Transcripts For CNBC Power Lunch 20150206

A risk off rally. Spies on wall street. Foreign Intelligence Services penetrating our financial institutions. We will tell you what well tell you here this hour will shock you, and its a cnbc exclusive you wont find wraen where else. Lets go over to sue. Who is here at hq. Indeed i am ty. Stocks are posting modest gains following that upbeat jobs report. The dow up for a fifth day on track for its best weekly gains since december of 2011. The dow, the s p 500, and the nasdaq now all in positive territory for 2015. You can see the green right there. What a week for oil. Crude on track for its second week of gains. Wti and brent ice brent continue to rally today, and yields on the tenyear note rising. Gold is telling off. Lets go to bob pasani from the floor of the nyse. Hey, bob. You know you would think with a report that we had this morning where we had an excellent jobs report and excellent wage growth the stock market would be enthusiastic. Its not really happening. Were really even on the advanced decline line. The one sector that is doing well are financials, and thats because as sue noted, we have higher rates. Financials tend to do better in a higher rate environment. They can charge more money. You can see the major names, bank of america, somewhere p morgan, and key corp. On the up side. Higher rates does sometimes create issues for Interest Rates. Sensitive sectors kind of a mixed picture here. Reets, the vaq are being hurt a little bit. Emerging markets, eem, hurt on higher rates. The high yield, etf, somewhere k isnt moving at all. This is a mixed picture. Sue mentioned gold but right across the board Precious Metals of any kind are down. We have dollar strength, deflation, lots of supply out there. Thats creating strange moves in commodities. Take a look at some natural gas stocks. We have a cold spell here in the northeast and the midwest that is notable. Normally natural gas should be up, but were at threeyear lows on natural gas. Can you see some of the names all moving to the down side. Sue, i think two things are a problem. Number one, enormous fourday advance that we have seen. Thats constraining stocks. 800 point move in the dow this week, and number two the concern about higher rates. Nobody knows where that threshold is but certainly significantly over 2 on the tenyear. That will get people im sure talking. It sure will. It has already has. Thanks, bob. Lets go to dominik chew for a market flash. Some of the Interest Rate sensitive stocks the specter of those Interest Rates are weighing down the dividend rich use timts seconder. The worst performing sector in the s p 500 today. You can see down by 2. 5 . Leading the way lower, Public Service enterprise group. First energy scana and xcel. Tough day overall. Utilities the worst performers today. Back to you. Thank you very much. Not too hot. Not too cold. It is in a phrase popular, i think, 25, 30 years ago. A goldilocks economy. Employers are hiring steadily. Wage growth moving up a bit. The December Numbers revised much higher. To say nothing of what they do with the revisions for november. Is the latest jobs growth making the fed more confident about raising Interest Rates soon . Steve liesman spoke with the philly fed president Charles Prosser. What did he say . I want to make sure everybody knows, i know you do, that philly president Charles Prosser is a hawk. He has thought for a long time that Interest Rates should be higher. Todays number confirmed that sense i want to show you the day he was reacting to and its caught the attention of markets today. It wasnt just the headline report, the 257. Its that second line December November revised up 147. In fact, one of those numbers doesnt have a twohandle on it tyler, which is good. Doesnt have a threehandle. 400,000 plus. Four handle on it which is really, really good. I was a baby the last time that happened. You were never a baby tyler. We know that for a fact. Unemployment my wife says im still a baby. Tick up for a reason. Why is unemployment up . 700,000 people are back in the work force, and, again, another thing that theyre reacting to. The average hourly wage up a half a point. Really wiping out the decline that spooked everybody back in december. Heres prossers reaction to the data as soon as it came out. As a journalist its a rare moment when we catch a top official reacting to data just as he is learning it. I think this is extraordinary in many ways, and another signal that the economy is actually functioning in a fairly normal fashion. I think thats an Important Message to get across and that we stop thinking about our economy as something in some kind of perpetual crisis. So marcus believed that more centrist members of the fed will have a similar reaction. You can see here that that bump up right there, they pushed up their outlook for the fed funds rate at the end of this year. It went from 45 basis points to now. Its pushing 57 basis points. Heres some of the reaction from wall street. Ups saying dont be out of the office june 17th. That obviously is the day of the fed meeting. Bank of tokyo saying the fed is falling further behind the curve of sent meant that plosser seems to agree with. Patient will be dropped in march, opening the door to a june rate hike. Tyler, i just want to tell you about an interview you have coming up. Tell me. Jack lew, the treasury secretary. Thats monday morning. Theres more than a few things on the agenda to discuss with the treasurer. Theres been a tremendous amount of concern about recent announcements of job losses in the energy sect or in the oil business, drillers and so forth. Did any of those job losses show up in these numbers, or are they too early . We have some. We have some. Theres two sect orz. Only one is reported on a monthly basis up. One is a month behind. The bigger one is a month behind. The one thats directly oil and Gas Production in the mining sector, that fell by 1900 workers. Its the biggest decline since the recession of 2009. The bigger sector were going to have to wait for the detail on the data. Thats the oil services sect or and my guess is theres going to be a lot more jobs lost in that sector as well. What you are saying just to be clear, whatever else is happening in the economy, its overwhelming. Thank you very much. We look forward to jack lew and you on monday. Sue. Health care leading the risk. The best performing sector yeartodate. Will todays jobs report change Investment Strategies as a result . Lets bring in lisa head of investment and portfolio strategies at Morgan Stanley wealth management. Jeff clinetopf is with us chief market analyst at charles schwab. You think its understandable given the market performance. Tell us about that. Weve been positioned for a stronger cycle here and a handoff from the industrial cap x driven side of the economy to the consumer for quite a while. We have viewed 2015 as the year of rebalancing and so we were very heartened to see these numbers. I think our clients portfolios are positioned for them. And, jeff you think you have to kind of invest to handle the volatility which you think will be with us for some time. Sure. Fed rate hikes dont tend to end rallies in the past but they do increase volatility and investors are favoring those investments that have good returns relative to their volatility. Something we in the business call a sharp ratio named after bill sharp. Maybe they should be playing a version of sharp tank in their portfolios. Timing those investments that have good returns. We think there are a few emerging markets that provide a good return relative to the volatility. Weve seen that in january. Investment grade bonds certainly relative to high yield may also be one of those winning sharp tank investments. You mentioned emerging markets. You like asia specifically correct . Yeah, thats right. You know japans purchasing Managers Index recently ticked up. They seem to be healing more completely from the tax increase related slowdown they experienced last year. Lots of monetary stimulus there even as the fed here in the u. S. Begins to pullback. That impacts the whole asian region. We look more favorably over there. You like europe at this point. Any particular part of europe . We want to be cyclically exposed. We like the european banks quite a lot here. We do think that Everything Everything at the ecb is doing is going to help them grow credit and expand lending. We want to be broadly exposed in europe. We do like the cyclicals, the exporters, and we like the banks quite a lot. Lisa, jeff, have a great weekend. Appreciate it. You can check out lisa and jeffs play on europe by going to power lunch. Cnbc. Right now to see if there are opportunities that might fit your portfolio. Thats power lunch. Cnbc. Com. Back to dom for a market flash. Sue, were watching shares of Gilead Sciences moving down to the down side. Credit suisse analysts are downgrading them to a neutral rating, and they lowered their price target to 115 a share. Prior it was 130. Saying that market share for its hepatitis c vaccine will decline from 80 in 2015 to around 60 in 2019. Those shares as a result under pressure now by about a percent. Tyler, back to you. Okay. Thank you very much, dom. Twitter soaring up 15 after it reported Strong Revenue growth, but analysts also focused on slowing user growth at the social media giant. Twitter adding only four million users in its last quarter. That was alarming to many. In its Conference Call twitter revealed a bug in its integration with apples ios 8 caused twitter to lose four million users. Our Carl Quintanilla spoke exclusively with twitters ceo about getting some of the users back. Its not a one size fits all correction. Theres actually a number of complex and fairly detailed steps we have to take people through to get them back into that tightly integrated experience on ios. If theyve experienced the bug. So frankly, were pretty happy with the volume of people we have gotten back into the platform given the steps weve had to take them through and the work weve had to do on our end to correct the issue. Carl also asked him if he thought he would still be ceo by the end of the year amid mounting pressure from some quarters for him to go . I love leading this company. He love doing it. I love the team. Ive got around me. Im excited about coming into work every day, and theres nothing i would rather be doing right now. Twitters slow user growth has been oon issue since the ipo, and can you see on a oneyear chart the stock has essentially been stagnant throughout most of 2014. Now trading at 48. 02. Claims a u. S. Hostage has died. Ahman javers. A female ive been talking to National Security officials about this today, and what they are saying is that its going to be very difficult to verify this at all until or unless they see some video that they can corroborate the information with, and they also say that it would be one thing for this hostage to have been killed today, but they said that with a lot of these announcements, you just simply cannot tell when the actual execution took place, tyler, and so theres a lot of misinformation and propaganda around this and so at this point white house officials not confirming the fact that this hostage has died. Dom. Thank you very much. Eamon javers in washington wrshlgts. Leaders of germany and france facetoface with Vladimir Putin of russia wra to discuss a new ukraine peace plan. Our chief International Correspondent michelle carruso cabrera with more. German chancellor Angela Merkel and Francois Hollande arrived at 6 00 p. M. Local time with ate meeting with president Vladimir Putin. They are there to discuss the ceasefire and what the pair hopes will be a lasting peace for warracked Eastern Ukraine. The talks come amid escalating fighting between russianbacked rebels and the deposit of ukraine in towns near the russian border. The increased fighting fueling fears the conflict is now threatening europes overall security. U. S. Also now considering giving lethal weapons to ukraine. An option to posed by russia and the european nations. Russia has vietnam meantly denied backing the rebels with weapons and it will oppose any decision by the United States as a threat to its security. One hopeful sign today, the rebels and the ukrainian authorities agreed on a humanitarian corridor in Eastern Ukraine to evacuate civilians from the epicenter of the fighting. Residents have been trapped in the crossfire and left without power, heating, or running water, tyler, for almost two weeks. As we talk about europe one of the things they are most concerned about there is deflation, or the possibility of it. Youve been following venezuela and its problems. Deflation aint the worry there. It is all about inflation and the rising prices of some staples and basic goods. Horrific inflation leading to lines. Venezuelians are increasingly frustrated by the food shortages. Theyre taking to youtube to post nightmares. This is inside a governmentrun supermarket. Now the empty shelves and the lines, lines, and more lines. Why . Because theres one line to get one chicken. Another line to get two pounds of nature. Another line for two loefz of bread. Separate lines for butter, rice, sugar, flour, coffee. To pay for everything . You line up yet again. Youre only allowed to go in on certain days based on the first knobs your national id cards. Earlier this week the government seized just took over 35 private sector supermarkets from a chain called dia adia. It was justified by accusing the owners of squirrelling away food on purpose in order to stoke public exaspiration over widespread shortages. Members of the Venezuelan National guard posted outside . Why . Because theres been violence at supermarket as people grow desperate due to whats going on there. Mike broken economy. Horrendous. Just broken. My career started in spanish television. At the end of the devastating crisis in latin america, inflation, tyler, is just a killer of the poor. It just it destroys them because their salaries dont grow as the cost as the prices of basic goods. They end up buying capfuls of oil rather than a bottle of oil because theyre so desperate. Really terrible. Michelle, thanks. Sue, over to you. Well, we have it much better in this country, and we had a good jobs report but does that mean the economy is in the right direction and going in the right direction with some velocity . Plus, is wage growth finally back . And should the u. S. Begin arming ukraine . All of that is in the power rundown, and that is coming up next. Plus spies on wall street. Foreign Intelligence Services infiltrating our financial institutions. What well tell you will shock you. Its a cnbc exclusive. You wont see it anywhere else. Were back in two. E can last 12 hours. And aleve is proven to work better on pain than tylenol arthritis. So why am i still thinking about this . How are you . Aleve, proven better on pain. Who do you work for . Your boss . Yourself . Your family . Our Financial Advisors are free to realize a plan to fit your familys unique needs. Well listen. Well talk. Well plan. Baird. Zirchgs wack back to power lunch. Expedia reported weaker than expected profits. Those shares you can see priceline down by nearly 3 . Tyler, back to you. Sdmroog thank you very much. Intuit halting allstate efiling tax returns on worries now about fraud. The company is temporarily pausing all filings on its Turbo Tax Program as a precautionary step. The stock dropping on the news as you see there. Actually its come back a little bit down now. Down 2 3 . It is getting its first ever technology chief. The camera pager hiring longtime executive tony young to be its cio. Madison square garden gaining ground after topping street forecasts. Shares for the Media Company and the Sports Team Owner up 33 over about 31 over the past 12 months. Sue. Time for the rundown. The power rundown specifically. Joining us mark president and ceo of the National Urban league and ron christy, founder and ceo of christies strategies. Nice to see you, gentlemen, once again. Great to see you, sue. We have better news on jobs numbers today. Do you feel, ron, that the economy is moving in the right direction . Well, good afternoon, sue. I think its moving in the right direction, but i also think its too soon to say whether or not weve really hit that strong recovery that weve been looking for. If you still are an individual and you work an hour a week and you get 20 to do an odd job, youre not counted as being unemployed. Same as if you work ten hours a week and suppose you are a chemical engineer and you might be working at starbucks trying to get by. You are under employed. Have you 30 million americans who are under employed. A step in the right direction, but theres still a lot of people, longterm people who have been unemployed that are counted in that 5. 7 figure. Mark. This is a good report and its consistent with the reports over the last several months. Weve got strong job creation. Weve got a continuation of economic growth, but i, too, have concerns about continued wage stagnation, although wages are up and the fact that the black Unemployment Rate remains too high. If that part of the Unemployment Rate would come down we would even have a lower jobless rate in this country. This is good news but many remain, if you will stuck in the after effects of the recession. Theres a lot more work that needs to be done. You know ron, mark mentioned the average Hourly Earnings jumping to the highest level in six years. A lot of people are saying that wage growth is back. However, im not sure that everybody would agree with that. I wouldnt either sue. I mean youre talking somewhere in the range of up 24 cents. I agree with a lot of what the mayor had to say. I think we still have to have wages stning to go up and the best way to do that is to have an economic climate that fosters productivity and fosters innovation, which, of course, is why the government needs to get out of the way and allow the Small Business communities to really have the engine to move that economic progress further. I think there are steps that can be taken. I think that we can try to improve some of the free trade agreements to give the president Free Trade Authority and, of course, built him that Keystone Pipeline that he seems so adamantly against. I would say this. The productivity of American Workers is strong and its high and the issue is that wages are not keeping pace with the growth of productivity. I think what you see is the beginning of the affects of the increase in the minimum wage in some 20 plus states that notwithstanding inaction in washington have taken matters in their own hands and have increased their own minimum wages. There is a trend when it comes to increases in wages, but this is an area where lots more work needs to be done and there needs to be quite a bit more attention. Let me turn you to the international scene. German chancellor Angela Merkel and french president hollande tried to broker a peace plan between ukraine and moscow. Secretary of state john kerry says that the white house is reviewing some opings. One of them could be to have the west provide arms to the kiev government. Ron, this is a very difficult subject for all concerned. What do you think the west should do, if anything at all . I think the west should continue to impose sanctions on Vladimir Putin and strengthen the ability for our allies in that region to take military action. Im speaking specifically of arming the ukrainian rebels. Why is this administration not providing them with the arms, not giving them the assets to really repell these invader from their borders . I think we can find stability in ukraine if russia is brought back to bare. What do you think, mark . Congress has already authorized arming the rebels but i think a diplomatic solution is absolutely preferable, and what we dont want to do is engage in unilateral military action. Anything we do in that area ought to be in conjunction with our allies. Particularly france and germany. If we do not want to take one step forward and potentially many steps backward in creating even a wider military conflict in that region. My hope is that the efforts underway now which are diplomatic in nature are going to yield benefits but lets keep all options on the table, of course but lets not be precipitous in acting unilaterally. Thank you. Its always a pleasure to chat with you. Always a pleasure sue. Thank you. Have a great weekend. All right. Ty over to you. Sue, whats up with gas . Price of a gallon of regular never got under 2. The National Average didnt. In fact, it is up since last week. Where i shop its higher by a dime, 12 cents. Plus, the soaring dollar. Good timing for some but phil lebeau has the story from chicago. Phil. Tyler its great timing for jeep. What happens when you build a new vehicle in europe where the euro is hurting and you sell it here in the u. S. Where the dollar is king . Well, were going to have a nice push to the bottom line. Well explain when power lunch returns. You laugh. You worry. You do whatever it takes to take care of your family. And when its time to plan for your familys future were here for you. Were legalzoom, and for over 10 years weve helped families just like yours with wills and living trusts. So when youre ready start with us. Doing the right thing has never been easier. Legalzoom. Legal help is here. Alright, so this tylenol arthritis lasts 8 hours, but aleve can last 12 hours. And aleve is proven to work better on pain than tylenol arthritis. So why am i still thinking about this . How are you . Aleve, proven better on pain. Talk about exquiz it timing. Phil lebeau with that story. Hi, phil. Hi. You talk about great timing. Im not sure that sergio expected this when they said you know lets build the next jeep model over in melphi italy, at a fiat plant that was under utilized. That renegade model, the Jeep Renegade that, comes out next month, it is being built at the fee at plant in its basically because they had excess capacity and sergio used it as leverage to get those labor unions there to come up with more convenient work rules, better productivity. Basically to lower the cost to make the plant more committee competitive. It starts at you should 18,000. This is why it is a good move. Take a look at the chart showing the euro and the dollar going back over the last four years. It has considerably improved if you are in favor of the dollar over the last two years since they first made this decision. As a result theyre going to be building it in the weak euro zone selling it primarily here in the u. S. Where the dollar is king, and that means when you see the new renegade in the showroom for jeep this is going to have fatter Profit Margins than the Company Originally predicted. It also helps that you are talking about a small suv that is going on sale in a red hot market with the hottest brand thats out there right now. Jeep sales up 41. 5 last year. Small suv sales, which is really the biggest market thats growing right now for the auto industry, up 9. 9 last year. Heres the market sharers for the automakers at the end of last were. Chrysler at 12. 7 had the biggest gain of any of the major automakers jumping from 11. 5 up to 12. 7 . All of this has been reflected in shares of fcau thats fiat chrysler. These shares that came on the new york Stock Exchange, what last october. Since then its appreciated they worked it out to get better concession from the labor unions. Its really coming home. Sfla another big week for crude oil. Crude on track for the second straight week of gains. Right now west texas intermediate has traded up 3. 5 and we have almost a 3 gain for ice brent crude. Of course, that means that prices at the pump will rise as well. The average price of gasoline in the United States is 2. 17. Thats up 10 cents from last week. Where do price goes from here . I know somebody that notices. Jackie deangeles is at the nymex. Were seeing a rally in crude oil traders long buying the dip going into the weekend. Its having an impact. Its not the only piece to this story. A couple of other things to think about here. First of all when you look at the chartsz seasonally, february is the time of year that we always see a break in u. S. Gas prices. Refiner where is start to do maintenance. Theyre switching over to the blend of gasoline, and thats typically more expensive. At the same time traders start to anticipate that when it stops snowing and the weather is bad, people will get on the road a little bit more being more enthusiastic about driving. That is when demand picks up. Now, add to the fact that to this, rather that, were seeing refinery strikes as well in their sixth day. No resolution before we go into the weekend here. Impacting about 10 of capacity but traders say theyre worried that if this spills over or goes longer, it could be broader than that. Something to think about. Now, remember prices at the pump, they always seem to rise faster than they fall. Its just murphys law here. Youve seen more than 10 cents in a lot of cities. The market average never fell under 2. Heres the cavat. If crude gets slammed the way some people think down to a three handle potentially, you could see that gas prices buck the trend this year and fall under 2. Well be watching. Back to you. Well be watching along with you. Thank you. Lets check the gold market prices. Theyre closing right now. Gold has been down more than 25 on the trading session. Now it is at 1,233. 70. Its boosting the dollar, and thats hurting metals across the board. As can you see, we have some significant percentage moves to the down side in platinum and also in the silver market. Traders telling our jackie deangeles, who you just saw, that there are just too many better trades out there. They dont want to be in gold right now. Theres a look at the entire complex. Youre uptodate on the metals markets at this hour. To dominik chew from market flash. How about the metal mining stocks. The gold miners have taken a hit on this drop in gold prices on the heels of that stronger dollar here. Barrick gold newmont gold even the gold miners etf, the gdx movement to the down side. You can see theyre all very much, sue, in the red. Back to you. Its been a wild week. Theres been a lot of the moves. Rick tracks it all from the cme. Hi, rick. Yeah sue. 8 30 eastern. Almost every market in the world. They all moved in a logical, intuitive fashion. If we look at intraday at tens were up on the day. We also look at a oneweek chart. Down 28 basis points on the week. We are down 25 basis points on the year. Theres a lot of numbers there, but the long and the short of it is, if you have been long looking to test some of those 20 month low yields from last week at 164, youve been in the long way in the marketplace. Theres a lot of action that you could tell by the way, its stuck at the highs. It still looks as though there might be more liquidation driving yields a bit higher. One week of the Euro Currency want good. It looked like it was getting traction. All dissolved on todays better than expected data. One market thats finally woken up and looks like its out of its range, look at the dollar yen yeartodate. Todays action definitely seems to put the tlar back in the positive in terms of momentum. Pay attention to all those currency moves. Of course, sue, tyler, back to you. Thank you very much. Spies on wall street. The Justice Department stepping up efforts now to combat foreign Intelligence Services trying to penetrate u. S. Financial institutions. What exactly are they doing to stop them . It is a cnbc exclusive next. 73 of americans try. To cook healthy meals. Yet up to 90 fall short in getting key nutrients from food alone. Lets do more. Add one a day 50 . Complete with key nutrients we may need. Plus it supports physical energy with b vitamins. One a day 50 [ male announcer ] at northrop grumman, weve always been at the forefront of advanced electronics. Providing technology to get more detail. Detect hidden threats. See the whole picture. Process critical information and put it in the hands of our defenders. Reaching constantly evolving threats before they reach us. Thats the value of performance. Northrop grumman. Id rather do anything else than sit at a dealership. Its a lot of haggling and it takes so long. Craigs experience is completely different than mine. Yeah. Yes, mike has used truecar. At truecar, well show you how much others paid for the car you want and how much you should. Because i used truecar there was no haggling about the price. They treated me so well, and it was just such a quick, easy experience. Get your car, and get back to the life you love. Welcome to the future of carbuying. Welcome back to power lumpl. Right now moving to the down side for sierra wireless. This after the Company Issued earnings guide yanks below what many analysts were looking for here. The stock, again, down by 13. 5 , sue, today. Back to you. Dom, thank you. You know stocks are down slightly this afternoon, but that shouldnt be much of a surprise because we have had such a rally over this past week overall. Bob pasani and golden charles of rosenblatt securities from the nyse. Bob, you were a little bit worried about the leadership in this market and also the velocity with which it moved higher this week. Yeah. We were at 17,000 almost on the bottom on monday. We were approaching 18,000 not long ago, but weve essentially moved 1800 points on the dow. The leadership aggressive. Its been financials and materials and industrials. Cyclical sectors have been leading. Given that im not surprised that weve had a somewhat constrained move here today. The fine line is about even. Again, sue, that fear of higher Interest Rates weighing on the markets. Gordon you know should the market be worried about those higher Interest Rates . Weve had predictions from a number of market people that the fed will move by midyear or maybe by the summer. Why is the market so jittery about it today . Im not so sure it is sue. Its the old tail wagging the dog kind of thing. The fed has been very much on the side of the consumer in making sure that they dont do anything precipitous, and i dont think theyll deviate from that here. If they think they can make a move sometime later this year they will but theyre still going to wait and see. They still have to keep an eye on inflation. They have to look at all the things that have been happening externally in terms of oil prices. How is that going to factor in . Are people going to spend more . Has january been a good month at retail . Theres still a lot of things to digest before you have to really consider whether thats going to happen or not. Again, is that the result of Economic Conditions improving, or will it somehow derail whats been a pretty strong market certainly in the last week or they Just Announced janet yellin will give her Humphrey Hawkins address on february 24th and 25th to congress. Heres the opportunity. If she wants to say that things are Getting Better a little faster that will be the opportunity. Remember the fomc statement said we may get more aggressive if the Economic Data is better than expected or we may get a little less aggressive it isnt. What theyre going to be looking for is some indication which side shes leaning on. We will get some indication whats going on fairly shortly. All right. Thank you, guys. Have a great weekend. Appreciate it. All right. Ty, over to you. Thanks sue. There are spies on wall street. The department of justice stepping up efforts to demonstrate just how foreign Intelligence Services are trying to penetrate firms and institutions. This in the wake of last weeks takedown of the russian spy ring that tried to do just that. Eamon javers spoke with the department of justice assistant u. S. Attorney general for National Security john carlin. Eamon. I talked to john carlin this morning in the wake of that russian spy ring takedown just last week. The department of justice now has a new warning for wall street saying that foreign Intelligence Services are active on wall street and they want the secrets inside wall street firms. I started by asking carlin just what those russian spies that were busted alleged russian spies that were busted last week were looking for. Take a listen. Theyre trying to map out everything they can about how the Stock Exchange works and to gain Financial Intelligence and theyre trying to do that for a variety of purposes but the message to our firms ought to be clear. They want what you have. What other foreign Intelligence Services are active on wall street . So im want going to name the names of the other foreign intel services, but i will say its not just the russians. If you cant name the names, how many do you think are out there . I think there are multiple countries who, look our Financial Sector is the envy of the world, and there are multiple nations that want to gather information about it, and not just with the human spy. I want to emphasize, again, that the new risks posed by so much of what we value being held digitally. And, tyler, carlin said there is no wall street firm out there thats really prepared to do counter espionage on its own. He is really urging here wall street firms to come to the fbi, to come to the department of justice if they think they have a concern about one of their employees possibly leaking information to a foreign intelligence service. Tyler. Eamon, they want what you have. What was he driving at there beyond they want money . Well, he told me a couple of Different Things that theyre looking for. The scariest was the big one, which was the ability to destabilize the u. S. Financial system. He said in some cases foreign Intelligence Services want to understand how the Financial System works here in the United States and in the event of hostilities, he said, they would be in a position to destabilize or disrupt the u. S. Financial system as another sort of way of conducting warfare in the modern era. He also said that in some cases theyre looking for just simply corrupt inside information to profit from what they know about whats going on wall street, and that may be for the benefit of their benefactors back at home. All right eamon, thank you very much. Reporting from washington. Sue. Scary stuff. Well, the economy added 257,000 jobdz last month, so what skills will land you a job in this market . Mary thompson is very smart because shes in daytona beach, florida while were all freezing up here. Over to you, mary. Hey there, sue. The skills youre going to need are the stem skills, science, technology engineering, and math. That is if you want to be in a growing industry. That being the drone industry. Ill have that story coming up after the break. Theres something happening right here in this country. Its the sound of america. Working with american materials. In american factories. At weathertech all we do is create the highest quality Automotive Accessories including laser measured custom fit floor liners. Order yours today at weathertech. Com or call 1800carmats weathertech floor liners. Proudly made in america. When it comes to medicare, everyone talks about what happens when you turn sixtyfive. But, really, its what you do before that counts. See, medicare doesnt cover everything. Only about eighty percent of part b medical costs. The rest is on you. [ male announcer ] consider an aarp Medicare Supplement Insurance Plan insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement Insurance Plans it could really save you in outofpocket medical costs. So, call now and request this free decision guide. 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This comes after its Earnings Report that actually beat on the top and bottom lines. However, the Company Warning last night that its profits may miss this quarter and news its coo is resigning and just recently announcing its new cio tony young today. Back to you, tyler. All right, kay. Thank you very much. No longer the stuff of science fiction. Drones are set to go mainstream. The f. A. A. Currently testing ways that drones could be used by a variety of Industries Like Land Management and security. Manning these unmanned vehicles is no simple task so a couple of colleges are getting ahead of the curve and offering degrees in drones. Mary thompson joins you more from daytona beach. Mary. Hey there, tyler. I am on the campus of an aeronautical university. This is a drone thats likely to be used by industries other than defense. To insure that there are enough engineers to make these drones and operators to run them every riddle and some other colleges offer bachelors degrees in ub manned air yam systems, or drones. Heres professor alex mirot. We started three years ago with about 11 students, and that grew has grown to about 230 students. One of those students is 20yearold jessica brown. The cleveland native fell in love with aviation as a child, watching the blue angels at air shows. At first she planned to become a pilot. Then switched to studying drones. Right now im in a class that were literally flying missions. We just are supposed to have our aircraft takeoff and climb up to altitude and go out to compound and just look for whatever our professor tells us to look for. Students like brown spend time in simulators and in the field learning to operate unmanned systems. They also take courses in aeronautical science, including aerodynamics remote sensors, and they have to get their pilots license. Henry riddle says these students are earn salaries of 50,000 or more. Now, of course these types of jobs are expected to expand as commercial applications for drones are approved but for brown shes going the traditional route for drones. Students looking for a swrob in the Defense Industry and she set her sights on a job with northrop drummond. Back to you. Well they would be luck where i to have her. She sounds intelligent. Are there Certain Industries other than defense that the university thinks might be the big employers of the fight for these graduates . Well theres a lot of excitement for the use of drones in things like agriculture where they can do kind of what they call specific agriculture. Essentially targeting spraying different pesticides. Land management search and rescue. Filmmaking, news gathering. Tlaz whole host of industry. The faa right now is doing testing with to make sure the drones are integrated into the national a airspace safely. Thanks mary. All right. Tech and real estate. Commercial rents are soaring in San Francisco. Just how much youre paying per square foot coming up next. Plus, the big headlines you may have missed in this hour of power. Were back in two. Theyre still after me. 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. Case you missed it stocks turned negative giving up earlier gains from the stronger than expected jobs report. Gilead is thiseses trading at session lows after Credit Suisse downgraded the company. Gold miners really taking a hit on the drop in gold prices. Barrick, newmont, gold corp. , and angrogold all in the red today. If you missed any of the big stories in power lunch go to our website at power lunch. Cnbc. Com to get details. Lets talk about january jobs report. Average Hourly Earnings rising the most in six years. In todays Yahoo Finance question of the day we asked are you seeing wage growth where you work . 17 say yes, wages are up. 60 say no they are down. 23 of you say they are flat. Lets go to dominik chew for a market flash. All right. Tyler, were watching shares of devry, the for Profit Education company. Down by about 16 after the Company Posted weaker than expected Second Quarter results. It did say costs will rise in the Third Quarter as well. Those shares again, down tyler, by 16 . Back to you. Dom, thank you. Tech industry sending commercial real estate prices through the roof. A look at what it costs to rent space in San Francisco next. First, lets see whats coming up on street signs. Hi, mandy. Hey, tyler. Hey, sue. The former ceo of saks is going to join us for the read on the jobs number, and the retail jobs created. Also, the premier of alberta, canada, how his also how the big events of next week. Make sure you join owes street signs top of the hour. Power lunch returns after this quick break. I am never getting married. Never. Psssssh. Guaranteed. You picked a beautiful ring. Thank you. Were never having kids. Mmmmmm. Breathe. I love it here. We are never moving to the suburbs. We are never getting one of those. We are never having another kid. Im pregnant. I am never letting go. For all the nevers in life state farm is there. You know. Theres a more enjoyable way to get your fiber. Try phillips fiber good gummies. Theyre delicious. And a good source of fiber to help support regularity. Mmmm these are good the tasty side of fiber. From phillips. Theres confidence. Then theres trusting your vehicle maintenance to ford service confidence. Our expertise, technology, and high quality parts mean your peace of mind. Now you can get the works, a multipoint inspection with a Synthetic Blend Oil change tire rotation, Brake Inspection and more. 29. 95 or less. The Tech Industry isnt just sending Residential Real Estate prices through the roof. Commercial real estate prices are soaring. Especially out in San Francisco. Josh lipton live in san jose with the details. Hi, josh. Well tyler, all have you to do is take a look at the city skyline which is now dotted with cranes. Between 2009 and 2011 the city issued just 13 permits. Between 2012 and today the count spiked to 87. Those cranes are used to develop Office Buildings where asking rents now average 63 per square foot. That is more than double the National Average, and even with those prices 60 of the space under construction is already leased. Thats according to jones lange lasalle, a Real Estate Services company. Since the trough at the againing of 2010 commercial real estate prices have skyrocketed nearly 90 . When prices surge that quickly, some might worry that a bubble is developing in this market but Real Estate Developers in San Francisco strongly disagree. We believe in this market having long longterm legs. We dont believe the Silicon Valley is going away. We dont believe San Francisco is going away. If an adjustment occurs ironically its good for our business because that means prices will come down. We can go do more transactions. One industry is driving demand for office space in the city by the bay, and that is tech. Sales force is the leader with more than 1. 5 million square feet. Twitter comes in second and google follows closely behind. Real estate analysts contend that one potential concern is that the commercial market is so dependent on the health of tech but the momentum in commercial real estate prices they say, remains very strong. At least for the foreseeable future. Tyler, back to you. All right. Thanks very much josh. Speaking of San Francisco, offices drop box headquarters might be one of the sleekest and coolest tech cribs around. 500 plus bees spread out over 85,000 square feet. Panoramic views of the bay. Plus, a cafeteria featuring a michelin star chef. Woodfired pizza oven. Something like that. Expresso smoothie bars around the clock. Snacks and music, obviously. How do they get any work done . I dont know. That could be very distracting. The gym is cool, right . Sure is. Lets take a look at the markets before we hand it off to street signs. The s p back in the green. The dow down 13 points on the trading session. The nasdaq is down about five. You could call that a fivepoint loss. The s p has turned positive which is interesting because we have seen yields back up this week on the tenyear and right now the yield is at 1. 943 . Bob pasani mentioned, you want to watch that 2 plus level because that is going to be watched very closely by the stock market. And the dollar against the yen, Rick Santelli mentioned it earlier, were seeing movement there. Thats the u. S. Dollar up better than a full percent against the yen, and on the righthand side of that chart, you can see we did have a little breakout just about last month. Were in february now. January is when we see that bumpup. Finally, a programming note join us monday as pour lunch expands to two hours. 1 00 to 3 00 p. M. Eastern time every day. Sue will be back here back from the new york Stock Exchange back at headquarters. Thats right. Throughout the two hours. Throughout the business day as cnbcs anchor for breaking and developing news. Mandy drury will join me from 1 00 to 2 00. Brian sullivan steps in at 2 00 with melissa lee from the Nasdaq Market site. Join us this monday and every day for the new expanded power lunch. Sue, i know youre going to miss the nyse. I know the folks down there are going to miss you, but you will not miss the commute, and we will love having you back here. Im really happy to be back here. No offense, new york but i wont miss the east side drive or the west side highway. No offense. Thats it for power lunch. Street signs starts now. All right. Stocks turning around. They are now lower overall, but the job market moves higher. Happy friday everybody. Well have a deeper dive into the january jobs number. Why stocks may be turning south. Plus, real insight into the oil drop with the premier of alberta, canada. Do you remember the ice bucket challenge . Where exactly did all that money go . Meg terrell with a special report on that. Lets get into the meat of it. Despite the unimpressed stocks, it is still the best weekly gain for the dow since 2011. The s p up about