Why did china do it . He says the Economic Situation behind the great wall is not good at all. We will talk to him in four minutes time. And one hot market. Homes in the Million Dollar plus range if you are lucky enough to own one you are doing just fine, ladies and gentlemen. Why is there such a boom in this segment of housing right now . We have answers coming up. First to sue. And there is big liquidity moves that you nus mentioned and they are fuelling a rally. Stocks are off the highs at this hour. We still have a gain in some of the indexes. Thats the big etf that tracks china. The ftse china is up almost 4 . Now a little better than 4 . Bertha coombs is at the nasdaq. Mary is here with me. We have a lot of steam. About 173 point range. So holding on of course as you would imagine when you have a rate cut in china it leads energy and materials. The materials sector at the s p 500 is approaching a 52week high today and also the dow leaders reflecting on what you would expect to see after a rate cut in china, as well. Caterpillar raised to buy. The other story has been domestic with a number of retailers reporting their results. Surprising in some cases. Ann taylor reported weaker than expected numbers. One of the reasons the backup at the port of l. A. That we have been watching. They say delay in the delivery of inventories as well as weak foot traffic is behind the numbers. We will see if other retailers are impacted down the road. It is the first one to my knowledge that has actually said that. Gap, of course, also came out with results that were disappointing. Old navy, you must shop there. My kids dont like the clothes there. Weak sales there, Management Changes putting mark on the brand. We will see whether or not. We want to end with foot locker. Here is one ceo who is leaving the company, mr. Hicks. The stock quin trupalled under their watch. So we have fuel from some of the overseas markets, Central Banks. Here at home mixed picture for the retailers. Nasdaq trading at the highest level since march of 2000. Bertha coombs following that for us. About 6 away from its alltime high. We are seeing strength today in chips and chips today at a 13year high, as well. Small caps at a fourmonth high. The russell back to its alltime high back at the beginning of july. Chips are really the story. We had a report, some softness in guidance. Its 4 g chip strength was pretty strong. Today it is doing very well. We also had new highs from other stocks reporting earnings today. Ross stores at an alltime high. We always watch apple. In and out of positive territory today. It just eked a new high, as well. Thank you very much. With most of the Central Banks sending a message of support can the bull market continue . Here is what Goldman Sachs david costen said earlier today. 70 of revenues of corporations is domestic and that is really the source of the underlying driver of the overall market. Think about the path of the market likely to be higher in the first part of the year and in the second part of the year when the fed does hike rates that historically suggests we get a multiple contraction. You have the market rising to around 17 times forward earnings and then a contraction closer to 16 by the end of the year. Some reaction to those comments from executive Vice President and chief Investment Officer from bmo private bank. As i understand it you are bullish going into the end of the year and think we still have more traction. 2015 we are looking for more volatility. Is that a correct read . Our big Market Indicators we have five of them and two of them have turned negative. Valuation i would say the last time the market was fairly value was probably the Second Quarter of 2013. But we recognize that valuation is not a timing tool. We have other measures. Most notably the economy and liquidity and momentum. They moving in the right direction. The one other big Market Indicator that turned negative about a week or two ago is psychology. Investors are overwhelmingly bullish. Unfortunately, as we know bullish investors have High Expectations. In a market that is a reflection of reality versus expectations, High Expectations are not as good as low expectations. Talk about the data which seems to be saying stay in the market right now. So if that is the case and you are expecting more volatility in 2015 as we get into the end of the year do you start to lighten up on some of the positions that have been profitable for you . Sure. So the metrics, the big Market Indicators that are suggesting to stay in would be the economy, everything seems to be moving along slowly but still steadily. We are creating, as you know, more than 200,000 jobs a month. The other is liquidity. There is a lot of liquidity around. Money is available to borrow, lend and invest. And then momentum is still ver powerful. The s p 500 is well above 5 above its 200day moving average right now. Have a great weekend. Its always good to see you. Thanks for joining us. Thank you, sue. Lets go to Courtney Reagan for a market flash. Jude medical upgraded. The firm surveyed doctors who were bullish on the companys controversial new Heart Failure monitoring device. The stock currently trading higher and moving higher. Thank you very much. For more on what is happening inside china and why we got this big rate cut today here is our chief international correspondent, michelle carusocabrera. It was a big rate cut that we saw this morning. No one was expecting it. There are other three moves central bank made, as well. Interest rates in china are fixed by the government and pushed by economists to allow Interest Rates to be set by the market so they took a small step towards that and announced the creation of certificates of deposits for firms and individuals that just goes to show you how the Banking System in china just hasnt progressed very far at this point. There are still so many things for them to do. The central bank said they favored much more monetary stimulus versus fiscal stimulus. Show you the fxi, etf that is a proxy for chinese stocks. Remember this all happened after the Chinese Market closed. This will show you that when they open up on monday you are likely to see biggest chinese stocks move higher. Now, the fact that they cut rates this morning suggests that the Chinese Central Bank is worried about the economy. Should they be . What are they telling us . Peter is an american doing a lot of business in china. He is here in the studio. You do a lot of manufacturing in the united states. What is your reaction here . Is the Chinese Market slowing that much that they needed to do this . I think it is slowing even more than this says. I find that there is a truck structural problem in their society going back ten years, go back ten years ago they were manufacturing for everybody, europe, japan, united states. They had to build capacity to service that. Now you go into a recession, a crisis around the world. So you have a destruction of demand. And that destruction of demand has not reversed yet. You are saying they got a lot more factories than they need in order to supply the demand from around the world. We have plants that we run where we used to have 500, 1,000 workers. They are down to 200. They capacity get labor because no one wants to work in a factory anymore. You got the fixed cost of the building to amortize over lower productivity so costs are rising on two fronts. You answered, i think, i was going to ask you what tells you that it is slowing as precipitously as you say . One indicator would be labor indicator. Why are people not wanting to work in a factory . You got to go back a period of time. One, they had the one child policy. Two, most of the people now, the children that are of working age had been educated. They dont want to work in the factory. And you have on top of all of this people dont realize in the ten years since 2004 the currency has appreciated 25 . So that means that besides absorbing the additional cost of labor and fixed overhead on smaller productivity base and on a currency basis you have to raise the price. Steven rauch was on this morning saying there is constantly this question of whether or not there is very bad debt in china. He doesnt think it is a ticking time bomb. Do you have an opinion on that . I would say a lot of people who borrowed money in the Manufacturing Sector had this thought if my factory doesnt work out i can sell the land to a real estate developer. That is not happening right now. It is tanking. If real estate is tanking, if there is no demand for manufacturing, somebody is carrying all the debt, whether it is banks, their shadow Banking System. There was never a debt problem here until people discovered the sivs. Thank you very much. Have a great weekend. Thank you. Yahoo question of the day, do you think china is heading towards a recession . Go to finance. Yahoo. Com. We will bring you results later this hour. The rise of Million Dollar plus homes in america. It is a major bright spot in the housing recovery. Diana and robert on the rich and really rich and real estate. Tyler, 5 million, three offers and its freezing cold outside. I will tell you what is heating up the high end coming up next. Talking about freezing cold. Snow in the north means booming Real Estate Sales in the south especially florida. We will take a look at Real Estate Sales in miami beach and take you inside a waterfront paradise. Coming up after the break. Theyre coming. What do i do . You need to catch the 4 10 huh . The Equipment Tracking system will get you to the loading dock. There should be a truck leaving now. I got it. Now jump off the bridge. What . In 3. 2. 1. Are you kidding me . Go. Right on time. Right now, over 20,000 trains are running reliably. We call that predictable. Thrillingly predictable. Get to the terminal across town. Are all the green lights you . No. Its called grid iq. The 4 51 is leaving at 4 51. They cut the power. Itll fix itself. Powers back on. Quick thinking traffic lights and self correcting power grids make the world predictable. Thrillingly predictable. Welcome back to power lunch. Check out lions gate moving lower. The latest movie mockingjay sold 17 million tickets in the first night but less than the two predecessors brought in. Investors are not happy. Lions gate trading down about 5 . It only makes up a fraction of the overall Housing Market but it is the hottest area right now. This is usually a slow time of the year for realtors unless they have wealthy clients. First to diana on the rise of the high end home. Reporter the realtors say it is the rising stock market fuelling sales of high end homes like this one, but there is actually something a little more fundamental going on here than that. That is simply more supply on the high end. This 5 million home goes under contract and there are more coming on the market. They are selling. We know in markets like dallas, phoenix, atlanta, nashville, inventory is twice as much on the high end than it is on the low end. Inventory is higher in 68 of the low end markets this year than last year but it is higher in 82 of the high end markets all according to zillow. This house went on the market last spring. There were a lot of people looking at it but no takers. It was around 5 million. This fall suddenly three offers because there is so much more to choose from and people are getting excited about the market. The appraiser says low Interest Rates are really helping fuel the high end. The buyers come in all cash. They get the contract and go to closing and then they finance afterwards. He says appraisals are coming in much closer to asking price and that is fuelling the high end market, plenty more of this online. Thanks very much. Staying with that high end housing theme it is chilly for many of us up here in the northeast. The rich fly south for the winter. Our wealth editor robert frank here to tell us where they are going. I bet florida is part of the scheme here. They like to fly in the gulf stream. When the going get tough the rich go to the beach. The cold weather usually leads wealthy to visit florida more often and stay for more time. That leads to more real estate viewing. This year sales up more than 6 . Prices up 19 . Brokers say this winter is already shaping up to be stronger given the calls, emails and showings that they are already booking. Of course, these are brokers so they are always promoting. Florida saw a record for terrorism last year and Real Estate Experts say there was a 40 to 60 increase. Aside from Better Weather and lower taxes florida is a bargain compared to prices in miami beach. 572 per square foot, about half of what it is for manhattan. Check out this place, a penthouse at the four seasons miami, 9,000 square feet. Yours for a mere 21. 95 million. That is gorgeous. I would like to be there right now. Thanks. High end real estate in new york is on fire right now, too. Its not suffering because of all of these people in florida. If you look at the mega home market it has exploded this year. The number of properties selling for 30 million or more already hit 23 this year. Thats more than three times the previous record in 2012. A penthouse at walker tower, a converted 1929 art deco building in the chelsea neighborhood just sold for 40. 7 million making it one of the most expensive deals downtown. It was purchased during the financial crisis for under 25 million. The developers put 150 million into the property and created 53 superlux units. They have already sold all of them. The top floor units combined for 120 million. The sale price works out to be more than 6,000 per square foot. We are talking downtown in a really old building. The big question here is whether all of these prices will stay up given all of the new inventory that is piling on the market especially. What neighborhood . Chelsea. 18th street on the west side. Thanks. Appreciate it. Down to you. Between the views and the private terrace, i can understand why it went for that amount of money. Rate cuts in china, news possible of production cuts by opec. Is this the bottom perhaps being put in in the oil market . Are prices set to rebound . How to trade it, etfs and stocks. Power pitch heats up, a sweet startup with a twist. Spicy hun is the next thick. Across america, can they take that kick . Is it honey or a hot sauce . Stay tuned to vote with the power pitch analysts live. Are you in or out on this weeks startup. Go to cnbc. Com vote right now and get ready to start voting. I make a lot of purchases for my business. And i get a lot in return with ink plus from chase. Like 50,000 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. Welcome back. Check out the dow way off lows after being up as much as 175 points. Its currently trading up about 58. Pressuring the blue chips intel at session lows the stock not participating in todays rally. The stock downgraded following analyst day yesterday saying guidance was too optimistic. The stock currently trading down about 1 . It has been a good year for the company up nearly 40 . Back to you, tyler. Thank you very much. Time for the power pitch where one entrepreneur has 60 seconds to convince a panel of experts that his sweet and spicy startup has what it takes to be the next big thing. I love you saracha but spicy honey is the next thing. This sweet spicy chile infused honey is hand made in brooklyn, new york. It is great on anything from your eggs in the morning to pizza at lunch, grilled veggies and meat for dinner and drizzled on your favorite ice cream. The category is dominated by big names known for versatility but use low quality ingredients. This is made from honey and chili peppers. The bees knees craze is traveling throughout the country. Bees knees is available through our website and a growing number of online and local retailers including whole foods in the coming months. Lets introduce you to the panel. The founder and ceo of idea merchant capital. Some of his ventures include pop chips. Chef Alexander Smalls of the cecil and mintens. Joining us from jerusalem, the land of milk and honey is richard demb, founder of abes market and runs a Venture Capital fund that invests directly with suppliers. Casey, you are in the hot seat, no pun intended. This is right up my alley. That boy from vermont putting chilies in honey. When my partner Morgan Newman and i decided we wanted to start a food business we thought that category is so crowded lets think of a more creative way and by doing this it becomes more than a condiment it becomes an ingredient, as well. Honey price for a bottle that size is probably in new york 5. 99 and you are out at 14. 99. Do you have plans to bring the price down . We have done great sales at the 14 price point. As we continue to grow and expand the line our next ingredients will be high quality but not as costly. My question is, is it honey or is it a hot sauce . It is hot sauce but honey, too. It bridges sweet and savory. If i wanted to acquire this product right now it is cost prohibitive for me. Do you see yourself creating a product for the commercial kitchens . We do wholesale for retail. We started slowly working with bars and restaurants to integrate it into their menu. I love the twist. We are seeing the most Successful Companies we work with have something remarkable. I love the chili inside the bottle. What is next . When we started the company we had two ideas in the brain storm we came up with honey