Where the jobs are for the graduates of the class of 2014. First, to sue, who gave a very good commencement address at merritt a week or so ago. It was. It was a wonderful day for me, ty. We have breaking news on the fed an the economy in just under an hour from now. So were going to begin with the unintended consequences of the fed and its easy money policies. Yields in the benchmarks plunging 15 this year, now holding the 2. 60 . Mortgage rates at the lowest level in a year, but thats not helping housing. Diana olick has details on that. Hi, diana. Reporter hi, sue. The sxekdation was they lower rates would boost mortgage volumes, even if it was only refinances, but that did not happen form the average contract rate on a 30year fixed fell to 4. 26 last week. Thats the lowest in a year for the highest quality borrowers, the rates were nearing 4 . Jumbo and fha loan rates even lower, but no reaction on the application side. Refinances down 3 week to week, and applications to purchase a home down 4 . Purchase app. S are now down 17 from a years ago. Thats really telling of where home sales are going in the next few months. One of the nations largest Home Builders says the Mortgage Market is not to perform at normal levels. Its unclear to where household formation will resume, whether this generation will resume at the same stage in life as generations in the past have formed households. Now, granted one third of this market is all cash and most of it is on the high end where borrowers are less mortgagedependent. Whats interesting is that a new survey found 7 out of 10 americans believed we are either still in the midst of the housing crash or that the worth is yesterday to come. You want more on that, go to realtycheck. Confident confident. Tyler. What are the markets thinking about with respect to the fed and the relatively low rates . Steve liesman has the exclusive results of our cnbc fed survey. Always interesting. And we have a television this time, a little ecb addition as a part of it. First, let me show you the incredibly plunging rate expectations. I had diana talking about low rates. Well, look at the expectation for the fed funds rate. In our prior surveys, december 2015, this is the benchmark we used, because were pretty sure theres not rate hikes this yeast, it wasnt 1 for end december 2015, and now its 0. 7, so 30 basis points coming off. Thats nearly at a sample. When you look at the prediction for december 15, going back to our september survey, 0. 17 is the expectations for the end of this years, so no change expected. How about when all this is going to happen . Thats been moved ahead a bit. The outlook for fed policy timing, when will the fed hike rates it was july 2015, now the average bumped ahead to august 2015. How about when the fed will reduce its balance sheet. It was october 2015, that pushed ahead quite a bit. On to the European Central bank, and what theyre doing, we asked people what you think . The ecb would do tomorrow. 55 expect a cut in the reify rate. 52 to reduce the deposit rate. Thats the rate for having your money on the deposit. 31 are looking for a longterm, going down to 0. 11. The deposit rate going negative, minus 0. 10. 65 expect one of three, moving on, 48 are looking for two of those three things, and 24 , tyler think three of those three things will happen. A lot of Action Action tomorrow. When the deposit rate goes negative, does that mean people have to pay . So lets imagine Tyler Mathisen has an account at chase with a negative deposit rate. The end of the month would come and they would deduct an amount for your account for keeping that amount of money on deposit if thats what the ecb does. A lot of trip station. You hear this thing about unintended consequences, so the fed is worried about the unintended consequences of forcing people to lend money thats probably why it would not happen here. The ecb may go for it. The meeting is tomorrow. Meeting is tomorrow at 7 45 well get the first information, press conference at 8 30, but 2 00 the base book on this network. Most aptly named tome in literature, the beige book. Dont need to tell you that, did you dom chu has been looking at which sectors are the most sensitive to Interest Rates. There are some surprises. But in the age even more than ever, so one of these unintended consequences of the feds zero interest late pop or z zirp. You think utilities, telecoms, consumer staples. Investors have turned to these type of stocks for Dividend Income since they dont get a lot of it from the bonds anymore, but believe it or not, these sectors have not been among the best performing sectors since the crisis lows back in 2009. You look at consumer staples, utilities up even less amount,up 90 , then Telecom Stocks. The single worstperforms sector, up, but just not as much. Double the treasury note yield. Then theres a its up 222 . Its got a yield of 3. 5 , and that gets us to, of course, the Telecom Stocks where all wsh underperformers to the overall market, but the best stock was verizon, a new hedge fund favorite, at least last quarter, its up 88 , carries a yield of almost 4. 5 . While there have been buyers of stock this time, it may be comforting to some that fundamentals and growthor ended stocks are still doing better in stock picking, sue, still matters. Back to you. Especially in this environment. We have a gain in the Dow Jones Industrial average, near our session highs on the trading session, an the s p 500 were up about 0. 25 on the trading session. How do you invest in whats become a low volatility, lowvolume environment, the s p 500 hitting a new intradie high today, asdom just mentioned, you have to pick carefully. Eric ris vend is at russell investment. And kevin is a Portfolio Manager at washington advisers. Nice to have you here, gentlemen. Historically how have stocks done . Theyve actually done well. Lowvolatility environments are usually associated with high low economic confidence. Ed risks seemed pretty low, if the risk is pretty low, stocks typically do well. And by on the dips. Thats what weve been saying for two years. Kevin, there are those who feel as though, when you look at the vix, well off its historical high levels, that perhaps theres too much complacency out there. I think theres some of that. If you look at the history of the vix, you go back, usee that you had very low levels before several of the market breaks, very low levels when times are good. The vix to me alternates bit reminds you when its very low that you want the fixes the roof in the portfolio when the sun is hinding. When you look at investor confidence, your other guest is absolutely correct. The stephenyear treasury bond is down around 3 , it was 7 a coupleiers, so investors are not see a lot of risk out there, thats good for in the real economic, if you just want to be careful, because spices can move a bit further around super Intrinsic Value if youre not careful. You you want to fixing the roof when the sun is shining. A lot of people are still putting money in the treasury markets, and that certainly a lot of people think is the no the right trade, so where would you deploy capital . Yeah, from a multiasset perspective, we think it will be a tough environment for fixed income. We do like equities, because we think the economy will continue to expand. I agree with kevin, you kind of want to balance out these debts, so we overweight cyclical sectors like Consumer Discretionary and financials. We balance that with an overweight to health care. And we really have been kind of harvesting the gain, so we had a large overweight in energy, as its done well, our managers have sold that off. Seven less than we were, the opposite is true for Consumer Discretionary. Weve had a tough year, started the year underweight, now overweig overweight. Kevin, the final word. Where are you putting capital to work . Were funding value in energy, were looking at emerging markets, for places to reenter there. Weve got an opportunity ahead of us, because at some point valuations are better. I think emerging markets would eventually be some place to put money. Okay. Which emerging markets . I think latin america has good dynamics to it. Economies like brazil, for example, but i think that ultimately until we get through this period of time where the fed is done normalizing Interest Rates, and before we get better out of places like china, we still want to be closer to home here in the united states, so were looking. Thank you, gentlemen. Appreciate it very much. Back up to dominic chu. So the u. S. Is announcing it will impose stricter trade rules on imports of chinese solar products. You can see this is good news for u. S. Solar companies, up more than 8 . Meanwhile, china ease solar stocks are trading down on the session, and then you look at ghoulsen hind solar, which is the etf that tracks it, the sticker, of course is t. A. N. Pretty fundy there. It was down almost 2 , but now off its lows and turning positive, so an interesting trade developing in the solar side of things. Back over to you. Thank you very much. A former microsoft executive has been appointed as the new head of go pro, as that company prepeace to go public. Jon fortt has the details. Tony base has been announced as president and board member. Hell report to ceo nick woodman. This is particularly interesting behalf tony bates credentials. He was kreismt off of skype, and at cisco before that as general manager of Service Provider video. So he has a deep tech background. Also on the board of youtube before that, so think of this move as eric schmidt to google, Sheryl Sandberg to facebook, and dennis to dropbock. With this Company Getting ready to go bub. Thank you very much, jon fortt reporting. Remember this iconic image of the tiananmen protest. Today marks the 25th anniversary of that uprising. How has china developed in terms of its economy. Chief International CorrespondentMichelle Carusocabrera take a look. There havent been a lot of democratic reforming, but lots of economic reforms. Unbelieve house its different. Well take a look right after this break on power lunch. Dont go away. Were moving our company to new york state. The numbers are impressive. Over 400,000 new private sector jobs. Making new york state number two in the nation in new private sector job creation. With 10 Regional Development strategies to fit your business needs. And now its even better because theyve introduced startup new york. With the state creating dozens of taxfree zones where businesses pay no taxes for ten years. Become the next business to discover the new new york. [ male announcer ] see if your business qualifies. This is the iconic image of the Tiananmen Square uprising. Today marks the 25th an verse of the massacre that saw the chinese army gun down hundreds of civilians in a brutal crackdown on a protest for. Merck merck is here to look at then and now. Hard to believe its been 25 years. Absolutely. At the time so many experts said the public face of the Chinese Government will be very defiant, but behind closed doors theyll start to make changes. We havent seen a lot of democratic changes, but we have seen economic changes. There was no stock market in china. It opened in 1990 when it opened in shanghai and shenzhen. And we quote it now as the most normal thing in the world. 1992, they officially endorsed a socialist market economy. Forget the socialist part, adding the word market economy for a communist countrys economy was earth shaking. 1997, they finally decide most prices will be set by the market. It wasnt that long ago, 1997. 2001, they announced that private entrepreneurs can be members of the communist party, which sets up cognitive dissonance in my head, if youre a communist you dont believe in private property or priority but it wasnt until ten years ago, 2004, when they finally put in the constitution of protection of private property. Thats amazing. When i went to china, that was a huge issue. You know, you should farm, but you didnt own the farm. Right. You were allowed to sell your surplus, which incentivized production, but still everything mostly went to the government. 2007 they finally agreed to a Market Access, what we noticed is the last five or six years a lot of the reforms have slowed down, the promise of increased Market Access hasnt necessarily happened. They havent necessarily let Interest Rates float to a great de, which is causing all kinds of distortions in the economy. This is an edition of this is your life sue. The stock market opened in 1990. You traveled there 12 years later. Do you remember the video with showed on the air . Take a look at it. It was still so new almost nobody there. People are in there sweeping. There was nothing to do. I remember it vividly. We were so excited we are going to go to the stock market. I pictured it being like this, right . We got there, and i said, i dont think we can use this video. Theyre sleeping. I thought, well, i guess thats the story, theres nothing going on. So different today. So they have a lot still to do when it comes to personal freedom as well, but when people get angry with china, theyre not going fast enough, 25 years ago was a completely different place. That was a great timeline. It does set in place some of the major things they have done, but it also puts in perspective the fact that they have still so far to go. So much more to do. Michelle, thank you so much. Ty, up to you. Thank you very much. Free and fair markets, ceos and leaders of the top Global Exchange meeting today to discuss hot issues from low rates and low volume to the future of trading. Bob pisani is with them. Had ello, tyler. Lesss speak with rich rapetto, hes in charge of the conference. Rich, first topic is whats going on with the volume that we are seeing and the low Interest Rates. What are ceos telling you about what that means for the market and the economy . They certainly acknowledge there isnt the trading level we saw. Retail was engaged. Volumes are up. Its come dramatically down over the last couple months. I think they attribute it to uncertain economy, you know, things geopolitically are uncertain. There isnt a direction in the market. Thomas petrfield got a laugh from laugh from the audience when the markets arent movie, we they stocks much higher a few months ago, much lower right now. Thats absolutely correct. Market makers make money when they have volatility. Its not high right now. Its a question, you know, whether it will come back in the summer. Investors certainly looking towards summer. The other big topic, highfrequency trading, the impact is there a sense from the ceos, a lot of discussion about what the s. E. C. May or may not be doing in the next several months . Whats the sort of consensus . Theyre the ones who talked about the s. E. C. , what if anything will be done. I think they think something will be done. We tried to take a balanced view of Market Structure here today for certain, but i think everybody believes the s. E. C. Will use data rather than react to a single book or add gentive. Theyll be more judicious in their approach. In the panels i have sat in, two points seem to country out. Theyre expecting a smallscale pilot program, increments other than that penny, and also discusses which would require uniform rules for testing of technology to make sure we dont have a problem like the one that knight had to reduce the incidences of mini flash crashes, things like that. Is technology a big issue, improving the technology, making sure it doesnt fail, an issue . That is an issue of what we saw last year in some of the problems with the markets, so those are fixes that i think are relatively easy, making sure theres proper testing. Its the deeper Market Structure changes that i think will take a deeper review. Thank very much, rich repetto, and tomorrow well be on 9 40 eastern time, with jeff trekker, when we talk about Market Structure and his ideas on how you can improve volume and the structure of the market. Thats tomorrow 9 40 a. M. Eastern time. Guys, back to you. That will be a great conversation. Thanks, bob. New data out today showing job growth is slowing. Where are the jobs for the graduating class of 2014, you ask . Well have that answer. Plus coming up on power pitch, what to scoot, bike and even run more safely. Will it bring in the big bucks . Are you in or are you out on halo belt . man speaking chinese theres tworked hard. N sydney. Raised two kids. Theyve never been to moscow. But they sent money there. Rented an apartment. All because, they have this 19yearold daughter who loves to dance. 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Time for our weekly series the power pitch. Entrepreneurs get 60 seconds to convince a panel of experts that their business has what it takes. Ever year over 270,000 pedestrians are injured and killed in traffic. This has to do a lot with just poor visibility. Nowadays its gotten cool to have a bike light on your helmet. Thats where i wanted to merge the gap. To be able to create a product that appeals to todays generation and ultimately help save lives. Hi, my na