that's the global growth story. and also the fact that crops are going to be less than expected in south america. >> thanks for watching everybody. that will do it for "power lunch." >> "street signs" begins right now. have a great afternoon. we'll see you tomorrow. indeed it does begin right now. hello everybody. welcome to "street signs." i'm mandy drury. brian is on assignment this week. the one bull, mr. buffett's still bullish on stocks and he's not alone. one market watcher thinks the dow at 17,000 is possible by the end of next year. we'll also drill down on why the oracle of omaha thinks now is the time to buy a home. actually, maybe even a few of them. is he crazy? or is he crazy like a fox? and also america is going coupon crazy. we'll show you which states are cashing in the most coupons. but first let's check in with courtney reagan and see what else is happening at this hour. >> it might be new york because i'm a coupon cutter. the books as we head into the last two hours of trading the

s&p 500 rose above its 2011 intraday high to reach its highest level since june 2008. we've pulled back a bit. next up, the dow going for first close above 13,000 since may of 2008. can we do it? transcanada is building a $2.3 billion oil pipeline from oklahoma to texas after separating that proposal from the rejected keystone project. it's also submitting a new application for keystone with an alter route. and another day, another all-time high for apple shares. it's also $10 shares away from a $500 billion market cap. >> thanks for that, courtney reagan. let's get straight to the trading floor. bob to you first off. we started shaky this morning and then moved into the green, we're back below 13,000 -- actually sitting right on it as we speak. what is behind the changing mood down there on the floor? >> take a look at the s&p 500 on an intraday basis, mandy. you'll see what happens was we started turning around once the

pending home numbers, you can see right around 10:00 eastern time when the pending home sales for january turned out, we turned around. then just about the close of the european markets we had of course the germans approving the greek bailout in their own parliament. a little less contentious than people thought. and in the last few weeks, if you ask me, it's all about oil. bring oil up today. i think this was another factor in why the market did so well. look at this. we were $100 just a few days ago. we went to $110. today we are down for the first time. it's been pretty much straight up here for a number of days. oil weakness and in fact energy stocks are the weak segment today. i think oil being down was also a major factor today. take a look at the s&p 500 year-to-date. i just want to point out how much stronger i think the u.s. economy is going. look at this. almost straight up. we're up about 9% on the s&p 500 for the year.

that's pretty remarkable. why is it remarkable to me? because any day when you see oil up, put up oil here, i mentioned that earlier going up so much generally pressure on the markets. and we haven't seen that. i just want to point that out again going from $100 to $110. finally, look at the energy stocks. they're continuing to be market leadership stocks here again hitting new highs. amanda, let's just say improving economy and the fact that higher energy is not messing the stock market up like it did a few years ago. >> absolutely. that is a big concern. thanks so much, bob. two stages on the street out with two bullish bold calls on your money. >> equities are still cheap relative to any other asset class. >> i think it's very possible that, you know, we're going to get to that 17,000 level by the end of next year. >> biggest question out there. let's bring in co-founder of the

spoke investment group. let me start with peter. i think you're in the camp that says, yeah, 17,000 by the end of next year is possible, but not for the right reasons. >> sure. first of all i know that warren buffett or jeremy sea gal being bullish, but sure the stock market is probably going to go up. but so is the price in gas, so is the price of food. the question is why are prices rising? why is everything getting more expensive? and it's because the fed is printing so much money. this is all the result of inflation. bob pisani alluded earlier talking about, well, the economy is strengthening, look at the stock market. the stock market has got nothing to do with the economy. the economy is a disaster. as a result, the fed is printing all this money. and so the stock prices are going up. but then so are the oil prices. and food prices. everything is going to go up if you print enough money because what's happening is you're destroying the value of the

money. -- >> peter. >> where you see that is assets are more expensive because you're paying for them with depreciated currency. >> peter, i totally agree with the actions of fed are going to keep asset prices going up. but did you say the economy is a disaster? seems recently the data points at least what i'm seeing point to an improving economy albeit at a low base. >> no. all we're doing is looking at how much money we're spending. we're buying more stuff. the government is spending a lot of money. consumers are spending money. where are they getting it? we're borrowing it. we're going into debt. the debt is growing much faster than the gdp. we have a disaster waiting to happen when interest rates rise. they will rise eventually. the fed is trying to keep them down indefinitely. but they can't do that. the reason the fed is still on hold at zero is because they know the minute they let interest rates go up, this hole phony economy they've inflated is going to come toppling down.

>> we might get to 17,000, but will we have purchasing power. you look at charts and history, what is it telling us in terms of whether 17,000 or any other level is in the cards. >> looking back historically, when -- we've looked at these periods during bull markets where you've had at least a six-month stretch where the market had a correction and hasn't made a new high. just in the last few days now we've made a new high. when you look historically that's been positive for the markets here. so what we were all waiting for last year is the other shoe to drop. people something negative out of europe to happen or for the economy to go back down and take another leg lower. and it didn't happen. so the market was flat, but at the same time earnings whether you want to call them phony or not, grew over 12%. so this year you see the market playing catchup. and, you know, you have a better outlook. the economy certainly was a disaster in 2008, but the housing numbers are showing improvement. they continue to get a little

bit stronger every month. and employment -- >> right. >> the unemployment claims are now at historic kal average over the last decade. we're getting to some sort of -- >> ask yourself this, where would the economy be if interest rates were at their historical average? if mortgage rates were at their historical average? if treasury yields were at their historical average? where would this economy be if we had to pay an average rate of interest on the enormous amount of debt that we have that is anything but average. >> we can look at what if this and what if that. look at what we have now. and interest rates are at historically low levels and valuations at historically low levels. those two being at the same historically low levels don't normally happen. you tend to see expand when you have lower interest rates. >> these rates are artificial. the fed is buying 92% of all the funds. this is unsustainable. i'm not asking you to consider what might happen if a meteorite

lands in new york city. i'm talking about something that's going to happen. interest rates are going to rise. and then what happens? >> that's the big question. we have to leave it there. paul and peter, thank you very much. great debate. warren buffett also said if he had to sell any equity to raise capital, it would be johnson & johnson. he says he has no plans to sell it right now. it is still a good company he says. the stock is up about 8% over the last year. but you might recall the company has had a series of recalls. and the ceo is also stepping down come april. so should you keep j&j in your portfolio? let's bring in portfolio manager of the miller ta back transformation fund. good to have you on the show today. >> thank you for having me. >> what do you think? warren buffett says that would be the first on his sell list if he needed to raise capital. >> if he needs a loan, i'll gladly write him a check so he doesn't sell his stock. our view is j&j is a good

company. significant upside from the very problems that mr. buffett suggested once they resolve the over-the-counter drug problems as well as some of their medical device issues, we think there is upside. of course that presumes that things will improve, which is our working hypothesis. >> it's had a series of recalls over the last couple years and missteps. do you think the new ceo is going to be able to not just repair those issues but also consumer trust in this company? >> consumer trust is taken a knock. generally speaking our rule of thumb is we give ceos about a year to put their imprint on the companies. our guess is a year or so before investors start asking hard questions. he is coming in at a good time though because utilization of

medical equipment is going up related to the economy. admittedly it's uneven and it's lagging the economy a bit. but if the economy improves just modestly ex a meteorite hitting in the park, bellwether disproportionally. >> buy, sell or hold of any stock wouldn't matter if a meteorite hits. let's check in now with herb to see what is trending at this hour. herb. >> what's interesting is dendreon has been talked about all day. it's obviously trending on stocktwits as traders have been chattering about it. what's interesting about this story is it's a company that's a consummate battleground stock that was going up because the company basically pre-announced good earnings going into the quarter and then, ka boom, the company comes out and results of

its prostate cancer drug not as great as people expected. it's almost like they stole from the future. >> it's a very expensive drug as well. anymore clarity in terms of -- that was one of the overhangs, wasn't it? >> yeah. it's still i suspect -- >> i'm surprised it wasn't your disaster du jour. >> it was. we have something else. i also want to point out auto zone, we give eddie a hard time for his sears investment, but his auto zone investment he's been peeling off a bit has been such a winner. the stock's been talked about all day. it's hitting all-time highs here. there you go. >> i'm going to ban the words of course. nothing is a given in the market. >> no. we assume people know and remember. and, no, they don't know. >> there's always someone who doesn't know. coming up next on "street signs," the landlord economy. forget stocks. what warren buffett says you should be doing with your money is coming up. but is he right about housing this time around? and also the happiest stock on

earth, disney, getting a big upgrade. is it time to put a little mickey or minnie or daffy in your portfolio? career. and it's 168,000 hours. so just think, if you had an 8-hour job, i'm like a man of 100 and something years old. i've worked very hard to support my family. and i finally reached that point where i'm going to retire. ♪ ♪

goodyear tire up 50% over the last six months. some good news on the housing front. pending home sales hitting a new and near two-year high today. that and warren buffett telling cnbc that housing is poised for

an upswing. >> if anyone is going to live the next five or ten years, i would buy a home and furnish with a 30-year mortgage. and literally if i was an investor that was a handy type, which i'm not, i would buy a couple of them at distressed prices and find renters. i think that's -- and, again, take a 30-year mortgage. it's a leveraged way of owning a very cheap asset now. >> but last year buffett said that a housing recovery would begin within a year. and he was kind of wrong about that. so will the oracle of omaha be right this time around? joining us ihs global insider pat newport. why do you say it's only a good time to buy a house if you're warren buffett? >> you have to take out a mortgage to buy a home. and it's very tight. it's not going to get loose any time soon. >> it's not going to get loose any time soon. but you could say that's kind of a good thing that lending

standards are better than they used to be but surely going to be one of the things that hold back the housing recovery. >> it is going to hold back the housing recovery. hard to tell whether the credit's too tight or not. it's tight because fhfa has tight conditions on fannie mae and freddie mac. they regulate. and it could be the case that they've gone too far. but they have the spread sheets showing that they're implementing the right policy, so i'll take them at their word. >> but at the same time it does seem data points are suggesting that we are in a recovery mode. it might be patchy, but it does seem to be pointing to a recovery. wouldn't you say this time around it's for real. it's not going to be a double dip, triple dip or quadruple dip. this time it's for real. >> i think it is this time for real. we'll see better numbers in 2012 than 2011. and see more on the construction than single family construction. 2011 was a horrid year. we'll have a better year. compared to a horrid year, that's not saying very much.

>> you have to look at this, pat, the issue is he's looking at it over the long-term. he's looking at anything over the long-term. the concern i had when i heard this statement was every market ain't the same. so when you talk about buying homes, what market are you talking about? so there are some especially in the sun belt where you could probably get some great bargains on investments because people are still going to be moving down to the sun belt. >> right. we're going to see more construction in the south and west and not too much in the northeast and the midwest. i think we are going to see better numbers. that's what the numbers came out today are telling us. but we have two or three years to go before things get back to normal. >> just hold that thought, patrick. i want to bring in another guest now. his name is stewart hoffman from pnc financial services. you agree with buffett. you think now is a great time to buy a great home. >> i do think it's a very good time to buy a home. it's not absolutely certain buffett wasn't right a year ago if he said within a year because it looks like the housing market started to pick up last fall. a couple numbers we've got in

the fourth quarter. of course the weather's been warmer, so that's why we have to wait and see what happens over the next three or four months. but, yeah, i think it's a good time to buy a home. looking for double-digit increases in sales and starts, but, yes, it's just the beginning of coming out of a depression in housing. >> but stewart, where? when we say it's a good time, this is the point i just made. >> i heard. >> where is the right place to buy? do you just buy them anywhere? >> well, it's not just -- it's a place and a type of property. there are a lot of properties out there that have been sitting around for a while. and might not evenbe inhabitable. distressed properties in florida or atlanta. but if you wanted to stay away from that, buy a home that's not foreclosed on, in short sale, not talking necessarily investor point of view but the average american out there wield better job prospects thinking should they buy a home in pittsburgh or

chicago or philadelphia or even l.a., this may be a good time to do it because i still think it's a buyer's market. and as was said, mortgage rates at the lowest they've been in about 60 years and probably might stay there for a year or two but not the next 30 years. >> stewart, what percentage of loans these days are now going to people who are buying homes as an investment and renting them out as oppose today buying and living in them? >> we don't know for sure because i think they're buying in lots. meaning an investor would go in not interested in buying in one house. it's different in the early a '80s where you could buy a commercial property but you were buying a big condominium or a big retail mall. so i think what you're seeing is investors are probably looking for a number of homes. whether they're condos or single family homes, packages them together that way they get diversity. i don't know the numbers but i'd be willing to bet it's probably less than 10% they're going in

and buying homes for speculative or investment point of view. >> pat, would you like to take a crack at that? we're always talking about america becoming not so much the american dream of having your own home. it's becoming renter nation. so what percentage of new loans are going to people doing just that? buying and renting out? >> i think the percentage of sales is about third. i agree with stewart that is a a great time to buy a home. the problem is it's hard to qualify to buy a home. >> okay. we have to leave it there, pat and stewart, thank you very much for joining us. >> it's going to get easier. >> we hope it gets easier. how a jelly bean, president reagan and one big gamble help to make a small california candy company into a big global success? the rags to riches story when we return. plus, a little novocain to ease the pain at the pump. yes, please. the stock set to soar as gas prices climb. "street signs" back after this break. ter risk of a stroke. i was worried. i worried about my wife, and my family.

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bellies made by his company though not invented specifically by him, to the governor. and he then displayed them when he was elected president. had them in the white house. they took off. he put them in the oval office in the cabinet meetings they featured at the inauguration red, white and blue jelly beans. >> but who did invent the jelly belly? what happened to them? >> a candy retailer distributor in northern california liked the idea of using pure flute purees in this hard shell. and he came up with this idea for these products and also with the name jelly belly. and he worked with mr. roland over the years. mr. roland ultimately saw the commercial possibilities here. they did a deal and mr. kline sold his interest and now it's taken off to the point where it's a $200 million a year business. >> that's a lot of jelly bellies. what are the strangest flavors

now? >> they have moldy cheese, sausage, black pepper. some of the more familiar ones, would you like to try a toasted marshmallow or cotton candy? they're very good. >> combine them chocolate cream with the razz berry. >> a & w cream soda. >> i have toured the factory in northern california. it's really quite interesting. what's interesting is how this is not a normal jelly bean because not -- forget the flavors, it's the way the entire process, the hard shell and it's all the way through. it's really not your traditional jelly bean. that's what you come away from the tour if nothing else knowing. >> these are intense flavors. they're also working up a brand of beans that are energy beans. we fill you with electrolytes, like an energy drink in a bean. >> like gatorade or something like that. okay. >> tonight 9:00 p.m. "how i made

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welcome back to "street signs" everybody. time to catch up on the latest wall street chatter in today's street talk. first of all 90 minutes left in the trading session today. and the dow is hovering right at the 13,000 mark. if we can hold on to the gains, the blue chips will close above 13,000 for the first time since may 28, 2008. a huge help today is oil. the pharma trades coming in right now with crude settling down about 1%. let's get a check on all the latest action from the floor of the new york stock exchange. joining us matt cheslock. we pierced the 13,000 mark several times. are we able to convincingly hold above it by the close? what's going to happen this week? what are the trading levels we were looking at? >> i wish i knew because i would make a good bet on it. people have been very optimistic about going forward here. this has beaten wildest expectations this move that began since the beginning of the year. so i would anticipate us being stuck at 13,000 for a while. i would imagine 100-point pullback in the dow would

probably be met with buying. but a 500-point loss may be met with some selling. that's what people will watch for to see if this selloff does occur how strong it is. >> you say there's a lot of optimism. i feel a lot of things people are optimistic about is already priced in. what will take us to the next level, matt? >> i would think oil coming in below $100 would be one catalyst. the market ticking higher here that's going to provide some optimism. these may be short-term things. this is an election year. we've had some results out of greece, which have been positive. so it may be already built in here. i wouldn't mind seeing a bit of a pullback. but the u.s. economy as a whole has done quite well. and it's good to see that we are back to leading as far as, you know, instead of lagging. >> would you sell oil at these levels, matt? >> you know, it's funny. i think oil's now starting to gain a little bit of traction here. i think people are concerned about it. there may be another leg higher before it comes in. but that's what i would think because i would think the market's probably going to sell off a little bit.

i think oil may be part of it. >> got it. thank you, matt. shares of disney hoping to drive the gains on the dow following an upgrade at goldman. the analyst citing strength in theme parks and its espn brand. but your next guest is saying the exact opposite and recently downgraded the stock. let's bring in disney analyst of barclays. what are you seeing differently? >> mandy, i just think in our view $3 a share of earnings for disney, a plateau of earnings for vision. 15 times earnings, we think disney's fairly valued. we think the espn asset is good but structurally longer term maybe a little bit of flattening out of margins. and in terms of theme parks might get more cyclical upside theme parks. but importantly away from that in terms of broadcasting, the studio and the interactive division, we just don't see a catalyst for earnings revisions to march much higher. so as a result we think a lot of optimism as you alluded to earlier is starting to get priced into disney shares at these levels. >> okay. so a price target of $44 whereas

goldman's got $51. and you say it trades at wider than normal premium to its peers. so within its peers, anthony, who would you prefer? >> well, we actually think the group has outperformed the market quite a bit. we actually would prefer names that have a high return of capital to shareholders. we like viacom on that. we also like cbs. interpublic is one of our picks there. generally, we like disney. it's a bellwether, it's a defensive stock. it's really a high-quality name. but i think in order to really own disney in size, you have to argue for an earnings multiple of up in the high teens. and at 15 times earnings when you look longer term, where is that $3 of earnings going to go? if it's going to go to 350, 360, i think there is an argument for multiple expansion. look at some of the businesses structurally, some of the difficult repairs coming up later in the year on advertising and lodging, we would just take a little bit more caution right here right now.

remember, the stock's already outperformed. it's outperformed the market by about 12% over the last three months. and we have been extremely bullish proponents of disney for the last year and a half. >> yes. >> up until our downgrade a few weeks ago. maybe we were a little early. we think it's a great company, we just think the stock's probably fully fairly valued. >> absolutely. shares are up about 17% plus over the past three months. anthony, thank you very much for your conversation today. >> thanks, mandy. >> and this certainly has the street talking today. the fbi's newest spokesman is none other than gordon gekko. does that seem odd to you? >> hey, mandy. 25 years ago he burst on to the big screen and into the american c consciousness. immortalizing these words. >> ladies and gentlemen, that greed for a lack of a better word, is good. greed is right. >> the man who brought the stock

swindling gekko to life michael douglas putting those words to good use about the dangers of insider trading for the fbi. >> that movie was fiction. but the problem is real. our economy is increasingly dependent on the success and integrity of the financial markets. if a deal looks too good to be true, it probably is. >> the fbi's saying the oscar winning actor eager to change roles fueling he received unwarranted acclaim. >> people coming up to him high-fiving him shaking his hand as if he was some type of hero rather than a vaillain he playe on wall street. and he was happy to speak on behalf of the fbi so that everyone understands that insiders trading is a crime. >> the fbi has arrested more than 60 people over the last three years on insider trading charges and targeted about 300 others for those charges.

>> how effective do people think this is going to be though? >> that's a good question. i think they're hoping to raise some kind of public awareness. there will be some effectiveness from it. certainly when you have someone like michael douglas -- and i think everyone, you know, is aware of gordon gekko. >> one thing you and i both know, mary, and that is human nature takes over and people always think if they want to do it, if they genuinely want to do it, they will do it thinking they are smarter and will not pay attention to these ads. that's my guest. >> i would say 60 arrests doesn't sound like a lot to me. >> this is a big deal though. >> maybe it doesn't stop the person who would say they're above the law, but maybe it actually raises consciousness for someone who doesn't believe they're above the law. it works one way or the other. >> okay. love that voice. it's the voice, isn't it? >> i know. >> thanks, mary thompson. a bit of an irony going on here. warren buffett on the one hand talking about how he feels the economy's improving and his favorite bank stock wells fargo. we were talking to wells fargo

ceo not so long ago that kind of feels the opposite. feels small businesses aren't feeling the economy is improving. >> this is exactly my point. this is what gets lost in translation here. you have buffett and others coming out saying the economy's improving. the numbers look like they're improving. when we had the ceo for wells fargo here for private off the record, i got him to go on the record for this purpose to talk about this, i said to him, i said, we're in a little meeting, i said, hey, i don't get this. the numbers show everything's doing well. and now warren buffett who absolutely loves wells fargo is telling me everything is doing well. he says don't buy it. don't believe the numbers because he says when you look at the small businesses, they're not doing so well. he said until they're doing well, this economy will really not take off. i said, but look, everyone was going to davos. and in davos they were all saying how great everything was. and he said to me, i don't go to davos, i go to des moines. which was a great line. a line he's used before.

i think it's actually important you have to remember the big businesses are starting to see signs of improvement. when will small businesses start hiring and feel confident? >> is this a disconnect you think should have investors worried? or interesting little irony. >> i think you always have to be a little concerned. everyone's telling you it's great, but it's not as bad as it once was. things are getting better. anyone will tell you that. but there will be bumps along the way. >> and a note on lennar. >> i want to point this out. this is interesting. the stock's been doing relatively well since reporting earnings back in january. but i talked to chuck of cash flow analytics. he's an accounting professor at georgia tech. he says, look, the earnings quality at lennar is flashing a big warning. he says that any improvement in earnings is not being confirmed by cash flow. instead he said the earnings of this company are being helped by tax benefits while cash flow is being hurt by lost tax refunds and significant inventory growth and does not like the way they're reclassifying inventory

on their balance sheet to fixed assets. i have to tell you, look, this is not the only company -- the housing company that faces this. the industry's come through a lot. chuck does look at the accounting though. you have to pay toenattention t accounting. although lennar is a very well-liked stock on wall street. >> did you see the chart just a moment ago? the 12-month chart the september/october lows. there you go. it along with many other housing stocks has done very well. optimism is being built into this sector. >> keep an eye on the quality of earnings though. that's all. >> we will do. >> they mean something. >> they do. thank you, herb. coming up, our sunshine and disaster stocks. and also more cruise troubles for passengers from two carnival ships. stay with us.

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anything but smooth sailing for two cruise liners. nearly two dozen carnival cruise passengers were robbed during an offship excursion in mexico. passengers of the carnival splenda were robbed at gunpoint. no one was hurt and carnival says the victims will be reimbursed. the passengers will of course get back their losses. and also trouble for another costa. the ship is still adrift off the coast. no one was hurt, but this comes of course weeks after the costa concordia disaster. why don't we check out shares of carnival down by about .03%. >> on the back of that i guess it might be fitting to do disaster du jour. not a healthy day for one health food company. >> smart balance.

they make butter spreads. >> i have it in my fridge. >> we mentioned this because the stock after earnings ended up going up even after a number of analysts downgraded the stock. not sure why it's down. maybe investors are paying attention to the concerns analysts put out there. >> do you eat it? >> we have something else. it's actually very tasty. >> at the end of the day i think we should just have the real thing. it tastes better. i don't care if it's worse for you. sunshine stock a lockdown. corrections corp. of america is up 5% as it announces a new dividend. yeah, as you can imagine from the name, they build prisons. you have to put those prisoners somewhere. they build prisons. up 16%. are there more prisoners out there these days? >> there's been a lot of controversy over this just because their business is to make sure you stay in jail. think about it. >> i guess so.

>> corrections, corrections, corrections. you get better. you're supposed to rehabilitate people. >> got to keep those prisons stocked. herb, you're going on a cruise this spring. was i freaking you out? >> no. we've been on a number of these cruises. >> check this out. i don't know if this is the one you're going to do, but a uk travel agency put together the world's most expensive cruise. a 124-day adventure on. uber luxurious silver whisper going to set you back a cool $1.5 million. the 1,000 square foot royal suite with two bedrooms and two marbled bathrooms. the cruise leaves from los angeles. it's going to have 28 ports of call. the price tag also gets you a luxury trip to london before you board with caviar and all that kind of thing and a trip to miami after the cruise. do you think $1.5 million, all

of that, does it sound worth it to you? >> of course not. that's ridiculous. you can get on the same cruise line even the non-caviar part of the trip. it's one of the number of premium cruise lines out there. that's what they're viewed as. i'm going on the region cruise lines. >> take the disney cruise. get massaged by mickey. coming up next on "street signs," pain at the pump. east coast versus west coast and the game for one specialized company. and a fun way to get to work to the long ride home. why more and more americans are being forced to move further and further away from work. first though, what's ahead on "closing bell"? >> mandy, we're getting ready to break in our brand new set. welcome from post nine here at the new york stock exchange. very exciting day. hope you can join us. and who better to join us than new york stock exchange ceo. an exclusive interview with duncan on state of the industry right now. and we're wondering if this rally is just getting started or

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now depending where you are filling up, the pain at the pump varies widely. aaa pegs the national average at 3.69 a gallon, up 13 cents from a week ago. our phil lebeau is nearby in fort lee, new jersey, drivers in the garden state are paying 3.59 a gallon. let's begin with our very own jane wells in los angeles where california drivers are paying, jape, a whopping 4.29. really? 4.29? why the huge spread? >> at least. >> joining us via skype, by the way. >> mandy, it has come to this, gas prices are so high, i'm skyping from home. my average commute to work is 76 miles a day, three gallons, $13 a day i'm saving myself $13 by doing this i don't have hair or makeup or cameras, you get what you pay for.

here is the deal. in los angeles, the highest prices have now surpassed the 2008 peak. the most expensive at 4.59 a gallon. i have seen it higher than that especially if you use credit card. englewood cliffs 3.77. part due to taxes. california, average gas taxes are 56 cents a gallon, versus new jersey, under 15. california gas is special, reformulated, costs more to refine, one reason. we talked to commuters on both coast, you will hear sky letter stone filling up from l.a. this couple from the bronx, who spent $70 a week per car. >> they say it is going to up to five bucks by the summer. >> we are going to have to start riding a bike. you know it is really bad. you know, and with this recession, it's not any better, you know? >> it is pilot season, guy out for so many auditions a day, probably like, geez, i fill up three times a week now. >> how much is it costing you? >> $75. >> oh, my god.

>> looking at 225 a week. yeah. >> how can you afford that? >> i'm awesome. >> of course the first guy we run into is an actor. he also says one of the good things about living in california is his heating bill this year is practically zero, that is a difference. i know it has been mild back east but still having to pay heating oil, futures up 12%. my friend sharon epperson says paying 40% more heating oil because she locked in 2011 at the low. maybe it saul a wash, mandy. pay more for gasoline but our heating bills are low, although today it is kind of cold. it is a bit of an offset. jape, making us look bad. tomorrow, me and the gang, the gang being, of course, herb, we are going to do our whole show via skype. >> yes. >> jape, going to turn now to phil, for a look at who is gaining, not just the hurting but the gaining from the high gas prices. phil? >> jane and mandy, you know, we hear from people all the time, detroit must be freaking out over these high gas prices. the fact of the matter is detroit and the auto suppliers

in particular are not freaking out. companies that are primed for what we are seeing in the industry now. start with board warner, these guys are one of the leaders when it comes to making turbochargers. turbochargers are incredibly popular for vehicles, they improve fuel efficiency 15% while lowering emissions. the important thing to keep in mind here the global demand for these is going to double by 2017. when you look at the company, nice runt past year and a half or so expecting compounding growth up 7 1/2% this year. vist yin, specializes in energy management services, fancy way they want the engine, internal combustion engine, to be more efficient, how it manages and purchases fuel. vist yin a nice move. and eaton, it makes super chargers. it is fuel efficiency and the wave of the future, man ditch when you look at these

suppliers, seeing increased demand in business now. >> very interesting report. thanks very much, phil lebeau. now according to research, page her cities like philadelphia have seen a 50% increase in workers traveling as far as 100 miles to get to work. it is the emergence of the super commuter. joining us now, author of the report, nyu professor mitchell moss. mitchell, how much of this is people traveling every single day, long distances or is this essentially people who now have the flexibility and ability to be able to be at home and maybe only go to their workplace twice a week? >> it is both. we have people traveling every day 100 miles. for example, los angeles to san diego, 50% increase in commuters that distance. texas was in houston, dallas, enormous amount of commuting. the change in america is that people are willing to travel longer because they don't want to uproot their homes. they don't have to be at work every day. sometime goes this to work three days and broadband communications allows them to

work the rest of the time from home. i think we are seeing this across the country, not just in one part of the u.s. >> indeed. jane wells proved a moment ago how much we are all using things like skype in this globe a.m.ized world, not just from city to city but country to country as well for their work. i think you have hit on an interesting point about homes, how much of this super commuter trend is being driven by the fact that people cannot sell their homes to take up a job elsewhere or they don't want to sell their homes at a loss? >> i think both trends are important here. one is that the home market has been so uncertain, people don't want to sell it if they are not making money on t another person in a household is working, then one other person is going to do the traveling. in a sense, we are much easier now to work in one place but keep the home stable and not to have that go through the change. >> how fast is this trend growing globally, professor? >> we have data now looking around the world, people are commuting from new york to prague, certainly seeing it coming from bonn in germany, many cases eastern europe. the demand for skilled workers

is forcing firms to say we will take you three days a week and we will even cover your travel and you can work two days remotely. so this change is not just in the u.s. it is around the world in these large regions. >> it is really making the clock irrelevant, isn't it? just working 'round-the-clock. professor mitchell moss, very interesting study. thanks for sharing it with us. coming up next, continuing saga of this rather patriotic piece of poultry. [ male announcer ] technology accelerates at a relentless pace. anything not moving forward... is moving backward. [ tires screech ] [ engine turns over, tires squeal ] introducing the 2013 gs, with the lexus enform app suite -- the most connected information and communication technology available in an automobile.

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remember last week we told you about the mcing in that's looks like george washington? good news it is back on the auction block. ebay pulled it because it would not allow expired food to be sold. making an exception because the proceeds from the sale would go to a charity. a nebraska woman has held onto the mcnugget for three years. three years? surprise it had has kept so well. >> how do we even know that it's expired? truly? >> three years, i think it's expired. how do you know? >> anyway, the dow still above 13,000, folks. leading the dow, the financials, jpmorgan leading the charge there, as well as american express and bank of america. micron is the biggest mover on the s & p 500. of course, if we do close above 13,000, the first time since 2008. it has been an elusive one to close above. appeared many times the past week but not closed above it in that timeframe. thanks for watching street signs, everybody. me and the gang, the gang of one. >> that would be me. >> yes, the gang.