Transcripts For CNBC Power Lunch 20130708

Cabin looks like after the kind of crash that that airplane endured on saturday. We get new information also about the cockpit true, its training and level of experience. Nbcs tom costella on how to get out of an airplane after the crash, like the one that occurred saturday and hopes that the revolution in egypt would be relatively peaceful dashed, dozens dead after brutal clashes early this morning. This our roughly between 1 00 and 2 00 p. M. Eastern time has been a troublesome one in egypt over the last week, and were going to go live to cairo to plan out exactly whats going on in that beleaguered city and country. First though to sue at the nyse. Ty, watching that situation in egypt very carefully. The dow, as you said, is on the way up again and were now trading up 66 point on the do you at 15,202. 83. Keep in mind, the alltime high, 15,409. Hit that back on may 28th. The s p 500 has traded up 6. 03 points. The nasdaq composite down on the trading session by just a fraction. Its almost unchanged on the day, but the russell 2,000 is up another 4. 5 points. That hit record territory in the trading session. A slew of stocks hitting alltime highs. Visa, mastercard and cigna, they did hit alltime closing highs. The dollar index hit a threeyear high. In todays trading session, up better than 1 mison the trading session, but the yield keeps moving up on the tenyear. Welcome back to bob pisani. Very much missed and the volatility increased while you were gone. The market hit bottom when i left and i watched from europe the last two weeks as stocks went up almost every single day, and if you look at it right now, 1. 5 , 2 from historic highs on the s p 500 so just bear that in mind. The market has really made a bigcom back. Semiconductor names have had a rather tough time. Citi cut the estimates and others have been weakened. Some of the hardware names in the nyse and nasdaq on the weak side. Hewlett is down and text a little on the weak side. Energys had a great day youve notice oil moving up and some of the big oil names are to the upside. Everybody talking about bonds and, of course, been watching the bond yields move up. This is the vanguard total bond fund, the biggest bond etf out there. Id say stable only because its not dropping anymore but thats about a 4 decline from may and keeping looking for outflows. Outflows but not titanic. Right now the bnd has had 3 of its assets lost in the last two months or so. Thats notable. More than theres been in many years, but i wouldnt call that a titanic outflow. When people look at those statements. Thats what im waiting for. Stay tuned for the next couple of weeks. Pleasure. As we gear up for earnings season which starts after the bell, do investors need to be nervous. Seema mody has been doing research and is live now from the nasdaq. Theres some cause for concern when you look at the preannouncements. The company is on the s p 500. 97 have negatively preannounced earnings versus 15 positive. That comes out to a ratio of 6. 5 which according to Thompson Reuters is the most negative guidance since q 1 of 2001. Financials expected to deliver the highest growth in earnings while techniis not expected to have a strong quarter. Analysts projecting a 3. 7 decline. Isi says europe still in recovery mode and uncertainty on how to implement public cloud into existing i. T. Architecture will create a pause spore spending. Pointing also to the strengthening dollar which hit a threeyear high as a headwind for global i. T. Which makes their products and Services Less competitive overseas soes that likely a factory to watch. The start of Earnings Seasons means that alcoa reports right after the closing bell today and the ceo is on the closing bell after the numbers come in. The stock has been an underperformer to say the least in a market thats been an overperformer overall. Alcoa is down 10 this year. You can bet thats high on the question list today at 4 00 p. M. Eastern time. All right. At this point, two conflicting signals. Upside bias in the gold market by about 22 on the session, but we also have an uptick in Interest Rates, 2. 66 right now on the ten year yield and they are look at whether or not we approach the 2. 07 by the end of the week with earnings coming in and a lot of people on predicting this may not be as solid an earnings session as expected. A lot of people focusing on those fundamentals which absolutely absent, or the fed may walk off stage a little bit, the fundamentals become even more important. Lets focus on three names. Michael yosikami helps us analyze the analysts. Lets go to priceline, upgraded to overweight and the firm increasing its price target to 1,010. Yes, Morgan Stanley says the upgrade is based on an improved competitive position, shares of price line jumping today. Up 40 so far this year. Do you agree or disagree. . I like the upgrade but dont like the price. A very pricey stock at this point. Im of the belief that earnings will be not as strong as many would think. Watch the ticker really carefully before you start jumping in. The stock has already gone up 40 . Lets move next to intel, downgraded to underweighted a Evercore Partners and the tries target gut 20 a share. They now see unfavorable risk reward. Shares of inpell down 3 , agree or disagree with the cut on intel . Agree, tieler, and the big issue with tiener is the compressing mar nins. New japanese have actually done fairly well. Computers is a drying up market. Margins lower and i agree. Dee cut to neutral at Piper Jaffrey and lowering their target from 89 to 102. High used inventory and lower grain prices create headwinds. Shares down 5 . Agrees or disagree with this one. I agree. Three agreeses. Last time i was three disagrees. I think deere will run into, again, economic slowdown and also the stronger dollar will create headwinds in terms of global exports. I agree. Michael, good as always to see you. Michael yosikami joining us as we analyze the analysts. Josh lipton now for a quick market flash. Were watching qualcomm in todays trade. Citi pulls qualcomm from its top picks live list and talking about market saturation for smartphones and demand for devices from apple and samsung failing to meet some expectations. Sue, back to you. Thanks, josh, a story with a lot of moving parts. Shares of dell, they are moving higher by just under 3 right now. The Investment Advisory firm is recommending shareholders vote in favor of michael dells offer for the firm. United health hitting an alltime high in todays trading session. The enscheurer could surge 40 over the next two years as president obamas Health Care Reforms are rolled out. The company also looks better positioned that be some of its rivals. We turn to this weekends chilling plane crash. The first photographs of the inside of the saabins of flight 214. Two killed and several critically injured, and as awful as it is its amazing, really, that it wasnt worse given the way the hull of that plane looks. Phil lebeau is just across the bay from where that plane still rests. Still more questions than answers regarding the clash of asiana 214 here at San Francisco international airport, and a lot of those questions have to do with what that crew did or did not do. Heres what we do know, according to the National Transportation safety board. As they were approaching the runway flight 214 was going too slow for a landing. How much slower than what they should have been going, but going too slow. The crew did not issue a distress signal. It did try to abort the landing and was unable to, and the tail slammed into a sea wall. The asiana ceo says its not right to speculate on the possibility of pilot error being the cause of the crash. He has apologized for saturdays accident in which two chinese teenagers were killed during the crash. Its important the teenagers were from china, china a big part of asianas growth plan. Adding more super jumbo jets for long haul flights and seoul is often a carry over for people going from china, to seoul, to other destinations here in asia as well. Asiana is the Third Largest Foreign Airline in china, 16 of its revenue comes from china so a lot of people are wondering whats next for asiana in this critical market for growth. Shares down 6 . The nets peay been holding an update on the investigation and the main very a lot of reporters want to know about. Have investigators had a chance to debrief the crew. They hold a lot of the answers that investigators want regarding this crash. Now more on this developing story. Cnbc contributor and former continental chairman and ceo gordon bethune, a trained 757 and 767 pilot. James broccoli an aviation attorney, a navigator and Flight Instructor on c141s, used in special opes missions. Thanks very much. Gordon, let me begin with you. I assume you heard theport where he cite d asiana. He said it would not be right to isolate or speculate on pilot iroar. How do you react to that and is there anything else that you can see besides pilot iroar that could be the reason behind this crash . May not be right but certainly, you know, people are doing the information shows that they were low and slow. All pilots learn to make visual approaches. This airplane was making a visual approach to a runway that was clear. Unfortunately the instrument landing system was inoperative and you can mause that as a pror guide approach. It looks like pilot iroar, too low and too low, and they hit they hit the sea wall. Was this pilot from what we know sufficiently trained, sufficientlily experienced to be bringing in this jetliner after such a long flight . Each airplane has an endorsement. They are all different. I believe he was knew to this type aircraft, the 777 but well experiences and making a visual approach he has a whole lost experience. The airplane did get away from him. The stall warning did occur, the stick shaker, and, of course, the airplane hit the ground before they were able to recover. Mr. Brockley, if you were to represent passengers on this case, what would you downwhat kind of case would you be looking to press and against whom . Well, right now its early. I think the important thing it would to let the investigation play out. As gordon said, we know that this aircraft was low and slow and it does tend to look towards pilot iroar, but at the time we need to determine why it was low and slow and the ntsb will will do that, representing people that are injured on airplane crashes, unfortunately, were unable to investigate until the ntsb concludes their investigation so usually for the figure times of these types of crashes, its kind of a waiting game to see what the government conclusion is. Again, why would the plane have been coming in at such a slow speed . And so low . Why would it be so slow . Potentially you look at human factors, something that just kind of jumped out to me was the potential for fatigue. They had been on a transoceanic flight. I dont know about this crew, whether they flew the leg from china to korea and then onward. Even though they have crews that they swap out in, fatigue could be an issue, and, again, well have to wait and see. Gordon, we have to go to some breaking news. Why would the plane have been coming in so slow . His attention was not on the air speed indicator because there is a speed tape with a reference point. The airplane got away from him. He didnt fly the airplane correctly and it got at a stalled speed at which the airplane will fall and impacted the see wall at the time that it hit the sea wall. The phrase that the airplane got away from him rings in my head as to what happens here on what should have been, right, a very easy landing. It was clear and everything. Absolutely, a clear sky and you get used to using the ils as the backup and using the instruments even though youre doing a visual. Didnt have the instrument backup and didnt have a lot of experience on the 777 which a scan has a different view and he lost control of the airplane because he didnt Pay Attention to the air speed. Thanks very much. Appreciate your insights and education. Later this hour, well show you what its like to escape a burning airliner. Tom costello went through a very lifelike simulation but meantime kate kelly and some breaking news. Tieler, weve just learned that federal regular haters are going to announce stricter capital restrictions on u. S. Banks as part of an fdic backed plan. The banks will be requires to hold leverage capped at 5 of their total assets. This is a tougher standard. Other reports suggested its 6 and were understanding its five that will make it easier for them to weather storms in the market and if capital and cash are necessary to get through tough times. Thats the hope of the fdic and the fed. Im sure it is. Well watch the financials very closely to see what the reaction is. Overseas, 51 protesters, mostly supporters of Mohamed Morsi, were killed in fighting outside the Republican Guard headquarters. What can we expect this evening . Cbss yousef dpamal el din is live from cairo for us. We not this is a crucial our in cairo. What are you expecting this evening . A very bloody 24 hours. Its shocked the country and shocked the world. You wednesdayed the violence. 51 people kill. Struggling to reconstruct exactly what happened. The promorsi demonstrators were there and then fired upon. They rebuffed a terrorist attack which killed one soldier. Both sides had their press conference and outline what had they saw. Their video and their evidence. The advance et calculating to completely new levels. The rhetoric sharpening. The Muslim Brotherhood insisting that ousted president Mohamed Morsi be reinstated and the supporters of the army say no, the legitimacy is over. Were going on from here. Also in other developments theres no progress in forming a cabinet, held back by the withdrawal of annies mist party and that really is a shock to the transitional government. Well have to see whether they will push forward because they need somies mist representation in there. The stock market reacted negatively. Thanks so much. Well be checking back with you throughout the hour as the issues warrant. To josh lipton here in new york for a market plash. Were watching jones group, a Fashion Group that runs nine west and jones group. Jones group is in the early stages reportedly of reaching out to private equity to gauge interest as a group or in pieces. Intraday spiked and up some 8 , up about 40 so far this year. Back to you, sue. Thank you very much. The disney stock up 34 in a year. Pretty darn good but disneys lone ranger, not quite as good. A bad first week at the box office. Will it knock disney off its horse . Well talk about that when we come back and the new realities of the Housing Market. Diana olick is live in washington . Just when it looked like housing is getting healthy again. Rates started to rise. That has some cancelling contracts and others saying they cant afford to get in the game. The reality check is up next on power lunch. Power lunch has added you as a friend. Join the conversation on facebook. Ask a guest a question and make your voice herd in our polls. Access behind dat thescenes content. Go to facebook. Com power lunch. Out there owning it. The ones getting involved and staying engaged. Theyre not afraid to question the path theyre on. Because the one question they never want to ask is how did i end up here . I started schwab for those people. People who want to take ownership of their investments, like they do in every other aspect of their lives. [ male announcer ] the allnew 2014 lexus is. This is your move. We are watching disney closely today after the lone ranger didnt have the horsepower the mouse house was hoping for. Julia boorstin following it all from hollywood. Reporter disney was hoping lone ranger was hoping it would become another pirates of the caribbeansized hit, but the film is looking more like john carter which cost disney 200 million. The lone ranger grossed 73 Million Worldwide on a budget north of 225 million. Barton crockett projects disney will take a 190 million writedown on the film. Shares are immune stop trading at an alltime high. The film has yet to open in over 70 of International Territories so well have to so if it can overcome the fact that westerns tend to perform poorly overseas. Sue, back to you. Thank you very much. Ty . Ready to pass it on to josh lipton. The baton is handed off. Check oat netflix reshaping how hollywood does business. Studios see it as a means of financing project or launching new programs. Saying also that Warner Brothers and cbs are considering making original programming for netflix. That stock up more than 2 , up about 150 so far this year. Sue, back to you. Josh, thank you. Rights rates the topic right now. The tenyear yield hitting a 23month high of 2. 75 before retreating. Right now were holding at 2. 65 and as yield go up so are Mortgage Rates and thats beginning to scare off buyers. Diana olick with the reality check for us in washington. Hi, diana. Hi, sue. Just as homeowners were coming up for air and up from under water they are suddenly turning more negative on housing. Fewer people think now is a good time to buy or sell a house according to a new survey monthly in june from fannie mae. They fell after numbers hit a survey high number in may thanks to highsing home prices and lower Mortgage Rates. Now rates have soared over a full percentage point and 57 of respondents expect rates to go even higher. Thats the highest level in the surveys threeyear history. On the bright side and in the short term, this is likely to fuel more home sales. Potential buyers are applied rates will go even higher and thats why we saw pending home sales surge higher and after that prices will get priced out. Prices will have to come down a bit and one interesting thing from the fannie mae survey, a lot of people think that went rights are going to rise. Still very strong rental demand. For more on this go online. Thank you very much, well head up town to the nasdaq. Theres pressure on the nasdaq and seema following the movers. Google shares back above 900 a share testing its 50day moving average. On the flip side apple shares are town and thats why were seeing them underperform the major indices. The big talker is the rising saturation in the mobile space. Samsung and htc reported disappointing earnings. How that impacts the mobile chip suppliers. The citi removing qualcomm from its top picks live list citing market saturation. Blackberry shares down fractionally. Tomorrow is the companys special annual webcast where were not expecting any major market movers. Shares of blackberry are down nearly 30 since the Company Reported earnings. Sue, back to you. Thank you, seema. To the gold market now where on this monday trading session, we have a positive session for a change for gold. Booms is tracking the action at the nymex for us. Hi, bertha. Hi, sue. Were seeing gold and the metals essentially erase the losses that we saw on friday following that better than expected jobs number. The dollar is still near threeyear highs but having eased back gave gold a little bit of breathing room. Analysts saying they think it looks like a correction in gold, with gold off more than 20 , well more than 20 year to date. Analysts at barclays say theres downside and no signs of inflation. Qe hasnt ended quite yet and so far not much physical demand in places like india where the rupee is so low it really isnt sparking people to get out there and buy gold at market. Tyler, over to you. All right. Well pick it up here. Thank you very much. Headlines for you now. We start with microsoft which is shutting down its msntv service at the end of september. The service once known as web tv was purchased by microsoft for 500 million back in 1997. Citi downgrading medical devicemaker Boston Scientific from neutral to buy. Its fairly valued after rising 62 this year and significantly outperforming its rivals. And eli lillys ceo is back at work. He had been on medical leave since may. Ty . All right, sue, thank you. If prosecutors want to charge steven cohn of s. A. C. Capital, deadline day, the statute of limitations expiration is approaching, but there may be other ways for the government to make a move. Well describe those ways next. Plus, a developing story. A runaway train carrying crude oil derailing and exploding in the center of a small canadian town in quebec. At least five are dead and dozens still missing. More on this story and more power lunch in two minutes. Norfolk southern whats your function . Hooking up the country helping business run trains they haul everything, safely and on time. Tracks they connect the factories built along the lines. And that means jobs, lots of people, making lots and lots of things. Lets get your business rolling now, everybody sing. Norfolk southern whats your function . Helping this big country move ahead as one Norfolk Southern hows that function . Fso youre worried about housef fires . Stop smoking. Manage your wires. Watch out for space heaters. Clean the chimney. Get one of these. Cool the romance. And of course, talk to farmers. Hi. We arrmers bum pa dum, bum bum bum bum welcome back to power lunch. Rick santelli on the floor of the cme group. Looking at a 24hour chart, they have shaved a dozen basis points. Ten years shaved ten basis points from the psychologically significant 275 level. Very close to where it settled on friday. If you look at the dollar index, this is a threeyear chart, and even though its down a bit hovering near the threeyear high, how do the major pieces look . If you look at the threemonth chart of the dollar yen you can see were well above 100 and a chart of the euro versus the dollar sitting on some very technical areas around 128. Tyler, back to you. If the government is going to file criminal charges against s. A. C. Capital and its head steven cohen they have to do it pretty soon as the statute of limitations in at least one area of this investigation is about to run out. Even if you miss that deadline, s. A. C. Isnt necessarily off the hook. Peter lattman has been work on the story from the New York Times and kate kelly following it from here at cnbc. Peter, welcome back. Ive heard about this, but whats the magic of this midjuly deadline, and does it only apply to the case involving the trading that mr. Martomo, one of cohelps associates, was engaged in with respect to wyeth and elan, two Drug Companies . The case against martomo brought last november, a legal deadline that expires on thats trade. A fiveyear statute of limitations. The trades were in july of 2008. Cohen was involved in those trades. A key telephone conversation the night before the trades happened. We dont know what was said on that telephone cole. Martomo is not cooperating, and without his cooperation its very difficult to bring charges against cohen on that trade. The results of that phone call in part was because s. A. C. Capital and mr. Cohen gave the green light to sell some shares. I cant remember which companies they were selling. In both wyeth and elan and between the losses they averted and gains they made, a combination of both, they basically ended up with a quarter billion of illgotten gains according to the government lawsuit. Lets say, peter, mr. Martomo doesnt cooperate, the time lapses and criminal charges cant be brought against him, mr. Cohen or s. A. C. On that particular case, there must be other means for the government to pursue a Insider Trading charge either against the corporation, a civil charge. The way we analyzed it in todays story is theres a number of different avenues that the government can pursue civilly and criminally. Criminally they charge the company s. A. C. Capital on a charge of corporate liability. Four s. A. C. Employees have pled guilty to charges. They could charge steve cohen on a failure to control his employees. This is a similar a corzinelike charge. Exactly. They could bring a case on a failure to control or perhaps on a lower standard of proof. They can charge cohen on other trades. Whats interesting is ive been hearing a consensus view and this is obviously not coming from the u. S. Attorney who is not speaking about it but the view as of yet is they dont have the goods on steve cohen. Doesnt mean they wont make a case in the future but they wont right now. They may pursue charges against the firm. Whats interesting, too, is martomo himself. Calling it an interesting theory about game theory and perhaps he believes himself to be innocent and tactically as well. Theres reasons not to operate. Theres a new amended complaint from him from the government forthcoming as far as we understand it and meantime his lawyer hats an interesting strategy of trying to get a poring of the allegedly illegal trades thrown out. Didnt mr. Cohen and s. A. C. Pay upwards of 600 million to settle civil charges that arose right out of this wyeth and elan cases. You read my march. In march s. A. C. Paid 660 million, a record penalty, to the s. A. C. , its primary regulator, to settle the civil charges on the martomo trades and others involving dell. When they wrote that trade coming out of cohens pockets, they thought the legal troubles were behind them but the government issuing grand jury subpoenas and the like continue to press their case. The government has, as you noted in your piece, a number of other future avenues, a number of other trades they are looking at and others with longer running statutes. You cant count anything out. But in connection with martomo it does feel the clock the tick. Sue, down to you. You know, you travel as do i and something that goes through the mind of every Business Traveler every time they fly, what if . Well, when we come back, a special report on what you should have to do if there was some sort of terrible problem on your flight. Tom costello has that story for us. Plus, a runaway train carrying crude oil exploding in the center of a small canadian town in quebec. The death count is expected to go much higher. Much more on that story as well when power lunch comes back. 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. With fidelitys options platform, weve completely integrated every step of the process, making it easier to try filters and strategies. To get a list of equity options. Evaluate them with our p l calculator. And execute faster with our more intuitive trade ticket. Im greg stevens, and i helped create fidelitys options platform. Its one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. Welcome back to power lunch. Im josh lipton. Were watching the fertilizermaker. Analysts saying agu should bump up that dividend hiking it by 75 without any problems. The stability and predictability of its Retail Operations means that companies so say the analysts, will have one of the biggest dividend payout ratios. Thank you very much, josh. A developing story were keeping a close eye on. A runaway train derailing and exploding in the middle of a small down on quebec. So far five people are dead and at least 40 people are missing. Authorities are expecting to find more bodies as they get closer to the hardest hit areas. Billowing black smoke can be seen miles after the derailment. It was transporting oil from the baffin region and canadas primes is calling it an unbelievable disaster. They will debate whether this will make the Keystone Pipeline for likely. Now to that horrific plane crash out in San Francisco. Asiana Airlines Flight 214 crashing as it approached the airport after a long flight from south korea. Two people killed, 180 hurt, several in critical condition. The data recorder showed no mechanical problems and the attention turns now to the lack of pilot experience. It appears the pilot tried to abore the landing. The jet came in too low or too slow to make that possible. The first few minutes of a plane crash are, of course, critical for passengers. Nbcs tom costello on what it takes to survive. Reporter investigators say the fact that so many people survived this says a lot about how modern aircraft are built. Seats are now made to absorb much of a sudden impact so passengers arent catapulted through the plane. Interior car pegott and fabrics fire resistant to give everyone more time to get out. Its working. Everyone survived this American Airlines plane crash in jamaica in 2009. This continental crash in denver in 2008 and this crash landing in toronto in 2005. And no fay salts during the miracle on the hudson in continue. Getting out alive usually comes down toed seconds. At faa center in Oklahoma City they recreate crashes to see what it takes to survive. Once the plane comes to a rest time is of the essence. At 30 seconds smoke can start filling the body of the plane and at 60 second the burning plastics, fuel and fenway park rick can all serve this smoke toxic and getting out is credit camp at two minutes theres a serious risk of a flashover with fire engulfing the entire cabin. Getting out is a matter of life or death. Stay low with your head low and use the arm rest for support and come down the aisle following the path lighting until you come to the colored lights meaning youre at the exit. And leave the carryon luggage, coats and purses behind. During the miracle on the hudson while passengers passed babies to the evacuation door, one passengers insisted on grabbing her personal belongings. Had her fur coat and several bags and lost it all anyway. Leave it behind and get off the airplane as quickly as you can. As investigators look at what went wrong in San Francisco they will also assess what went right. Tom costello, abc news, Oklahoma City. We asked if pilots should be required to publicize their flight record. 25 of you say yes and other industries publish similar records. Others say i trust pilots and the airlines and 40 say some form of increased transparency should be required. Sue . Ty, when we come back, americas top states for business. Our scott cohn reports. I do know where we are but you dont know and ive graduated from paper maps. In a moment well tell you a little bit more about our annual study now in its seventh year and how things have changed and how the changing state economies might impact this years rankings. Thats when power lunch returns. [ cows moo ] [ sizzling ] more rain. [ thunder rumbles ] [ male announcer ] when the world moves. Futures move first. Learn futures from experienced pros with dedicated chats and daily live webinars. And trade with papermoney to testdrive the market. All on thinkorswim. From td ameritrade. She knows you like no one else. And you wouldnt have it any other way. 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If you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as 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 30tablet free trial. Its that time again. Cnbcs annual countdown for top states for business and getting under way and with seven years of data under our belt were starting to pick up on very interesting economic trends. Scott cohn is live in a mystery location, this years top states for business to explain. Scott . Reporter hi, sue. We lock at all 50 states, 55 metrics per state so thats literally thousands of data points and you start doing this over a number of years and you start to pick up on patterns. Started this in twfn. This year, twfn the first year of the stuty, americas top state was business, followed by utah, texas, georgia and North Carolina. Last year, texas is on top followed by utah. Gentleman have a slips to third and a few have fallen into fourth. You know about the story in North Carolina north dakota, the Shale Oil Boom that powered north dakota into the top five for the first time last year. The combined sluggishness in the Housing Market has the Economic Center changing a little bit. Meredith whitney broke a book on the topic. From 2008 to 2011 the u. S. Economy grew by roughly 6 . Texas economy grew by over 8 and louisianas economy grew by 16 and north dakotas economy grew by close to 26 . Reporter so does that tell you anything about where we are . The Economic Center is moving towards the center of the country. Well see if our top state rankings bear that out this year. Well give you our first diabolical hint coming up on closing bell today. Read all about our study and Meredith Whitney has written a blog for us and follow me on twitter, and tell us what you think. Interesting, sue, a lot of governors have weighed in, and weve put their colts up as well. Want to know if your governor has weighed in. Thanks, scott. Hours away from the start of earnings season. Alcoa reports first. What does it mean for everybody else . Brian sullivan is back. He has a look at whats up on street signs. Thanks very much. Boon pickens with the fiveyear anniversary of plan and where he thinks he can take is in another five years. More on the asiana crash and dont you know, i just got back from wisconsin, you betcha, and ill give you the five things i learned while on vacation about the u. S. Economy. All coming up in just a few minutes. Meantime, power lunch, home of the Minnesota State fair continues in just two minutes. Oh, yeah. [ male announcer ] the mercedesbenz summer event is here. Now get the unmistakable thrill. And the incredible rush. Of the mercedesbenz youve always wanted. But you better get here fast. [ girl ] yay, daddys here. Here you go, honey. Thank you. [ male announcer ] because a good thing like this. Phew wont last forever. Mmm. [ male announcer ] see your authorized dealer for an incredible offer on the exhilarating c250 sport sedan. But hurry, offers end july 31st. Vietnam in 1972. [ all ] fort benning, georgia in 1999. [ male announcer ] usaa Auto Insurance is often handed down from generation to generation. Because it offers a superior level of protection and because usaas commitment to serve military members, veterans, and their families is without equal. Begin your legacy, get an Auto Insurance quote. Usaa. We know what it means to serve. Welcome back to power lunch with a market flash. Two companies on the acquisition trail. First, attention all gamers, hasbro announcing a majority stake in back flip studios, one of the Fastest Growing noble games studio. Hasbro paid 27 million for. Emc, has acquired ainvestigationa. Well take a quick break and get you all updated on the market. 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The nasdaq is gaining two. It was negative for much of this session. The russell 2,000 is up four points. The tenyear yield hitting a 23month high earlier today. Its retreated a bit but still up 2. 66 on the yield. The dollar index hitting a fresh threeyear high and its up 1. 25 right now. Oil hitting a 15month high touching 104 in todays session. Right now its at 102. 64, down half a percent. Alltime highs include visa, mastercard and amazon. Com, United Health and starbucks. We should also note that we have a 22 gain in the gold market so a bit of a rebound there even with Interest Rates moving higher in todays trading session. Alcoa kicks off the earnings season as we put on that lower third. After the bell today, its a very pivotal earnings season with a lot weighing on it. Well see you when you get back here. That does it for todays power lunch. Street signs begins right now. See you tomorrow. Gas prices and Mortgage Rates moving higher. A reason to worry or yet another speed bump this hopium economy will run right over . That ahead. Five years ago boon pickens with thoughts on our dependence on foreign oil. Where weve gotten and how much further we have to go. And the latest on the asiana plane crash