This video is not from finland or sweden. Its the lower 48 and could be in your neck of the woods as mr. Roker says very soon. Weather a huge story across the usa today. Thank goodness you dont live in buffalo, sue. They got feet of snow. They got a lot of snow and it is very cold down here. Everybody bundle up and watch power lunch. Its the perfect thing to do at lunch time. If you are waiting for falling oil and gasoline prices to bring on cheaper air fares you will be stuck on the tarmac for a long time. United airline ceo on squawk box this morning. You are going well with fuel prices right now. And we are pricing our product today so we can make a reasonable profit. We are not the level of profitability we should be at united. We will get there. It isnt just pricing the product. There is lots of opportunities for us in ancillary services and ancillary products to make good margin. Those are things that customers value and will pay for. And we want to hear from you. Will Lower Oil Prices mean Lower Airline ticket prices . You can vote at cnbc. Com vote. Weighing in is amy farley, news editor at travel and leisure and seth capland joining us from new orleans at the Airline Information mega event conference which looks at loyalty and ancillary in the industry. Seth, im going to start with you. We have seen basically record drops in oil prices, 53 weeks in a row that we have seen oil move down. Will that translate into lower ticket prices . It wont translate directly. Airlines cant force people to pay more than they are willing or able to pay to travel. The way they have gotten the fares up is by cutting supply, by basically refusing to carry the most price sensitive travelers. The way prices would go down is if Airlines Start adding capacity and start flying more and then that brings down average fares. If more marginalniers get to fly again. I think it would be paulie annaish for us to expect the prices to trickle down to savings for us. In real dollars it wouldnt translate into much. Its not like it would earn customer royalty or we would recognize we are saving money. Maybe it would instill some loyalty because you end up paying for almost everything on an airline right now including in some cases they are thinking of charging you if you just want to reserve a seat. So might it benefit the airlines if they just gave the impression or gave a slight cut in prices . Its just not a cost plus product. Its kind of a commodity, not Like Airlines add up the costs and pass them along. There is this demand curb out there. Feels like they do that, though. They have tried. From their perspective they have gotten better at getting compensated for what they do. The way it would work now that the economics have changes again now that the giant cost of fuel is dropping now growth can become a little bit more advantageous than it used to be. It would happen through airlines saying lets grow again and hire new employees and those sorts of things and then that in turn pushes fares down at. Maybe the only way to benefit is to buy the stock of the airline that is doing the best. Absolutely. I think if airlines really want to build loyalty they need to look at their loyalty programs. Big domestic carriers have been tweaking Airline Loyalty programs. Thats been irritating passengers. I think that will drive passengers to be more frustrated and away from carriers that much more than whether or not they pass down oil prices to us. Appreciate it very much. Lets lock in the vote. Will Lower Oil Prices mean lower ticket prices . 66 of you said no. 34 of you said yes. Up to Mary Thompson, a market flash on spiking Airline Stocks. Certainly Airline Stocks are moving higher today, another good day for the airlines and the reason, of course, Oil Prices Continue to fall. Take a look at their shares, all of them trading at or near 52week highs, all higher than 1. 5 led by united. Tyler, back to you. Crude below 75. Brent trading below 80 sitting near fouryear lows. Prices down 20 in just the past three months. Today the senate votes on the controversial keystone pipeline. What impact might keystone have on oil prices and how soon . Jackie deangelis. Reporter the pipeline would have to be constructed after its approved so we will not see oil flowing soon. Let me break this down for you in terms of how traders are looking at this. The bearish view is that more oil coming into the United States will put pressure on oil in the gulf coast. It will pressure saudi arabia and other producers and of course they decide if they want to stay in the market to maintain share which they have established so far that they do. If thats the case if they stay prices go down. The more bullish argument is that bringing canadian crude into the country allows us to export it. The band for exports is for domestic products and not canadian crude. If we start shipping canadian crude you bring north american prices up in line with the brent benchmark. Consider numbers here. According to citi we reexport up to 30,000 barrels a day. That figure can go to 200,000 barrels a day. Only 900,000 from saudi arabia and producing 9 Million Barrels a day. So the bottom line here is what could happen supply continues to ramp up. North america is less reliant on opec oil. We start exporting canadian crude and give us more control over the global price market. It will be very interesting to see how this plays out and traders are watching it. Thank you very much. They say where there is chaos there is also opportunity. The big mess jamming up the nations west coast ports is jamming up business. Jane wells is in los angeles with that part of the story. We are having a little technical issue with jane. Apparently she is back. Jane . Reporter how are you doing, sue. It is a little windy here. Just like the port, the extended contract talks with the port, someones pain is someone elses gain. As port hogs create congestion companies are having to find other ways to we are going to go back to jane. They have strong santa ana winds out there and that does effect the live shot. We try to figure out whether we can solve the technical issues with jane wells. One thing we can be sure of that jane was not in buffalo, new york. She was dressed very comfortably for the nice balmy weather at lax. Consumer staples stocks hitting an alltime high today. It is the best performing sector this month up 3 and fourth best performer this year up about 12 . There had been some losers, always are seemingly. Avon down nearly 40 year to date. Investors may not want to give up on that stock and some others just yet. Morgan brennan with a list. Analysts and strategists caution the staples sector is expensive thanks to the recent rally but there are still names to consider. You mentioned avon. This stock is down a whopping 45 from its 52week high. It is hitting a twodecade low right before it reported earnings at the end of last month. According to facts, 26 upside. There are rumblings that avon could sell the north American Business but the company has been under estimated as it targets millennials. Another name in makeup to check out, estee lauder, stocks down 7 from its 52week high and down about 4 year to date. Consensus estimates call for a 13 gain over the next year. This is the company focuses on higher end products, expands in china. Another name, hersheys. That has fallen 11 from its most recent high. Estimates target a 6 upside despite currency head winds. Jonathan pheny thinks recent hikes in candy prices and the strength of the brand make this stock a buy heading into 2015. Lastly, check out the brewers. A number of analysts see value in this group especially thanks to the potential for future consolidation. Names like anheuser busch, mollson coors. We will talk more about those brewers layer today. Back to you, tyler. Mary thompson now, market flash. We are taking a look at shares of Gilead Sciences down about 10 . Right now it is at session highs. Stock up after europe gave the okay to Start Marketing the latest hepatitis c drug. Shares up 2. 5 . Back to you. Thank you. They call it lake effect snow and its burying the buffalo area. Three feet of snow has already fallen in one more 100 miles of the new york state through way is closed. Here is the weather channels carl parker. This winter has been a real boon for Industries Related to cold and winter. Take a look at the amazing snow in western new york. This is near buffalo. We have had four feet of snow already and we could be talking about six feet by the time it is all said and done. But in a very narrow area south of buffalo in buffalo itself only a few inches of snow thus far. There is a look at the Snowfall Forecast going forward. Really heavy coming off of lakes eerie and ontario. Another couple of feet expected and double digit snowfall in western parts of michigan. We have the first big polar air invasion over the lakes and the northeast. That will lift out another littler one will come in thursday, friday and then it actually gets very mild across a lot of the country over the weekend but thats not going to last. Another block of cold will come down thanksgiving week through the lakes and into the northeast. Back to you. Thank you very much. On wall street right now we are at session highs for the Dow Jones Industrial average. We are up 47 points on the dow. S p 500 is up almost 11 and nasdaq up 35. So on a percentage basis it is the nasdaq followed by the s p and then Dow Jones Industrial average. We will talk more about the market because coming up he is in charge of investing almost 200 billion. The chief Investment Officer of calstrs will tell us where he is putting money in this record high market. Check out the ten sectors of the s p. Soon there will be an 11th, real estate, a top fund manager gives us his favorite plays in the group ahead of the big show which is power lunch. We are back in two. Whoyour boss . Rk for . Yourself . Your parents . Your family . At baird, what matters most to you. Matters most to us. As an Employee Owned firm, our Financial Advisors have the freedom and resources to realize a plan to fit your familys unique needs. Well listen. Well talk. Well plan. Baird. Welcome back to power lunch. Lets check out the markets. We had the dow trading at session highs. The market up 44 points. S p in record territory up ten. Nasdaq up a healthy 35 points. Lets check out nokia rising after the Company Launched a new tablet computer. This comes six months after it sold its ailing phones and device businesses to microsoft. Nokia up 3. 7 . Sue, back to you. Thank you very much. More on the trading action here. Bob pisani is at post nine. We are in a narrow trading range. We are at historic highs. Look at the s p. A lot of people saying we are not making money. Listen, you can do very well as you slowly creep forward. It is hard to move forward in this kind of market. You need a real catalyst. Hmos new highs, United Health, humana. This is the leadership group, health care. Commodity stocks new lows. Mostly commodities. Petrobras, these are all 52week lows. We have mixed results for the retailers. Tjx decent numbers. Fourth quarter off to a strong start but lowered 2014 eps for the fourth quarter. The gain here is lower the bar, talk optimistic but lower the expectations. You can see tjx. Home depot decent numbers and reaffirmed guidance. Dicks sporting goods. Golf is slowing down and hunting is, too. Its not the season for it in most of the country. They have had problems with golf for a while now. That has been a topic of discussion here on cnbc many times. I want to note Urban Outfitters had a significant margin pressure. The store is tfl. They have a problem with some traffic declines there as well as i think general fashion misses for them. They are the big decliner in retail today. Thanks, bob. Chris ailman ranked third most powerful and influential chief Investment Officer in the world overseeing about 185 billion at the california state teachers retirement system. Welcome back and here for the first time here in studio. How much of your capital is indexed . In the United States we are 80 passive. Outside the u. S. We are 50 passive. You do that because you want to own the whole market and your prices are lower . We actually maj the russell 3000 index in house. The staff does an excellent job. It is much more Cost Effective and efficient for us to run it in house. My question for you is for your typical member and for people who are investing in 457s and 403 bs and 401 k plans, should they do what you do and keep a big majority of their funds indexed . Its not going to make me popular with the active managers out there on mutual funds but my answer is absolutely. The u. S. Market is way too efficient. It is very difficult. Twothirds of active managers usually dont beat the market especially after fees. Whether it is vanguard or fidelity, any index product in the 401 k makes the most sense. You were careful to say that the u. S. Markets are so efficient that indexing is really a basic default choice. What about the foreign markets . What about obscure markets or obscure sectors within the u. S. Market . Can you make a stronger case there . Absolutely. Small cap thats where the Small Cap Value managers have been able to add value and proven better than indexing. Outside the u. S. We think the market is less efficient therefore you want active management to balance out country risks, regional risks and emerging markets were 100 active. Before we come back to that lets spend a second or two talking about japan. What is going on there . What are the implications for american investors . The japanese market has made a nice run up as they finally try to restart the economy. The news today shows they are not all the way there yet. That will be an interesting investment opportunity. I would absolutely hedge the yen back to dollars but we theng the japanese market has upside potential. Lets talk about the u. S. Market which has had a spectacular recovery from the decline in late september into early october. There have been a lot of tail winds. The fed may be prime among them. Some of those seem to be receding. What are your expectations over the next 12, 14, 18 months. We are losing the fed as a stimulus behind the market. They are not tightening. They are not a tail wind. Earnings growth has been slowing. Thats been a nice positive for the market. And then the other has been stock buyingbacks. I think that those last two will continue. We will still see some earnings news that is positive. Not all 100 positive. You will still get some stock buyback. We think tail winds are slowing but you are far from a head wind. We think investors should stay invested in this market and not get worried about the length of the bull market. What do the deals speak to you of . I think we will see a lot of transactions because of the 0708 buy out market. Those are huge funds. You will see more corporate transactions which brings opportunities for investments. Thanks very much. Thanks for coming by. Great to be here. Sue, down to you. It is Global Entrepreneur hip week. When it comes to starting, running and growing a business who better to speak to that than marcus lavonis. 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I want them to work for somebody else first and know what it feels like to be fired. They are not starting with enough working capital. They put the projection together as if they make money out of the gates. 12 months into it they are out of money. They are not surrounding themselves with enough good people. While we may be smart there are smarter people out there. I have always said that the one thing i always sought in a place to work and it has been easy for me to find it is surrounded by people that are smarter than i was. You have sue. You are perfect. You are in good shape. I dont know about that. Usually ty is the snart one. You got involved with crumbs the bake shop. We had you there on power lunch. How is it going . It is going better than i thought it would. One thing that is different is we dramatically changed the product. T