment strategist at raymond james. Both of you have some pretty lofty targets there for the s p. By our measurements, there are oodles of internal energy here for a sustainable move. Very fast up through 2200 on the s p. You are looking at 2350. How are we going to get there . Whats going to drive markets higher to 2350 . We just hit 2,100 earlier today. That was our target for the end of last year. Something in the neighborhood of 130 by the end of this year. We think that treasury yields still 2 . Very low. Core inflation 1. 3 still very benign. The ability for multiples to expand up to about 17. 5 18 times earnings by the end of the year we think is doable. Jeff you know what about the greek drama right now. Do you feel that there is a bit of complace ensy that everything will be all right and some sort of deal will be negotiated . I do think some sort of deal at the last minute will be negotiated. The germans cant have greece dropping out of the e. U. I dont think the greek people when it comes to push and shove want that either. As it has been in the past i think youll get a deal in the final inning. Okay. Final innings. What does that mean for the Federal Reserve . We are going to get those allimportant minutes tomorrow. People are looking for direction and some sort of wording on when were going to get the first rate hike if it happens at all this year . From my perspective, the fed is likely to change the language on the word patient at the march fomc meeting, and that will sort of clear the decks we think potentially for june rate hike. We still believe that the fed is going to be data dependent, so some of the data has been quite good. You look at the labor data that we saw a couple of weeks ago. That was fine. Retail sales the other day not particularly good. The gdp in the Fourth Quarter was amiss. Its not universally strong. If the preponder wrans of data continues to improve into the late spring we think that june could be in play. Phil jeff thank you so much for your time. Thank you very much. Dont forget to go to our website says. Go to power lunch. Cnbc. Com, and you can see some extra picks and what jeff says you should buy right now. Thats power lunch. Cnbc. Com. Well susan, the risque romance zone. Thats how were risque romance film. Fifty shades of grey is bringing in fifty shades of green for universal. Universal, like cnbc is owned by comcast. How is the recordbreaking film changing the Winter Box Office . Thats on a kinky version of power lunch back in a couple of minutes. E financial noise financial noise financial noise financial noise when the moments spontaneous, why pause to take a pill . Or stop to find a bathroom . Cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision or any symptoms of an allergic reaction stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a free 30tablet trial. Tempur sealy has responded to a statement. In it they say, among other things, that while it is the companys policy not to comment on discussions with individual shareholders, were disappointed to see that h. Partners has chosen a public forum to advance an agenda that appears to be nothing more than baseless personal attacks and selfpromotion. Should h. Partners decide to set aside its Public Campaign and engage in a constructive dialogue regarding the company and its prospects towards the goal of enhancing shareholder value . We would welcome that opportunity. Again, just as our Board Management team has always done in the past. Again, susan, an Interesting Development with another activist. This time tempur sealy. Lets talk about movies. I havent seen it but a whole lot of people did this weekend. Were talking about the risque romance movie fifty shades of grey breaking box office records. Julia borestein is in los angeles with the stats for us. Julia, how does it stack up . Fifty shades of greys 94 million u. S. Gross, 266 million globally was a record for february, and one of the biggest rrated movie openings ever. Playing at over 3,600 theaters it was the widest opening ever for an rrated movie and a big win for Comcast Universal which spent 40 million to make the movie as well as a win for theater chains including imax which added screenings at the last minute. It creates a new franchise for universal of a new risque variety that hollywood has never seen. The studio has not yet announced a sequel with the two lead actors locked in we can expect at least one other film based on the bestselling book series. One reason fifty shades did so well despite mediocre reviews . Social media likely played a role. People wanting to weigh in on the water cooler conversation and controversy about the risque film. Thanks to fifty shades as well as the unexpected success of Warner Brothers american sniper the u. S. Box office is up 10 this year from where it was at the same time last year. Tyler, back to you. All right. Julia, thank you. Nbc universal news will launch a series of live events with morning joes cohost micah offering career advice to women of all ages. Its being called the know your value tour and it kicks off this april in philadelphia. Nbc universal and cnbc both owned by comcast, we should point out. Welcome to power lunch and let no one draw any conclusions by the fact that you followed our segment on fifty shades. I was wondering about the placement. Just saying. You seen it . I have not. My wife who works at the today show has. Said it was a little slow. She called and said, tyler, youre not going to like it. She said it was slow. Okay. Good luck to you. She said it was slow. Ive read numerous studies over the years indicating something that i know is kind of at the heart of this initiative of yours and nbcs, and that is that women are less good negotiators. Yeah. When it comes to salaries. Particularly their first salary and when you start off with a handicap, it tends to follow you. It follows you for the rest of your life for the rest of your career. I know that it followed me until i was almost 40 years old and did something about it. When i did something about it i made mistakes. I made about four key mistakes that all women make at every facet of their career when they are negotiating for money for themselves. Theres something about asking for money for ourselves that we feel terrified about, that makes us feel incredibly uncomfortable. We feel like its untoward or maybe even inappropriate or maybe its causing the person were talking to not to like us and for some reason we care about that. In my book knowing your value i document all those mistakes as i made them and then how i fixed it. Actually, what were the instincts that drove those mistakes because they are instincts on the part of the woman. We apologize all the time. We selfdeprecate all the time. Were so worried, tyler, about making the people in the room with us comfortable. Thats all really nice. Its just not useful at the negotiating table. Yeah thats the other thing that the language of men and women in these moments of negotiation are very different. Thats right. Women are inclined to apologize, as say, to selfdeprecate. It goes back to that book by deb are tanin, the linguistics professor about how we speak differently in those situations. Men exaggerate and women no. Oh yes, you do. You know what wonderfully so. I mean i know when joe was pitching morning joe he was, like were going to beat imuss rating, and im looking at him going, we are . Are you kidding me . Im just hoping we get on the air. That was the way we thought differently. Guess what everything he said we did. And thats because if you think positively, you speak positively about yourself, you actually create your future. We find ourselves stumbling over our own future and leaving money on the table because we let these, i would say its the clutter in our brains get in the way when you are negotiating. You need to know your value. You need to nabbed your data, and you need to communicate it effectively, and for women there are other facets that come into this. Body language. The way you dress. The way you feel. The level of confidence, and whats driving those instincts to get in your way. At these conferences were doing five around the country with great diverse partners who are joining us on this journey. Were going to give women tangible, useful advice that they can use tomorrow the next day when they walk out of these conferences. Theres going to be competitive angle to approximate it where we watch women transform before our eyes and reward them and jumpstart their value, and the difference i would say here from all the womens conferences that i have been to is that this is a multimedia event strung together by our website, by nbc platforms, followed from city to city, but they will be like workshops so the audience and even members of the Online Community will engage take part in it and we will all grow together. There are four like that middle tier that walks out of those conferences feeling like theyll never get there. You will at these. Changing the mare dime and changing the game. Congrats. Good luck to you. Cohost of morning joe on msnbc, and tickets, Additional Information about the series msnbc. Com know your value. All right. Thanks again. Good luck. Susan. You know, tyler, we heard from one bond strategist that telling cnbc that now is the time to get out of bonds and move into equities. If you are counting on bonds for income, should you hold on . Well debate that issue coming up on power lunch. Pain reliever. That dares to work all the way until. [birds chirping] the am. New aleve pm. Its the first to combine a safe sleep aid plus the 12 hour strength of aleve. For pain relief that can last all the way until morning. New aleve pm, for a better am. Welcome back. The earlier this hour the s p 50000 hit 2100 for the first time ever. Were hovering around that level right now. Earlier we told you about the sectors that were driving things. The indexs top individual stock movers today. They are interesting as well. Waste managemented, the best performer today. Also medtronnic, and noble energy round out the top four. A big move today to record territory in the s p. Back to you. Dom, thank you very much. It is the rise of leggo, the 83yearold privately held toymaker. Hotter than ever which you already know if you buy them for your kids. Morgan brennan now back with us from the biggest Toy Convention of the year over in new york city. Shes playing with legos. Hi morgan. Hey, tyler. Thats right. Well Building Blocks have been rising toy sales this year and thats been really good news for the biggest toymaker in the country. Once we can get this car powered up, well drive over there and tell you more about lego after the break. I think ill just walk. The road. It can bring out the worst in people. But the mclass scans for danger. Corrects for lane drifting. And if necessary, it will even brake all by itself. It is a luxury suv engineered to get you there and back safely. For tomorrow is another fight. The 2015 mclass. See your authorized dealer for exceptional offers through mercedesbenz financial services. Im type e. I know what my money is doing. I rebalanced my portfolio on my phone. You know what else i can do on my phone . Place trades get free real time quotes and teleport myself to aruba. I wish. Can it make a dentist appointment when my teeth are ready . Can it tell the doctor how long you have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is can your business deliver . Henl funds are doing something that might actually be a big buy signal. Well tell you what that this is. Is now the time to bail on bonds . Treasuries getting absolutely crushed today and why terrifying train wreck has ramped up the Keystone Pipeline. Debate again. Back to tyler and susan. Toymaker lego is now the worlds most powerful brand bumping ferrari from the top spot. If you buy legos, you know how expensive they can get. Morgan brennan is at the toy fair in new york city. Hi morgan. Hey, tyler. Thats right. Depending on the set. You get pricey. Also wildly popular. We spoke with lego systems about this topic this morning on squawk box. Sfwroo we determined a price from talking to our consumers and our shoppers and understanding whats reasonable from their point of view and then you know we have truly believed that the value we bring and the longevity of the play and the system of play you dont buy illegal product and play with it for a period of six months or so depending on the age of the child. It grows with you. Its a toy for legos u. S. Sales grew last year, and even a privately held company hasnt disclosed its full 2014 results yet. As of the first half of 2014 its sales had trumped both mattel and hasbro making lego the largest company, largest toy manufacturer in the world. The question is why is an 83yearold Company Really just racking up the blockbuster sales now, becoming so wildly popular now in the last couple of years, and theres three reasons for that. The first is its got very coveted licenses. Its got comic book characters. Disney princesses. Star wars. Its also started catering to girls. Rolling out several lines that girls can maybe get a little more excited about. And you have the lego movie that grossed hundreds of millions of dollars. Its been a wild success. Its been so successful for lego that theyre rolling out a sequel as well as another movie ninjago in tan dem with one of their most popular lines. Thank you very much. Have you ever been to that lego park out in Southern California . I have. It is one of the great amoozment parks. I have been to lego in denmark. You know. They would need a lot. Big forehead for me zoosh you cant mess with real estate. Karlzburg, probably the best beer in town. In the center of coppenhagen. Thats it for the first hour of power. Thank you guys very much. We have melissa lee at the nasdaq. Second hour of power lunch kicking off right now, and listen, the s p 500 and the nasdaq both hitting new multiyear highs today. Tony, well get your audio fixed. Ge what do you make of the big move right now . A little bit of profit taking selling after what was the most spectacular january on record. You know i saw yields on long end of the yield curve drop maybe 40 45 basis points, and theyve rebounded given up that entire territory this month. I think, frankly, a lot of it has to do with trends in in flows coming from the euro. We also saw along with the bounceback in treasury yields we saw the euro rebound over the course of the last few weeks, signalling lesser inflows, and thats the biggest handle by which were seeing a relationship. Foreign inflows buying bonds, or in this case selling. Well im trying to understand why we are at 1. 64 on the tenyear yield two and a half weeks ago and now were above 2. 1 . That what sentiment has changed in just a matter of literally trading days . I think the mechanism has to do with foreign inflows really. A little bit more structurally. One of the biggest debts thats going on with the fixed income market has to do with where the Federal Reserve will stop hiking Interest Rates in 2017 or 2018. Now, in january we had a lot of participants betting that that number was going to actually be below 2 and that bet has started to reverse a little bit. I think its a little bit of what we call probability reversion trade. The markets are certainly betting that its going to be more look more like an average set of rate hikes than they were a couple of weeks ago. To your point at the top, it was 1 30 15. It hit its high and since then its been down 9 . It sounds like you say there could be a trade in here that this is a temporary pullback because really the fundamentals on favor u. S. Treasuries in relationship to around the world where bonds are negative essentially. Yeah, absolutely. Theres no question that an investor even considering a potential inflationary risk in the u. S. Versus say, the euro zone or japan is incentive to buy u. S. Treasuries. North north of 100 basis points. It represents a buying opportunity, frankly. The u. S. Economy cant die verbalingverge from the rest of the world. Were having audio issues here. Ge if you can hear me out there in tv world, were going to get you on. I think the audio right now is too scratchy for the gentle nature of our public. If you are looking to trade the bond market but not with actual bonds, there are etfs. Obviously, melissa mentioned the tlt. Thats the long bond. Thats your world. What do you think of this move . Are we expecting or should we expect the Mortgage Market to make a sudden spike higher in the next couple of weeks . Brian, its not the next couple of weeks. Its happening right now. Im getting emails from lenders across the country. Just so you know the Mortgage Rates on 30year fixed loosely follow the yield on the tenyear treasury. That said logan, who is with amc lending out in irvine california, says pricing has changed three times today for the worst. Some loan products are now oneeighth higher than at the start of the day. Matthew graham of Mortgage News Daily says hunl moves in terms of bad months following good months. February is the worst bounce since january of 2009. Lenders are still in the process of getting out negative reprices due to this mornings bond market activities. What had been 3. 625 two weeks ago, were now at 3. 875 . Thats on the 30year fixed. Mortgage rates moving higher. Not what you want to see at the very start of the spring and, yes, i mean spring housing market. Brian. Looks a long way from spring in washington d. C. Thank you very much. Well as stocks hit multiyear highs, the s p and nasdaq both up. In fact the s p back up 2,100. Hedge funds are turning more and more bearish on the stock market. However, ironically dom chew you say this could be a buy signal. The contrarian in many people is really coming to the forefront in this. He measures something called hedge funded beta. Simply put, its how much exposure to stocks that certain types of hedge funds have over say, a 21 daytime frame on a rolling basis. Well, that indicator now rests with the lowest level weve seen since last september. Lees report says this is a bullish indicator or more contrarian view. When hedge funds dont like a stock, it could be a signal to buy. Its not so cut and dry a story. Not all the data suggests there will be a big bias to the up side ahead. Theres a survey of hedge funds and how exposed they are to stocks. Ed heimman runs that group and survey, and his numbers show more neutral in positioning for hedge funds. His data shows that hedge funds have a 51 exposure to stocks. Readings around 60 are kfrd to be dull bullish. It doesnt necessarily say go out and buy stocks because of this particular thing. Where does this data come from . How do they populate their models. These are firms that dont necessarily have the access that maybe a prime broker would to positioning of hedge funds sdwloosh thats the point. Whats more interesting are the fund flows that are happening. Remember, when we talk about the tech side of things we have just seen Fund Flow Data about the qs. The etf that tracks the nasdaq 100. We saw funds coming out in december and january. The question is whether or not theres still ammunition. Maybe there is if you take that contrarian view. Thank you. Interesting report. The company is now considering getting into the car business. Apple is working on an electric vehicle could could be driverless. Phil and josh lipton are here with us and you know josh lipton, what would be the impetus to really complete the ecosystem . Well i think theres a couple of Different Things that come out of this if anything melissa. One is its certainly possible that what apple is pursuing is just more in car technology. We know that thats a passionate and interest in cupertino. Already offer their car plate technology. When you talk to analysts there are certainly some who think apple could be interested in building its own car. The car is described now as a computer on wheels. The head of gardeners automotive practice he calls the car sort of the ultimate mobile device. Just give it all the things we can do there. Apple can make a mark. I just think we heard phil talk about this is unlikely to be an actual car. Maybe they got to build a car to use for their modelling to do the dashboard or their car play right . Phil, they may develop and build a car because they have to but this is probably more about the interface than it is an actual car were going to buy. Now we know this past january in detroit, google said were not going to manufacture a car. Looking, just because you are working on an autonomous drive electric vehicle for research and development doesnt necessarily mean that you want to bet into the manufacturing bus. There are still huge opportunities to explore and capture within the auto arena without manufacturing an actual car. Could they possibly do that at some point in the future . Sure they could. Keep in mind building developing marketing a new vehicle from scratch, look how long its taken tesla to come up with a few models. It is a lengthy, lengthy, lengthy process, so there are some people who are saying hey, they could get in and immediately disrupt the industry. I dont think its an immediate disruption. Could they disrupt the industry . Yes. Dont expect it immediately. We have new numbers from ihs in terms of phone projection which is android auto versus car play. That market this last year 600,000 worldwide vehicles were integrated to have phone projection systems where you basically take your car or your phone into the car with you. You know what its going to be by 2020 . Its going to be about 213 million vehicles worldwide. That is huge explosive i growth thats going to be happening there. Apple wants a piece of that. Is it the only thing theyre after . Absolutely not. I think people are jumping ahead of themselves by saying immediately, well, theyre going to build a car. All right. Phil and josh thank you very much. Let us set the menu if you will, for the rest of the hour. When we come back, is it time to put money on the casino stocks . Mgm down 14 in a year. Las vegas sands even worse. Is now the time to buy . Plus, a terrible fire in West Virginia caused by a train carrying oil. Could have been a real disaster. Did the president make a mistake, though not going along with the Keystone Pipeline . And doing business under 7 feet of snow in new england. Theyre doing it. More power lunch coming up. You can find a new frontier. Theres nothing stopping you and a lot helping you. Technology thats with you always. This is our promise. Its never been better to wander because wherever you go, youll find us doing everything we can, so you can. Missing about the top and bottom lines. Stock is higher. On the Conference Call they mentioned a reet structure. The question at this point is do you go in to the vegas stocks like an mgm or Las Vegas Sands . Senior managing director at jp morgan covers game and lodging. Want to take you with us. Want to ask you about the news item that sent this higher during the Conference Call. What do you think about transforming into a reet . I think its maybe one of a few things thats causing mgm to be up around 3 today. I think the important thing for them is that they still have a positive outlook, and we share that on the Las Vegas Strip. Its performing much like a good hotel market with revenue for available room growth in the 2 to 3 and the one q up against a tough comparison of 14 growth last year. We think the Las Vegas Strip can grow in the mid Single Digits top line and spit out and generate a double digital bida growth. I think the comments about looking at a reet its getting a lot of traction with investors, particularly since pen did that about a little over a year ago. Melco, which is the orange line down here is down 35 over the past 12 months while mgm is down about 15 . Im wondering at this point, do you think that they have too many problems ahead of it when it comes to proposed smoking ban, the crackdown on the get to know your v. I. P. Program going on over there to envest in the ones that are really leveraged to the story. The visibility as weve written numerous times, its pretty tough right now. We think investors are paying attention to that. I think the longterm is quite favorable. The near term is tough. For mgm, though over threequarters of inebida comes from the Las Vegas Strip. That relative to other names makes sense to us. We think that the trajectory of vegas is probably more of a directional pull on the stock for mgm than say, mckoy at this point. I want to talk now about the next big gaming front ear, and that could be considered manila in the philippines. The Philippine Government is projecting that revenues from gaming will increase to about 10 billion by the end of the decade which will surpass toe potentially vegas as well as sing more. Im curious, is that a reason to invest today, and who might have the best exposure if you wanted to go that route . For most of the u. S. Operators that we follow its probably a small opportunity. One thing they have though versus other markets in asia is its proximity to Mainland China and the affluence and the population growth. The philippines is a little bit different than that so i wouldnt necessarily draw comparisons from it into the philippines market. All right. At this point. Donald leave it there. Thank you for your time. Good to see you. Likewise. Tonight fast money ill be speaking to jim, the ceo of mgm resorts international, and catch that interview at 5 00, and ill be sure to ask him whether or not he is considering that reet structure. Brian. Should be a great interview. Thank you very much. Well scenes like this playing out across a huge part of america right now as a massive winter storm blows through. Details behind this incredible piece of video ahead. And time for todays mystery chart. This stock now pays the highest dividend yield to the s p 500. It is not transocean off shore anymore. They cut their dividend by 80 . Your first hint . Think telecom. The answer when power lunch returns. He. Oh yes yes yes we got it baby we got it oh, again. Again. Thats a twofer. Thats a twofer, baby yes yes again. Thats a three you got to be kidding me. You got to be kidding me. Three, baby in ten minutes. Oh my god. How awesome is it to see somebody who really dig theirs job. That is the weather channels jim cantore going absolutely nuts after he and his crew captured not one, not two, but three instances of socalled thunder snow but on camera. Now, thunder snow is a rare weather event that happens when thunder and lightning are seen and heard during a snowstorm. Check out this video from hampton, virginia. Notice and icecovered roads. Wow. Scary stuff. Forcing the suv to skid out of control. Slamming into a sedan. Nobody was hurt. Virginia is one of several Southern States getting hammered with a massive winter storm. Keep in mind that is near the beach in virginia. Thats near norfolk and virginia beach. It is with did hes emails up onetenth of 1 . Its making mull inform year highs as it marches back towards 5,000. The Dow Jones Industrial average up. 1 as well. Not a huge move in the stock market. The bond market, folks, is where the action is today. Platinum and paladium are also falling. All the metals are tanking today. All right. Up next on power lunch is it time to rethink the rail . Why this scene out of West Virginia last night could be a new rallying call for pipelines. The crude flows live from the nymex coming up when power lunch returns. You total your brand new car. Nobodys hurt,but there will still be pain. It comes when your Insurance Company says theyll only pay threequarters of what it takes to replace it. What are you supposed to do, drive threequarters of a car . Now if you had a Liberty Mutual new car replacement, youd get your whole car back. I guess they dont want you driving around on three wheels. Smart. New car replacement is just one of the features that come standard with a base Liberty Mutual policy. And for drivers with accident forgivness,rates wont go up due to your first accident. Learn more by calling switch to Liberty Mutual and you can save up to 423. For a free quote today,call Liberty Mutual insurance at see Car Insurance in a whole new light. Liberty mutual insurance. Heres your cnbc news update that the hour. Greece intends to ask for an extension of its Loan Agreement with the euro zone tomorrow. This is according to reuters. This distinguishes from the countrys Bailout Program. Conditions were still under negotiation. Tesco, britains big esretailer has its new chairman. Its named john allen to the position succeeding richard who said in october that he would step down. And new york i dont think third baseman Alex Rodriguez has issued a handwritten apology for the mistakes that led to his suspension. He has turned down new yorks offer to use i dont think stadium for a news conference. He did not detail any specifics about his use of steroids. How about this story . Employees of a chinese startup wifi master key reportedly giving every employee with more than four months at the company a new tesla for their yearend bonus. For more on that head over to cnbc. Com. Thats a cnbc news update for this hour. Back to you. Wow. Thats a story. Thank you very much. They give them a place to blueing it in as well as home. Oil just about to close for the day. Right now gets least go to jackie deangeles for the final number. Good afternoon, to you. Weve reversed course after being down more than 2 on wti. Were up 80 cents. 53. 58 is the highspeed price i have. Still a minute before the close. Interesting because we had headlines out earlier that the iea was skeptical about production in the middle east because it appears to be that investment is waning there. You think that would send Oil Prices Higher but we shot down this warning, and what traders are saying about these headlines is that right now its not really so much about the fundamental case for oil. S its really about the technicals and thats why these trades are moving around even within a day the way weve seen this action today. Some traders saying that we are trying to find a bottom here and this is part of the process. Others are saying they agree with goldman saks. They agree with citi that we are going to take a leg lower even if we bounce around for a while. Brian, back to you. Yeah. In fact there was a goldman report out yesterday i think for their london team jackie. I wrote about it in my cnbc pro article. This is what goldman said. The rig count decline is still not sufficient in our view to achieve the slowdown in u. S. Production growth that is required to balance out the oil markets. Goldman saks chiming in and saying, yeah no rigs are being laid down, but we dont think its going to be enough to balance it out. Absolutely. Brian, you have said it 100 times. Even the ones that red cross laid down, it takes a while for that to actually impact production. We wont see it until the end of the year potentially. Right now theres a lot of supply out there. Sfroo wrau. I will say the bullish case longer term would be this. Not only are all welsz dying slowly right . They never produced as much as the first day, but fracked wells do i dont want to say die, but they do depleat faster than traditionally drilled sort of vertical wells. Keep that in mind. Jackie, thank you very much. Sure. Well staying on oilrelated news, this from an able midstream partners. It is the latest company to announce layoffs. The Oklahoma City company saying it will cut 10 of its work force this year. Its about 200 jobs. The Egyptian Military as revenge for the beheading of 21 esxwriptian christians. The ejitian state broadcast television gun camera footage of the air strikes here. Well terrible video from West Virginia as an Oil Train Derails and explodes into flames near the town of mount carbon. A number of nearby cars caught fire. A house burned down. Two nearby towns were evacuated. That oel did come in north dakota. That Oil Train Derailment in West Virginia just the latest in a string of incidents. You may recall this Devastating Oil train crash in quebec that killed 47 people in july of 2013. This latest accident sure to ramp up the safety debate over the Keystone Pipeline. Lets welcome in diana, senior fellow at the manhattan institute, and tyson is director with the public Citizens Energy program. I want to ask you to do one thing, and lets talk transportation. Lets talk safety. Lets talk numbers. Lets not make this political because every time you mention the Keystone Pipeline it goes into a political fight. Lets try not to do that. Tyson, does this make the case for more pipeline . Maybe not keystone but just more Pipeline Transportation over rail . Not really. Because the problem with pipeline is its very expensive. It takes an awful long time to build. Youve got a lot of problems with getting Eminent Domain, and thats why youre seeing 70 of all the crude oil in the balgan being used by rail because adding Rail Terminals a heck of a lot cheaper. We just saw a segment in layoffs in the oil industry. Were seeing a cutback on capital spending. How is pipeline more expensive . The estimates that i have is it costs 5 a barrel to move by pipeline versus 10 to 15 by rail. Right. The cost to actually move the oil is more expensive by rail. Im talking about the Capital Investment costs to build and site these pipelines is extremely high and at a time when oil prices are about a 55 a barrel youre not going to see a lot of folks running into that. We think that there are things that can be done in pending department of Transportation Safety rules over oil tank cars on rail that we think can make it a lot safer. Pipelines also have a lot of abbings on average where he see about 200 spill incidents a year. Its true that moving it by rail per volume you do see more spills on rail relative to pipeline, but i just dont think its realistic that were going to build out massive amounts of Pipeline Infrastructure to replace this rail because of the costs, because of the time and because of the Eminent Domain issues. Lets followup on tysons point. For all that terrible video, again, thankfully it looks like one mirnl injury. To his point, there are hundreds of pipeline accidents per were. Most of them are very minor. A little spill. A little spill there. The crude oil that is going to come through the Keystone Pipeline is tends to be heavier and dirtier. The cleanups would be even more difficult. Well, you said that we shouldnt be political, and we should stay away from keystone xl and america has 2. 5 million miles the advantage of pipeline is that the container is stalgs ear, and the products moves through it. Also the product is under the ground. Its away from people. Its much safer than rail or truck. According to department of transportation statistics. If it was carried by rail instead of pipeline there can be another 49 injuries and six fatalities a year whering how much is a human life worth to us . I think its worth a lot. Also, it costs a lot to build rail. It costs a lot to operate the rail. How are we measuring safety . Intl he we look at the amount of crude that has been transported by rail. Its absolutely skyrocketed between 2008 and 2014. Its gone up 43 fold. Is it by volume transported or theres just much more thats being transported by rail. Its true that when there are pipeline spills and there are more spills by rail and truck, but where there are spills by pipeline the volume can be higher but half of that is generally cleaned up. Also we need to be very p concerned about peoples lives. Peoples property. Were very fortunate that no one died in that fire in West Virginia. Its the oil industry and also the down stream recipients much that oil. What were seeing from the department of transportation right now is proposal that would add an additional oneeighth of an inch of steel to reinforce existing and new railcars that would help with limiting the amounts of punctures. We also see a proposal to improve the breaking of these railcars thats going to help a lot. We need additional safety measures. We have to have full notification of communities. Adding expense, you just talked about a safety and a Public Health and protecting peoples lives that should be the most important thing. So you have to prioritize that. Listen thats why we need pipelines. It would have still tipped over into the river in West Virginia even if it had that extra oneeighth of an inch or extra inch. There is no such thing as purely safe oil thats were going to leave it there. Tyson, either side of the argument, thats also a good point thaw just made about overall safety for whichever means. Deanna and tyson, it was a good debate and discussion. Thank you very much. We have to get to Hampton Pearson for a news alert. Hampton. Brian, outgoing u. S. Attorney eric holder making news about the possibility of future prosecutions related to the mortgage crisis where individuals are concerned. With try to develop cases of individuals and to report back in 90 days with regard to whether or not they think theyre going to be able to successful ily bring civil or criminal cases against those individuals. Now, the outgoing attorney general went on to say it will be up to his successor, loretta lynch, to decide number one, if those cases are there to go forward with actual prosecutions, but, again, attorney general eric holder talking about the prosecution of possibly individuals related to the mortgage crisis. Back to you. All right. Thank you very much. Okay. It is time now for something that we do every day. We call it street talk five analyst recommendation on stock. Melissa lee, are you ready . Stock one, regeneron. Their target is 475. 18 up side. The stock not done well this year, but talk about 25 over the past 52 weeks. Yeah. Remember, they record earnings. Its all about theyre looking for ilea approval for other usesic like diabetic retinopattie. Clip natural resources. Its a moderatety price option because it has a single digit price right now. The absence evaluation earnings support, you know crisis also sees steel and iron ore prices further downsized. Cautious here. You see the stock down. This has not onbeen a disastrous stock, the metals and mining etf. We talked about it. Gold miners in that etf has done great. Stock three. Micron, mu. Seeing a nice boost. Up to and outperform from a neutral. A 40 target. Hey, not a bad climb the last week for mu. Yeah. Last week they announced a venture with seagate. Again, the enterprise ssd. A source a drive market. That was seen as a positive as well and added to earnings. Stock number four this is interesting. Sothebys. He likes the business but says it is close to the price targets. Its cutting to a market perform also saying that you know what theshgs like the clientele. Insulated, but not completely immune to a slowdown economically. Thats an interesting call here. Down 1. 25 . Six analysts cover bid. The ticker the average target price is 48. 67. Most of wall street does see a few bucks of up side left on sothebys and stock five as always. Youre under the radar name. Pattern energy. San francisco based Renewable Power company. Wind farms the u. S. Canada and chile. Bmo resumes coverage of a 34 target. Before 20 up side. Still new to the nasdaq but coming out positive on the name. Yeah. The interesting cautionary note is the exposure to canada because of the weakening of the canadian dollar. Theyre pointing out that by 2018, the canadian exposure will be up from 23 today. That could be a huge head wind for the stock. Why are you looking at Waste Management . I like talking about trash. Yes, im talking trash. The stock is surging on an earnings beat earlier. Its at the top performer right now in the s p 500. The Company Posted better than expected Fourth Quarter results due to among other things cost cutting. Waigs management has authorized 1 billion the u. S. Solid Waste Companies delivering solid gains to investors over the past 52 weeks. Its up about 25 over the last year. Guys, back to you. Thank you, dom. The battle between aubry and the company he used to run is heating up. Well tell you just what happened. Lets up the ante even more. Brian, youre a fashionable guy. Its fashion week. If you like the clothes, you might buy them or buy stock in the company that makes them. Cash in on fashion coming up on power. Know your Financial Plan wont keep you up at night. Know you have insights from Top Investment strategists to help set your mind at ease. Know that planning for retirement can be the least of your worries. With the guidance of a pnc investments financial advisor, know you can get help staying on track for the future youve always wanted. The nasty legal battle between Aubry Mcclendon and the company that he founded Chesapeake Energy is taking a new turn. Kate kelly, what now . What happened today . Brian, i dont think any of us expected aubry to go quietly from chesapeake, the company you know he founded in 189, but it seemed he had, at least until now. In a bleserring new lawsuit filed earlier today in Oklahoma City court, chesapeake accuses its former ceo of swiping trade secrets for his own benefit. Using chesapeake information to guide his own investments at American Energy partners a company he founded after leaving there. According to the suit just 36 hours after announcing the details of his departure from chesapeake mcclendon dusted off what was at that time a yearold Geological Survey of potential drill sites in the utica shale play in ohio and asked followup questions about it of people at chesapeake, emailing some of the results to himself or printing out hard copies. Later that very were in one of its very first public announcement aep, the company he then founded, touted raising 1. 7 billion in funds to pursue drilling projects in the very same place. The utica region. Chesapeake, which is demanding a jury trial, is asking for an accounting of any money that aep has made from its utica investments as a result of the initial chesapeake surveys, as well as for the payment of damages, royalties, and any other fees including lawyer fees that may be incurred. Mcclendon, now, has fired back with its own statement and also a brand new website, ae pvc hk litigation. Com and he calls the lawsuit maurtless. His claim . That he was perfectly well entitled as part of his own separation agreement with chesapeake to information about some 16,000 gas and oil wells the company was drelg. Some of chshgs im told were actually in the out can shale. At the time chesapeake was recovering from his cheap gas price ridge ooul im. They were moving more into oil. They werent making a ton of new investments. That may have been part of it. A cynical argument would be that aubry himself, who was still running the company for a time didnt pursue it because he wanted to later. On the other hand though you could certainly say he would have to have fln he was being ousted if he wade to do it on his own. Right. I mean, maybe i will go after these you know things were tough between him and the company for some time. Fair point. Its want clear that that would have covered this sort of survey. A little murkyness on both sides. Lighthearted mcclendon triwra. He is the uncle of who . I dont know. Kate upton. I did not know that. Her great grandfather started whirlpool. Now she stars he is not i dont know. Sno now she stars in an app. Alibaba founder incredible story of perseverance every aunt parenure needs to hear. Why are go pro shares higher . Well get to that when power lunch rolls on. First impressions are important. Youve got to make every second count. Banking designed for the way you live your life. So you can welcome your family home. For the first time. Chase. So you can. Hey, girl. Is it crazy that your soccer trophy is talking to you right now . It kinda is. Its as crazy as you not rolling over your old 401k. Cue the horns. Just harness the confidence it took you to win me and call td ameritrades rollover consultants. Theyll help with the hassle by guiding you through the whole process step by step. And theyll even call your old provider. Its easy. Even she could do it. Whatever, janet. For all the confidence you need td ameritrade. You got this. Shares of go pro a big gainer today. Lock up ex pirpiration is today. So go pro ripping higher today. To your point, its up 100 from its ipo but down 50 from that october high and one issue that was causing concern, this big lockup expiration. 76 million shares emerging from lockup. Thats basically doubling the potential supply. So why the rally . Well, for one, with that stock down so hard from that high you could argue that news was already priced in. Also verseinvestors perhaps are not seeing big sell orders come in from insiders and early stage investors. And, remember, 60 of the flow is sold sort on this one. The question of course is what happens from here . Investors want to see go pro expand internationally, diversify that product lineup and continue to leverage that content as a media brand. Melissa, back to you. Josh lipton thanks for that. Time now for point counter point. You decide who is right and who is wrong. You can let us know on twitter, although i dont really know who has won in all of these. Were both winners. I am going to assume i have. Before becoming the richest man in china, jack ma faced a lot of rejections rejections. He revealed a failed a College Entrance xablexam three times and was rejected from 30 jobs including kfc. Its a lesson of perseverance. Hes come from basically nothing, done great. Theres a lot of people out there in america, china, india, wherever who did not get a good formal education but who could buy and sell me all day long. All right. No wonder why forrest gump is his hero. Life is like a box of chocolates. Cofounder larry page and sergeiy brin planning to sell 4. 4 billion of google stock. As i wrote on cnbc pro how could you not view this as some kind of red flag . It doesnt bother me. They will still have 52 of the voting and 12 of the stock. European creditors handing greece a new ultimatum. Agree to a Bailout Program by fridaying or jeopardize the funding that could help avoid a default. Were talking about germany here or greece which is a proud country, should they say were going to agree to certain financial demands but dont get involved in our business. Were still a separate nation. This is the hard part of the european union. Theres a union, but these are sovereign nations with elections and vind leadindividual leaders and histories and traditions and pride. This is a dangerous situation potentially theyre headed for. From the u. S. Market situation weve seen this before. Remember 2011 . It was brinksmanship all the way up to the last minute. This is probably going to happen this time around too. Point counterpoint out. Now is your time to tweet your guess for todays mystery chart. Some of you have already gotten it. Its the name with the biggest dividend yield in the s p 500. Were going to have it. Plus Courtney Reagan is following fashion week for us. When it comes to fashion brands, you probably know the brand names. You probably dont know the Parent Company stocks so you can actually trade them. I have the runway run down coming up on power lunch. Your friends have your back. Your dogs definitely got your back. But whos got your back when you need legal help . We do. Were legalzoom, and over the last 10 years, weve helped millions of people protect their families and run their businesses. We have the right people onhand to answer your questions backed by a trusted network of attorneys. So visit us today for legal help you can count on. Legalzoom. Legal help is here. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Tigers, both of you. Tigers . Dont be modest. I see how youve been investing. Setting long term goals. Diversifying. Dip you got our attention. We did . Of course. Youre type e well, i have been researching retirement strategies. Well thats what type e s do. Welcome home. Taking control of your retirement . E trade gives you the tools and resources to get it right. Are you type e . The answer to your mystery chart is wind stream holdings. The biggest yield in the s p 500 at 11. 16 . Melissa . Yeah, and you have to wonder whats going to happen to the dividend in light of what happened with rig. Fashion week kicking off in new york city and while the clothes look nice, what we really want to know is how can we make money off of them. Im going to try to help you out. Wolverine worldwide may not mean much to the average investor but the brands each company manages probably do. Wolverine worldwide has 14 brands including hush puppies, keds sperry topsider. Www shares down today after reporting inline earnings above expected revenue but lowering its fullyear guidance on weak u. S. Sales and a negative impact of a strong dollar. Lets move to iconics brand group dealing with licensing and marketing of 32 well known brands, including ed hardy, london fog, sharper image, and many many more. Earlier they bought strawberry shortcake for 105 million and athletic brand pony from a Chinese Investment Holding Company adding to the portfolio. Investors may be more familiar with pvh that owns longtime runway favorites calvin line and tommy hilfiger. They also own speedo warners, olga Olga Van Heusen and izod. They have Licensing Agreements with 75 brands. Theres a way to play some of the fashion names. Melissa . Thanks souch, courtney much, courtney. Ill see you tonight on fast money. Thank you for watching power lunch. The closing bell starts right now. And welcome to the closing bell, everybody. Im kelly evans here at the New York Stock Exchange on a monday. On a tuesday i mean tuesday. Welcome back. It feels like a monday. Im distracted because youre back. Nice to be back. I love coming back into the freezing weather. Dont look now, the s p is trying to close at another record high as it did on friday. Any positive close will be a new alltime high for the s p, and we are this close to an alltime high for the dow which would be at 18,053. 71 kelly was just telling