Month. The biggest trend and some of the midcap banks that you might be wanting to buy. Hello, everybody. Its a big news day here on cnbc, but a big day in downtown for a group of high school students. Steve liesman is live as he prepares to crown the top mind. Now there just 16 remaining and four teams. I have four on each side of me from high schools from around the country. We are going to crown the next bernanke and yellin and the next economic professor. They will humble and astonish you when you come back and hear some of these amazingly smart kid at how much they know with economics. Back to you. We are looking forward to that and it will be a great event. Steve, sit tight. I know you have a lot of smart people there. Apple shares are up 18 and more than 260 in the past five years. Investor who made a ton of money betting on apple is carl icon. That stock is dramatically undervalued by his analysis. Josh i guess uncle karl decided it was time to cent him another letter. Thats right. In his open letter to apple, ceo tim cook said apple shares are worth 240. That is 85 more than they are trading at today. At 240 a share, apples market cap would be 1. 4 trillion. Right now the companys market cap stands at about 750 billion. In his letter icon told apple to boost the buy back problem. Apple announced they are expanding the return program to 200 billion through march of 2017. The billionaire investor sees big catalysts ahead. They think the tech giant will enter new product categories televisions and cars. These represent 2. 2 trillion or two times the size of the markets. Rumors have been circulating. We dont know if icon has information, but he has done the math and said apple can enter the new Growth Markets and have plenty of cash to return to shareholders. He did not immediately respond to a request for comment. Back to you. Interesting story there. Overall it may be the quietest record of all time. The dow hit 18,297. Even with the move, more seem to be wondering if a break down is in the cards. What are they concerned about . Classic dow theory. I want to show you whats going on. Look whats going on elsewhere. The dow is at a new high. The transports are down. They hit highs at the end of december. Look how well the leadership held up. Health care names like unitedhealth stocks and disney and the consumer stocks doing well. The do it yourself group and great leadership. Economy is improving and dow is reflecting that. The railroads and the transports and the airlines have had a tough time. Railroads on the weird moves we had in commodities. Oil rebounded and certain things are going on. The question is are we at a market top . Tracy knudsen from lowrie was here she doesnt think so. We dont have the signs. We dont see a big increase in buying pressure and the advance at the timeline that normally deteriorates. That hasnt happened and we are here new highs on that. We are not seeing a lot of new highs on a daily basis happening. You want to see that for the bull market and they can advance a little bit more. Its on the inconclusive side and no signs of imminent deterioration. They rallied on the promise to reform the country. They team to be running out of steam. Are investors losing faith in the title deliver . She has more. Seema . The Top Performing emerging market, but one year later they are growing impatient with the many who hoped he would be the Ronald Reagan of india. Down about 6 over the past three months. Some say he is spending too much time traveling around the world most recently seen in china and taking a selfie with chang. Leading them to believe he is prioritizing foreign issues to issues at home. They are slowing down the ability to reform and pass bills. They recently downgraded to under weight to overweight and you can kiss that goodbye. That is seen as an especially part going forward. Despite the challenges he has made progress. A multibillion project and longterm indias bull case and they are getting the political constraints. They are judged over five years versus five years. This is a marathon not a sprint. Back to you. Thank you so much for that. Live from london. Showing cell phones are involved in an estimated 27 of all car crashes. That estimate increased for the third vat year. The nsc is releasing that survey here on power lunch. Welcome back to the show. I didnt think anyone would be surprised by these findings. The question is what do we do about it . Thats the challenge. People are not surprised because they see so many people doing it. What they need to do is talk about the things that Business Leaders are doing. They are leading the way. We have eight million innees who are covered by bans that have been commuted by employers. Some of the Largest Companies in the u. S. Exxonmobil led the way and we have so Many Companies doing this. Its not just about safety. There is liability issues and its Good Business practice. Again, to mandys point, you dont need a survey about this. The number of fender benders is of control. One or two every day. The roads are getting jammed up. You gave ideas but how soon can we fix this problem . As a frequent driver it is only getting worse. I think when you talk about the weighing between productivity and safety and we know that those crashes cost to everyone. We talk about technology being a challenge, but its the key to the solutions. What we are seeing now is ever more technology in cars. We are getting to the point where we have Collision Avoidance technology in cars and i do think when it comes to cell phone or in vehicle device use, anything that is nomadic or in vehicle, we will get smarter about that and technology can prevent the driver from being distracted. Do you think the mother of all technology, the selfdriving car, the surveys will speed up the move towards eventually getting the Regulatory Environment in place towards a situation where we do have them on the roads . Whether its google or nissan, their commitment about selfdriving cars and we know there is opportunity for this in the future. I hope that there is the potential to accelerate the safety validation that needs to go on. It will help us with distracted drivers and also fatigue and drunk drivers and elderly and teen drivers. You missed a chance. This was the perfect opportunity. They talked up the alma mater. Virginia tech. We are both graduates. We have classes together but you probably dont remember who i am. Talking on the phone is more dangerous than texting. It has been proving that talking is as dangerous. That may reflect the penalties. Studies show that the driver capability is about the same. You are absolutely right. People downplay how distracted driving results in fatalities and injuries and crashes. Thats to make sure people understand a quarter of the crashes we believe are caused by this. We have to increase the cost about good education and laws and enforcement. All of the above. Best of luck and thank you very much for joining us today. For more on cell phones and car crashes, you can go to power lunch. The most interesting thing is that estimate of 27 included hands free cell phones. It wasnt the ones that you were holding. As a guy with a long drive, cars are weaving all over the place going 80 miles an hour. Its unbelievable. Check out the financials. They have been rallying and the big that tracks them is the xlf. They have done well up almost 3 . Is it time to buy the midcap banks . We will let you know the biggest trend. We are back. Two hands on the wheel, right after this. [ radio chatter ] [ male announcer ] andrew. Rita. Sandy. Meet chris jackie joe. Minor damage or major disaster, when you need us most, were there. State farm. Were a force of nature, too. Its part adrenaline and part adventure. Its part geek and part chic. Its part relaxation and part exhilaration. Its part sports car and part suv. And the best part . The 2015 gla. Its 100 mercedesbenz. Lets begin the final round of the National Economics challenge. Everybody ready . Here is question one. You guys know what the rules are. Facebook did not exist. There more than 3. 5 active users. What category do they place mark zuk berg . Moving on to question two. In terms of nominal u. S. Dollars, the International Monetary funds World Economic outlook ranked which economy the Third Largest at the end of 2014 . You have 15 seconds. Germany . That are is incorrect. Steve, you may reread the question. Listen carefully. In terms of notenal u. S. Dollars, the World Economic outlook ranked which economy we will get back to steve liesman. Exciting there. Ali ba ba is being sued over sales of counterfeit goods. They accuseded online retailer of knowingly making it possible for counterfeiters to sell their products. They said they would fight it vigorously. Elsewhere, Las Vegas Sands are lower, citing tough challenging for the company. The United States and the parent of ann taylor and loft will be acquiring. They are among the brands currently owned. Up by 18 to the downside. The ceo will be on tonight on mad money with krim cramer at 6 00 p. M. Eastern. The sector up nearly 3 in the past month. A new report suggests potential problems especially for the biggest universal banks. Fred cannon is director of research and his firm out with a new report talking about the fragmentation of finance. He joins us and we know you are not a single stock analyst. As a company you have ideas, but whats going to happen with the big banks . They have only gotten bigger. Are they going to shrink . If we look at the market share, the big banks, the ones we think about are shrinking. The share of total financial and assets are back to 2000 levels. As a market share, they are back to the size they were before. Jpmorgan and wamu and wells fargo. This is opening up tremendous opportunities throughout the Financial Sector to start chipping away and taking pieces that was business. We look at the biggest banks and say how are they going to get smaller . How are they going to become fragment and which sectors are likely to come out victorious . Its a death by a thousand cuts. They have to hold a lot more capital and regulation. You are starting to see them divest. You are adding but netnet we have seen them over 200 companies while acquiring around 100. You see this especially at citi and bank of america. They are not selling right away but in small ways. When city sold off, spring leaf picked up. Its a lot of nontraditional banks. Business Development Companies or commercial mortgage. Everybody is starting to see this as a huge opportunity. Big the big banks control the assets. What are the picks on your list that might be the best beneficiaryies of the trend over the next 12 months. What we are seeing are the Smaller Banks that are showing growth. I lookedality the signature and private bank oust chicago. Thats a great opportunity. Also the rates and what they are finding is the regulations are starting to squeeze out commercial mortgage lending. You are seeing colony that we put in the report as real beneficiaries. Finally the managers u the kkrs and the oak trees of the world are a great play over the next not just year but to five years. Interesting stuff fred. Thank you very much. Great to be on. Lets go to Courtney Reagan for a market flash. Moving higher on headlines coming out of the Global Health care conference in boston. As reported first, the ceo said the Biopharma Company will not implement to fend off a take over pill from myelin and they expect it to make a tender offer by the 14th. This is up about 2. 1 or so. Back to you. Courtney reagan. Three years ago today, facebook was marred by a disastrous ipo and a mobile problem. They wonder if the giant could even adapt to the ever changing landscape. How things have changed. Now its a strong mobile presence and big acquisitions. What is next for facebook . What investors need to know, next. More and more, data is visual. In fact, the number of mris has increased by ten percent a year. And a radiologist might view a thousand images to find one tiny abnormality in shape, contrast or movement. Because its so challenging a Research Project is teaching ibm watson to see. In the future, it could help clinicians spot key patterns quickly and precisely. Ibm watson is working to make healthcare smarter every day. [ male announcer ] your love for trading never stops. So open an account with schwab. And when a market move affects, say a Cloud Computing 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. Isis has seized anvar province and fighters killing at least 500 people both civilians and soldiers in the battle for the city. Retreating on sunday this video posted shows isis fighters battling soldiers. It has not been independently verified by nbc. They believe isis will not hold ramadi very long. It is possible to have the kind of attack we have seen in ramadi, but i am coni have dent that will be reversed. Oil not moving much on the news and not physically close to the major facilities or fields in iraq and also the government saying they killed a major leader who is also the man believed to be in charge of the terror groups oil operations. Lets take a look at oil prices. If you can bring up the board, we will show you where we are sitting. At 12 27 at the close. Gold has risen for five straight sessions and gaped about 3 . One of the best weeks and months. Silver and platinum moving higher and copper and palladium are down. Rick is tracking all that action at the cma. What are we looking at at the start . It hasnt been an aggressive session, but we settled. We ton move closer and closer towards the 2. 25 level. If we look at this that settled at 293 thats up seven basis points as well. To make sure you realize, we are 25 basis points higher than we closedality 275 at the end of last year. The 30 says continue to steepen that augers for the long end and has something in its mind and is in stronger growth pushing the rates higher. If you look at the dollar yen, maybe its out there. It keeps getting tighter and the last chart, chicago may be poisoning the well with regard to munis. We will be talking about the issues and look at the mub and the etf. Starting in july of last year. That was the last time it was down at these levels. Thank you very much. Today marks the third anniversary of facebooks ipo. A lot has changed and the stock has more than doubled. Making deals and grow ad revenue. We will hit what is next for face back. If you are planning to go to the hamptons, listen up. The major battle is brewing that might impact. Will you be able to take the chopper with the bubbly . The Technology Changes the design evolves the engineering advances. But the passion to drive a mercedesbenz is something that is common. To every generation of enthusiast. The 2015 dream machines, from mercedesbenz. Todays icons. Tomorrows legends. Visit the dream machine event today for up to 3,500 towards purchase. E financial noise financial noise financial noise financial noise building aircraft, the likes of which the world has never seen. This is what we do. Thats the value of performance. Northrop grumman. Just because im away from my desk doesnt mean im not working. Comcast business understands that. Their wifi isnt just fast near the router. Its fast in the break room. Fast in the conference room. Fast in toms office. Fast in other toms office. Fast in the foyer [pronounced foyyer] or is it foyer [pronounced foyyay] . Fast in the hallway. I feel like ive been here before. Switch now and get the fastest wifi everywhere. Comcast business. Built for business. Hi everyone. Im sue he rer a. Passengers in the amtrak derailment filed a federal lawsuit against the railroad according to court filings. Four passengers claimed injuries and the lawsuit was filed in District Court in philadelphia. More fallout from the deadly biker bang shootout in waco texas that killed nine and led to 170 arrests. The corporate owner of the restaurant where the violence explode revoked the agreement that it had with the owner. The corporate parent had that in place. Carl icahn said they remain dramatically undervalued and time for them to execute a much larger buy back. Apple shares are worth 240 a share, nearly double where it is now trading. Take a look at this. Russian period putin dressed in number 70 everybody was dressed in number 70. He took to the ice over the weekend and he is playing in a friendly match in coachy. He score sochi. I doubt anyone would go up against him. They did wear the number 70 on their uniforms and that is in tribute to the 70th anniversary of russias victory over nazi germany in world war ii. Back to you, brian. I dont think i would want to be the to block mr. Putin. Block a putin goal is not a good strategy. I dont think so either. No. Wow. Putting on something. Markets surging and the dow hittinga i new high. A new record and pap pisani where there more buyers and sellers. Everybody was bhining over the last few weeks. We are in a trading range. We are not anymore. We have broken out. Once we moved over last week we were out that was trading range in new high and break out territory. We are not getting big moves. Thats why people were concerned about the energy in the market. We are not seeing a lot of people buying protection. They are sitting around 12 near the lowest levels of the year. We see no increase when the marks are down a bit. The important thing is we have a broad rally and energetic one. Materials have been on the weak side. We are not getting volume break outs on the news. There the major sectors. I want to know what the big topic of the day is. Industrials you heard from brian hitting new highs, but the dow transport is down about 5 on the year. The key point about all this in the way the technicians feel, we are not seeing heavy selling on the downside and not heavy buying on the upside. The markets are flashing yellow signals, but not red right now. I think thats one of the problems that people are having a hard time sorting out all the qs. Lets discuss this more. Can you still make money in this market or are valuations too high . The managing partner a