Stocks selling off today after two Straight Days of gains. The dow is off the lows of the session, but we can see there it is down by 154 points. So by triple digits with this volatility translating into a good year for active managers. According to funds track, 52 of large cap managers and 73 of value managers are beating their benchmarks in the Second Quarter. Joining us now, bill nichols, head of u. S. Equity trading at cantor fitzgerald. It really hasnt been the greatest environment for active managers until now. Right, robert . Yeah absolutely mandy. I think thats putting it mildly. Right . For the last six years since the bottoming out of the s p in 2009 active management has gotten trounced. I think thats indicative of the environments. Everything across the board was cheap at that point so trying to pick a handful of stocks or 40 or 50 stocks was really a losing proposition. But today when you look at fair valuations across the board, i think now is the time over the next three to four years well really see the active management and good stock pickers really outperform the rest of the market. For the next three to four years. Bill would you agree that now is the time that active managers can really show their value . I agree. These things always go in cycles. Youve seen real divergence in different sectors. Obviously energy selling off. Health care and pharma outperforming. Well have that as a big topic next month at the health care conference. I think with that divergence stock pickers can really make hay as opposed to markets that just all move in the same direction. Robert what stock picks are you looking at now . Things we like really are companies that are focusing on a niche business really disrupting and dominating those areas. Some of the companies we like right now are in the secular play. White wave really taking advantage of the switch to natural and organic foods. We also like Companies Like restoration hardware. Thats a company right now thats completely disrupting the industry. They had a Conference Call yesterday after reporting better than expected earnings. The company is not resting on their laurels, dominating growing 15 to 20 but they realize they cant do the same thing for the next two to three years. Theyre coming out with Innovative New ideas, really taking advantage of dominating a speefk specific niche out there. Smaller mid Cap Companies we think can separate away from the pack and produce top line growth that people will be looking for in the next couple of years are the companies were investing in. So more towards the small end. What about you bill zp had. I think you have to look at different sectors. Market is saying stay away from utilities, Real Estate Energy with a bottom and a rally slightly is more interesting in the medium term. I think financials are a sector worth looking at. Theyve not been participating the last seven or eight years so that could be a space that could look to be good over the next year or two. What is your energy call based on . Not an expert in sort of the crude market but i think just being a market watcher, i think probably right around these levels, maybe trades up to 65 or 70 as a high but i think the downside is probably in and i would be surprised if it trades much below 50 in the near term. Thank you both very much. Go to powerlunch. Cnbc. Com for more. Shares of eli lilly taking a bit of a hit today, up 7 though still for the week. Investors making their bets ahead of a new longterm data release im sorry . Lets go to dom. I just got that word into my ear. We have the bakerhughes rate counts rig counts. U. S. Oil rigs down seven to 635. They were about 907 one year ago. So again, were seeing this continue decline in total rig counts down seven to 635. Also want to put it in to perspective here too. Oil production is still near these record high levels. Again we have the Oil Rig Counts for the u. S. Down seven to 635. They were 907 one year ago. Thank you. As we were mentioning eli lilly shares up strongly this week about 7 ahead of what may be some new data on an experimental alzheimers treatment. Who else but meg terrell to tell us about it. So this drug is in the late stages. There may be some data coming over the next few days ahead of an alzheimers conference in july. This drug works on whats thought to be the underlying causes of alzheimers, that buildup of black in the brain. Similarly to a drug called boi biogen. Their stock drove up in march. This drug failed in studies in 2012 but lilly identified to a Patient Population that responded better to the drug, patients with earlier forms of alzheimers. This update we may get over the next few days may give us a glimpse into how well the drug may be working. Bup but the large base testing in this population isnt expected to read out until the end of 2016. Alzheimers is such a huge problem. More than 5 million americans are affected. No drugs on the market currently work on the underlying causes of the disease. If this drug is successful analysts say it could be more than 5 billion in annual revenue. We saw the excitement of alzheimers drugs playing out yesterday, the ipos shares almost doubled yesterday on the first day of trading but that drug doesnt work on the underlying causes like this lilly drug aims to do. It works on the symptoms. Ceo of that Axovant Company on jim cramers show last night. How near or far are these medicines from being available in the marketplace . The ones from lilly and biogen is maybe end of 2016 beginning of 2017. Axovant just works on symptoms. Multibillion dollar drug even though it doesnt work on the underlying cause. They may start a phase three trial with the last stage of studies by the end of this year with the monies they just raised yesterday. I just learned that megs parents were scientists so she grew up talking about things like that around the dinner table, im sure. Mondelez upgraded to outperform from market perform at bmo capital saying the packaged food company is doing well. Williamssonoma upgraded to outperform from perform at oppenheimer. They believe the retailer is well positioned to benefit from trends in the industry. Bob evans farms is considering converting to a reit or selling and leasing back its restaurants. The company will make a final decision in a few months. Lets look at the house floor where Minority Leader Nancy Pelosi is in the well of the house, talking about trade Promotion Authority. Basically, the bill that the house will turn to very very soon and when it does we will bring the results of that vote and analysis to you. The trade Promotion Authority bill would basically allow the administration to negotiate a trade pac with some asia pacific nations, and then bring it to a vote on a straight up or down with no amendments. Thats the issue thats being debated here. Generally the people on the gop side favor this bill and more people in the president s own party are against it largely because of opposition by labor. Again, whether that vote takes place and we expect it soon we will have it for you. Mandy. In the meantime, check out the biggest losers on the s p. This hour down about 2 . Lets take a look. Youve got, for example, marathon petroleum, vertex pharmaceutical. Transpacific ocean down by 2. 4 . Nat gas prices up 11 in the past two months. We know it is a widely used winter trade but it is also a really big summer trade. Why . Well, think air conditioning. How much higher nat gas could go in the next two months. Welcome back to power lunch. Everyone of the ten sectors on the s p are moving to the downside with energy here the biggest lager. Certainly very bearish for prices. Some news coming out of saudi arabia that they could look to raise output further. The least the least bad, i guess if you could say that is discretionary, Consumer Discretionary is down by. 3 of 1 . The s p is down by. 7 , or 14 points at 2,094. Natural gas has been surging over the past week up nearly 8 . These are trends we usually see in the winter months when cold weather is on the way. Not so much in the summer so whats the story . Dan leonard, Senior Energy meteorologist of Weather ServicesInternational Joins us now. Dan, good to have you with us. I guess we shouldnt be surprised because natural gas powers a lot of air conditioners, like mine and ive had mine running pretty hard this week. Yeah exactly, tyler. You think of natural gas demand and it is mostly in the winter. Right . You are directly heating houses with the natural gas, and businesses. In the summertime it is a little bit more of an indirect effect. You are using your air conditioners, that uses more electricity. Where does the electricity come from . Power plants that are using more and more natural gas these days getting away from coal so that brings more natural gas online. In the summertime now we have more and more demand for natural gas just because of the air conditioning. What are we looking at in terms of temperatures over the next as far out as the eye can see for the summer both on the east coast and in the middle west which are heavy users. Exactly. Thats the Million Dollar question. Right . Thats sort of where things have been getting tricky. We havent had a typical el nino type summer. We have a strong el nino right now. Thats undeniable. Typically in an el nino summer you would get cooler temperatures in the summer. We really havent seen that yet and it looks like the next week to week and a half well have a lot more heat especially in the southeast. Wouldnt shock me if a couple of cities down there sit the century mark. A lot of traders are asking me when is this cold weather going to show up. Thats the Million Dollar question going forward. The prices obviously depend heavily on whats going to happen in the mediumrange and into the longerrange. If we have a hotter than normal summer and last summer was quite cool. I cant remember how many 90degree days we had in the new york market. It wasnt many if any. If it gets hot, how much more could nat gas rise . I mean right now the price of natural gas has sort of built in a cooler summer. Everybody is pretty much expecting a cooler than normal summer. We had one last year. We havent really had a hot summer since 2012. Theoretically if we get an abovenormal summer prices could skyrocket but we dont expect that. We still expect later june into july well see this el nino pattern kick in and cooler than normal temps will develop especially across the midwest heading into july. So all things equal we think we still expect a cooler than normal summer. Interesting. Interesting. There you see it. Its going to be hot in valdosta next week. Thanks, dan. We appreciate it. Mandy . Made in america. Using good oldfashioned ingenuity and red, white and blue color workers to drive profits. The ceo of athletic giant nubalance will tell us how hes using cheap stocks over labor. At chase, we celebrate Small Businesses every day through programs like mission main street grants. Last years grant recipients are achieving amazing things. Carving a name for myself and creating local jobs. Creating more programs for these little bookworms. Bringing a taste of louisiana to the world. At chase, were proud to support our grant recipients and Small Businesses like yours. So you can take the next big step. You probably know xerox as the company thats all about printing. But did you know we also support hospitals using Electronic Health records for more than 30 million patients . Or that our Software Helps over 20 million smartphone users remotely configure email every month . Or how about processing nearly 5 billion in electronic toll payments a year . In fact, todays xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. With xerox, youre ready for real business. Welcome back. Check out shares of bojangles. This is a Fried Chicken and biscuits restaurant. Reporting its first earnings since going public last night. Kelly evans and scott wapner will have the ceo in an exclusive interview coming up on the closing bell, 3 00 p. M. Eastern. Cnbc exclusive. Hope he brings some food. While many well known athletic footwear brands have moved manufacturing overseas or never really had it here in the u. S. In the first place, new balance continues to make millions of sneakers right here in the United States. Take a listen to why they make their shoes in america despite those high labor costs. New balance is the only major Athletic Shoe company that continues to make shoes in the United States. We produce over 4 million shoes annually in our five u. S. Factories. Our competition left over 30 years ago. Major reason why we continue to make shoes in the United States is the commitments to the communities. More importantly, there pea a customer thats willing to pay a premium based off of the craftsmanship of our product. In order to continue to make shoes here in the United States weve taken our process from cutting Raw Materials to shipping finished shoes from eight days down to three hours. Rob dimartini, ceo of new balance. Good to have you join mandy and me today. What is the big advantage you get out of making your shoes in america . Quality, or what . Well we really think theres three main advantages. The first is innovation. As you said in the opening, a lot of people in our industry dont actually make their own product. We think by continuing to manufacture, we know how and can find better ways to do it over time. The second you hit on the head is quality. We think that it allows us to create a very crafted product and weve got 1,300 associates in those five factories with an average of 13 Years Experience making those shoes. Then the third reason is the consumerism today is changing so dramatically in getting to know consumers on a one to one basis. It used to be a privilege. Now it is really their expectation, and our Custom Program allows us to do that. What is the biggest challenge you face as a ceo in continuing to manufacture shoes in the United States . Is it finding Skilled Labor . Is it sourcing the materials that you need to make the product . Well, both of those are definitely a challenge. Materials in particular because the industry left our shores by and large, 30 years ago. Weve had to work very closely with a number of suppliers to make sure they keep enough materials here in the u. S. Our 990, one of our most iconic shoes has 30 different suppliers that are all u. S. Made materials and that allows us to keep making that product. There are so many competitors out there, arent there . Nike adidas. Just so many Shoe Companies doing similar things. But what makes you stand out at new balance, apart from the fact that youre made in the usa . What makes you really stand out if i wanted to buy a running shoes, why would i buy yours . I think because we have continued to make shoes i want to continue to say what i said earlier. We have more people making shoes today than any time in our 109year history. We think our product is better. You heard earlier from brendan who runs our u. S. Operations. I walked that line this Tuesday Morning and those associates theyre crafts people. Theyre not making withe widgets. Were exporting out of the u. S. More than a million shoes. But why are yours shoes better . You say theyre made by crafts people. Im sure every shoe company would say the same thing about their products. Well im sure every shoe company would say the same thing but again were 109 years old. Weve always been known for fit and comfort and the fact that we run our own factories allows us to understand innovation. Brendan said in that clip you played that years ago what took us eight days to do we now do in three hours. You simply dont get that kind of knowledge in a Contract Manufacturing industry, and to a great degree thats what were in. How much higher are your costs to manufacture than the costs that a competitor, like nike, who goes out to contract manufacturers in asia would face on a shoe . Roughly how much more . It is roughly about ten times more expensive on the labor component. To a great degree that is why the industry left years ago. How do you compete at that level of disparity of cost . How do you compete . I mean it is quality, but people swear by your shoes. Some people have flat feet wide feet and they swear by them because they just fit them better but how do you compete . We do it because weve been committed to lean manufacturing for more than 20 years. I go over to asia at least four times a year and meet with our partners who do make shoes for us over there, were teaching them. We fundamentally believe as a company that making things matters and by making things we know our business better. We think that allows our your company has been resolutely privately held throughout. Why not go public . Would you ever consider it . No were not interested in public. I think things like this are examples. That the shortterm pressures that would be put on us somebody would come in and say, hey, do you know its ten times cheaper to make it every o there . Yeah we know that. Thank you. Very good answer there. Continued good luck to you. To learn about other companies that manufacture in america, go to powerlunch. Cnbc. Com. What we have right now is an update possibly on the recent hack attack that exposed what was originally thought to be about 4 million personal records of civilian contractors and Government Employees both current and former. According to a report from the ap that number could be as much as between 9 million and 14 Million People going all the way back to the