i like the rebound. >> all right. markets right now looking at their biggest losses of the year for the dow. that does it for us. options action and "money in motion" tonight. have a great weekend. "power lunch" begins right now. thank you, scotty. three hours to go in the trading day. and there's a whiff of fear back in the market. resignations, strikes and violent demonstrations in greece. europe demands more budget cuts in a return for a bailout. is a debt deal on the horizon or on the rocks? and is it time for more caution with your money? >> also ahead, a deal with zynga, touch stream toys and the battleship movie heading for theaters. hasbro ceo will tell you how he's broadening the brands and hopefully pumping up the bottom line. >> do you feel lucky? do you? we're going to make your day with a special clint eastwood edition of buy, sell or hold.

we go where the eagles dare. >> speaking of million dollar babies, i'm simon hobbs with sue herera. "power lunch" begins right now. >> risk in greece very much in front demand today triggering turmoil in athens and fears they may not get the bailout cash it needs in march. that raises the possibility of a default. and that's where we stand in the united states. the nasdaq down .5%. the s&p 500 is down a similar amount. we have cut our losses, but it's still a triple digit fall for the dow. taking a pulse of the markets as we head over into the weekend. the fear gauge, the vix, is sharply higher as you can see. both copper and oil are lower. here you see copper down. we've also got crude down $1.40. that's on greece. but also concerns about the strength of chinese demand coming through before the

beginning of our session here. midday movers this friday, nuance communications, they make speech recognition software. results missed earnings and you can see it's down 12%. insurer xl group paying the price for a surprise q-4 loss. and citi says the rally in solar stock s is done. so first solar down. and utilities up 13% there. we'll talk to the ceo very shortly. revenue doubling and a dividend hike. and jbs higher today up 3%. an upgrade from credit suisse and euro next. let's join bob pisani for the rest of the market action. >> hellhello, simon. 252 of the 300 seats in parliament. in theory they should be able to win the vote on the greek bailout this sunday rather

easily. the concern and the reason the markets are down, the coalition itself may fall apart over the weekend. a lot of drama still to come. remember what's been the big market leaders so far this year. material stocks, financial stocks. guess what's off today? we're exactly getting this flip of what the market had been doing here. all the big names, u.s. steel companies, alcoa, the aluminum companies and big mining companies are to the downside. the second big mover of the year on the upside, financials. they're also the biggest downside movers. not just u.s. stocks here like morgan stanley, but also of course the european stocks like deutsche bank and ubs. big industrial names also to the downside as well. construction names the same situation. home builders have been some of the biggest gainers of the year. they too are flipping over here. even the material names in that particular group like usg and texas industries also to the downside. sue, back to you. >> thank you, robert. switch on the "power lunch" power surge and drill down on the stories driving the day. five greek ministers quick over

european demands for more austerity. and greece's police union threatens to issue arrest warrants for eu and imf officials. all of this comes in the middle of massive protests and strikes in greece. and our julia chatterly is in athens with the latest. good evening, julia. >> reporter: hi there. we estimate there are around 5,000 people in the square behind me earlier today. that was despite the rain. they were chanting things like "the troika is setting us back 50 years," "fight back" and other things to do with the politicians here. protesters throwing petrol bombs at the police. they were quite restrained for a while and then ended up using tear gas and that dispersed the crowd. the key point is the protests and strikes ongoing were called before the euro group meeting last night. and then it became clear of course that there were going to be additional cuts required. and that certainly heightened the sense of anger and frustration that the population

is showing here. you mentioned the greek police union potentially issuing arrest warrants for eu and imf officials. this anti-europe, antiimf sentiment matches with what we saw earlier in the week when some protesters set fire to a german flag outside the parliament building. it is a concern here, but i would have to point out that i think there's a certain level of extreme pockets here. the overall sentiment is anti-troika as much as it's anti-the government and their handling of this crisis. the key point, we've got five covenant members now that left in the last hour. we had the deputy foreign minister's left. the key on the ground is this going to result in a cabinet reshuffle? and will this prejudices the ability to see a parliament vote on sunday? back to you. >> julia, thank you very much. simon, you know, the market is reacting and the bond market is reacting as if there's either going to be a hard default or certainly the deal might fall

apart over the weekend. what's your take? >> i think the risk is still -- the risk is still small that there will be a hard default because that's a very serious thing to happen. and i don't think the market is saying that now. i think it's saying the potential, the tail risk, is growing. the vote may move to monday. that's the latest we've heard. i wouldn't worry too much, i mean, you have to feel sorry for the troika that has to fly in and help them over the weekend. but in order to get an arrest warrant, a judge has to say, yes. >> but the rhetoric seems to be ratcheting up. >> wouldn't you expect that in this environment? >> yes. >> can papademos pull it together? and can he get everybody to sign up after the election we will follow through on this? again, it seems the end game, it's just march 20th is when it has to come through. so it has to be done by then one way or another. >> a lot can happen between then and now, right? >> that's true. >> italy is also a worry, a

major worry. can the country pay down its massive debt? maria bartiromo has an exclusive with prime minister monti today. that's at 4:00 p.m. eastern time. turning now to politics. republican presidential candidate mitt romney making his case right now at the annual convention. john harwood is there. hi, john. >> reporter: sue, it's a real testing time for mitt romney. he has not been able to close the sale with conservative voters in this primary season. we saw evidence of that when he was skunked on tuesday by rick santorum in minnesota, colorado and also missouri. rick santorum spoke this morning, got a favorable reception urging the members not to settle for somebody who didn't share their believes at the deepest level, it would be a hollow victory if they won to compromise with somebody in the white house. and mitt romney has to answer that. he's going to emphasize building up a rainy day fund and also his

efforts as governor of massachusetts to prevent violations of liberty as we've seen president obama dealing with on the contraceptive rule. >> update us on the news today investigating the house financial services committee, possible insider trading there. >> reporter: spencer bachus first surfaced in a 60 minutes report last year, now we've learned today the office of congressional ethics is investigating. he put out a statement this morning saying he has faith in the ethics process, that he will be ultimately exonerated. he didn't violate any congressional rules. we'll have to see whether the congressional ethics organization establishes that as well. >> john, thank you. the economy and housing clearly central themes for the election year. today ben bernanke speaking before the nation's biggest home builders about the housing market and where it goes from here. our diana olick is there at the big meeting in orlando.

welcome, diana. >> reporter: well, that's right, simon. as you can see, the fed chairman is still speaking. he finished prepared remarks and now taking questions. the first one was about credit. that's the biggest issue right now. not just to get to build new homes and given that demand is beginning to increase and supply is so low for new homes, but also getting credit to borrowers. especially first-time home buyers. the fed chairman said despite what the fed has done to lower mortgage interest rates and we know they are at record lows even just this week that what the fed has done is being trumped, again, by very tight underwriting standards. he also talked in his prepared remarks about the high rate of foreclosures. listen to what he said. >> although it's difficult to forecast future reo flows, we estimate that an additional one million foreclosed properties could be added to the reo held by banks, guarantors and

servicers in each of the next few years. these inflows could continue to exert downward pressure on home prices. >> reporter: now, he did say that the reo to rent program, that is real estate owned or bank repossessed properties, is a good idea. there's been a new program that started up by the fhfa, that is fanny and freddie's regulator to sell bulk foreclosed properties to investors to rent. he says it's a good idea. could help clear the market, but it's not the silver bullet. >> diana, appraisals seem to be front and center as well. >> reporter: absolutely. in fact, the home builders we were talking to today, they said at their board meeting this morning they were listing the top things that were the biggest hurdles to housing recoveries. and number one was foreclosures and their effect on home appraisals. we know 30%, one-third of all contracts to buy homes are canceled. they blame appraisals that don't match the value of the home. builders cannot lower prices low enough to meet some of these

appraisals. the appraisers on the other hand say they argue they are independent now and working hard and know how to use foreclosures as comparables. but, again, a lot of contracts for these builders being canceled because of low appraisals that just don't meet the prices they need. simon. >> thanks, diana. straight ahead as simon and i continue, markets have the greece jitters today. but stocks still up sharply for the year overall. the economy seems to be improving. so is it risk-on or risk-off? should you bet on upside action or be more cautious? >> update you on three stocks we talked about yesterday on "power lunch." linkedin earnings came through beating expectations. look how it rocketed. activision down. true religion certainly disappointed with its results today. a bad miss there. lost almost a quarter of its market capitalization. i love that my daughter's part fish.

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welcome back to "power lunch." rick santelli here live on the floor of the cme group. you know, corporate bonds not only those issued by u.s. companies, but dollar denominated investment grade across the globe is having a heck of a february. and maybe one of the reasons why is the next chart. if you look at the spread, not the price when we look at etfs, but the spread on investment grade depicted by barclays now

under 200. you know, this just shows you that if you kind of like the equity markets, well, treasury rates are pretty low. this is where you're going. speaking of treasury rates, look at 30-year bond yield for the day. obviously thank greece here. we're down about half a dozen basis points. even though we were on our way to 3.25 yesterday, look at the weekly chart. 3.12 last friday. unchanged. the last chart, the one-week chart of the euro currency, same, similar, look at the day, it's down in a day but it's still up on the week. sue, back to you. >> that tells a great story, rick. thank you. well, despite the dow's triple-digit loss today, the stock market is still up 20% since october. so is the worst really over? well, here's what former treasury secretary larry somer said earlier today on "squawk box". >> there are no certainties, but the run of numbers the last two months have been consistently positive, consistently ahead of

expectation and do raise the possibility that the kind of r virtuous circle we've been looking for has kicked in. >> so what sectors or stocks should you be looking at? joining us art hogan and brian jend ra, market strategist at sit ra financial group. art, i'm going to start with you. you don't think it's halftime. you think we're in the first quarter of this game. why? >> if you go back to the beginning of the financial crisis to 2008 and look at the money that's actually left this market. money that's come out of equity mutual funds. on net basis versus money that's gone into cash and stay there had and money gone into the fixed income market, we are nowhere close to that population coming back into this marketplace. as a matter of fact, you know, we've scratched the surface on money that may welcome back in equity markets. you know, we might have lost, you know, a lot of investors that won't be coming back to this marketplace for demographic

reasons, but i think people that got scared out of this marketplace in 2008 or 2009, we're nowhere close to that money coming back. look at multiples right now up 20% from september lows, we're still extremely reasonably valued here. i think those are the two biggest drivers in terms of where we stand right now. >> brian, art has a lot of company in people pointing out the multiples. do you agree with that? if so, how much more upside do you think is left for the second half of the year? >> i think by and large we would agree with that. the s&p 500's trading for a p/e of 12, which is well below historical average of 14.15. and a lot of money that went into yielding cds yielding 1% or less or tips with a negative yield is not going to stay there. that's not a permanent destination of funds. valuations are not always good timing indicators. we think the outlook is better for stocks now than it was even a couple months ago. there are still headwinds there. >> why do you think it's better, brian, than a couple months ago? why do you think the outlook is

better? >> a couple reasons. first is we have had some very good economic reports. we knew the fourth quarter was going to be pretty strong. but now it's looking like the momentum is going into the first quarter as well. in addition to that, europe's problems don't seem -- despite today's turmoil, don't seem to be quite as bad as they were late last year or last summer. a lot of that is due to the ecb providing support including a rate cut to their banks. but there are still some headwinds. i don't think we're entirely out of the woods yet. >> you really disappointed me. i've known you a long time, and you really disappointed me with the answer you gave earlier. the reason that the market will go up is because people will come back into it. don't you have something bigger? a banner-like appeal as to why people on the sidelines who got so scared should rush back in? without that why are they going to commit? >> without that, simon, people will put money in their mattress. and that's not going to have enough of a return for them to retire at any point in time or

to pay for a college education. think about it like this, you have a market that's going to drag investors stubbornly bearish investors back into this marketplace by its own success. that's one piece of the puzzle. talk about what are some of the catalysts. the ecb and ltro is certainly smoothing out the european news flow. i think that's very important. that's probably one of the biggest drivers of the market being up 20% from september. and certainly this year. i think the economic data stream here in the u.s. has gradually improved. i think that will continue to be the case. the third thing is china demand story. although with a bump in the road this morning, i think the china demand story is less aggressive than it was. and at the same time end of august first part of december. the news is getting better. it's more of a news getting better. the point is investors are still on the sidelines. there isn't a splash shi enough news banner to be out there. it's the fact they're still there. they haven't come back yet. >> brian, you said there were some headwinds. what's number one on your list? what are you most worried about that could derail what has been

a very good start to the year? >> i think number one would have to be higher gasoline prices. they're up about $3.50 a gallon nationally. and that historically has been the speed bump for growth in the united states. and i think reflected in this morning's consumer sentiment index which came in below expectations. but it's also an election year. we may see a repeat of 2004 where almost all of the sustained gains of the year happened after the election. i don't think the turmoil's over in europe yet. >> all right. gentlemen, thank you. appreciate it. have a good weekend. >> thank you. >> up next on the program, we're going to try to make you a fist full of dollars. a special clint eastwood edition of buy, sell or hold. >> and a million dollar baby, a stock that's been unforgiven by investors. a trip to heartbreak ridge. stick around, you can't miss this one. across the golden state,s

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the average man or woman on the street took it for exactly what it was. a core message for america. and like it's halfway through the recession, let's work our way out of it. >> famed actor and director clint eastwood talking about his now famous spot during the football. he says he's surprised at the uproar it's caused in particular amongst journalists. all of this attention got us

thinking about clint eastwood and the markets. so today a special clint eastwood edition of buy, sell or hold. joe, welcome to "power lunch." >> go ahead, simon. make my day. >> very good. the first section is gran torino. >> ford motors. >> inevitably. >> buy. >> buy, sell or hold? >> buy. >> why? >> phenomenal company. phenomenal turn around. 18 million cars this past year. by 2018 you're going to have china 30 million cars. you know what they did recently, very smart move, who's one of the most foremost chinese experts? former presidential candidate john huntsman now on the board. >> interesting. okay. the next section, million dollar baby, here we're looking for the best play right now, the stock that will pay off big during the course of the next year. you've picked emc. >> absolutely. ultimate enterprise play. cloud computing.

storage. everyone, they are in essence the toll collector. they are serial acquirers and have the ability to do it because they have a tremendous amount of cash, $10 billion. they generate excellent cash flow. they have part ownership of vm ware and a nice acquisition this past year. the ceo is having so much fun, he's sticking around for another year. >> interesting. okay. so emc. another clint eastwood film, unforgiven. a stock investors continue to punish but you believe is poised to turn around. and sw energy is your pick. >> i know you're a huge fan of clint eastwood. >> i am. >> southwestern energy. we know where natural gas prices are going on the exchange. but you have domestic natural gas learning to live with sub $4 gas. and now you look at a name like southwestern energy. all we're going to do here is put it on folks' radar. this is a hold, but it will be a buy. they are a leader in the space and all we need is a little modest uptick in natural gas prices and this is a stock

poised to move to the upside. >> how about heartbreak ridge. the worst stock in the market. you've picked first solar. that has not performed well. down 71% over the year. >> and if we would have done this yesterday, boy, the call we're about to make on first solar as a sell would look great. first solar's up 32% this year, but this is a company, a solar name, that we don't like. this is a company that needs to make an acquisition. it needs to pick up a supplier to reduce its costs. it's got significant debt problems. and oil prices go to $100. and this solar company could not make a move higher. a lot of tax subsidies are needed in this space as well for solar. we don't like solar. we don't like first solar. >> let's do one last one. where eagles dare. a stock performing well but from your point of view is risky. is this a stock here? what is this? >> what this is really is a call on treasuries. and you know on "fast money" we have opinions. we don't waffle in the middle. i'm not waffling in the middle on this one. 10-year treasury yields at some

point this year are going to spike dramatically higher. they tried to get up above 2.05 yesterday. they couldn't do it. but my call, my expectation, is they will at some point, the move in treasuries, rally in treasuries is over. treasuries themselves need to be sold. this vehicle that plays the treasury market from the long side, the tlt, this is a sell. >> i thought bill gross we now learned has 38% of his top fund now in treasuries. >> bill gross, "fast money," who do you choose? >> thank you very much. sue, back to you. >> thank you, gentlemen. coming up next, a ceo double play. ppl out with earnings, profits and revenues and the dividend are all up at the multibillion dollar utility. their ceo will tell you why the power's on at his company. and hasbro's not playing games. a line of touch screen toys and a block buster moving coming soon. their ceo will join us and talk about all of that on the other side of a quick break.

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we have breaking news now. this from s&p apparently

downgrading 34 of the 37 italian banks. we will find out -- there's a look at some of them right now. unicredit is down 5%. intesa down about 3.5%. and banca down about 4% on the trading session. we will see whether or not the u.s. market reacts to this. s&p once again downgrading 34 of the 37 italian banks that it rates. we'll watch the markets for you. and mario monti, as you know, as we happen to have him on the 4:00 hour of "closing bell," he'll be speaking exclusively to maria bartiromo. it will be very interesting to get mr. monti's reaction to s&p's move. all right. that's coming up at 4:00 p.m. seema mody is up now. she's joining us from the nasdaq -- or actually the realtime exchange. you're right behind me. >> let's reset the markets. concerns over greece definitely weighing on our u.s. major indices. we have the dow witness triple digit losses. the s&p down 10 points.

and the nasdaq down .7%. remember, it's been technology that's been the bright spot for this year and for the year currently down 21 points for the nasdaq. taking a look at our fear index, it's up right now 9.5%. the highest level year-to-date at 20. also seeing money flow out of commodities. take a look at oil trading at $98 a barrel. and gold also witnessing pressure. taking a look at some of our winners and losers on the s&p 500. take a look at shares of salesforce.com currently up 2% surging on a batch of analyst reports saying the company closed some significant deals. on the losing side, gamestop and first solar getting hammered. further project delays. and gamestop lowered by 4.5% sinking on weak sales data.

and netapp down 4.4% ahead of earnings. look at movers and shakers. let's also look at gold and other metal prices getting ready to close right now. sharon epperson joins us from the nymex. >> seema, the s&p downgrade of the italian banks happened right at the close of the floor trading here at the new york mercantile exchange. we're down about $17 for the price of gold. the weakness has much to do with the fact greece was unable to secure that second bailout package. yet we are looking at that situation very carefully because the reaction that it has to the euro, to the dollar, definitely influences gold and other precious metals as well as other commodities. you'll notice copper down sharply today. almost 3%. in terms of the bull/bear case, traders are very missioned here. in terms of the bull case, of course you can add stability to that. lift the euro way on the dollar and help gold prices. if there is this deal, that lessens the fear factor or the safe haven factor.

the other factor traders are watching the fact it's rallied some $175 since the start of the year. so it's due for somewhat of a pullback. the psychological level to watch next is $1700. and we're trading right around 1725 in the final trading. back to you guys. >> thank you very much, sharon. the energy and utility ppl posting better than expected fourth quarter results today at 62 cents a share on $2.71 billion in revenue. in afternoon trading you can see that the shares are substantially higher at $28.48. with a first on cnbc interview now, ppl's chairman and ceo, jim willow. welcome to "power lunch," sir. congratulations on the results. >> thank you, simon. thank you very much. >> so exactly what is happening with your business at the moment? we had seen power prices were falling. certainly power prices for later in the year were expected to fall. how have you been able to do what you've done? >> well, i think, simon, you're correct.

power prices have been falling. the commodity, natural gas has fallen, continues to fall. about two years ago we embarked on a process to change our portfolio mix to a more regulated portfolio such that we could continue to grow earnings for our shareholders at the same time that commodities were not recovering. power prices were not recovering. so we've moved the company to basically instead of a 70% unregulated commodity-based power price company to a 70% regulated company. and that's really been able to offset these continued fall in power prices. >> so where do you see the industry moving forward? >> well, i think, you know, obviously demand is -- has not returned as quick as we would have hoped for. the economy is still struggling a bit. not a lot of new generation is being built at this time. but ultimately in the next three to four years i think the reserve margins across the

country will continue to decrease the need for new generation will exist. and that will drive power prices up as demand increases as the economy recovers. but in the meantime, i think we're in for a sustained period of low gas prices. >> what does that mean in general with the picture that you paint for power prices, for the nuclear industry, has very long lead times and very, very long costs and revenue screens that you have to factor in when making an investment. the three-year high atis is clearly over. we saw that with the two approvals we had within the last few days. but even that is a $14 billion project. do you think there will be substantial buildup from here? >> i wouldn't say substantial build out in nuclear from here, simon. but i think it is a very good sign. nuclear is a long-term decision. a long-term decision i think will prove out to be in the best interest of the rate payers over many, many, many years.

but i think the only place we'll really begin to see additional nuclear buildout is in the fully regulated utilities where they can absorb those costs on an as-built basis versus merchant nuclear units, which i don't think will be constructed. >> mr. miller, congratulations on your retirement. i understand you're leaving after 35 years in the industry. it's nice to have you on the program. >> yes. >> chairman and ceo, jim miller, thank you, sir. >> thank you, simon. >> hasbro's fourth quarter profits slipped a bit on weaker demand over the holiday. in an effort to breathe some new life into decades' old brands, hasbro is turning board games like battleship into video games and movies. they will also create real life toys based on zynga's red hot roster of social online games. the giving hasbro up today. first on cnbc we're pleased to

welcome hasbro's ceo. welcome. nice to have you here. >> hi, sue. how are you doing? >> i'm doing great. i'm surrounded by a bunch of toys and games. i couldn't be happier. tell us why you partnered up with zynga at this point. >> well, zynga has a raft of very powerful games from citiville and farmville and words with friends, we feel there's an opportunity to create an analog and ecosystem where people play online and enhances our analog play and that brings people all the way back again. we can do that for gamers all the way around the world. >> you're breathing new life into games that have been with most of us for most of our life. you know, you're going across platforms too, which is a first for a toy company in many ways. >> yeah, we have a raft of gaming megabrands like monopoly and battleship and we're thinking about how to re-invent some of those. you have something in the studio, the game of life, we have now added a whole component

about zapped. we can bring to life your life choices. you don't just play like you used to. you have a digital spinner. you play minigames. when you make a decision about what life choice you want, you actually have videos from "america's funniest home videos" that sort of bring to life the decisions you've made about your game play. >> let's move down a little bit. my favorite so far is this little pony. >> butter scotch. >> butter scotch. >> for sure. butter scotch was based on a very successful butter scotch, a large size pony we had a few years ago. this is baby butter scotch. a great opportunity for every little girl who has always wanted their very own pony. they can have butter scotch, the baby pony. >> all right. let's talk a little bit about battleship as i move down here because when i was growing up, battleship was all the rage. and you're actually taking it one step further and partnering with universal. and you're making a movie based on battleship, correct? >> that's absolutely right. in fact, great partnership with

universal, battleship is a wonderful brand. as you know from the play, it's all about revealing something you didn't know before. a blind reveal. you don't know what your opponent's up to. so we bake that into the idea behind the movie with a great cast and tremendous director in pete. and a great partnership with universal. it breaks in april internationally and domestically in may. >> and how do you translate that into the bottom line? >> well, we have a number of games and toys. in fact, we have a kre ole brand. this year we roll it out to ten markets and we roll it out to 25 markets. now we have transformers and battleship and next year we've just announced we're going to do something with our paramount r partners and do it on star trek. >> great. thank you. best of luck. >> thank you. >> we have breaking news now from john harwood. >> reporter: mitt romney just finished giving a speech. a moment of danger for his

candidacy. he gave a forceful argument for his campaign in part biographical. he says i'm not ashamed to have been successful. also said he would be a fiscally conservative governor, a pro-life governor, but this is inherently disadd venn teenageous to mitt romney. someone like rick santorum who spoke earlier is better at conveying passion, conveying a sense that he's one of them. mitt romney is trying to make up for that with the other advantages in his candidacy. but he got a polite applause. some enthusiastic applause. a significant number of people for him in this crowd. we'll see when they publish the straw poll who actually won that room. i think the smart money would bet on rick santorum. but we have a ways and more speakers, newt gingrich speaking this afternoon. >> we look forward to an update. thank you. >> up next on "power lunch," apple marching towards $500 a share. but watch out, google raising

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coming up on "street signs" at the top of the hour, charting the markets. are more rough seas ahead? one tech analyst with dire warnings. then talk about the shot in the arm. you will not believe what some traders are doing to gain the competitive edge. plus, our so-called safe stocks now just too risky? why it could be time to break away from the herd. you can do it. that's all ahead on "street signs" 2:00 p.m. eastern. hand you back now to simon and

sue. >> you can do it, but it's often dangerous. amanda, thank you. right now to the digital home showdown to come for sure. google developing a wireless entertainment system with the initial focus on, yes, you guessed it, streaming music. tech rival, apple shares hitting an all-time high today and heading very close now to $500 a share. does google have any chance of taking a bite out of apple? joining us for more on today's "power lunch" hot file is cnbc's julia boorstin, jon fortt and john carney. jon fortt, let me kick off with you. in a nutshell, describe then what we think google is about to do. [ technical difficulties ] >> well, that's a nutshell for you. let's go to julia. julia, you do not think, as i understand it, as a matter of fact none of you think this is a good idea. you think google may be spreading itself too thin. >> absolutely. people associate google with software, not with hardware. obviously google's move into the phone business has been

successful because it's providing the android software for these devices. i think it would be a little weird for google to be manufacturing its own products. obviously we have to say we don't know exactly what google's doing. these are all only reports so far. but the idea of google making its own boxes, making its own devices, seem a little weird. but i think what google's really going for here is not just music. this is obviously about the battle for your living room and the battle to deliver video content throughout the house. >> jon fortt, are you with us now? >> no. >> let's go to john carney. what's your take? >> i think julia has a good point. it's not a device manufacturer. they have no experience doing this. and a huge part of apple's success has been customer service. have you ever tried to get customer service from google? who do you call? >> come on. >> no store. >> oh, john, at the moment it's a software company. that's a completely different situation. we know they're going to get into hardware because they

bought motorola mobile. >> it's going to keep burning a hole in their pocket. they just do not have a real team in place that knows how to do a consumer products business. that's never been their business. it's a management distraction. if i were an investor, i would be very worried that they're treating this company not like a company that's owned by the public, but like something they can just do their pet projects through. >> you know, julia, why are they doing it then? try and get inside their head. and if you, jon fortt, doesn't think it's a good idea, john carney doesn't think it's a good idea, you don't think it's a good idea. what could they be thinking? >> this market competes with the likes of an $8 billion market. there's a huge market that's in the works only going to be bigger to deliver video throughout the house. everyone wants to own the pipe to stream you video or to deliver you that video both to your hand held device, like an ipad, or to your big flat screen tv.

i think they're going after that there. john carney brings up a good point when he's talking about motorola. in acquiring motorola, google is buying into the living room. they already have a huge set of installed base boxes. how could they use those set top boxes to have access to this video streaming market? >> jon fortt, what's your take? >> one more try. okay. here's the problem here, carriers are already really scared of google going over the top on them. this is going to make them even more scared. so motorola could lose serious set top box market share to cisco in particular. also, this market of home entertainment, it's like an accessory market to the cell phone. it's not a huge market in and of itself. apple already sold 1.4 million apple tvs in just the holiday quarter alone. it's really hard to see how google makes a business out of this. you really hope they'll focus. it's a question -- is this the thing to focus on? probably not. >> wow. all three of you. >> how long do you think it will

last if indeed they do it, john carney? >> i think -- google has a lot of money. if they want to chase this project for years and years, they can. i don't think they'll ever have any success at it. but i think they can literally do this for the next five or ten years and you could be hearing about it. >> okay. thanks all. we have to go. appreciate it. well, earnings, economic data, europe, the fed, how should you position yourself headed into next week's busy session, especially after this s&p move on the banks. we'll talk about that. the trading triple play is next. like in a special ops mission? you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade. well, that's what trade architect's heat maps do. they make you a trading assassin. trade architect. td ameritrade's empowering, web-based trading platform. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account.

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all right. let's check in on the markets for you. we've worsened our position a little bit. not much on the dow. we're down 137 points on the trading session. west texas intermediate crude down $1.30 at $98.54. the 10-year note trading on the upside which is pushing the yield to the downside to 1.962%. so, how do you set yourself up for next week? time for the trader triple play at the nyse is jonathan, at the nymex, anthony, and at the cme is holly. holly, i'm going to start with you, if i could, because s&p made this move on the italian banks. what does that do to the 10-year yield next week? >> you know, right now it seems

they're a little bit neutral in here given what's going on in greece and overseas which is keeping the markets a little bit lower in yield, below the 2%. but then you've got some of the economic data next week, which is expected to be strong. plus you add all the supply this week. and that's putting a little bit of pressure on yields to maybe bump you back up above 2% at the 10-year sector. but i really i think is critical is the fomc minutes next week. plus just outright price action. the 10-year has really been consolidating between two critical areas. say about 205 on the upside and about 185 on the downside. if you get outside of either end, i think you have a significant move, whether that's caused by italy, greece, fed speakers next week. who knows. but really you should wait for that break. >> okay. jonathan, what about the stock market next week? holly kind of outlined some of the bigger events. and then of course over the weekend everybody's going to be watching europe. >> absolutely. you know, it seems like today is the day where nothing is going on in the u.s. and everything is focusing on europe. and clearly we can see that

negative news, the impact it's had on our market. i agree with holly. a lot of economic data coming out next week. fo ma fomc minutes will be very critical. a lot of comments out of there investors hold onto. going into next week seems like all economic data out of the u.s. has helped support this market, has helped support this rally. i think investors have been buying stocks all day today, probably going to hold off for now and next week we'll see a rally. >> anthony, what does this do to the price of crude oil? >> you see very well-supported around the $ 95 $96 area. what's going on in iran and syria, what could happen between israel and iran, that's really what's keeping crude oil prices where it is right now. i'm looking at products. when you look at products, especially gasoline market, about half a million barrels a day, a million gone from europe. demand isn't really where it was say 2006 and '07, but if it

starts picking up, we could see real shortfalls as far as refinery capacity goes. and we could see $5 at the pump very easily. >> yikes. $5. >> absolutely. just in time for summer. >> yikes. all right. thanks, guys. i think. have a good weekend. >> tough call. coming up on the program just over two hours left in the trading day, a check on the markets. and of course our charts of the day. >> and a big week on "power lunch" next week. it's can't miss tv. we'll tell you all about it when we come back. but we couldn't simply repeat history. we had to create it. introducing the 2013 lexus gs, with leading-edge safety technology, like available blind spot monitor... [ tires screech ] ...night view... and heads-up display. [ engine revving ] the all-new 2013 lexus gs. there's no going back.

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we hope you'll join us next week on "power lunch." we have week of power players delivering more than $1 trillion worth of investment advice, all for you. it starts monday with steven pique considered by many to be one of the best european stock pickers around. plus, this is one of tyler's favorite segments, sports illustrated has made household name of models with the annual swim suit edition. last year's winner joined us in studio. and on tuesday this year's winner will join us as well. i will not be standing next to her. >> now that is television. wow. okay. this is where we are in the markets. we have taken a leg down. we're down 140, as you can see. it will be really interesting to

see tonight how mario monti, the caretaker prime minister of italy, deals with the breaking news that we have downgrades from s&p on his own banking sector. that's huge news for rome. >> 34 out of 37 they downgraded because of worsening financial conditions. and, of course, it comes at a crucial time as you well know, simon, better than any of us because this is going to be a key weekend to see whether or not we can get part of this greece situation resolved or whether or not the deal starts to unravel once again. >> yeah. we kind of thought we might have it in the bag by now, but it's obviously beginning to unravel even before our eyes. these are closed on the italian banks. posted 11:00 eastern this morning. >> all right. chart of the day i picked the vix. it's actually the chart of the week for me because volatility has moved up. today the vix is up better than 9%, almost 10% on the day. for the week it's up almost 20%. >> and when you look at today's losses, just bear this in mind. this is how we've td