Transcripts For CNBC Power Lunch 20150226 : vimarsana.com

Rules, a vote of 32, expected here, but we had contentions going into the vote. Basically, what they are arguing here is over the future of the internet, whether internet broadband providers will be allow to charge fees to specific websites for faster lanes and faster access to their own customers. Those websites lobbied against it, and broadband providers lobbied for it. In the end, the loss goes to the broadband Provider Companies like comcast, a parent of this network, and Time Warner Cable and others that provide those services. The debate in the room, though guys that framed the debate over the future of the internet. We have a commissioner, speaking against this skeptical this does not lead to more regulations and taxes on the internet saying it threatens the Internet Freedom itself. Take a listen. The internet has become a powerful force for freedom, here and around the world. So it is sad to witness this morning the fccs unproduce dented attempts to replace freedom with government control. Meanwhile, the chairman tom wheeler said thats not what this is about at all, ultimately, this about making sure that nobody has control over the internet itself. Listen to him. The action we take today is an irrefutable reflection of the principle that no one whether government or corporate should control free and open access to the internet. Reporter now that the vote has taken place, im told theres going to be some time for them to get it in the federal register, pick a date for the regulation, and this is it. This rule is coming into play sometime in the next three months or so you can look for that date. There is or is there not a long history of court cases surrounding these kinds of issues that is on the part of the fcc . Tell us where those stand and what we might expect to see over the next couple years in terms of the litigation. Yeah, tyler, great point. In fact, some of the commissioners, the two commissioners that oppose this in the room said they expected this to have a legal challenge immediately, and they say the fate of this rule ultimately is going to be up in the air so they say they are con sensing now and now they will losings but hope ultimately this is pulled back in the legal challenge. As you imagine, they are wellfunded lawyers on all sides of it, and this will be expected to be a long legal fight as well, but Going Forward, this gives some of the folks up on capitol hill some clarity as to what the fcc is thinking now, and the question will be also whether or not republicans on capitol hill predominantly republicans who oppose this, will move forward legislation. The thinking right now is no the republicans on the hill are going to stand by and let the fcc do this but that is another option to watch for as well down the line. All right, thank you very much. Of course, the effects will be far reaching and will hit a number of stocks very directly, and amazon streaming video provider netflix among them not the least of them and weve been following the companies, and weve got quite a table of them up here. We got a list. Talking about winners and losers, potentially and coming into this, a lot of people expected rules to be voted in. They are not huge swings in light of the news brought to us, but that said some of the potential winners of Net Neutrality netflix is the most outspoken o poemts of Net Neutrality, and we see that stock tick highering of course video streams takes up a lot of bandwidth, a winner to see all this content will be treated equally, and that you dont have to see those additional prices in that last mile of Service Going out to consumers. Also, facebook twitter, those stocks are moving slightly higher, and some of the other internet providers. Only one going back to the Internet Companies that was not moving higher is amazon but that companys been trading flat all morning and early afternoon. Talking about the potential losers of the case Internet Service providers, basically the companyings, the wireless companies, Cable Companies providing the pipings through which that content moves from companies to consumers, so if you look at these guys trading mixed right now, a couple names moving lower on this news Time Warner Cable down almost 2 , comcast, which is the Parent Company of this network, moving lower, cablevision e Charter Communications lower, and also at t and verizon, they are moving higher and keep in mind a lot of folks expect at t and verizon and Many Companies to now start to put suits out to fight the rules that are put in place. Last group to look at . Some of the equipment makers, the chip makers Companies Providing hardware and the equipment and services to the Internet Service providers. Those guys have fallen come out, and they made public statements in favor of less regulation and against the reclassification of the internet into the communication service. You see the companies here trading mixed as well. Cisco cisco, qualcomm, and ibm. Keep in mind they expected the rules to vote the rules into place. Its not a huge surprise in any fashion, but they are the names to watch. Thank you so much. Morgan . Breaking news in the bond market, Rick Santelli is the man for that at the cme. Whats it like, ricky . Demand at 1 00 eastern when he talked auction, it was a dplus, but lets go through the internals. 29 million seven year notes, yield is the option, 1. 83 four shy of 183. A, above the bench side of 1. 82 trading up. And 2. 37 2. 37 chasing every dollars worth of securities available known as the big recover, and 2. 37 against the option of 2. 50 the lightest since november 2013. Only thing firm at 52. P 3, light at the auction average, dealers take 37. 1 dplus for the last auction of the week and selling off and digesting the new supply. Thank you very much. Dplus there is the auction grade. Just how safe are americas skies . Thats what some are asking after a warning from United Airlines to its pilots. Cnbcs phil lebeau has more. How worried should we be . Reporter i dont think we should be freaking out over this, but it is certainly one of the stories that has you saying, oh, what happens when the pilots are up there in the cockpit and the door is closed . All of this stems from a memo that was cement out last month from united executives to all pilots. Its not unusual for an airline to send out memos reminding pilots of safety procedures, but it was the tone of the memo that caught everyones attention alerting of significant safety concerns regarding poor safety events and nearmisses, a direct quote from the memo that was dated on january 9th of last month. What nay are talking about are four events that they do not go into detail about, but those were four events in recent months including one that required the pilot to have an emergency pull up to avoid crashing. These cockpit errors stem from the basic issues of how a pilot conducts themselves and are they following procedures they should be following in the cockpit . United airlines said we constantly monitor Flight Operations data and regularly communicate findings with the pilots. The proactive approach to safety is in line with the faa Safety Management systems, and that enables us to recognize potential issues and adjust our actions that further ensure the safety of our customers and coworkers. As part of this is the broader question as to whats going on with the nations skies with commercial airline practices . There are problems when it comes to congestion. This is not the first time we heard the idea if the pilots are too overwhelmed in the cockpit, not just regular diversions, but overall congestion we see . The memo sent out to pilots talked about the fact that united is in the midst of shipping its personnel hiring 700 pilots as the company adjusts to the fact that they are going to be having older pilots retiring need new pilots. Thats a lot of pilots to hire of 15,000. Bottom line shares are taking a hit today, but it brings up the broadest question not just for united, but all airlines. Is this system feeling stress at this point . Is that what we see with the pilot issues . All right, phil thank you very much. Phil lebeau reporting on aviation from chicago. Wet, blinding snow makes travel hazardous in the Southern States visibility low, vehicles slipping and sliding as snow sticks to roads. Through North Carolina and virginia seeing 10 inches of the wet stuff. In North Carolina the heavy snow put so much right on trees and power lines it caused more than 210,000 residents to lose power. All though we are close to the enof february, winter far from over. Heres tom niziol of the Weather Channel with more. Mother nature is a pitching machine throwing one storm after the other in the u. S. The next system from the rockies friday, across the panhandle of texas and oklahoma. Saturday, it takes a track up to the midwest into the great lakes region. You can see from kansas city, the snow comes down saturday, as we get into the saturday night and sunday, it extend from kc to st. Louis, chicago, and later sunday into cleveland and buffalo, and then as we get into sunday night, yep, new england, theres another round of snow here, hey, maybe boston, if you wanted to go for the record for the snow record on record there. Put it together look at kansas city, you will have a pretty wintery weekend here saturday and sunday before we go back into rain showers later on monday. And then in chicago, its going to be a Beautiful Day on saturday with sunny skies and relatively cold conditions with a high of 23. Saturday night and sunday that snow comes in for those relatively cold temperatures. Winters not over yet. Theres a Silver Lining because spring is less than a month away. We can hope, tom niziol. Market flash. Lets check out shares of duncan brands higher announcing an expansion to allow kcups to be sold online and in Stores Across north america. The deal is expected to be in effect by the middle of this year. Previously kcups were sold only in stores, i know because we were sent out to buy them for a number of people who did not have the stores. Back to you. Okay. Okay thank you very much. Check out ibm. The worst dow performer for the past, not just one year, but two years. Where is the tech giant going . Thats what investors want to know as they meet with ibms ceo. Our david faber is one of the people meeting with her. He has an exclusive with her, and thats only moments away. Stay with us on power lunch. Welcome back shares of barnes noble up 7 . The Company Announcing today that it will spin off its college and education business from its retail nook business. The separation is expected to be completed by august of this year, and it will result into two independent publicly traded companies. Barnes noble says the split allows for better strategies and focus. Mandy, back to you. Nice pop there for barnes noble. A big apple event, the tech giant sending out invitations for a media event for march 9 with the tag line spring forward. It is likely think about it spring, yeah, yeah yeah the apple watch, Morgan Stanley meantime reaching a settlement with the department of justice. The settlement lowers the firms full years earnings, and google invested 3 00 million in solar city to Fund Residential solar projects. The largest investment in renewable energy. Ty . All right, mandy. Ibm ceo meeting with restless investors today, the stock being the worst performer in the dow for two years. Thats a long time. David faber is in new york city with an exclusive with the ibms ceo. That is next on power lunch, they are ready to go. T these hills are full of em. It can take months for an Insurance Claim to surface. Claimin takes patience. Aflac paid my claim in one day. They got some newfangled kinda one day payin machine . Hehehehe yea, i got aflac at work. Aflac. In just one day, we approve and pay. One day pay, only from aflac. Aflac. You just got a big bump in miles. So this is a great opportunity for an upgrade. Sound good . Great. Because youre not you youre a whole airline. And its not a ticket youre upgrading its your entire operations, from domestic to international. Which means you need help from a whole team of advisors. From workforce strategies to Tech Solutions and a thousand other things. So you call pwc. The right people to get the extraordinary done. Ibm meets with investers today. The stock has been the worst dow performer over two years. It is under performing once again in 2015. David faber is at ibms investor day in new york city and joins us now with ibms chairman and ceo. Hi david. Hi, tyler, thank you very much. We are joined by ginni rometty, the chairman and ceo of the ibm. The think line was target of 40 billion in revenue from the various, what we call growth systems in ibm, higher growth social, mobile, cloud, and the like. Yes. 25 million base now. You have three years to add additional 15 billion in revenue. Thats an awful lot. Why do you have the confidence to do it . Youre right. Coming off investor day, and one of the key points i started with today was about reminding everybody were a high valued innovation company, and to that point, some of the supporting facts, you know, because as you know when we did earnings, we talked about this we have come out and said these Strategic Imperatives as we call them, around the world, 25 billion. What gives me confidence . They grew another strong 16 of actual rates last year and now 27 of ibm. So it was important that we went back in time. I told them and we showed everyone today they have been growing strong double digits for years, and five years ago, they were 13 of ibm. Started last year 22 . And now 27. In fact we got confidence that theyll continue to grow double digits, and therefore that leads you to 40 billion, which would be greater than 40 of ibm in four years. Right. Right now, the room is full of analysts, looking at the model, and many of the questions we got seems to be give me something here in terms of at least signs along the way so i can figure out how to do it quickly. Yes. Can you give us times in terms of when or how ibm should be measured on this . Yes. This an important part. There were a couple posts we think are important for them when reinventing the company. The Strategic Imperatives are higher for the company as realm one way, go ahead, measure them on the growth as we talked to you about, and the other is they are higher value, meaning a way to look at it, High Percentage of whats inside them. Therefore, they are absolutely creative for the margins, so we gave revenue, indication of the margin there, and equally important, and this was important. I know one of the questions is okay, how about the other parts of the business . Now, the other parts of the business is the portfolio. I need to remind people we run the Critical Systems for the world, the heart beat, design build, innovate run them. The hospitals, the Police Department and what we have to do is high values. They are markets are not growing in those, right . We are not counting on that. Were not in the northern market. We are following the market in them. So its why they remain high value, innovate in them. They are important. They are not necessarily high growth. It was important for us to tell and share with the owners that its Strategic Imperatives, high growth, and core portfolio, watch this space, its important work. Its high value for the company, our customers and shareholders, but it will and were counting on it. Were counting on it. Its not year by year. The road map is gone. We cant expect that much. What we said look this is a boost of confidence for the long term model we shared in january which said you can in the long term look at us for low digit Revenue Growth, yet because of the high value, it is high sing the digit eps growth and still comfortable and confident in that. Now, we offer one more time reiterating why 2016 is different. You know maybe i reminded you, you know we have revenue. It is three points for a full year of Revenue Growth, that situation, and that environment currency produces 7 billion out the door. Remind them of the reason why in 2015. Right. Talking 7 billion in revenue that left the company last year. Thats right. Idea of long term ginni, quoting from an analyst who writes frequently its not how fast growth businesses are growing, he saysings how fast other core businesses might decline. Thats why its important we talk about it today because we will continue to see them decline at the rate of the market. We are not assuming they do better than that. I think thats a very good point of clarity. You gave an interesting presentation on watson on hybrid cloud, on a lot of things that the audience was just starting to learn about. To the extent that what we also learn is that ibm said were opening ourselves up. We are open to partnerships, obviously, we know about the apple partnership, but a lot of others. I mean, is that a new step for your company, an important step and is it going to sort of be a make or break decision . Yes. I think this is one of those that revisionist history comes back and says its woun one of the most important decisions we energy jazzed and that if i really wanted to walk away with three points today that one is about we should be and have been adding 4 billion to keep going at that double digits for Strategic Imperatives, 40 billion. I talked about how to innovate in the core, and then this point, say, look carefully, an important part of the Provider Companies<\/a> like comcast, a parent of this network, and Time Warner Cable<\/a> and others that provide those services. The debate in the room, though guys that framed the debate over the future of the internet. We have a commissioner, speaking against this skeptical this does not lead to more regulations and taxes on the internet saying it threatens the Internet Freedom<\/a> itself. Take a listen. The internet has become a powerful force for freedom, here and around the world. So it is sad to witness this morning the fccs unproduce dented attempts to replace freedom with government control. Meanwhile, the chairman tom wheeler said thats not what this is about at all, ultimately, this about making sure that nobody has control over the internet itself. Listen to him. The action we take today is an irrefutable reflection of the principle that no one whether government or corporate should control free and open access to the internet. Reporter now that the vote has taken place, im told theres going to be some time for them to get it in the federal register, pick a date for the regulation, and this is it. This rule is coming into play sometime in the next three months or so you can look for that date. There is or is there not a long history of court cases surrounding these kinds of issues that is on the part of the fcc . Tell us where those stand and what we might expect to see over the next couple years in terms of the litigation. Yeah, tyler, great point. In fact, some of the commissioners, the two commissioners that oppose this in the room said they expected this to have a legal challenge immediately, and they say the fate of this rule ultimately is going to be up in the air so they say they are con sensing now and now they will losings but hope ultimately this is pulled back in the legal challenge. As you imagine, they are wellfunded lawyers on all sides of it, and this will be expected to be a long legal fight as well, but Going Forward<\/a>, this gives some of the folks up on capitol hill some clarity as to what the fcc is thinking now, and the question will be also whether or not republicans on capitol hill predominantly republicans who oppose this, will move forward legislation. The thinking right now is no the republicans on the hill are going to stand by and let the fcc do this but that is another option to watch for as well down the line. All right, thank you very much. Of course, the effects will be far reaching and will hit a number of stocks very directly, and amazon streaming video provider netflix among them not the least of them and weve been following the companies, and weve got quite a table of them up here. We got a list. Talking about winners and losers, potentially and coming into this, a lot of people expected rules to be voted in. They are not huge swings in light of the news brought to us, but that said some of the potential winners of Net Neutrality<\/a> netflix is the most outspoken o poemts of Net Neutrality<\/a>, and we see that stock tick highering of course video streams takes up a lot of bandwidth, a winner to see all this content will be treated equally, and that you dont have to see those additional prices in that last mile of Service Going<\/a> out to consumers. Also, facebook twitter, those stocks are moving slightly higher, and some of the other internet providers. Only one going back to the Internet Companies<\/a> that was not moving higher is amazon but that companys been trading flat all morning and early afternoon. Talking about the potential losers of the case Internet Service<\/a> providers, basically the companyings, the wireless companies, Cable Companies<\/a> providing the pipings through which that content moves from companies to consumers, so if you look at these guys trading mixed right now, a couple names moving lower on this news Time Warner Cable<\/a> down almost 2 , comcast, which is the Parent Company<\/a> of this network, moving lower, cablevision e Charter Communications<\/a> lower, and also at t and verizon, they are moving higher and keep in mind a lot of folks expect at t and verizon and Many Companies<\/a> to now start to put suits out to fight the rules that are put in place. Last group to look at . Some of the equipment makers, the chip makers Companies Providing<\/a> hardware and the equipment and services to the Internet Service<\/a> providers. Those guys have fallen come out, and they made public statements in favor of less regulation and against the reclassification of the internet into the communication service. You see the companies here trading mixed as well. Cisco cisco, qualcomm, and ibm. Keep in mind they expected the rules to vote the rules into place. Its not a huge surprise in any fashion, but they are the names to watch. Thank you so much. Morgan . Breaking news in the bond market, Rick Santelli<\/a> is the man for that at the cme. Whats it like, ricky . Demand at 1 00 eastern when he talked auction, it was a dplus, but lets go through the internals. 29 million seven year notes, yield is the option, 1. 83 four shy of 183. A, above the bench side of 1. 82 trading up. And 2. 37 2. 37 chasing every dollars worth of securities available known as the big recover, and 2. 37 against the option of 2. 50 the lightest since november 2013. Only thing firm at 52. P 3, light at the auction average, dealers take 37. 1 dplus for the last auction of the week and selling off and digesting the new supply. Thank you very much. Dplus there is the auction grade. Just how safe are americas skies . Thats what some are asking after a warning from United Airlines<\/a> to its pilots. Cnbcs phil lebeau has more. How worried should we be . Reporter i dont think we should be freaking out over this, but it is certainly one of the stories that has you saying, oh, what happens when the pilots are up there in the cockpit and the door is closed . All of this stems from a memo that was cement out last month from united executives to all pilots. Its not unusual for an airline to send out memos reminding pilots of safety procedures, but it was the tone of the memo that caught everyones attention alerting of significant safety concerns regarding poor safety events and nearmisses, a direct quote from the memo that was dated on january 9th of last month. What nay are talking about are four events that they do not go into detail about, but those were four events in recent months including one that required the pilot to have an emergency pull up to avoid crashing. These cockpit errors stem from the basic issues of how a pilot conducts themselves and are they following procedures they should be following in the cockpit . United airlines said we constantly monitor Flight Operations<\/a> data and regularly communicate findings with the pilots. The proactive approach to safety is in line with the faa Safety Management<\/a> systems, and that enables us to recognize potential issues and adjust our actions that further ensure the safety of our customers and coworkers. As part of this is the broader question as to whats going on with the nations skies with commercial airline practices . There are problems when it comes to congestion. This is not the first time we heard the idea if the pilots are too overwhelmed in the cockpit, not just regular diversions, but overall congestion we see . The memo sent out to pilots talked about the fact that united is in the midst of shipping its personnel hiring 700 pilots as the company adjusts to the fact that they are going to be having older pilots retiring need new pilots. Thats a lot of pilots to hire of 15,000. Bottom line shares are taking a hit today, but it brings up the broadest question not just for united, but all airlines. Is this system feeling stress at this point . Is that what we see with the pilot issues . All right, phil thank you very much. Phil lebeau reporting on aviation from chicago. Wet, blinding snow makes travel hazardous in the Southern States<\/a> visibility low, vehicles slipping and sliding as snow sticks to roads. Through North Carolina<\/a> and virginia seeing 10 inches of the wet stuff. In North Carolina<\/a> the heavy snow put so much right on trees and power lines it caused more than 210,000 residents to lose power. All though we are close to the enof february, winter far from over. Heres tom niziol of the Weather Channel<\/a> with more. Mother nature is a pitching machine throwing one storm after the other in the u. S. The next system from the rockies friday, across the panhandle of texas and oklahoma. Saturday, it takes a track up to the midwest into the great lakes region. You can see from kansas city, the snow comes down saturday, as we get into the saturday night and sunday, it extend from kc to st. Louis, chicago, and later sunday into cleveland and buffalo, and then as we get into sunday night, yep, new england, theres another round of snow here, hey, maybe boston, if you wanted to go for the record for the snow record on record there. Put it together look at kansas city, you will have a pretty wintery weekend here saturday and sunday before we go back into rain showers later on monday. And then in chicago, its going to be a Beautiful Day<\/a> on saturday with sunny skies and relatively cold conditions with a high of 23. Saturday night and sunday that snow comes in for those relatively cold temperatures. Winters not over yet. Theres a Silver Lining<\/a> because spring is less than a month away. We can hope, tom niziol. Market flash. Lets check out shares of duncan brands higher announcing an expansion to allow kcups to be sold online and in Stores Across<\/a> north america. The deal is expected to be in effect by the middle of this year. Previously kcups were sold only in stores, i know because we were sent out to buy them for a number of people who did not have the stores. Back to you. Okay. Okay thank you very much. Check out ibm. The worst dow performer for the past, not just one year, but two years. Where is the tech giant going . Thats what investors want to know as they meet with ibms ceo. Our david faber is one of the people meeting with her. He has an exclusive with her, and thats only moments away. Stay with us on power lunch. Welcome back shares of barnes noble up 7 . The Company Announcing<\/a> today that it will spin off its college and education business from its retail nook business. The separation is expected to be completed by august of this year, and it will result into two independent publicly traded companies. Barnes noble says the split allows for better strategies and focus. Mandy, back to you. Nice pop there for barnes noble. A big apple event, the tech giant sending out invitations for a media event for march 9 with the tag line spring forward. It is likely think about it spring, yeah, yeah yeah the apple watch, Morgan Stanley<\/a> meantime reaching a settlement with the department of justice. The settlement lowers the firms full years earnings, and google invested 3 00 million in solar city to Fund Residential<\/a> solar projects. The largest investment in renewable energy. Ty . All right, mandy. Ibm ceo meeting with restless investors today, the stock being the worst performer in the dow for two years. Thats a long time. David faber is in new york city with an exclusive with the ibms ceo. That is next on power lunch, they are ready to go. T these hills are full of em. It can take months for an Insurance Claim<\/a> to surface. Claimin takes patience. Aflac paid my claim in one day. They got some newfangled kinda one day payin machine . Hehehehe yea, i got aflac at work. Aflac. In just one day, we approve and pay. One day pay, only from aflac. Aflac. You just got a big bump in miles. So this is a great opportunity for an upgrade. Sound good . Great. Because youre not you youre a whole airline. And its not a ticket youre upgrading its your entire operations, from domestic to international. Which means you need help from a whole team of advisors. From workforce strategies to Tech Solutions<\/a> and a thousand other things. So you call pwc. The right people to get the extraordinary done. Ibm meets with investers today. The stock has been the worst dow performer over two years. It is under performing once again in 2015. David faber is at ibms investor day in new york city and joins us now with ibms chairman and ceo. Hi david. Hi, tyler, thank you very much. We are joined by ginni rometty, the chairman and ceo of the ibm. The think line was target of 40 billion in revenue from the various, what we call growth systems in ibm, higher growth social, mobile, cloud, and the like. Yes. 25 million base now. You have three years to add additional 15 billion in revenue. Thats an awful lot. Why do you have the confidence to do it . Youre right. Coming off investor day, and one of the key points i started with today was about reminding everybody were a high valued innovation company, and to that point, some of the supporting facts, you know, because as you know when we did earnings, we talked about this we have come out and said these Strategic Imperatives<\/a> as we call them, around the world, 25 billion. What gives me confidence . They grew another strong 16 of actual rates last year and now 27 of ibm. So it was important that we went back in time. I told them and we showed everyone today they have been growing strong double digits for years, and five years ago, they were 13 of ibm. Started last year 22 . And now 27. In fact we got confidence that theyll continue to grow double digits, and therefore that leads you to 40 billion, which would be greater than 40 of ibm in four years. Right. Right now, the room is full of analysts, looking at the model, and many of the questions we got seems to be give me something here in terms of at least signs along the way so i can figure out how to do it quickly. Yes. Can you give us times in terms of when or how ibm should be measured on this . Yes. This an important part. There were a couple posts we think are important for them when reinventing the company. The Strategic Imperatives<\/a> are higher for the company as realm one way, go ahead, measure them on the growth as we talked to you about, and the other is they are higher value, meaning a way to look at it, High Percentage<\/a> of whats inside them. Therefore, they are absolutely creative for the margins, so we gave revenue, indication of the margin there, and equally important, and this was important. I know one of the questions is okay, how about the other parts of the business . Now, the other parts of the business is the portfolio. I need to remind people we run the Critical Systems<\/a> for the world, the heart beat, design build, innovate run them. The hospitals, the Police Department<\/a> and what we have to do is high values. They are markets are not growing in those, right . We are not counting on that. Were not in the northern market. We are following the market in them. So its why they remain high value, innovate in them. They are important. They are not necessarily high growth. It was important for us to tell and share with the owners that its Strategic Imperatives<\/a>, high growth, and core portfolio, watch this space, its important work. Its high value for the company, our customers and shareholders, but it will and were counting on it. Were counting on it. Its not year by year. The road map is gone. We cant expect that much. What we said look this is a boost of confidence for the long term model we shared in january which said you can in the long term look at us for low digit Revenue Growth<\/a>, yet because of the high value, it is high sing the digit eps growth and still comfortable and confident in that. Now, we offer one more time reiterating why 2016 is different. You know maybe i reminded you, you know we have revenue. It is three points for a full year of Revenue Growth<\/a>, that situation, and that environment currency produces 7 billion out the door. Remind them of the reason why in 2015. Right. Talking 7 billion in revenue that left the company last year. Thats right. Idea of long term ginni, quoting from an analyst who writes frequently its not how fast growth businesses are growing, he saysings how fast other core businesses might decline. Thats why its important we talk about it today because we will continue to see them decline at the rate of the market. We are not assuming they do better than that. I think thats a very good point of clarity. You gave an interesting presentation on watson on hybrid cloud, on a lot of things that the audience was just starting to learn about. To the extent that what we also learn is that ibm said were opening ourselves up. We are open to partnerships, obviously, we know about the apple partnership, but a lot of others. I mean, is that a new step for your company, an important step and is it going to sort of be a make or break decision . Yes. I think this is one of those that revisionist history comes back and says its woun one of the most important decisions we energy jazzed and that if i really wanted to walk away with three points today that one is about we should be and have been adding 4 billion to keep going at that double digits for Strategic Imperatives<\/a>, 40 billion. I talked about how to innovate in the core, and then this point, say, look carefully, an important part of the Growth Strategy<\/a> is open open ecosystem in partnership. Therefore, open meaning we bring enterprise strength to the world open, and we did this with lennox long ago, and it went from something that was small, nonindustrial strength talked about to now front and center and by the way its the mainframe thats relevant today, and 50 of the workload is winning today. For example intel saying they are closed. And youre open . Open power. Interesting for us it creates, pick a technology model, make it licensing and intellectual property so youre not capital expense part of it license it, and hold countries, industries to be built around it which is in large part what china looks at with open power. This gives them the opportunity to build a Tech Industry<\/a> in High Performance<\/a> by taking this open interfaces, and thats why today the open power consortium, 101 members today already. Were just at the beginning of this. Open power ecosystem. Watson is an open ecosystem. Whats in the pipeline . Almost 4,000 companies waiting to get on to watt. People hear partnerships, and its a headline one day and never hear it again. For example, apple. I remember a great deal of focus on it at the time mobile devices, the apps. Not heard much since. Where is that . You will hear more before you leave today. Youll see the apps. I couldnt be happier. Speaking for tim as well. Tim and i about where we are. By the enof the quarter, 25 apps out, some are out already. To me they highlight what this promise is, the Gold Standard<\/a> of consume blt, and us the enterprise. One of the ones on the floor today, work being done for a tech expert how to do repair, go out to your home. Well, you know with our analytics and integration, on first call resolution, 100 and 10 what we say is if i can guarantee 100 resolution, i can reimagine work. This is not service, but kons yar service. This is how we to this point mobility is about reimagining work. Thats what we are doing in the enterprise reimagining work. You just saw the beginning, yet to see the impact of partnerships with apple in those results. Finally, a group of investors, but your large investors, warren buffet had a chance . Oh, look warren like all the big owners they keep very good watch on what it is that we do in the areas, and i feel very good. Our large owners are very important to us. I know they experience us both through their own companies, and they have a unique vantage point. Obviously, we provide for them as clients in many, many different cases, right . As well as an owner in our what i call stewardship capital. Well hear from mr. Buffet start shortly with their meeting. Thank you for having us. Appreciate it. Chairman and ceo of ibm after the investor briefing. Thank you very much david faber. The stock chart of ibm quickly behind me. Started the day out in positive territory, moved down hit the session lows around 1 00 p. M. And now its come off lows still down by 1. 3 on the day, nonetheless it seems to be climbing a little bit as i said off ultimate lows. Well, we are talking buffet, ibms number one shareholder, yep, this guy, and through the company, he is the biggest shareholder, and according to information compiled by cnbc as of december 31 2014 berkshire reports holiday 76. 9 million shares of the company. That is a 9. 2 increase from 17 17. 4 million shares of ibm as of september 30th of last year. During the three months folks, ibm shares fell 15. 4 , apparently giving mr. Buffet the opportunity to beef up his stake at the lower prices. You can also log on to powerlunch. Cnbc. Com for more. There is more go on and check it out. In the meantime warren buffet answers questions from cnbc viewers and cnbc. Com users at 6 00 a. M. Monday march 2. In other words this coming monday for all three hours of squawk box so tune in. Guys . All right mandy. The pace for growing the american economy, why the u. S. Is not as strong as you may think, and what it could mean for certain stocks in your portfolio. Plus the city in todays power house is home to seven fortune 500 companies. The birthplace of andre agassi and this state does not have an income tax. Can you name that city . Me every dollar is earned with sweat, sacrifice, courage. Which is why usaa is honored to help our members with everything from investing for retirement to saving for college. Our commitment to current and former military members and their families is without equal. Start investing with as little as fifty dollars. Hi everyone heres your cnbc news update this hour. The fcc voted 32 to set new Net Neutrality<\/a> rules saying Internet Companies<\/a> act in the Public Interest<\/a> when providing mobile connections. A long legal battle, though, is expected. Senate Judiciary Committee<\/a> voted to move lynch to the senate floor for final confirmation. Eric holder is staying on as attorney general until lynch is confirmed. Labor unions accused mcdons for avoiding paying taxes. The giant is accused of funneling money over a five year period starting in 2009. If you cant get enough of the Kardashian Family<\/a> . Well, more is headed your way. According to several reports, the family signed a 100 million deal to remain with Entertainment Channel<\/a> e. For another four years. Thats your cnbc news update this hour. Back to you. Thank you very much. The Kardashian Family<\/a>. Okay, to the nasdaq now, and we are tracking apples rebound today. Whats going on . Its interesting, mandy, over the last couple days you had the nasdaq composite hitting new highs without apple, but now the reversal today, its helping to underpin the nasdaqs march back to 5,000. Apple, of course announcing a march 9th event where its going to be unveiling the new apple watch. That caused a big turn around. We saw a number of old tech names, the four horsemen if you about them in 2000. Today, hitting new highs, adobe verified, put out new highs. Amazon above its high, and then you got cisco. Cisco at a new high since 2007. When you look at the big names, part of the reason the drag has been for the nasdaq to get back to the 5,000 level, cisco is down 50 from y2k. Microsoft down after a big recovery over the last year. Big names still have not gotten to the highest levels they could be. Back to you. All right thank you very much. Courtney raig p with the market flash. Thank you, tyler. Shares of Power Plant Company<\/a> aes, strong Earnings Report<\/a> of 41 cents a share, beating estimates. They announced a 4 00 million Stock Buy Back Program<\/a> will be in place. The ceo says it reflects confidence in the companys ability to grow the cash flow. Shares up nicely 5. 5 . Back to you. Thank you very much. Bond market now with Rick Santelli<\/a>. Hi, rick. Hi, tyler. Indeed, we had a sloppy auction reflected in the fact it was a bit of selling afterwards looking at the intraday a the 7 year maturity of the auction, you can clearly see. Year to date of ten year we see selling there. We continue to hover at 2 . The big trade today is the next one, look at this 12. 5 year chart of the euro versus dollar, we broke the range we talked about for three or four weeks now, and it is at a 12year five month low. Look at the dollar index. 24hour chart, skyrocketing. Yes, it is a 12 year five month high one of the few times we have a move over the penny to the upside. We are driving to the 5,000 mark. Should investors embrace tech or be worried . Joining us is the Portfolio Manager<\/a> at capital funds, and it seems like waiting for that nasdaq 5,000 mark all over again. Are you worried at thooz levels . Do you feel they are reasonable now, and its sustainable . Mandy, i think its been a long hard trip to 5,000 from 1999 to 2000 for nasdaq index. As far as the broad market i think theres not have many cheap securities at this point, but, you know, as i think sue was talking about earlier, cisco and microsoft are still down from their peaks in 2000. They presented opportunities for people in the last year or two to buy, in my view undervalued security with a clean Balance Sheet<\/a> that they have. You were in cisco and microsoft, i think, and thats right. The key ratios nowhere near the levels they were 15 years ago. Would you be buying at these levels, the pick overall . Well i think its very hard to model out the cash flows for Technology Businesses<\/a> for the next five years, who would have thought, you know facebook would have paid how many billions of dollars they pay for instagram. You know so i think its a very tough business to get correctly as far as valuation. I think im still long microsoft and cisco on these prices, but believe they are closer to a private market value here than they were obviously, 24 months ago. Bringing in another vote into the conversation into the market chief Market Strategist<\/a> and a different tact here moving away from tech going to a sound bite from jim oneil this morning on cnbc the former gotman sachs chairman. He has a bearish note. Take a listen. When the u. S. Consumers more than 70 of gdp, threatening to do again, the u. S. Structural story is not as powerful as so many people think or now believe it is. It was, but its weakening. Do you agree, mark . Do you agree, peter. Yes. Yes, thank you. You know i do tend to agree with that. What you really want with respect to the growth story in the u. S. Is both the consumer as well as the Manufacturing Base<\/a> to be firing on all cylinders. Wheel we want growth we want Consumer Spending<\/a> and wages to be growing. Were still not seeing wage growth notwithstanding headlines on walmart and others raising wages. Were not getting wage growth and its largely dependent on loser lending standards and other factors like lower gas prices, for example, driving Consumer Spending<\/a> right now. I would agree with that. You would agree and yet long on Consumer Discretionary<\/a> . Well, actually, in terms of Consumer Discretionary<\/a>, im cautious. Think of large cap consumer you know, both discretionary names, but as well as staples, were a bit cautious. Staples, in particular else multinationals, we are concerned about a stronger dollar. With respect to u. S. Discretionary discretionary, we like the u. S. Consumer. I like the fact that lending standards are looser, that oil prices a lower, but to the structural point, i actually do agree with that and its one of the reasons why while i think in 2015 the consumer will support u. S. Growth, were at a Tipping Point<\/a> here where we need wage growth to start to accelerate. Were not seeing it yet. We certainly need to see more. Right. Mark, back to the original comments where you sounded a skeptical note about the future of u. S. Icties are you going short to find better opportunities at this stage . Absolutely mandy. I think, you know were looking at a three year trailing number on the s p of 18 , which is probably twice its 20year average. Its if you believe, were due for slow down in appreciation. I do think other markets have suffered more greatly than we have, and their cheapest securities, whether its in the home country of australia, where we found ideas or in the eurozone where things are going there. We started an International Small<\/a> cap fund center on those ideas. Okay. I believe people with check them out, go to the website. Mark and peter, thank you very much for joining us. If you want more on the plays, go to powerlunch. Cnbc. Com. All right. Thank you, mandy. China, congress, and facebook all posing a threat to the internet as we know it. That story coming up in the second hour of power, plus, we have power house coming up. Ed people a simple question in retirement, will you have enough money to live life on your terms . I sure hope so. With healthcare costs, who knows. Umm. Everyone has retirement questions. So ameriprise created the exclusive confident retirement approach. Now you and your ameripise advisor. Can get the real answers you need. Start building your confident retirement today. Welcome back shares of petroleum falling 8 after an earnings miss. The Oil Exploration<\/a> Company Reported<\/a> a loss of 353 Million Dollars<\/a> as crude oil prices have been in decline. Earnings a share at i6 44 cents below expectations of 51 cents. Down 8 on the session. Back to thank you very much. Time for power house home to seven fortune 500 companies trouble naming them, but it is las ttnvegas, a town or a section called providence. We have cynthia sillversilver here. Median sale price is 187,000. Inventory at 9344 or 43 now, who knows, maybe one sold. Mls has homes on the market for an average of 85 days. First listing cynthia, maybe that seems long to you, but the first listing 7950d] co Lost Ranger Peak<\/a> asking 197,600. Is this 1600 a year in taxes . It is. It is. Pardon me while i go and lose it. u three beds, twa and a halfmqn bath, 1600 square feet. Tell me about the house. Its built by summit homes, a local builder of ours here. What i love about it its a one story, which is difficult to find in new housing. Its a three bedroom two and a half bath two car garage home, summit is offering a 10,000 dollar buyer allowance for their front end costs, and the home comes with most of the upgrades incoming things like blinds and appliance packages landscaped backyard, the things you need in order to move into a home. Its a great entry level home. In what about the schools in the area . Well, the schoolrc are all brand new. This Community Master<\/a> plan they just began construction in 2010. So the schools are excellent in terms of what i know. I certainly dont i dont live in the area or have young enough children to school there, but what i can tell you is that everything there is brand new. Well that sounds great. Looks like a nice house and ready to move in. Second listing 10825 river avenue 267,500, and taxes are 19 00 a year 2600 square feet of living space. Why do we like this one . Its 103 a squarecvj,vju awju a home that was built in 2010. This home is a five bedroom three bath home, a full bedroom and bathroom downstairs the master suite is separate featuring an on suite, walkin closet, but theres an additional three bedrooms upstairs as well and a loft, and it has granite, expansive living areas on the main floor, fully landscapedau backyard and large patio and sunny mountain views, which is hard to find. Excellent value again for a home built in 2010 in a master planned community, 103 a square foot. And 267,000. Very nice. Power house of the week, 5 565 brook court asking 749,000. Taxes at 4400 a year, four beds, three bath living space over 4,000 square feet. Take us through this. So this home is listed for 749,000. Before i tell you about the home, i want to point out that if this home were literally two miles to the south, it would be 1. 2 million. This is an excellent value. Brand new home. 4117 square feet. A four bedroom wow. Exactly four bedroom, three bath, three car garage, has an office, an amazing contemporary kitchen, pool and spa, and its a rare one story in a gated community, and it features again, you know you got the highly upgraded kitchen you got disappearing walls, and the exterior of the home has a nice contemporary, almost midcentury modern home springs sort of style to it. Very attractive home. Certainly excellent value. Im going to be ill. Im sorry. That looks so nice to me. Thank you very much. We appreciate you being with us. Check back in a few months. Thank you. Over to you. I never have seen you lose it, ty i dont believe it for a minute. Yeah, but 1200 a year in property taxes . Im not even going to say. I mean, please. Lose it quietly behind closed doors. Talk about a celebrity power house, this baby miley cyruss home, the mansion is on the marketv million. The estate features six 7 bedrooms, seven bathrooms, and, 9,000 square feet of living space. Lovely. Absolutely lovely. A lot of pool parties there. Okay completely changing top igs. Iran staging war games in the persian gulf this week m one exercise involving a real size mock Aircraft Carrier<\/a>, what happens when the gunfire end after this. Corrects for lane drifting. And if necessary, it will even brake all by itself. It is a luxury suv engineered to get you there and back safely. For tomorrow is another fight. The 2015 mclass. 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Its never been easier with so Many Networks<\/a> all in one place. Get live tv whenever you want. The xfinity tv go app. Now with live tv on the go. Enjoy over wifi or on Verizon Wireless<\/a> 4g lte. Plus enjoy special savings when you purchase any new Verizon Wireless<\/a> smartphone or tablet from comcast. Visit comcast. Com wireless to learn more. Iran attacking a mocked up Aircraft Carrier<\/a> saying its a warning to the u. S. Navy that ordinary persons in the area. This video is from iran broadcast, blown up by a combination of irans ballistic and cruise missiles and rockets fired from navy speedboats. Traumatic video. Fcc approved net neutrally 32. Number two dunkin donutswddv is expanding their kcups this year, and finally we learned that between september between september and december of 2014, warren buffet upped the stake in ibm by 9. 2 . By december 31 disclosing a total of 76 preponderate 9 million shares for ibm. If you missed the big stories during the hour go visit our website. Bad news forlp ac billionaires who like bugatis. Thats not the start of the joke. Thats the start of the top of the hour next. [ male announcer ] your love for trading never stops. So open an account with schwab. And when a market move affects, say a Cloud Computing<\/a> stock youre holding, we can help you decide what to do. With tools that help you see how market activity is affecting your positions. So when the time comes to decide whether to scale in or scale out. You can make your move wherever you are. And start working on your next big idea. If youre running a business legalzoom has your back. Over the last 10 years weve helped one million Business Owners<\/a> get started. Visit legalzoom today for the legal help you need to start and run your business. Legalzoom. Legal help is here. Youre driving along, having a perfectly nice day, when out of nowhere a pickup truck slams into your brand new car. One second it wasnt there and the next second. Boom youve had your first accident. Now you have to make your first claim. So you talk to your Insurance Company<\/a> and. Boom youre blindsided for a second time. They wont give you enough money to replace your brand new car. Dont those people know youre already shaken up . Liberty mutuals new car replacement will pay for the entire value of your car plus depreciation. Call and for drivers with accident forgiveness, Liberty Mutual<\/a> wont raise your rates due to your first accident. Switch to Liberty Mutual<\/a> insurance and you could save up to 423 dollars. Call Liberty Mutual<\/a> for a free quote today at see Car Insurance<\/a> in a whole new light. Liberty mutual insurance. Big blue in the red, ibm too big to succeed . We debate that, plus, too old to fly . Ageing infrastructure in the airports could be the single biggest threat to fliers. A huge call, guys, on facebook, a price target to hear to believe. Melissa lee is at the top of the hour, but first mandy, and tyler back to you, and robert frank i see is standing with you. Watch what happens now. A prince, heiress and a bugatti. Start with the prince in ax nf2 lavish apartment in manhattan that involves sushi. Yes its delicious. Its going to be good. This is in the upper west side, 48. 5 million the seller is prince, a close ally to king abdul la three bullet proof panic rooms because you need those, a hair salon, ventlated cigar room,oaquariums and you talked about sushi, tyler. This is the 1ivaz island bar. Was there a chef behind the bar . Probably several. Probably several. Okay. Next up an heiress that no one knows about just awarded a very nice chunk of change, bigger chunk of change she was asking for. An Amazing Court<\/a> decision. She was a secret daughter of the late australian billionaire Michael Wright<\/a> who died in 2012. He was left 3 million in the will, asked the court for 12, and show got 25. She was famous here on power lunch for submitting her Shopping List<\/a> of demands. They included a 2. 5 million house, 1. 5 million pea nan owe and 250,000 base guitar made from 10,000yearold ivory, and 2,000 a year to maintain her mexican walking fish. There it is. Thats the new pet. She can buy thats a popular pet. There you go. Glad that jumplg did not preside my court case. Bad news for billionaires who love bugattis. This is sad. It is a sad moment. They sold the last veyrono, fastest car, made 450, the last one just sold. What do you replace it with . We have the most current billionaires, th34bn cohnkonezzag and we have the fastest production car ever at 270 miles per hour. There is hope. My 11yearold son at that age where hes very, very interested in flashy cars. Women are next but right now its cars. Mom, a lamb genie,t uy bugatti . Why . I feel pretentious in the streets of new york. Sends that, doesnt it . You can actually drive in the streets of new york city. Exactly. Some are so low. Wise chance. Hit a pot whole in a nice bugatti. Thats wrong. Ryans talking over there. I love the veyron. How did you fit inside it, brian . I went in through the top. You know dukes of hazard style. No, we drove one. It was brought here a thousand horsepower, a special key to add horsepower. You got to basically turn a separate key to acknowledge, hey, im in stupid mode now. The only bad two bad things, number one, raining it was hairy. Number two, there are things called police. They do not like it if you go triple digits down, like, the 6nm r t ho road, and i did not do, but i wanted to. I bet you did. Stupid mode. Im not going to comment. Hand stitched engines and stuff. Robert, thank you very much. Thats all for the first hou nd brian, take it away. Thank you, appreciate that. 2 00 on wall street,g 11 00 in hollywoodment the dow basically flat. Nasdaq creeping closer to 5,000. Two big stories to watch in the market right now, oil at the lows of the day, backis below 49 bucks a barrel. Apple, turning positive. Yes, hard as it was to believe apple shares were lower at one point. Is that allowed . Stick to both of these at the top of the show, dont worry, but right now, we have to get you our top story, and that is ibm. The stock is down again. Now, over the past year, big blue leaving investors feeling that way. Down nearly 13 and the dow is up more than 12. Ibm is addressing growth plans moments ago on power lunch. You and by design we have 7 billion, it is for a full year ofRevenue Growth<\/a>, not to mention the currency. All right. This is one of the biggest and widely owned stocks in the world, but there were questions about ibm out there. Number one what exactly is ibm . Evolved so m a, its a problem that does not explain well what it does. Two, should it split up . Yes, sold off unites, but theres 380,000 employees, in other words, is it too big to succeed . Three, and most important of all to you dear viewer and listener, is it a good investment for your money . Its not been for the last couple years. Melissa lee joining us and bullish on big blue 175 price target, at ibms investor day. Lou, beginning with you. What is ibm and what has been wrong with the stock the last few years that you obviously see changing Going Forward<\/a> . Im sure. Well, the biggest thing that happened in both the september and december quarter lowering numbers, and this on the line, end of the day, the biggest issue, and then looking at the 2015 fxs, a major head wine at 7 . I think what you heard here today is they are really focused on what they call the strategic imperative, 25 of total revenue today, and it improved overallotda double digit last year and next year and should hit 40 you know, its got a lot of good things going on, thats what investors can focus on. Whats lacking brian and tim was the path forward. When david talked to ginni about plans to grow, easy to say its going to get up to a percent by 2018, but in reality thats a 60 increase from what it currently provides to ibm. Very ambitious. To me, i dont see any Revenue Growth<\/a> for 2017. I think its a long time for the market to wait for a Company Still<\/a> in transition. We divested a lot of nonvalue added products. No one knows what watson will be. What sector will it grow from a hundred million in reeve now to a multidollar business. Right now, the only good thing going is sentiment at 20 year lows. The streak is looking for you know, probably on the outskirts now sentiment, and thats a positive place to be. Do you think the stock is cheap enough for the risk you take on . Well, yes. I think the issue is you know, when do you want to jump in . We look here you know, and i think coming into the panel, no one really expected there was going to be good solid financial evidence. T report the march quarter, the june quarter but here at lowes, those long Term Investor<\/a> focused, i think someone could start to build a position now in ibm and price target of 175 based on 12 month horizon. I dont disagree in the near term it takes a while, but others, itst turned around lick hb. Better time to get in when its not as obvious and when they perform. You know, lou, actually its funny you mentioned hp, listening a couple days ago, saying basically that splitting the Company Apart<\/a> was good because now theqo employees can move the needle, very poetic about the good decision. Do you believe ibm will, needs to, or should split up . Im not supportive of the Company Splitting<\/a> up. Sold autoso many businesses whether its the business the hard drive, and the vast majority of the employees are in services. Services is a labor intensive business. They get better margins at 17 , and some of their most competitive peers that ties in with software. Hardware is a small portion. I think they havec what they need and makes sense to keep it together. All right. Lou, thank you very much. Tim, do appreciate that. Lou bullish with a 175 price target. Big internet stocks on the move after the fcc approved new rules regulating the internet. Now to Morgan Brennan<\/a> with more. Hey well no real huge surprises here because of the vote to approve rules was widely expected. That said,59un can tell the stock story in a chart of two different companies. Lets take a look at comcast, largest provider in the u. S. , and full disclosure here, cnbcs Parent Company<\/a>. Look at this. Compare this to Video Streaming Service<\/a> provider, netflix, that tells the story as a result of the rules. This means internet will be reclassified as a telecommunication service, and its going to be regular lamt lamtlated as a ewe tillutility. Thats why you are seeing comcast shares falling. Netflix, that stock up 1 today. Its been one of the biggest proponents of Net Neutrality<\/a> rules, and these rules mean v zfreaming services will not be charged more in the last mile of delivery to consumers. Not charged more than other companies. Thats why you see this stock rise. Expand out to other isps. A lot of the kale and wireless Companies Trading<\/a> mixed. Charter communications and Time Warner Cable<\/a> is lower in addition to comcast, and mix vx]i at t and Verizon Trading<\/a> higher as well as cable vision. Other Internet Companies<\/a> that stand to gain from the new rule, facebook twitter, yahoo and google is spanning the divide between Youtube Streaming Service<\/a> and the fact it is continuing to build out fiber. All of these names higher. The only exception is amazon, which is trading a little bit lower and really has been all day today. Back to you. All right thank you so much, morgan. Hsm reporting Year End Results<\/a> that beat the streak. They post the a better than expected 10 increase on the quarter for digital strength. Sales lower on the session currently. We have minthe igy well, in our business a lot of that growth was fueled by digital. Hsn specifically has 14 sales growth in the quarter. Highest quarter since i joined the company. 22 digital growth and 46 mobile growth. It really is about engaging consumers across every one of our platforms and that growth came from the health and growth of our customer base, success mother files at an all time high optimizing digital platforms and using our content to create unique experiences. I want to talk about the competition in the space. Theres shipping promotions, one of the reasons why margins at hsni were lower than what wall street expected. It was a shipping promotion for the quarter. We heard from target they will lower the minimum amount of purchase order in order to get Free Shipping<\/a>. Is this a driver . A catalyst . Do you see shipping wars where were and more folks out there try to offer Free Shipping<\/a> . Constantly looking at the landscape of shipping. Look at the competition broadly, and we look at every single product and what is really going to drive impulse . Whats really different for us is over 70 of all the products we sell are exclusion ve to us. Right. You cant get them anywhere else. Its some of our catalog ecommerce businesses, thats higherment the real see is how do you have great product . 8cx how does the customer see its value, and, nicnyes, in certain cases Free Shipping<\/a> and handling is paid in play. I want to talk what drove the quarter in terms of the kinds of goods, electronics not apparel. Actually, we had growth in every segment including in particular on hsn, the apparel business. The fashion business, were bucking the trend. Thats been strong. In our garnett hill business we pulled back circulation to be able to really drive profitable growth. We think the idea of having the exclusivity we have, having uniqueness, and specifically at hsn, the democratization of our sizing has really enabled us to grow that business effectively. That catalog business is doing well sending out the catalogs, people shop by catalogs still . Think of catalog less as the shopping vehicle and more as the marketing vehicle to drive people to your digital platform. Oh. That continues to be important. All right, great to see you. Great to see you. Ceo of hsn. Back over to you. Thank you very much melissa. Set the menu for the remainder today. Taser taser sappaccident happened. What is controlling the control system, and heres a hint . Not much. The death of reaganomics, the change coming, more on that, the markets, oil flows, just everything coming up. Stick around. What does it mean to have an unlimited Mileage Warranty<\/a> on a certified preowned mercedesbenz . What does it mean to drive as far as you want. For up to three years. And be covered . It means your odometer. Is there to record. The memories. During the mercedesbenz certified preowned sales event now through march 2nd, youll get complimentary prepaid maintenance and receive your first two months payments on us. Only at your authorized mercedesbenz dealer. Todays session off the back of Earnings Report<\/a>s last night, that disappointed the street off of session lows right nowv4 down by 15. 5 . Speaking to rick smith tonight on fast money at 5 00. Brian . Thank you. Treasury market, a reason we are looking at bonds because we have a big interview in ten seconds here, but the treasury market is not seeing a huge move. We have seen a bounce over the january 30 lows hitting 1. 64 and the ten year is below 2. Mortgage ratings should be low. When i say relatively low, never been this cheap. Lets get to the second big interview of the day. I never get there, brian, i bet you dont either. Sitting here in new york city with cleveland Federal Reserve<\/a> president , and, boy, theres a lot to talk about. Thanks for having me. What happened yesterday . The hearing on the hill a lot of people said it was about as partisan as theyve ever seen. Your reaction to it . So i wish we were all there yesterday at the hearing. We have had some questions about our transparency, but as you know, the fed has been working on transparency and communication over the years, and questions comeo4h up about our policies. Im one who thinks that the fed is accountable cocongressto congress and the american public, and we behave in a manner that shows we are. Can we improve communications . Sure. The bill they talked about i think it is misnamed. Its misguided. Its not about auditing the fed. The fed is audited. They brought it up. We are audited. Its really about having political interest infiltrate decisions on a short run basis. Do you think the questions were appropriate . Especially questioning and suggesting that its political that the fed chair is meeting with the treasury secretary . I think the fed chair over time met with the treasury sector, and i think thats appropriate. I think its appropriate for congress to ask the fed chair whatever they want to ask. I think her response was the right one in that, you know we want to have a dialogue, right with the treasury secretary. But that does not mean that right political influencing is influencing her decisions on policy. Shes a very thoughtful Monetary Policy<\/a>maker. You have concerns at this point when you see how political the fed has become . Do you think that affects policy . I dont think the fed is political. I think we are going i mean, in the sense its itgwpd seems to be in the political arena right now. No, i think we will focus on economic eoelopment. Focus on setting the best Monetary Policy<\/a> that we can to further our landing begin to us by congress. I think it can be a distraction. In fact, you know, some of the hearing was about that rather than economic conditions, but well set policy based on policy best for the economy in terms of economics. Turning to policy. In your opinion should the word patient come out of the statement which signals to investors and to the public that a rate rise is two meetings away . Well, i guess im in favor of making sure that its on the table as a viable option. In my view, and i think the chair explained this quite well in our testimony, taking this out does not necessarily mean a rate rise comes in june. All right . What it means is that june is a viable option well look at any meeting, right, and go into the meeting with that being a possibility. Right now, patient is defined as no great rise for meeting. Get the viability, you get the flexibility or optionalty is the term you use right. Would you, if you voted now, think about what june is lookinec like, would you vote to raise rates in june . I cant tell you that because we accept data as it comes in the in the spring towards summer, right . We are data dependent in the sense that we look atom incoming datacg outlook, and set policy based on that. I cant tell you today what i will or will not support in jun i want to see the data that comes in over time. I can tell you my outlook is the economy is picking up momentum. We had strong labor Market Reports<\/a> over the last you know, six months]n c\u00f7 even, and we inflation inflations below the goal, but the report this morning about what was going on was not a surprise, total cpi being slow but core cpi stabilizing. My forecast is for inp flags to go up to 2 by the end of next year. We have to go. Give us a number for gdp this year. 3 . Very good. Stick around well do something for the web. Sure. Back to you, brian sullivan. Back in d. C. Fantastic. Thank you very much, steve. Great interview. We have much more fed talk, closing bell begins in washington, d. C. , and that guy, Alan Greenspan<\/a> is joining kelly evans live at 4 40 eastern time. Tune in. All right. Still ahead too old to fly . Why Outdated Technology<\/a> in our airports can be the single biggest threat to air travelers. Speaking of threats, we haveoj hahp hc what some call the biggest threats to the internet as we stick around, and power lunchs after this quick break. [ male announcer ] legalzoom has helped start over 1 million businesses. If you have a business idea, we have a personalized legal solution thats right for you. With easy stepbystep guidance, were here to help you turn your dream into a reality. Start your Business Today<\/a> with legalzoom. In new york state, were reinventing how we do business so businesses can reinvent the world. From pharmaceuticals to 3d prototyping, biotech to clean energy. Whether your business is moving, expanding or just getting started. Only new york offers you zero taxes for 10 years with startup ny business incubators that Partner Companies<\/a> with universities, and Venture Capital<\/a> funding for high growth industries. See how new york can grow your business and create jobs. Visit ny. Gov business over the next 40 years the United States<\/a> population is going to grow by over 90 Million People<\/a> and almost all the growth is going to be in cities. Whats the healthiest and best way for them to grow so that they really become cauldrons of prosperity and cities of opportunity . What we have found is that if that family is moved info safe clean, Affordable Housing<\/a>, places that have access to great School Systems<\/a> access to jobs and multiple transportation modes then neighborhood begins to thrive and really really take off. The oxygen of Community Redevelopment<\/a> is financing and all this rebuilding that happened could not have happened without organizations like citi. Citi has formed a partnership with our company so that we can take all the lessons from the revitalization of urban america to other cities so we are now working in chicago, and in washington d. C. , and newark. Its amazing how important safe Affordable Housing<\/a> is to the future of our society. Oil is at 48. 10 a barrel earlier, there was a trade at 47 47. 90 wiping out februarys gains. Theres talk about the immans balance, back into cohesion. No, not yet. Oil at 48. 0 5, counting down to the close here in eight minutes with oil remaining weak. An important air alert. United airlines out with a safety memo to the pilots highlighting a near mess rmiss, and yesterday southwestc is grounding 100 planes over otd misinspections. How worried should we be about the air industry now . Joining me is phil lebeau. Safest year ever in air travel outside of unfortunate incidentings like missiles knocking outs airplanes over ukraine, that aside, the Airline Industry<\/a> not investing enough or got not investing enough for down the road . The infrastructure needs to be updated. Everyone knows that. This is one of the things as if Everybody Knows<\/a> what the problem is in terms of congestion and the outdated infrastructure here in the United States<\/a> when it comes to air Traffic Control<\/a> and increasing safety. As much as the faa is working to improve the safety in the air to a certain extents hands are tied because the infrastructure needs are not moving quick enough in terms of that next generation of air Traffic Control<\/a>. We saw a couple areas around the country where they bring that in allowing planes faster access in and out of airports, but bottom line is this for years, this industry has been at the heated battle of people saying, yep, okay, lets update infrastructure, bu c oh by the way, we dont want to pay for it. You know if we can get that digitalization more increasingly air Traffic Control<\/a> radar system, still based off world war Ii Technology<\/a> we can stack more planes in the sky. Seeing delays, not because of weather but because of the technology. People do not realize that. The airlines, what the government pays government want airlines to pay passengers dont want to pay. Where do we stand . Brian, you said in the introe, a safe industry but to get there, we have to do all these extraordinarily inefficient things. You know, you think the benefit of being in an airplane, quite frankly, you can fly in a Straight Line<\/a> to the destination, right . Thats not what they do. Its really these highways in the sky with a lot of separation between airplanes to compensate for the fact that infrastructure is old. Really airlines have felt that if we spend the money, its worth it. You need government match, you know, to get the infrastructure up to where the Airline Investments<\/a> are worth it to where you move to what Airlines Call<\/a> free flight basically airlines fly in patterns that make more sense saving money, saving the environment burning less fuel, and saving us all time. Our viewers know i travel a lot, and phils not much but we travel a will the, okay given what we do and i know this, sitting in Newark Airport<\/a> sometimes, you think this is an industry that from a travelers perspective, appears to be doggone close to max come pass si total shut down sometimes, inoperateble. No doubt. Thats i get angry at the airport sometimes. What do you really think, brian. You know what im talking about, four hour delay, no reason why theres planes everywhere, and were 44th in line for takeoff of i have to get to a to b, paid to leave at 5 00. Its 9 00. Is it too beautiful . The industry is out of sorts and overloaded right now. If anything, its more reliable in recent years and really partly2 r thanks to consolidation consolidation, and airlines are doing well financially partly because they have taken capacity out of the system relative to what we would have had if you had all this, you know, if it was still a decade ago with airlines putting too many planes in the air flying below great fares for consumers, but a lot of extra service. We approached gridlock a few times, and ch time for economic reasons backed off. No question, were not that far away at certain airports, at least, from being back in the situation. You add another, you know, five or 10 capacity, and were back there. Sure. This terms of the airport, you want to see something proactive happening. Get down to the pilot issue though. Thats what the united letter is attacking alertness in the cockpit. Theres competition from the gulf\u00f7le\u00f7 airlines as well as asian airline, and then throw on this the reliance on auto pilot these days, which really makes pilots less alert. Right. Right. At the end of the day, melissa what you get to is the question of you need more pilots as you have a wave of pilots wlo are approaching retirement age, mandatory retirement age of 65. You have an industry that needs to bring more pilots in. I had a friend who is a pilot, not too long ago Say Something<\/a> telling. He said, you know, 15 years ago, most of the guys who were flying commercial planes came up through the air force. Thats the route to becoming a pilot. Thats not how it is now. Pilots do not come up through the air force, but Flight Training<\/a> schools. Nothing wrong with that, but the background and approach is different. Its changing. You highlight the key issue here which is youre going to need more pilots and are they prepared all ry he time, all the time in the cockpit . All right, thank you. Appreciate it. Minutes away from oil closing for the day, bug moves for wti, reports showing strength in the u. S. Dollar today. Live to the new york america tile exchange when we are right back. re up there, i could use some help. Smart sarah. Seeking guidance. Just like with your investments. That sets you apart. It does . It does. Youre type e. And seeking another perspective is what type e s do. Oh, and your next handhold. Is there. You dont have to go it alone. E trade gives you the support and guidance to make informed decisions. Are you type e . Now with the xfinity tv go app, you can watch live tv anytime. Its never been easier with so Many Networks<\/a> all in one place. Get live tv whenever you want. The xfinity tv go app. Now with live tv on the go. Enjoy over wifi or on Verizon Wireless<\/a> 4g lte. Plus enjoy special savings when you purchase any new Verizon Wireless<\/a> smartphone or tablet from comcast. Visit comcast. Com wireless to learn more. Heres your cnbc update this hour. A new york state appealtcf court revived two claims by macys accusing jcpenney of interviewing with Martha Stewart<\/a> living contract. The claims were thrown out by a judge who ruled in macys favor on a thinker claim. Nearly every californiian sees that states draught as a significant problem and onethird say they favor mandatory rationing up 70 points according to a survey released today. Its the fourth year of the drought. A judge dismissed a late prosecutors allegation that president fernandez tried to cover up alleged involvement of iran officials in the 1994 bombing of a jewish center. A federal judge cleared the way for vikings running back peterson to be reinstated. He was suspended until april 15 for involvement in a child abuse case. Thats your cnbc news update this hour. Back to you. Thank you. Crude oil down a big slide in the close. Now to the imex, and jackie, we are selling off again. Thats right. Good afternoon to you, brian, name of the game here is volatility, and wait and see to a certain extent. Crude is closing under 48. 50 and the selling pressure intensifying as we head into the close. Interesting to note that brent stayed over 60 while wti dropped under 50. St a couple factors to consider. First would be that stronger dollar. Theres a dollar index over 95. Thats part of the reason that were going lower today. Also, a selloff in the products because they went up so far so fast and crude right now seesj to be tracking with the refined products. A lot of people are worried about refineries out there shut down for maintenance, and also the refinery strikes. I want to talk about the supply and demand economics. You love the stack, brian. I ergs a crude stocks are 63 above, 72 Million Barrels<\/a> above the fiveyear average. In addition to that, traders are talking about cushioning. I talk about it in the inventory reports. Theres stocks increasing there. Well they think its possible its stocked up by eight to ten weeks. Asked what it means, and a trader said crude oil does down to 25. Is that the catalyst . Rrz not sure but its something to watch. Okay. Hold on there. Im not going to let you say 25 bucks a barrel and flitter off here. Explain cushing here. Its a hub there, and thats where the main wti delivery poins2nis. Now, its interesting because 25 bucks a barrel, though . 25 bucks a barrel. If we become full part of the problem is the stoj issue here. Traders look to the far enof the curve. They say later on prices are probably going to be higher in the 60s or whatever. They are looking at the prices here at 48 saying lets store this crude and sell it later at a higher price. Well, if you finally fill up the storage points and nobody can do that anymore and stocks continue to go up, the inventorys go up every week. Crude you have to sell. Exactly. You have to sell it. Cant horde it. Great point. We are full, full, sell it off, and theres too much of something and not enough buyers . Price goes down. Wep exactly. Demands part of the equation there right now. Listen, i have jackie, i talked to oil producers, scarry numbers, what oil is selling in the markets, not imex, not repeating them because you cannot verify, but theres people out there starting to desperatelq i can verify that, talked to producers and directors. Thank you very much. Sure thing. Okay. Heres an interesting question. Is the internet, as we know it, fading . Of course its been growing for 20plus years, but theres concerns. Number one, commerce. Whatever your views on0h n Net Neutrality<\/a> is, its a hot button issue, but opponents say they have to pay to build networks and pay less Going Forward<\/a>. As mark cuban told cnbc, quote, its a whackamole environment regulatorily. Question two, the chienese government did not get attention, but beijing banned thousands of u. S. Tech pronucts from approved vendor list apple, cisco, all victims of the clamp down by beijing. Finally, concern three, facebook and other apps, can anything stop facebook . Forget killing the internet. Facebook may be becoming the internet. Here to break it down is the editing manager, as i understand facebook and Everything Else<\/a> uses the infraumructure of the web to send and receive data on servers. What i mean, is that the internet, as we know it, google whatever, search engyps of the world, if were on facebook and apps were not going to the internet per se. Well, yes and no. I think the internet and whats great about the internet is that its very adaptable. You can layer apps on top of it, laker websites on top of it, a host of other services we have not seen yet. So, yeah, on your phone and youre using apps or on the tapless with apps or your desk top, youre on the internet. Its just in terms of Net Neutrality<\/a> ruling today, the ij idea is, you know have ceo call access to whats out there and providers cannot throttle, slow it down, or you know, speed up for special providers who pay extra money. You know the idea is that they are trying to make it a level Playing Field<\/a> as possible, and you know, its the question thats going to be well the broadband providers, did they bother spend r more money to make it better if they are regulated by the government. Well, what do you think . If the returns are going to be that of utilitylike returns, that does not speak very well for how much money they get back for the investments made. Why are they investor in broadband when they are regulated . Good question. The key nuance with the Net Neutrality<\/a> rules is fcc says they are not going to regulate prices, broadband prices the way they did with the telephone lines when they started instituting rules for telephone companies. You know, great j regulation is not on the table as far as this is concerned. It was largely sort of a u maneuver to mke sure that the fcc has a Proper Authority<\/a> to regulate it the way they should have without using the arcane bits of the provisions like regulating the prices. So thats still, of course, what broadband providers are worried about, and the ability for municipalities to tax services and so thats still a concern, but right now, thats not what is proposed. Thats not what is proposed to happen. Many companies out there will try to repeal the decision. Right. I want to talk about china and beijing trying to shut out American Technology<\/a> companies. This has been going on for soim time some time, but itsovib\u00f7 come to the forefront with the nsa spying scandal, if you will. Is this a risk Going Forward<\/a> for American Technology<\/a> companies . China was once the big growth market. Is it no longer . ; consumeroriented products like apple. Apples on the list as not approved or of companies that Chinese State<\/a> does not want to necessarily do business with but the consumer its turning more into a consumer driven economy, and if they like apple products, they buy it. It will however, hurt the back end type Companies Like<\/a> cisco, and the guts of the Technology Infrastructure<\/a> because u china really doesnt want those companies in there largely0a jc because of how cyber warfare is turning out to be, a reality between states, between companies, and those that the systems, they are vulnerable. Whether you are china or the u. S. For that matter, thats something you want to sort either keep secret or preserve and protect in a pay that makes it harder for hackers to happen. A real pleasure to have you on the program. Thank you very much. Folks, clarifying what i was talking about1g basically facebook is not the internet. Its a closed system google cannot index against it. If we spend time there, that takes time away from Something Else<\/a> unless you create time. There youzogo. You agree, disagree, final through the is apps. Specifically facebook. 71 of all online adults use facebook. Time for it to go up, says the head of sales trading, saying the stock is going to go to 100 a share. David . I challenge you on that thesis. Why is it going to a hundred bucks a share . Whats the driver . Well, brian just so heres the thing, just to make sure i get the correct plug like we talk about all the time. This is the internet analysis phenomenal, does great work, pro proprietary work and the survey created a buzz. He valued instagram at 33 billion. Its a massive driver for them. I think it was really under appreciated. The markets starting to i think the stock was 75 when he came out with the call, and you know, 80 82 here today. Look, certainly exciting. User growth is accelerating dramatically. They are seeing massive uptick. Thats going to continue to move and also the ad spend. Thats important to understand. Theres a 200 billion worldwide ad market for tv thats going so shift digital. Those trends will be very positive for facebook, a company, one of the few companies thats really going it benefit from that significant. They have two of the Fastest Growing<\/a> businesses, instagram and facebook, that benefit from the shift of tv to digital. From a trading perspective. In the past month, facebook is losing steam, up 4 or so and c. Uaer up 24 in the last p monthment look at that and say you know twitter has momentum and therefore, facebook could stall . From a trader perspective right now. Tell you what, if it hits on fast money with you friday when they brought up twitter as being a short. Twitter is a short. I dont like the stock. They dont have the ability to grow user base like facebook does. Its a complicated model. Its not very user friendly. Its probably getting more of a premium here. They did the partnership with google, which is i think great, its better for google than twitter but at end of the day, long facebook and short twitter because i think twitter is overvalued here. David seaburg a great and appropriate shout out to the analyst doing the work ghiepd the behind the scenes. Absolutely. Reaganomics need an update or scrapped all together . Well talk to larry kudlow. Plus i get paid for this. What it takes to be a boeing flight test pilot coming up on power lunc . E mclass scans for danger. Corrects for lane drifting. And if necessary, it will even brake all by itself. It is a luxury suv engineered to get you there and back safely. For tomorrow is another fight. The 2015 mclass. See your authorized dealer for exceptional offers through mercedesbenz financial services. If youre running a business legalzoom has your back. Over the last 10 years weve helped one million Business Owners<\/a> get started. Visit legalzoom today for the legal help you need to start and run your business. Legalzoom. Legal help is here. Ameriprise asked people a simple question can you keep your lifestyle in retirement . I dont want to think about the alternative. I dont even know how to answer that. I mean, no one knows how long their money is going to last. I try not to worry but you worry. What happens when your paychecks stop . Because everyone has retirement questions. Ameriprise created the exclusive confident retirement approach. To get the real answers you need. Start building your confident retirement today. Help join a continent with nearly 3 million rugged square miles with a single broadband connection. When emerson takes up the challenge its never been done before simply becomes consider it solved. Emerson. In new york state, were reinventing how we do business so businesses can reinvent the world. From pharmaceuticals to 3d prototyping, biotech to clean energy. Whether your business is moving, expanding or just getting started. Only new york offers you zero taxes for 10 years with startup ny business incubators that Partner Companies<\/a> with universities, and Venture Capital<\/a> funding for high growth industries. See how new york can grow your business and create jobs. Visit ny. Gov business the economic here theory thats the heart and soul of the Republican Party<\/a> for decades maybe gone forever. The Washington Post<\/a> reporting today leading republicans are clashing over a signature issue that the party is treated like gospel for 40 years. The idea that sharply lower taxes and Smaller Government<\/a> are enough by themselves to create and drive a prosperous middle class and win national elections. Larry kudlow is live at cpac larry, you are there, is reaganomics toast . Its not toast, sully. Not as long as im alive. Trust me on this. Well, people say, though, is that it was a failed theory built on debt and did more to hurt the middle class than create the middle class. Yeah, well if you go back to look at the 80s and 1990s, you created 50 million new jobs and everybody benefitted. Middle class incomes benefitted the economy benefitted. Couldnt have been better. Trouble is we have not practiced reaganomics in 15 years, and the economy stagnated under a republican and a democratic president and a republican and a democratic house. Democratic congress. Let me just say, marginal tax rapts is one issue, lower government spending, deregulation, and sound money. Those are the pillars. There is an argument now about things like child tax credits versus marginal tax rates. Me . I want a lower all rates, 15 flat tax. I want children, you love children, everyones loves children, but 2 trillion tax credit that only affects that slice, i want everyone to get lower tax rates. Millennials, x generation single people, people without kids, everyone should get it across the board. With wealth inequality of being the defining political and economic arguments of the last five or six years and will be Going Forward<\/a>, no doubt, larry, do the republicans acknowledge that their message has to be a little bit different because so many people especially younger people, are not going to buy the supply side argument. Well, i dont agree with you at all. In fact, i think polls show that younger people understand wealth and income inequality. Thats a sign of a healthy growing, capital system. Look, i dont believe in soviet socialism. I dont believe in income leveling. I believe in equal opportunity. We are always going to have inequality. The issue is is the economy growing to its max . Our rising tide lifting all boats. Those are the issues. We shouldnt have 2 growth brian. We should have 4 growth plus and the best way to get there . Look at the jfk 60s, the reagan 80s, the gingrichclinton 1990s, thats where those policies succeed. In the gop we need a strong president ial spokesperson to articulate those policies. This is no time to turn to larger government. Thats the obama democrats. Who is the gop nominee for president . Haha youre not serious. Youre not serious. Always serious. Theres a lot of good ones. Let me say theres a lot the gop has a deep bench this time around. I dont think the democrats do. Next time. Larry, thank you very much. All right, probably the least cool job politics to the coolest job. The weekly series featuring people who have incredibly awesome jobs. Today . Boeings chief test pilot. Im craig, and i get paid to be a boeing flight test pilot. Nice thing about the office is theres not many offices you can say you go mach 2 fastest than the speed of sown. Ours do. Its fun. We look for the worst conditions we can find. Land in those conditions. The airplane is drifting pretty hard to the right, pointed into the wind at this point as the pilots come down they use the rutter to realign aircraft with the runway and touch down. Unstuck speed, a test we used to term minimum air speed the aircraft can get airborne. Theres a woodblock to ensure it does not damage the airplane. We rotate the nose up and put the tail on the runway and wait until the plane lifts off. At that point, mark the air speed and mark the flying qualities to ensure the aircraft is fully controllable. This test is designed to mark the minimum air speed pilots if they lose engine on takeoff, they can continue to takeoff safely. Youll see the airplane do a dramatic swerve to the left because theres more thrust on one side than the other. As the pilots allow the plane to swerve to the left, they have to bring airplane back to center line. We use performance data and calculate number and waits to get out of airports and runways. We fly every day, making Airline Travel<\/a> safer, enjoyble more comfortable, and its satisfies to go home and know youre doing that. That guy has guts. Not all test flights involve him in the cockpit. This is video of the unmanned f16 hes remotely controlling from a ground station. Unmanned aircraft use test flights with a risk is deemed too high for an actual pilot. To see what else craig is paid to do, go to powerlunch. Cnbc. Com. Melissa . American express is down but an analyst says its time to get in. That and more coming up in street talk, stay tuned. I mean, come on. National gives me the control to choose any car in the aisle i want. I could choose you. Or i could choose her if i like her more. And i do. Oh, the silent treatment. Real mature. So you wanna get out of here . Go national. Go like a pro. I really admire my mother. Despite what people said she bought me a sewing machine and she let me play with dolls and that was something that was kind of growing up culturally, it was quite unacceptable and she really dared to let me be different. [thunder and rain] [thunder and rain] [thunder and rain] crude oil fell again today. Were at 48. 62 a barrel. Look at the oih. Thats the market vectors etf. It is down 2. 5 . But there are individual names on our screens that are lighting up in red flashing with sell sell, sell which is Clayton Williams<\/a> down 16 . They have posted a Fourth Quarter<\/a> loss. Wpx energy is down whiting petroleum, and comstock is getting hit pretty hard. If you look at the refining part of the business its seeing as continuing to be strong in spite of the continued slide. They are buying cheap, its a spread and its shown that when gas prices go down what do people do . They drive more. They use more gas. Exactly. They buy bigger cars like suvs. Okay. Here we go tmobile is up 20 . This is a Capital Market<\/a> space. Interesting comments by the ceo saying even though there are a lot of tieups happening in this area he expects tmobile to remain independent. Next up state street. Price target is 78 a share. The stock is close to the target. Credit suisse says the market will continue to be challenged. Next up cable vision. Green capital saying sell this stock. Their target on cvc is 13. Look at that stock reaction though, brian. The ceo actually commenting on Net Neutrality<\/a> saying theres not going to be any impact on the business. Next up american express, deutsch bank says by this dip. Upgrading from a buy to a hold. The stock is down 12 from year to date. We heard about the antitrust lawsuit and hike in interests rates. The price target goes up 2 to 90. The analyst rating is still overweight despite all of the negative headlines with an 89 price target. Final stock is vulcan materials. Its an infrastructure player really. They upped it to an outperform boosting it to 93 bucks. Thats 12 upside. And what a run the stock has had this year. Its up 25 . This is a 52week high. Melissa, thank you. That is the street talk. Weve shown you videos of sinkholes and now there is one much closer to home. Were going to show you, coming up. What does it mean to have an unlimited Mileage Warranty<\/a> on a certified preowned mercedesbenz . What does it mean to drive as far as you want. For up to three years. And be covered . It means your odometer. Is there to record. The memories. During the mercedesbenz certified preowned sales event now through march 2nd, youll get complimentary prepaid maintenance and receive your first two months payments on us. Only at your authorized mercedesbenz dealer. In my world, wall isnt a street. Return on investment isnt the only return im looking forward to. For some every dollar is earned with sweat, sacrifice, courage. Which is why usaa is honored to help our members with everything from investing for retirement to saving for college. Our commitment to current and former military members and their families is without equal. Start investing with as little as fifty dollars. Hey, girl. Is it crazy that your soccer trophy is talking to you right now . It kinda is. Its as crazy as you not rolling over your old 401k. Cue the horns. Just harness the confidence it took you to win me and call td ameritrades rollover consultants. Theyll help with the hassle by guiding you through the whole process step by step. And theyll even call your old provider. Its easy. Even she could do it. Whatever, janet. For all the confidence you need td ameritrade. You got this. Another sinkhole in st. Petersburg florida. The buildings wall nobody was in the building when it collapsed. Some business had to close because of the like. Weve seen a series of these. Wow. They are everywhere. Tonight on fast money, brian, we are going to talk to a gopro analyst. Remember the story in the journal about youtube not being profitable . Yep. How about gopro launching a content channel . If google cant do it, what makes you think gopro can . Well talk about that and the recent competition emerging in china. Its just incredible. Youtube has a billion views a month but no profit because of the content cost and equipment cost. Maybe they need to spin it off to a media company. They just bought it. On creating content. All right. Creating amazing content like you and i are doing right now. Its a difficult job, brian. It really is. It takes talent. All right. Lets look at the price of oil. Its not difficult to see what is happening here. The price of oil is tumbling. 48. 77, down over 4 of the day. And pretty much every stock on my screen right now, look at that is down. Youre down. And take a look at the dollar chart. Its part and parcel to the strength in oil that weve seen at session highs. U. S. Dollar and euro are particularly strong. He said listen the crack spread in refiners is the size of my darier. Which is giant. Welcome to the closing bell, everybody, im kelly evans down here in snowy, cold washington, d. C. What are you doing down there . Weve got a great show lined up. Im not going to spoil it for you right now. Youre going to tease us. Thats right. Im Bill Griffeth<\/a> at the new york stock exchange. The dow was higher but the blue chip is now in the red a day after closing on another record high. Maybe oil has something to do with it. Well talk about that. Nasdaq has been a winner inching ever closer to the 5,000 level. Were now 28 points away. 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