we don't just make luxury cars. we make cadillacs. crocs. >> there you go. >> "power lunch" begins right now. >> yes, it does. three hours to go in the trading day. and the street is in retreat. no deal yet in greece. consumers not spending. stocks down. vix up. is the january jolt to the upside fizzling out? >> the facebook fallout. the social network expected to file for an ipo this week. who wins, who loses in silicon valley when marc zuckerberg and company friends investors. >> and financials the worst performing sector last year. it's getting hit hard today, but still one of the best performers this year. citi upgraded, b of a downgraded, what's the bottom line on the bank sns. >> we will find out that and

more. i'm tyler mathisen with sue herera and brian shactman. "power lunch" begins right now. how about this, the dow closed with a triple digit move only once this year on january 3rd, that was the first trading day of the year. europe interests today on the front burner and u.s. consumer spending is flat. we're off the lows but a triple digit move still on for the day. 75 points in the dow, s&p 500 down more than half a percent. the pulse of the markets that yield on the 10-year touching a fresh 2012 low today. the 5-year hit an all-time low by the way. that yield at 1.82. the euro a little weaker and the dollar stronger. and of course we have the vix just a touch below 20 to the upside. midday movers big drop for ga net. wendy's lower on a 30% drop in

earnings down almost 2%. on the upside, amlen up. pep boys being taken private by a p/e firm and thomas and bets getting bought. it's up 22.5%. more details and the trading floor with marry thompson at the nyse. >> started overseas in asia, spread to europe and now here in the u.s. the markets off their lows of the day. certainly overshadowing the markets of course is a lack of a greek deal. it's interesting to note that the s&p did touch 1300. it managed to come off those levels now at 1307. triggers keep an eye on the 1300 level as seen as key support. these are the groups moving today. financials as brian mentioned at the top of the show they are weaker. bank of america down one of the best performing stocks in the dow so far this year. some giveback expected. news from goldman sachs cut it from neutral to buy. the better performing sectors and really only two of them

today are telecom and tech getting some strength in the stocks like apple came in with better than expected results. numbers on costa concordia going to cost between $155 million and $175 million. that's $155 million to $175 million hit to its 2012 net income. once again the dow's off 82. tyler, back to you. >> mary, thank you very much. let's switch on the "power lunch" power surge and drill down on some of the stories that are driving today. new data out today showing americans are saving but not spending so much. and is this playing into the fed's pessimism? steve liesman spoke exclusively earlier today with the philadelphia fed president, charles plosser, what did you learn? >> i learned he's not among the pessimis pessimists. he was one of the three fomc members we learned, remember we got those rate forecasts last week, he's one of the three who sees a rate hike coming in 2012.

and in fact he's one of the more optimistic ones economically. he does see growth at 3% or around 3% in 2012. and forecasted unemployment could fall to 8% or lower by the end of this year. and he thought that the statement that came out at the head of that fomc policy statement last week on the economy was a little too down beat for his taste. >> i thought it was a little bit pessimistic. i would have preferred a little more optimism in the statement. i think the outlook has improved in the last several months. it's not that we're going to take off like a skyrocket going into this year, but i do think that the things are looking better, the employment picture, the labor market looks a little better. i think there's reason to be hopeful that we're going to make this continuous modest progress towards recovery. >> as a result, plosser's a pretty well-known inflation hawk. sees little need for the fed to do additional qe or buy additional mortgage-backed

securities. he says he's worried about this easier policy that could be coming down the road. on those interest rate forecasts, he says they're not a commitment, they're just a forecast and contingent on the economy. finally we got his first comments from any fomc member on the historical move last week to do inflation targeting. >> having a central bank with an explicit inflation objective is kind of central banking 101 these days done by all major banks around the world except for the fed and we have now done that. it's very important as a means of commitment. that's going to make monetary policy more effective. and frankly it's going to make monetary policy more accountable. >> that inflation target as you guys know set at 2%. and plosser would like to see the fed hit that target. guys. >> so, steve, how much support do plosser's ideas have on the fomc? i'm assuming he was not a voting member of the most recent meeting. >> he was not. he did dissent most of last

year. first his ideas for policy i don't think have a lot of support, but he was on that communications committee that created these new tools that are out there. and i think he was pretty successful in getting a lot of his thoughts into the new communication strategy. a lot of support on that. >> thank you, steve. >> to the bond market now where yields on the 5-year are hitting record lows and the 10-year heading back to lows of the year. joining us now is alan epman. good to see you, alan. welcome back. >> thank you very much. >> the bond market certainly is not reflecting what we've seen lately in the stock market. 1.83 is the last i saw on the 10-year. what is that telling you? >> well, that's going to be very supportive for stocks over the long run, obviously. the cost of money is just declining and declining. and that's going to help out corporations for their borrowing costs. but if we look overall trends will be down in yields and approaching the lows we saw here just a couple months ago in the 10-year.

we're seeing a little bit of a bounce in the price of bonds in 10-year and 30-year because of a little unwinding and maybe a little bit of flight quality on the fears. but if you look at this unwinding today, we're only down .5% in stocks, we're down a quarter in crude oil. you're not seeing much of a reaction. i know you guys were talking about a triple digit selloff in the dow, but triple digits is not much in percentage terms when we're above 12,500. >> that's true. given the backdrop of greece and inability over the weekend to forge a deal, do you anticipate that yields will move decidedly lower from here or not? >> well, i think overall the trend's going to continue. we had this -- we've seen a bit of a spike in the price, obviously, on people gathering assets from a safety standpoint, but i just think that the longer term yields are going to continue to trend lower. i don't look for anymore spikes in price because of fears out there. i think those are slowly being digested. i'm really encouraged by the way the market reacted with this

weekend news to only be down this modest amount is very appealing. and we needed this unwinding because how many sessions we went up 12 sessions in a row a couple weeks ago. we needed some of this pullback. and this is healthy and gives you more buying opportunities once again. >> alan, thanks a million. good to see you. >> thank you very much. >> and from bonds to the other side of the spectrum, the big talker of the week, facebook expected to file its ipo paperwork on wednesday. what impact will that have on silicon valley? and who will be the winners and the losers? jon fortt is in san jose with the facebook fallout. jon. >> hey, tyler. three areas to look at here. the ipo pipeline, business momentum and hiring. first the ipo pipeline. i hear from the people positioning companies out here in the valley that the last thing you want to do is ipo anyone near facebook. the news coverage a company could get around itsz ipo is valuable marketing and facebook has so much buzz, it's going to

drown out everyone else. second, business momentum, seeing staggering growth in share of display advertising. that reflects on yahoo! especially, but google too. which leads to hiring. there's a pretty tight job market in silicon valley for top engineers and sales talent and a new facebook will have more weight to throw around. raising somewhere around $8 billion in an ipo, facebook already buys more than a dozen start-ups a year. it's going to be a player here. we talk potential losers with yahoo! and google. so who wins? one cloud and data start-ups, one of the biggest cloud companies on the planet, also facebook suppliers like intelin fusion io whose technology helps power facebook's custom data centers. finally, qualcomm and apple. why them? mobile's the real growth platform for facebook. they tend to be twice as engaged. >> quick laundry list of other companies that might be in the pipeline to go public in silicon valley later this year?

>> oh, well, i mean, so many of the public companies -- private companies out here from your twitters and others, could be lining up to do that, but those are exactly the ones who would want to stay away in a situation like this, tyler. >> thanks very much, jon. >> meantime, the government may be getting ready to pump more money into the mortgage financing giants, freddie and fanny, our real estate correspondent, diana olick, is all over this big story for us. >> that's right. the obama administration's announcement that it is broadening dramatically its mortgage modification program is all about getting fannie mae and freddie mac's regulator to agree to principle reduction. so far the program has helped far less than the 3 million to 4 million borrowers it predicted years ago giving about 750,000 people permanent mortgage repayment reductions with 30,000 getting principle forgiveness. now the treasury sweetens the

deal. they're tripling the cash fund incentives to lenders and offering those incentives up to fannie mae and freddie mac. they go from between 6 and 21 cents for every dollar of principle forgiven now to 18 to 63 cents, that's the range. why? politicians have been screaming for principle reduction, but ed demarco, he's been fighting it. they keep trying to push him out. last monday he responds with this letter to members of congress explaining his math. he claims it would cost fannie mae and freddie mac $4 billion more to reduce mortgage principle as opposed to the amounts they're already doing which generally lower the loan's interest rate. so friday low and behold the treasury fills that $4 billion hole using offering up taxpayer t.a.r.p. money in the form of these incentives i just talked about. if demarco accepts this, that helps the housing inventory by not adding more foreclosures and a great boom to mortgage

insurers by bringing many delinquent loans current and helps mortgage servicers because fewer loans, we would hope, would default. sue. >> diana, there's also an incredible story t freddie's been betting billions of dollars against homeowners. explain, if you could. >> this is tough to explain. it's very complicated. it alleges that freddie mac, which bought these securities called inverse floaters, really tranches that bet really against interest rates on mortgage payments, they're all about the interest rates movings. so if the borrower refinances a loan and freddie mac loses on this investment and it's a small amount of their investment portfolio, then you're pitting, okay, this is the group that's trying to refinance people, right? that's freddie's mission, but they're betting against them with these securities that lose if a borrower refinances? that's the argument that was out today. but there's been a lot of traffic claiming this is just an interest rate hedge. >> that's what i was going to say. probably claiming it's a hedge.

>> right. and freddie not giving out a statement but sent me numbers saying their business in 2009 and 2010 when they invested in these, 80% of their business was refinances. >> that story's not dead yet. thanks very much. >> straight ahead, one more trading day in january. the s&p up almost 5% for the month. nasdaq 8% higher, but the vix is creeping up. >> is volatility back? and is big cap tech she try today say, the best place for your money? stick around. some answers in two minutes when ty and i come back. americans believe they should be in charge of their own future. how they'll live tomorrow. for more than 116 years, ameriprise financial has worked for their clients' futures. helping millions of americans retire on their terms. when they want. where they want. doing what they want. ameriprise. the strength of a leader in retirement planning. the heart of 10,000 advisors working with you one-to-one.

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welcome back to "power lunch." i'm sharon epperson at the nymex. gold futures are holding up pretty well considering what we're seeing across the sector. gold futures down $2 or so above the 1730 level priced in dollars. it's gold priced in euros seeing the momentum. aft fomc statement last week we saw the surge in gold prices. now there's some safe haven buying on the lack of confidence about what really will happen in terms of resolutions coming out of the european union. and the concern about what's happening with the eu is definitely dragging down some of the other commodities. look what's happened to copper. with copper off of its four-month high and seeing that as one of the weakest parts of the commodity sector. meanwhile oil prices are slightly weaker. we are seeing some support.

there's still a great deal of anxiety over iran over the weekend saying they have a draft resolution ready to ban exports to the eu this after of course the eu's import ban. opec secretary general saying the market is still very well supplied globally with crude oil and the saudi is will make up for any shortfall. >> thank you very much. meanwhile volatility is back. the vix surging today anyway after falling about 15% since the beginning of the year. is volatility back to stay? joining us are david smith, chief investment officer and john ka nelly economist and investment strategist at lpl financial. welcome back guys. good to have you here. >> good to be here. >> david, i'm going to start with you. the bond market is tells us one story. yet the stock market although it's had some tough sledding today seems to be recovering

quite nicely. what do you make of it? >> i'm a little surprised quite candidly how the stock market bounced off the lows today. look at the news coming out of europe, in our opinion europe will be the driving factor of what happens in the stock market in 2012. and the news out of europe over the weekend that the european union, particularly germany, is going to try to put some very rigid constraints on the budgetary processes in greece, which obviously the greeks aren't happy about. the fact that stirred up the markets this norng and caused a selloff did not surprise me. but i'm surprised there's been no recovery given what's happening in europe. >> john, do you agree? >> europe has been a back burner issue here for six weeks or so. we had those swap lines put into place at the end of november of last year. then we had the long-term refinancing operation in december, december 21st. since then europe's been on the back burner. we always thought it would come back. it's come back sort of a mild case today. i expect europe to continue to

be sort of a simmering problem this year. we don't expect quite the same volatility out of europe as we did last year. i think both of those bold policy moves we saw at the end of last year kind of take the worst case off the table in europe. but i think three months from now, six months from now, nine months from now, we're still going to be talking about europe. might not just be in a crisis mode. >> i would like to get both of your views on the following hypothesis. friday's gdp number at 2.8%, you can look at it one way and say it was better -- the economy's doing better than that number would suggest because there was a big drag in the form of government shrinkage and that the private economy is actually doing much better than that. on the other hand, a lot of growth was attributable to a buildup in inventories. so is the economy better than those numbers would suggest? or worse? you first, david. >> i think it's probably about the same as what the numbers came out. we looked to peel back the onion a little ourselves and saw the

same data points. the interesting thing is that we're starting to pick up some anecdotes that at the local level tax receipts are picking up. while you're absolutely right, government was the weakness in this most recent data point. we're starting to see the firming a little bit. >> john. >> i would say that the economic momentum we saw build throughout last year may have run its course by the fourth quarter. so we grew it out 2.8% growth rate. i wouldn't be surprise if this whole year we grow about 2.8%. i think shaping up much closer to 2% than 3%. i think the government spending issue near-term i think we need to continue to spend a bit, but longer term at the beginning of next year, we need to start making some very, very clear and concise progress towards getting rid of the deficits and debt. near-term, government spending still likely to be a drag on groit at the federal level and state and local level. >> david, you first, where do you commit cash at this point? and how much cash would you keep

in a typical portfolio? >> so we're always fully invested with our clients. we tell our clients if they need cash, they need to let us know and put some money aside. we tend to be fully invested to us means less than 5% in cash. we're very intrigued right now with high-quality domestic companies, companys that have lots of cash on their balance sheet that are diversified in their revenue streams that have sources coming from domestic and international exposure. we also like a lot of -- we were looking at a lot of inflation-protected investments today. so we're focused on bank loans, mass limited partnerships each of which have yield orientation to them and also inflation protection as well. >> john wrrks are you putting cash to work right now? >> picking up on that theme. one other place for investors to get yield this year would be in the high-yield bond market. still getting a very nice cushion on high yield in that coupon relative to treasuries. that's one place. with india cutting rates, brazil cutting rates, china likely to

cut rates, we think emerging market equities and emerging market debt could be a place this year too. sectorwise here looking at tech and industrials still benefitting from pretty decent global growth. >> all right. thanks, guys. appreciate it. >> thank you. >> see you soon. >> up next, the buzz on the banks. an upgrade for citi, a downgrade for bank of america. the financials going from worst sector last year to one of the best so far in 2012. rough session today though. what's the bottom line on the banks? >> all right. let's take a look at some of those financials. as ty mentioned, it is a rough day today with the likes of bank of america down 3%, 3.25% right now. citi group is down 2.3%. goldman sachs down 2.25%. morgan stanley fairing the best only off a percent. back in a moment. [ male announcer ] let's level the playing field.

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isn't that cool? and that's pretty cool. ♪ time for three in 30. three stock stories in 30 seconds. housing names mostly weaker today but not necessarily derailing the year-to-date gains. little negative sentiment down 7.5% but year-to-date still up about 70%. pretty good gains there if you got in at the end of the year. u.s. airways, are they in play or not? reports delta is sniffing around. some believe it and want in on a possible premium right now at 4.5%. and nike touching another all-time high dates back to the ipo in 1980.

103.78 the highwater mark, they keep pushing up and up for the new high for the big swoosh. tyler, what was the hair like in 1980? >> it was a swoosh. >> swoosh. >> my hair was a big swoosh in the 1980s. thanks. i don't know, something to ponder there. banks a big rally this year so far although taking a hit today. the kbw bank index rising about 7% in 2012. should investors be wary of the group or is now the time to get in? joining us analyst with jnp securities and from the new york stock exchange, our mary thompson. i want a couple things today. one potentially the chairman of citi, dick parsons, may be preparing to step aside. the other is tom monotag at bank of america is reorganizing his investment banking leadership group. what should we make of those two stori stories? >> i don't think parsons' news

is a surprise. i think some people thought this would happen. the question is who takes his place. and does citi have an independent chairman along with ceo. as far as monotag, i thought all three of those men are staying at the firm. one just got a promotion. >> david, let me turn to you. a note your highest among the banks you follow goldman sachs rather morgan stanley. let me get your reaction to how helpful it is that morgan stanley seems to be in the poll position in getting the lead of this ipo involving facebook. >> well, i think in terms of tangible financial note no deal makes that big of a difference. but potentially morgan stanley has been over the course of the last couple years it's had some issues with the market looking

at their eu position. looking at the mortgage mess a couple years ago. and of course their bad results in '09. they need something good to happen on the, you know, reputational side on the market to feel better about the name. more psychological rather than tangible results. >> you have an outperform on morgan stanley and goldman sachs, but neutrals on jpm, citi and bank of america. >> yeah. >> why do you feel that those three don't get a little higher nudge in your view. what would they have to do differently to get a better rating? >> well, the universal banks are facing a tough long-term future because dodd frank really hits them in the chest. consumer finance regulations have basically turned that business into a not for profit. the mortgage mess is going to last for years. and you look at basel iii, it's really going to be very difficult for them to generate high returns. i see the universal banking model basically broken at this time. probably even when backdrop normalizes, it's a 10% roe business. i don't think the market's going

to pay a lot for that. whereas i think for morgan stanley and goldman sachs, you know, they have a much more adaptive business model. they have for 25 years. >> right. >> and i think they will be able to generate something in the high teens. >> mary, i saw you nodding there. i know stock picking isn't your game, but basically in terms of how you analyze the banking business, i take it you agree with david. >> well, exactly. i mean, there are a lot of headwinds. i was thinking about it, this group has run up so much. when you look at what their fourth quarter results were, they weren't that impressive. they've lost fee income because of new regulation, they have vol ker up ahead. the next of course data point is the federal reserve stress test, results from that that comes in march, maybe they'll get a lift from that. and as some predict, most if not all of the bank wills pass that test. >> mary, david, thank you very much for being here. >> thank you. >> sue.

>> ty, straight ahead european leaders gather for first summit of the year as "power lunch" continues. talks continuing. no deal yet between greece and private creditors. so what does it mean for your money? we'll ask morgan stanley's global head of strategy. he has a very interesting call. and florida republicans head to the polls just hours from now. it's been a nasty big money showdown between mr. romney and mr. gingrich. we'll go live to the sunshine state for the latest. we're back in two.

welcome back to "power lunch." i'm brian shactman. two and a half hours left in trading. let's reset the market for you here. bit of a stronger dollar. the 10-year note is at 1.81%. gold down $2. oil not a whole lot of action there necessarily although it is below $100. the dow only down 67 now. other indices down as well and the vix just a touch under 20. hasn't moved much in the last hour, hour and a half. look at the s&p realtime sector heat map. technology has a huge weighting in the s&p inching back into positive territory. now we'll get to the nasdaq in just a minute. big cap names are really providing a solid base here. take ibm for example up .5% --

actually .75% now above. talk about big names and as we talk about they are the drag on financials. bank of america 3.25%, goldman sachs and citi group both down more than 2%. let's get down to the nasdaq where we have the lovely bertha coombs. >> thank you very much, brian. biotechs today best performer no small part of amlyn. piper jaffry says with the approval of the diabetes drug, now makes an attractive take up candidate. one to watch here. apple as usual the big dog. apple right now about a couple dollars off of its all-time high. over at morgan stanley they think apple is going to expand in china notwithstanding the problems they had with the sell of the iphone 4s and selling up to 60 million iphones a year in china. meantime the big question about

facebook's ipo is what it's change going to list on. market today down 3%, nasdaq down 2.3%. sue, that will be a very big deal for a very big ipo. who wins that one. >> indeed it is. thank you so much. bertha. european leaders as you know holding a crucial summit in brussels this hour to try to tackle the region's debt crisis. here's what we know at this hour. eu leaders are expected to agree on permanent bailout funds for the eurozone and agree on a balanced budget rule. germany's finance minister says greece may not get a fresh bailout unless the country can take the required steps to get its economy and finances in order. and the yield on the 10-year portuguese government bond topping 15% on fears that country may need an additional bailout or a write down of its current debt. our power player says now is the calm before the storm. let's bring in greg peters, global head of cross asset strategy at morgan stanley

research. good to have you here, greg. >> thanks, sue, for having me. >> i read the majority of your report and it's fascinating. some of the bets that you're putting down in this particular environment. you say that credit is still your favorite asset class, is that correct? >> yeah, absolutely. i mean, as the title suggests calm before the storm, we think there's way too much complacency in here. too much credit to the rto, but to us we are still quite conservative. we believe in yield, we believe in carry and believe in relative value. and credit really fits the bill in a meaningful way. >> i was interested in one call, you would be willing to go long or are long italian paper and short french paper. the french banks got killed today because of the transaction fee that's being talked about in france. but what is it you like about italian paper versus french? >> quite simply we legfeel like lot of the bad news is in italy. and if things really unravel in europe, which isn't our base

case, by the way, but if things do unravel in a meaningful way, france will take a much bigger hit than italy. so to us it's really a tail hedge if you would and believe that if things unwind then really at center of the storm is going to be france and italy's going to be affected as well, clearly, but really france will be the biggest gamma effect if you would. >> you also favor european equities over u.s. equities, which some would say is a bold call. and others would say, given the fact they've been beaten down in europe so much, it's probably a very smart call. why do you favor european equities? >> every time we mention that, you know, we always get second looks and dirty looks. you know, it's real le about valuations. firstly on a valuation front, european equities are much cheaper than in the u.s. the second it fits our dividend thesis. so the dividend yield in europe is much higher in the u.s., about 200 basis points or so. and embedded in our call is a

weaker euro. and a weaker euro actually helps those companies. and at the same time the stronger dollar hurts u.s. companies. so center of the thesis is really what happened to the currency. >> we have time for one more topic and that's asia. tell me why you favor asia over some of the other market sns. >> there's also this excitement over emerging markets for sure. but if you look at asia and once again cycling back to europe, what we worry about is european bank deleveraging. and we think asia is less effected, not completely absent from this argument, but less effected. so we think asia looks much better. and once again, valuations and valuations matter. >> greg, thanks. pleasure to talk with you. tyler, you're up. back to you. >> sue, thank you very much. we are only hours away from a florida primary. had you heard about that? a new poll appears to give mitt romney a commanding lead in that state over newt gingrich. eamon javers is in tampa now with the latest on the race.

eamon. >> hey, tyler. we're seeing ferocious campaigning here in the last day leading up to the florida primary. this thing is getting personal here between newt gingrich and mitt romney. they're slugging away at each other over the weekend. and we're seeing an absolute gusher of spending. mitt romney has the advantage in terms of spending outspending newt gingrich about 4 to 1 here in florida. look at the 2008 primary and general election spending in florida about $56 million that year last time around. this year so far just with the gop primary we've seen about $25 million spent. they are well on their way to outpacing what they did in 2008. this is going to be a very expensive race indeed. perhaps because of all that spending, that's why we're seeing mitt romney inching his way to the top of the standings here. now, really generating a pretty big spread between himself and newt gingrich. mitt romney standing about 42% in the polls. newt gingrich 27%.

and rick santorum at 16% and ron paul fading away at the bottom about 11%. we have a little bit more of this ferocious campaigning today. more television interviews, campaign stops and then it's almost all over with the voting here in florida. >> eamon, thank you very much. >> up next, who will be the next facebook? we're going to speak with some men that are running harvard's first ever venture capital fund. find out where they're seeing some opportunities. >> and stay slim and get fuzzed. budweiser unveiling a new low calorie high ok tan brew ahead of the super bowl. will it be a winner?

check in now with scott wapner and see what stock is on his radar. >> anf. abercrombie & fitch is what i'm following today. it's down about 5% year-to-date and over the last three months it's down by more than 30%. we had an analyst today from

morgan stanley on the "fast money" halftime report she had a negative note today on abercrombie & fitch. there are real concerns about margins there. heavy discounting front and center in the note discounts were deeper and larger, longer lasting than expected. they even extended says morgan stanley to the flagship store over in london. they seemingly had to move merchandise so much they were cutting prices by about 50%. now she's even seeing prices being cut by some 70% to 80% on abercrombie & fitch. so it's a story to keep an eye on. i certainly am today. guys. >> thanks a million, scott. just days to go now before it's set to begin the ipo process and new numbers out today that will only boost the valuation of facebook. com score out with latest tally of advertising and the winner is facebook, by a landslide. julia boorstin is here to break down what are some very impressive numbers. hi, julia. >> hi, sue. facebook continues to dominate

the display market with number one market share by far. facebook delivered 28% of all display ads in the u.s. last year. that's up from 21% in 2010 as it continues to steal share and make gains on its rivals. coming in in second place, yahoo! had just 11% market share followed by microsoft and google in a distant third and fourth place with 4.5% and 3.5% respectively. so why is facebook winning? all that user information from profiles and behavior enables narrow targeting and brands can connect with their fans who are more open to marketing messages. plus there's what they call the amplification effect. when fans send a marketing message to their friends. >> if you can get a communication going from the fan to their friends, an amplification both in terms of reach, how many people you can reach with the message and amplification in terms of persuasion. i think that is a very, very powerful aspect of advertising on facebook.

>> he expects facebook to continue to gobble up market share and raise its prices. facebook roughly doubled revenue from 2010 to 2011 bringing in about $3.8 billion in revenue. and, tyler, that is mostly from display ads. back to you. >> relationship status, interested. this is what drives life in college. are you having sex or aren't you? it's why people take certain classes and sit where they sit and do what they do. >> when marc zuckerberg launched facebook in 2004, he pretty much had no other choice but to drop out of harvard and move to silicon valley to take his idea to the next level. if our next guests have their way, students can stay in school and get funding right on campus thanks to harvard's next generation. welcome, good to have you with us. patrick, welcome back. >> thank you. >> how does this fund intend to

work? and do i have to have attended harvard or be at harvard to take advantage of it? >> no, you don't have to at all. you can be -- you can have come from any college, from anywhere, from any school. the fund will be based at harvard right on the campus, but anyone is available to take advantage of it. >> so these would be new ventures, hugo, that need funding. are these internet related ventures or what? how would you valuate who gets what? >> we are excited about everything. of course many people will be young students dreaming up big things in their dorm rooms. we look at anything we get at this stage. and we're just excited to hep entrepreneurship. >> would you have said yes to facebook? if so, how much money would you have given them? >> i would have said yes and i would have given them everything i had. facebook and microsoft are

really just two examples. this is a campus that has produced two of the most transformational technology companies of each generation. microsoft in the last generation, facebook in this generation. and so nea has had a tradition of backing harvard entrepreneurs from the very start from bob met calf in the 1970s all the way to dan yats. so this is something we've done for a long time. this fund really solidifies that long standing practice. everyone should come check us out at experimentfund.com. >> that's what i was going to ask you. if i'm a student and i have an idea and i attend the university of florida in gainesville, how would i get in touch with you and present my idea to you? >> go to our site and send us an e-mail right away. we have a couple of meetings and phone calls this evening with students from m.i.t. and all over the east coast focused primarily. we are easy to reach and happy

to travel as needs be though at the beginning we'll focus in cambridge around harvard and m.i.t. and take it from there. >> patrick, in what areas specifically are you finding either in this endeavor or in your other work as a venture capitalist, are you finding the most exciting opportunities today? are they in energy? are they in robotics? where are they coming from? >> you know, i'd say three areas are of particular interest to us. number one is online education. education from everything from digitizing textbooks to online courses for credit to vocational studies online. secondly, is wave 2 e-commerce. some of these companies have mediated that facebook is the underlying sub strait to have been able to do nothing else. lastly, personnel we're at the very beginning of our understanding of what it means

to be human. and i think that personal je gnomics is going to be the center piece to all personalized medicine and we're just at thein fancy. those are three areas that interest me. >> let's talk a little about facebook and the possibility, patri patrick, it's going to do it's ipo as reported. would you ever have imagined that company would have a valuation something in the area of $100 billion? and do you think it's worth it? >> well, you know, when you think about what facebook is, it's not only a fantastic transformation technology company, it's a fantastic transformational human experience. the fact we can interact with each other and keep in touch with so many more people than we have ever been able to and interact with brands, i think in my opinion it's well-worth it. and just to think that that company grew from a harvard dorm room to what it is today in seven years is precisely what the experiment fund is there to do. to help people grow those dreams into a reality like that.

>> again, what is the e-mail, patrick? >> it is experimentfund.com. >> patrick, hugo, thank you very much for your appearance and good luck to you. >> thank you. >> great story. up next on "power lunch," this bud may be for you. the beer king unveiling its latest brew. it's low in calories but high in alcohol content. does it taste any good though? that's the key question. stick around and find out. [ male announcer ] you are a business pro. premier of the packed bag. you know organization is key... and so is having a trusted assistant. and you...rent from national. because only national lets you choose any car in the aisle...and go. you can even take a full-size or above and still pay the mid-size price. here we are... [ male announcer ] and there you go, business pro. there you go. go national. go like a pro. of how a shipping giant can befriend a forest

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anheuser-busch inbev making bold bets ahead of the super bowl weekend, it's unveiling a new low calorie fuel injected brew. but with beer sales slipping, can it succeed in such a crowded market? darren rovell took on the job of looking at -- >> i love beer reporting and not only for the tasting. it's certainly a very tough market out there while craft brews have grown 11% in the last year, overall u.s. beer sales by volume fell 1% last year. bud light is the clear leader, coors light recently overtook as the second best selling in america. anheuser-busch has been doing what it can with making beers

like shock top and buying breweries like goose island. but there's still plenty of worry ahead. just last week anheuser-busch president stepped down and replaced by brazilian overseeing bud light platinum. it debuts today. it has a slightly sweeter taste than bud light and 40% more alcohol, 6% versus 4.2% in bud light. the push will be aggressive as the brewer will use the first two of its six super bowl ads on the new beer aimed at younger urban drinkers who have left the beer world for more sophisticated spirits. bud light platinum by the way has 137 calories versus bud light at 110. i tasted it at lunchtime, it does live up to the sweeter taste, but it still does taste like mass produced beer that doesn't nearly have the sophistication of many of the craft brews. i think that might be the issue. but this is the third and the

light line. they had bud light. they had bud light lime and golden wheat. [ overlapping speakers ] >> and another sip and another sip. have you seen any of the advertisements? and basically what i'm driving at here is how are they going to thread the needle, which they have done about responsible drinking, of a light beer, lower in calories but really double the alcohol content. >> right. well, i have not seen the advertising yet, but i think what they're really competing with are these brews, the craft brews, which are not only this palette -- this sophisticated palette, but also looking at 8%, 9%, some 11% alcohol. and they realize, okay, this craft brew is $8.99. but if i can get the job done quicker. >> so to speak. >> doesn't have as dry a taste i would call it. not as dry as some of the other laggers i've had.

>> continue doing your research. >> all right. >> bud is one of the big advertisers as darren just told you at this year's super bowl. we have week long coverage on our nbc networks all leading up to what is going to be a fantastic game. super bowl on nbc. >> and just over two hours left in the trading day. our chart of the day next.

we were just driving along,er comin' back from the lake,ng. and all of a sudden, ka-plam. it blindsided us. what is it? our college savings account. how do you think it happened?

not sure. i think something we bought a while ago turned out to be something else, annnnnd, i remember a lot of other stuff in there had the word "aggressive" in it. is everyone okay? well, now, yeah. who knows later. ♪ forty years ago, he wasn't looking for financial advice. back then he had something more important to do. he wasn't focused on his future. but fortunately, somebody else was. at usaa we provide retirement planning for our military, veterans and their families. now more than ever, it's important to get financial advice from people who share your military values. for our free usaa retirement guide, call 877-242-usaa.

after a rough beginning, the market has paired its losses considerably. we are only down 36 points on the dow. 3 points on the nasdaq. and the s&p is down 5 points. >> brian shactman has our chart of the day. >> somebody up in my book mohammad al-aaron gave a talk and treated them like adults about what to expect in the future and he did comment on the eurozone. he thinks it can still be fixed but a good chance it might be without portugal and greece. >> what a nice thing for him to do. >> it was great. >> great experience for the kids. >> thank you. >> that will do it for "power lunch." thank you all so much for watching. >> we'll see you tomorrow. "street signs" begins right now. ncht welcome to "street signs." stocks down to start a huge week.