Revenue generated from baggage fees, from food and other annoying. Give you leg room, place to put your legs. Small stuff, you got to pay. How much more can the airlines squeeze out of passengers and into added fees impact which airline you choose to fly . And fear and loathing in silicon valley. They are the Companies Consumers are scared of and hate the most when it comes to privacy. We will tell you which ones they are. Lets check in on this busy day with sue. And we start with stocks struggling for some gains. They are Holding Steady right now. The nasdaq the biggest loser this hour. A number of sectors hitting new highs like the Consumer Staples and utilities. The big news, as you said, is in the oil market. Oil hitting a fouryear low after saudi arabia cuts prices that it sells to the u. S. West texas intermediate crude down almost 2. 5 . How low might prices go in. The Million Dollar question. We are pairing some of our losses. Oil down less than 2 at the moment. Allen harry is a trader on the floor here. What is happening right now . Is this the saudi price cut . Is this the price we are seeing in the dollar or Something Else impacting oil . It is the saudi cut. It is also our surplus of oil that we have in this country. All of that is putting pressure on the market. We broke the level. Now we are getting into a territory of how far it can go. Im saying in my opinion 60 to 65. The reason im saying that is the big Fracking Companies their average of where they are in in production. At the moment i think for the next day or two we see back up to 78. 5. They will take a week or two to break the level. Thank you so much. Crude prices obviously have an impact on greater equity. Thank you very much. A number of winners and loseers as oil pops. Dominic chu with that part of the story. Stocks are getting hit hard on todays chad ever since Oil Prices Hit highs in mid june. How it happens june 20 oil prices are down about 30 . Now, one of the biggest etf trackers is the xle. Its down only around 17 . The three Largest Holdings in the fund are exxon mobil, 15 of the fund. Chevron is 13 . Exxon shares are down 9 peace corps. Chevron is down 13 . Lets focus on the story. It is an Oil Field Services company but an etf that tracks that group. It is the market effecters oil services fund. It lost a quarter of its value since oils june highs. Much worse than the Energy Sector overall. Its three Biggest Holdings are schlumberger, halliburton and national oil well. We talked about schlumberger but halliburton is down 28 . It is worth keeping in mind that individual holdings in these etfs have a huge waiting. Some of them could have outsized impacts on the way these etfs trade. The plunge in oil putting a spot light on the fracers. How low does oil have to go. Author of the book the fracers. Welcome to you both. Let me begin by asking you, at what point in the price curve does the American Energy miracle somehow begin to get imperilled and is it different for different regions of Oil Production . It very much is. If you look up in north dakota and montana you are talking a higher price point. They get nervous around 70 or higher. They are starting to get quite concerned. When you look at the Permian Basin and eagle fern in texas they can produce at a cheaper level, maybe 65 or so. When you talk to people in the industry 70 seems to be a point of pain for people. So when you say they can produce at those levels that means they can produce at a profit. It is obviously not as good a profit as at 100. A lot of other complications here. A lot of Smaller Companies rely on debt. The debt markets have been wide and open for them for years. Its not clear it is going to be Going Forward so they will have to slow down. You are seeing signs people talking about capital expenditures. Some of them have hedged. It is not so abrupt. Some people are waiting to turn off the lights here. It is not going to be like that. Slowly you will see a reduction in smaller guys in terms of capital expenditures. What are the Fund Managers and traders you are talking to telling you about how they are trying to make money off of the slide in oil prices . I assume a lot of them have been shorting the etfs we are talking about. This is not always the case. At least the professional Commodity Traders i have talked to were right on this one. They have universalally short wti and some folks i know have a 60 dollar bottom they were calling as recently as a week or two ago. Even lower prior to the slide yesterday. Recently people saying they could see the 50 range. Brent, global crude oil. In the domestic market people are almost universally bearish. At what point does it become uneconomic . 75 . 70. We had the chief commodities analyst on our air friday and their Research Suggests at goldman that 75 is the key point. We touched that range intraday today. It is worth noting exxon cut cap x on friday morning when they talked about quarterly earnings. I want to squeeze one quick question in for greg. Could some of the smaller highly leveraged exploration and Drilling Companies be imperilled at these prices . Imperilled perhaps, challenged for sure. They bet on oil as opposed to natural gas. They shifted to oil figuring it is a Global Market and no way prices are going to crash. Thanks very much. Kate, appreciate it, as well. Dominic chu doing double duty, has a market flash. The four year low is a boom for airline stocks. United, american, delta, southwest moving higher on the day so far. Beneficiary of the Energy Sector going down perhaps is the airline stocks. Thank you very much. Appreciate it. Energy stocks are the biggest drag on the markets today. Is the dramatic drop something to be concerned about or simply a buying opportunity . Hue johnson joins us and also with us andy murray, comanager of the morning star rated becker value equity fund. You think this is a buying opportunity. Andy, you are neutral on energy. If it is a buying opportunity what would you be stepping into right now. Lets take a look. Right now i would be stepping into the integrated oil and gas numbers or companies and also looking very hard at some of the refining companies. Aside from that the important point i think as you know this there can be big swings in the price of oil. Emotional swings just as we did up at 145 for west texas intermediate. I think we are getting to an emotional extreme right now down near 75. That is when you have a buying opportunity. It is hard to time it, but at the same time i say that this looks like we are setting up a very interesting buying opportunity. I think the price of oil is going to go back up into the mid 90s. It is going to take time. Andy, you are more neutral on energy. First of all, why . Do you think it could go lower from here . Earlier this year we moved to a more neutral position on energy as we were concerned about abundant supply growth and weakening demand internationally. With share price reaction Companies Given share price reaction is looking a lot more interesting to us. We favor the high quality names within the space, Global Service companies such as schlumberger. Those names are the ones we are looking towards as prices have come down. Okay. Hugh, given what we are seeing in oil a lot of people down here are starting to use the d word, deflation. Is that a possibility with oil performing the way it is performing right now or not in your book . Its something you have to it enters the dialogue. Clearly what you have to do is if the price of oil persists around current levels you have to increase your forecast for Global Economic activity by about a half of 1 and reduce forecasts for inflation by almost the same number, 0. 3 to 0. 5. I think deflation is a little too strong. Certainly lower levels of inflation, higher economic output, all of which will go into place to sort of correct or put upward pressure on the price of oil. Gentlemen, thank you very much. Thank you. Alibaba shares jumping. The chinese ecommerce giant up with earnings that came in line with profits and estimates topping the revenue topping forecast. Our david favor spoke with alibabas executive Vice President chairman about the numbers. He had a number of things to say. What is the first public quarter they have reported now it is catchy, as a public company. Alibaba the shares are up today as well as tyler said. They met on theeps line better than specked revenue growth. People watch gross merchandise value, how much stuff was sold off of the platform, 49 more than last year. That was a big number. They are also watching mobile. As we know whether it is facebook or google or any of these kinds of companies you watch how much mobile is penetrating the overall business mptd right now 35. 8 is sold on mobile and the take rate, the monetization rate of those who go to mobile to look is 1. 87 . I asked is it going to keep trending that way. There is really not a huge difference from a user standpoint when it comes to the desktop computer or mobile screen because when they come they have very strong intent to buy something. We are generating 95 billion of gnv over the last 12 months on the mobile device. That bodes very, very well for the future. Shareholders are wondering about when it comes to futures how much money will the company continue to spend . Think facebook and google so it will depress what are incredible margins. They did go to 50. 5 for this quarter, perhaps concerning some shareholders, not enough to sell the stock today given it is up. I asked what can we expect when it comes to those margins . We operate on a market place model where the revenue we generate coming from commissions and Online Marketing services have very high margins. So in our core business we dont see really any reason why the margin needs to decline over time. So in terms of the margin that you are seeing in the latest quarter is really reflected in the fact that we are making investments for growth. Most companies would kill for a margin like that. They are a week away from theiretheir biggest day of the year, 11 11. They will sell more stuff in one day than in the planet. 5. 7 billion last year and it will go higher this year. They want to make it global. That is astounding. Talking about big money. How much do the 20 and 50 fees you pay up to the airlines add up to . Try 50 billion. Making a killing on things like baggage fees and food. Phil lebeau has the numbers and the story. Youre not going to believe the numbers. We have two reasons why the revenues from the fees are at an alltime record high. We want the people out there to join the conversation. Here is the question. Do the fees that are charged by a particular Airline Impact which airline you are going to fly . Log on to cnbc. Com vote. Let us know. Power is back in two minutes. Sheila you see this ball control . You see this right . Its 80 confidence and 64 knee brace. Thats more. Shh. I know thats more than 100 . But thats what winners give. Now bicycle kick your old 401 k into an ira. I know, i know. Listen, just get td ameritrades rollover consultants on the horn. Theyll guide you through the whole process. Its simple. Even she could do it. Whatever, janet. For all the confidence you need. Td ameritrade. You got this. But what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. Welcome back to power lunch. We are watching shares of the Casino Companies moving lower as october gaming dropped a record 23 from the same time last year. The fifth consecutive month of declines. Reuters reporting japanese lawmakers plan to indefinitely postpone a vote for legalizing casinos there ending hope for gaming for tokyos 2020 olympics. Thank you very much. If you are feeling tired of being nickelled and dimed by the airlines charging fees for pretty much everything i have bad news, they are Getting Better at it. Phil lebeau is taking flight for us in chicago. That is bad news. Enough is enough. Let me do the question. We want to know, do fees determine which airline you choose to fly . Weigh in at cnbc. Com vote. You can vote while phil reports. Take it away. Somebody just tweeted me, i dont care about the fees but what kind of cookies they serve. Swear. To each his own. Let me show you something because a lot of people will be stunned when they see this number. Here is how Much Airlines world wide will be taking in this year. 49. 9 billion. That is an increase of more than 17 compared to last year. For the average passenger around the world when you add everybody up who is flying comes up to 15. 02. Not all fees are the same for the airlines and certain areas are more lucrative than others. It comes to frequent flyer mile programs. Baggage 25 . 25 from baggage fees. Wifi in flight, maybe changing and upgrading to different section of the airplane. That brings in 15 and then travel services, things like insurance, hotel, car rental. That is where 5 of that comes from. Look how much airline fee revenues have grown. When you look at this figure of 49. 9 billion keep in mind it was half of that, half of that just five years ago. So it is a dramatic change compared to where the airlines were not long ago and they are becoming much better retailer. That is why you are starting to see more growth in this area for the airlines. We are going to bring in seth kaplan. Welcome. Phil says there is more growth here. Where are they going to get more growth . What are the next fees they are going to come up with . I get you for the 25 chocolate chip cookie, but what is next . Certainly, the lowest hanging fruit are probably picked. There is nothing like bag fees when it comes to ancillary revenue. Phil mentioned the frequent flyer mile sales add up to more than anything else. That is when you swipe the credit card and get miles. The Credit Card Company buying miles to give to you. One big area, seat assignment fees. Right now you pay for a preferred seat. A lot of places around the world and on the ultralow Cost Carriers you pay for any seat and that is probably an opportunity for some of the airlines to any assign seat unless you want them to randomly. 34 d goes at one price at the middle and the back of the plane and 8 a on the window up front goes at a higher price. Correct. And playing off of what seth was talking about. The next leg of development, people bidding on flights for moving into a particular seat. They may say we have an open seat in business class. Who would like to come up here . Open bid starts at 100. You have to bid within five minutes online with your phone. That sounds fun, man. You know . Is it worth it for you . It is coming. I kind of like that. One final question, i think i know the answer like a prosecutor should always. Will Falling Oil Prices cause the airlines to cut their fares . Not per se. What Falling Oil Prices could do in the longer term is cause airlines to add some capacity cht just the break even fare goes down. Airlines like to grow when they can because you grow down your unit cost if there is lots more capacity than fly and demand economics. They are not running charities and are not going to lower prices just because oil came down. The other thing you see other airlines or small startups try to come into this space. Exactly. They can make a profit at a lower break even. Thanks very much. 79 of you say added fees do impact which airline you fly. 21 of you say no. You know as well as i do that Tech Companies have a lot of our personal data. A new survey reveals which Company People trust the least on that front. Who takes the top spot and why . That is straight ahead. The cnbc Trend Tracker live data board is brought to you by the cme group. When change is in the air you see things in a whole new way. Its in this spirit that ing u. S. 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