going up, people will be trading down. i like this one still. >> joey t. >> get long two things from louisiana, lpx, louisiana pacific, and andy petit. see you at the nasdaq. "power lunch" begins right now. scott, thank you very much. three hours to go in the trading day. and you can forget about march madness. don't even think about changing the channel. we have march market milestones, three ms right there. the dow above 13,000. s&p above 1,400. the nasdaq above 3,000. this is one serious case of bull. and can you still get in and make some money? you don't really need it. you can buy it online. yes, you can. but thousands still lined up. these folks in wet soggy new york some of them to get their hands on the new ipad this morning. we will have the buy, the sell and the hold. not so much on apple, but on other stocks that could move on apple mania.

plus, interest rates. they have been surging this week. did you notice how far they've come? what will be the impact on stocks, on housing, the economy and the fed? we've got an all star panel with some answers. sue is still under the weather, and it's nasty weather outside. i'm tyler mathisen. welcome everybody. the "power lunch" friday edition begins right now. >> i'm mary thompson at the realtime exchange. consumer prices rise, consumer sentiment falls for the first time since august. markets are taking it all in stride on this friday. we have the dow jones industrial average up just a hair right now. the s&p 500 up a point. the nasdaq weaker down just about 1. taking the pulse of the markets,

a yield on the 10-year moving up but off the highs of the day. also we have the euro actually little bit weaker -- stronger, i should say, against the dollar. and gasoline too moving higher today up 1.8%. taking a look at mid daifr movers, bank of america at $9.58. mosaic up $2.39. this in the wake of lagarde saying the put ash flood starting to dull. 12% on that. on the downside, we do have estee lauder lower on a downgrade. it's off .06%. buffalo wild wings down 2.9% after wedbush cut its rating. and pitny boez down 2.5%. moody's put the company's investment rating agency on review for a possible downgrade. tyler, back to you. >> mary, thanks very much. the markets hitting a number of

march milestones this week and big ones. big round numbers. the s&p 1,400 for the first time since the beginning of the financial crisis. bob pisani tracking the action on the floor of the nyse. what you got, bob? >> hello, friend. big volume on a quadruple witching. not a lot of stock price movements, but it's been a very, very important week. let's look at our screen and see what's going on. s&p 500 and the dow jones industrial on track for biggest gains in 12 weeks. so the s&p 500 is up nicely for the week. a little over 2%. also treasuries, the big story here. look at the treasuries up 14%. that's the u.s. 10-year yield. that's the big story. normally if that would have happened, people said stocks wouldn't have moved so much but improving economy is the important thing. dollar flat to up here. and gold down. strange, strange week. things are changing. money's coming out of the bond market. the question is is it going heavily into stocks? i wouldn't say yet.

a lot seems to be in cash. look at financials. can you say more money going into financials. higher dividends, buybacks and a steepening yield curve. very important for the banks. bank of america has just about doubled in price in the last few weeks. suntrust, jpmorgan and citi, which failed an important part of that stress test, up 6.5% on the week. finally, before you think there's no risk or worries out there. look at the vix a little more carefully and stop paying so much attention to the short-term number there what we call the number for the cash. you don't want to look at that so much. look further out on the yield curve at the vix futures. look at 21. 21 out in april. and 27. this is the september contract. they're telling us, tyler, right now while the risk might be low for the next 30 days, look further than that. traders see some potential clouds on the horizon. >> a great point, bob. don't just look at today's number, look at the whole curve.

another march milestone this week. the nasdaq topping 3,000 for the first time since 2000 -- december of 2000 to be precise. jackie deangelis is at nasdaq. jackie, we know that apple was a big driver. it's up 45% this year alone. so what else is moving nasdaq? >> hey, tyler. we're actually looking at the nasdaq hovering around the flat line today. but as you said, it is above 3,000. and that's really the key point. there are some stocks moving though today despite the sort of it seems like lack of action that we're seeing. let's start with e-bay first off. up today on the news that it's paypal unit is expanding its domestic e-payments presence in asia. they're tapping into india and china. that's important because they're more mature asian markets but india and china key. paypal launched here yesterday. it's a service that allows small and medium businesses to accept credit and debit card payments via mobile devices. so that's sending the stock up. i also want to take a look at sears. this one was up earlier in the

session, but it is hovering around the flat line now. announcing another 62 store closures. now, tack that on to the 120 sears and k-mart stores we already knew they were closing and you're talking a serious issue with the business here. still the stock up over 165% year-to-date. and a lot of the analysts are saying this is a pure play on real estate assets at this point. keep an eye on that. also just want to highlight oracle as well. one of the movers to the downside on the nasdaq. this after competitor s.a.p. said it's making a big move into become a major provider of data base software. s.a.p. will talk more about that on april 10th in a press conference in downtown san francisco. but for today s&p seeing a bit of a pop. tyler, back to you. >> jackie, thank you very much. third major march madness milestone kicking off our power surge. apple of course topping $600 a share just yesterday. it has backed off a bit. consider it's been only 22 trading days since apple hit $500 a share. and today apple mania finds a

new gear. the new ipad is on sale. and our jon fortt is in an apple store in palo alto, california, where people were lined up overnight. >> hey, tyler. the question today is what does demand look like for this new ipad? out here there are about 150 customers in line when the store opened. maybe a little more than that around 75 retail workers on site. the first person in line, a guy named chris, showed up wednesday night. slept on the ground in his sleeping bag. the next night he got a tent, said he slept like a king but still on the ground in a sleeping bag. now, the question though there's been a lot of questions about these lines being shorter than the ipad 2. don't make too much of that for a few reasons. let me give them to you. number one, there were preorders this time. there were not last time. they sold a million in preorders. that's one thing. another thing other retailers selling this the first day, walmart actually opened up at midnight to start selling it. that's another. another is ten countries

launching this today. 25 more launching next week. this is much expanded distribution. we have people in some cases from other countries coming here to buy them last time. so those are all reasons not to get too concerned about this. and, finally, selling it in the morning this time. it was in the evening after work hours last time, tyler. >> jon, thank you very much. seema mody joins me now at the cnbc realtime exchange. nice to be with you. you've been looking at apple stock and what it might take to get it to dare we say the number $700 a share? >> $700 a share and even $800. tyler, there are so many fascinating numbers when it comes to apple. but one really interesting comparison really jumped out at us. you can buy an ipad for less than one share of apple. we posed this question to the twitter universe. what would you buy, a share of apple or the new ipad? here are some of our favorite responses. take a look at what neal says. i would rather buy a share in apple than by the new ipad. one reason, future shares. i would rather buy a share of

apple, wait until it goes up, sell and buy three ipads. what about the street? various analysts also picking one share of apple as their choice. in the last two weeks jefferies raised price target to $699. bernstein bumping to $710 and morgan stanley to $720. all targets roughly 20% higher than apple's current market price reiterating the street's confidence in apple's ability to move even higher. but what are the bulls excited about that could give a boost to the shares of apple to $700? well, the main product launches, the iphone5 and highly anticipated apple tv also growth overseas specifically in china. it's set to become the largest smartphone market this year overtaking the u.s. a huge opportunity for the apple iphone. lastly, investors want to see tim cook issue a dividend. guys, that's a big one. out of all the companies that hit $500 billion in market cap at some point, there's not one that does not offer a dividend. so perhaps apple will follow its peers and do the same. that's the hope at least.

and the reason that many dividend-focused mutual funds have been buying into apple in anticipation of a future yield coming their way. tyler. >> and none of those companies you just talked about hitting $500 billion in market cap has had as much cash as apple. seema, thanks. the economy slowly recoverying, but the auto industry is, believe it or not, in high gear. sales are rebounding big-time. now the carmakers are facing a question that few could have thought possible two years ago. is it time to add more automobile plants? phil lebeau behind the wheel for us in chicago. hey, phil. >> tyler, it's coming. just a matter of when. i know from talking with executives in detroit, the conversation is starting in terms of when to add auto plants. it's all about capacity utilization. the low point in january of '09 just 26% of the capacity in the plants was being used. look where it's at now. 80% in january. 78% in february. and the reason is the automakers are trying to keep up with sales demand.

so they've been adding capacity, third shifts at a number of plants around the country. and as they have done that, they have faced the reality that they have downsized dramatically over the last ten years to the point where they don't have a lot of wiggle room left. look where the auto industry was ten years ago in terms of the number of plants in north america. there were 50 assembly plants scattered out primarily in the eastern half of the united states. look at what's happened ten years later. by 2011 it was a dramatic weeding out of a number of plants consolidating basically in the stretch from michigan all the way down to mississippi and alabama. and as you take a look at the s&p auto index, the last six months is critical. there has been a surge there because the anticipation is we'll see greater sales, greater production, and, remember, tyler, production drives revenue which drives earnings. that's what everybody's focused on right now. they're going to have to add plants at some point. >> phil lebeau, thank you very much. to politics -- really geopolitics and money now.

the financial switch goes off for iran tomorrow as sanctions over its nuclear program tighten. eamon javers in washington with the details now on the latest in this high stakes play. eamon. >> hi, tyler. this could have a devastating impact on iran's banking sector as swift, the belgium consortium is set to turn off the financial switch that allows international money transfers in and out of iranian banks including the iranian central bank. that is an action that the u.s. has long-hoped would take place. that's now set to take place tomorrow. but a lot of people who are not familiar with the geofinancial world might say what the heck is swift and how is it possible that you can flip one switch and turn off an entire country? let's give you a quick primer on swift. what is it? well, as we say, it is the world's largest electronic payment system. officially known as the society for worldwide interbank financial telecommunication. it's a belgian cooperative set up in 1973.

17 million messages are sent daily on its secure global system. trillions of dollars in cash trades hands electronically. so what happens next for the iranians? that's a good question. i talked to a financial expert in dubai last night who told me that iran is going to have to lean on iraqi banks that it has influence over in order to continue to take part in international financial transactions. iran could have some difficulty now selling its oil into the global market. and it's going to have to depend really on india and china to facilitate money transfers on its behalf. so this is a crippling blow, tyler, to iran's financial sector. and it's part and parcel of everything that's going on around the world with iran's nuclear program. >> so basically they can sell the oil, but they can't get paid. >> that's right. >> how, eamon, does this dove tail with u.s. sanctions particularly? >> well, it works hand in glove with what the u.s. has been trying to do to seal off the iranian financial system to really amp up the economic

pressure. remember, barack obama has said he wants sanctions to have time to work. this is another big piece of financial leverage to use over the iranian regime. >> eamon javers, thanks very much. meantime, former tyco ceo moving back to manhattan's fifth avenue again. but this time there won't be any $6,000 shower curtains. his new digs will be new york state's minimum security facility. it's part of a work release program that lets him leave each day to go to work and return each evening. he was convicted back in 2005 as you probably recall for looting the company, tyco. he'll go before a parole board in april and could be a free man by august. up next, the dow up seven days in a row. nasdaq up more than 17% this year. the s&p up 12%. is it time to put more cash to work or have you missed the fillet of a great bull run? our power players going to tell you how to play the market right

now. here's the action in the sectors today. energy the big mover up better than 1%. on the other side of the coin, utilities down about 0 .3%. butg 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.

and the dow is reaching for its eighth consecutive day of gains. that would be the first time in more than a year. the s&p 500 topping 1,400 for the first time since the financial crisis.

and yields on the 10-year note, look at that. they are up again. they've moved up about 0.4. have we seen a shift to stocks? we're joined by katie nixon. welcome back. >> thank you, tyler. >> this move in bonds, what does it tell you? >> i think we've all been anticipating when rates would rise. it was a question of when, not if. our viewpoint is they're rising for the right reason at this point. good economic data in the u.s. this really reflects more positive data here and more risk-on appetite. >> you've been underweight in investment. >> we have been significantly underweighted in fixed income. >> on the other hand you like high yield. >> uh-huh. >> how would you play it? >> even at these levels we continue to see spreads continue to come in.

the high yield spread right now is a little over 600 basis points. that provides a nice return for investors with 7% to 8% return. >> i'm an individual investor, and i'm listening to you and you're saying go for high yield. is the best way for me to do it by going out and trying to find individual issues where i have to do some credit research for which i may or may not be qualified? or is it better to go with an etf or a mutual fund? >> that's a great question, tyler. we would obviously recommend diversify kags particularly in a higher risk asset class like high yield. what we have to remember about high yield is it's sort of a hybrid between fixed income and equity. and there's a strong equity-like beta if you will, or sensitivity in high-yield bonds. >> so fund? >> a fund. absolutely diversified fund. etf mutual fund wob the first choice. >> talk about equities. take me around the world. i know you're overweight u.s. equities. what about the rest of the world? >> we've been very overweight

u.s. large cap equities in particular. significantly underweight international developed equities. and pretty much equal weight emerging market equities waiting to see that inflection point. >> excuse me for interrupting. when you say international developed market equities, the word that comes to mind in my head is japan. >> japan and europe. >> and europe. and europe. >> uh-huh. >> what about the rest of asia? the emerging markets you do like, right? >> we like the emerging markets. we've certainly seen a slowdown in china. we were never on the hard landing bandwagon. we believe there's going to be a soft landing in china and a resumption of economic growth at a slower level. >> worried about inflation or not in the u.s.? >> in the u.s. we've seen inflation tick up for sure, but it seems well-contained. and expectations in the wake of high energy prices have maintained fairly well here. >> in terms of economies, which two do i want to watch for the rest of this year most closely? >> clearly we're very focused on

the eu. the eu as a whole is looking very recessionary at this point with negative gdp in the fourth quarter. so we're really looking for signs of improvement there particularly in the prif ra where the economic growth has been significant negative. >> worried about china? not worried about china? >> we're keeping our eye on china for sure. the estimated growth rate is a little below what we had expected. we had expected around 8%. we're keeping a close eye on that. and looking at the bank of china as being a little bit between a rock and hard place with still inflated property prices but wanting to stimulate the economy. >> we're going to make you earn your money today, katie. we're going to keep you around. you'll be back to talk more about interest rates in our next half hour. meanwhi meanwhile, let's head to rick santelli at the cme -- there you are. i found you, rick. there you are. >> good. where's waldo, right? interesting nuances. today they trade higher.

it's been a wild week, but you can see the pattern like yesterday coming off of those early morning levels. look at a 30-year. exactly the opposite. it traded a little below yesterday's spike high as it comes off. both of these up in yield slightly on the day. but on the week, look at this 10-year on the week. it led the breakout from a global standpoint and closing up 28 basis points on the week. look at the bund overseas, the similar pattern egged on a bit by what's going on in the u.s. up 25 basis points on the week. if you were to see the gilt chart it's up by a whopping 30 basis points on the week as we see historic moves on all the safe harbor fixed income sovereign markets. back to you. >> rick, thank you very much. as always, rick, all over those yields and bond action. now for something completely different. apple -- actually, you heard about -- we may have talked about this stock a little bit before, but you can make money

on other stocks that live in the apple ecosystem. on the day the new ipad hits stores, we have a special apple edition of buy, sell and hold. that and more when power comes back in two. ♪ ♪ [ male announcer ] offering four distinct driving modes and lexus' dynamic handling, the next generation of lexus will not be contained. the all-new 2013 lexus gs. there's no going back. ♪ thif you are one ofck. who have used androgel 1%, there's big news. presenting androgel 1.62%. both are used to treat men with low testosterone. androgel 1.62%

is from the makers of the number one prescribed testosterone replacement therapy. it raises your testosterone levels, and... is concentrated, so you could use less gel. and with androgel 1.62%, you can save on your monthly prescription. [ male announcer ] dosing and application sites between these products differ. women and children should avoid contact with application sites. discontinue androgel and call your doctor if you see unexpected signs of early puberty in a child, or, signs in a woman which may include changes in body hair or a large increase in acne, possibly due to accidental exposure. men with breast cancer or who have or might have prostate cancer, and women who are, or may become pregnant or are breast feeding should not use androgel. serious side effects include worsening of an enlarged prostate, possible increased risk of prostate cancer, lower sperm count, swelling of ankles, feet, or body, enlarged or painful breasts, problems breathing during sleep, and blood clots in the legs. tell your doctor about your medical conditions and medications, especially insulin, corticosteroids, or medicines to decrease blood clotting.

talk to your doctor today about androgel 1.62% so you can use less gel. log on now to androgeloffer.com and you could pay as little as ten dollars a month for androgel 1.62%. what are you waiting for? this is big news. i'm making my money do more. i'm consolidating my assets. i'm not paying hidden fees or high commissions. i'm making the most of my money. and seven-dollar trades are just the start. i'm with scottrade. i'm with scottrade. i'm with scottrade. and i'm loving every minute of it. [ rodger riney ] at scottrade, we give you commission-free etfs, no-fee iras and more. come see why more investors are saying... i'm with scottrade.

i got a call from him saying we don't have to worry about money no more. and i said that's good. one less thing. >> academy award winner tom hanks talking about his investment in some sort of fruit company. that fruit company has of course given life to an orchard full of other outfits. today a special apple edition of buy, sell and hold our friday feature. we are taking a look at some of the stocks that are in apple's world like elmo's world. mike murphy, let's start with corning. it makes the glass. >> they do. they also make gorilla glass 2. also a talk about having a new product called god zil la glass. it has a high of 22. it's down at 14. they had very bad earnings last quarter. however at this price you get ten times earnings, 2% dividend

and talk of an iphone 5 later this year and corning being the exclusive supplier. >> so buy it. >> let's move to broadcom. makes a chip in the new ipad. $37.95 the price. >> broadcom also a buy. the stock has pulled back a little about 10%. at these levels you can buy broadcom. as the ipad and apple and iphone and everything starts to expand, they're going to continue using broadcom. the stock's a buy and should move considerably higher. >> another com. qualcomm makes a new chip in the phone? >> yes. fairly valued. another great company. we'll continue to go along with apple, however at these prices we think fairly valued trading in the high teens multiple, hold onto qualcomm here. if you get a pullback, you can buy it. >> up 20% so far this year. >> yes. >> nuance is the company behind the voice recognition of siri in only the ipad or also iphone? >> also iphone. and if you hear that, you would think this stock must have taken off recently. it hasn't. it's been up as high as 31.

they announced quarterly earnings and stock sold off. it really hasn't moved here. it's been in the $26 range. so something -- i think you could get some competition coming in there. so nuance, we want to sell this stock. don't like the way it's trading. it's sitting right on its 100-day moving average. if it gets down to the 23 range and holds support at 200 day, maybe entry point. >> unnuanced view. i think the problem is siri doesn't understand nuance sometimes. >> could be. >> cadence designs chips for the ipad, phone and other things. >> they also make the chips better, faster, slimmer. so cadence is a smaller company, $3 billion market cap, but this is one we're going to buy. one of the main reasons is a clear obvious acquisition target. cadence here in the $12 range, it has moved up but they're expanding their margins. think the stock will do well fundamentally but really think someone comes in and takes this one out. >> here's the wild card question. apple, buy, sell or hold?

>> buy. >> buy. happy st. patrick's day. how many kids do you have? >> five. >> maybe another one coming, who knows. straight ahead mary thompson is going to update the markets for you. bertha coombs wraps up the action in metals and we have seen a dramatic surge in yields on the treasuries in the past few days. what's the fallout from rising rates on stocks, housing, the economy and the fed? we've got an all-star team with answers coming up right after this break. oh! [ baby crying ] ♪ what started as a whisper ♪ every day, millions of people choose to do the right thing. ♪ slowly turned to a scream ♪ there's an insurance company that does that, too. liberty mutual insurance. responsibility. what's your policy? ♪ amen, omen

[ horn honks ] hey, it's sandra -- from accounting. peter. i can see that you're busy... but you were gonna help us crunch the numbers for accounts receivable today. i mean i know that this is important. well, both are important. let's be clear. they are but this is important too. [ man ] the receivables. [ male announcer ] michelin knows it's better for xerox to help manage their finance processing. so they can focus on keeping the world moving. with xerox, you're ready for real business.

welcome back to "power lunch." i'm mary thompson with a check on the markets. they are barely hanging onto gain ths friday. all three major indices on track to post weekly gains. investors shrugging off the news of the cpi increase in months. quickly the dow jones industrial average just up about three points on track for its eighth straight gain. s&p also higher on track for its fifth straight weekly gain. and the nasdaq keeping above that 3,000 mark up fractionally right now. quickly checking the rest of the markets. the vix is slightly lower today extending its declines. quick check of gold. it too is lower. we'll have an update on the close from bertha coombs. crude oil ticking up after

yesterday's decline. now, let's move onto goldman sachs. of course it's been in the news right now it is down about 0.6%. it's reviewing policy and procedures governing the disclosure of bankers personal investments. this after a judge criticized goldman for failing to tell all parties about a banker's holdings on kinder morgan. gold getting ready to close right now. for that we go to bertha coombs at the nymex. >> thanks, mary. gold came in like a lion in march. but it's really whimpering right now. this morning under pressure as india, one of the big consumers, is now imposing a higher tax rate on gold, a tax levy. meantime copper started the day strong. it was an outliar. it had some technical support that moved it higher, but it too falls at the end although copper will be up for the week unlike gold. meantime as mary mentioned, the

energy complex seeing some strength despite those numbers coming out and the data. iran continuing to be the focus as we go into the weekend. back over to you guys in the studio. >> thank you very much, bertha. speculation increasing that the fed will raise interest rates earlier than 2014. this is yields on treasuries continue to surge. what's the fallout, economy, housing? our panel of experts here to chew it over a little bit. joining us again katie nixon from northern trust, bob pisani with us, steve liesman with us and from washington, diana olick. steve, what about that thought that the fed might actually follow the market here and raise its fed funds rate? do you buy that? >> i can't answer that question, tyler. >> sworn to secrecy? >> i'm working now on the cnbc fed survey for monday. >> uh-huh. >> and i can tell you -- i'll let it slip, there's not a lot of belief in that late 2014 number or date.

they are not on board right now with the idea that the fed will keep rates low until 2014. >> these are economists? >> economists and wall street 67 market respondents. and i'll leave the percentages for monday. you'll have to tune in. but there is a growing disbelief in late 2014. >> but, katie, if the fed -- first, do you buy that possibility that the fed may raise rates sooner than its stated sort of late 2014 goal? number one. and number two, if it does that, isn't that a good sign that things are moving along better than the fed might have expected? >> well, we doept believe that the fed's going to move before their stated date of mid to late 2014. however, i do agree with steve that consensus has certainly turned in the last several days. and futures would suggest a 2013 increase in fed funds at this point. >> diana, one of the things -- i know katie pointed out in one of her notes that the fed seems almost more focused on the housing market than it does on inflation. but rising interest rates --

i've missed my moment to refinance, i think, here with the 10-year at 2.30 right now. what does this say? what does this do to the housing market? >> well, i think you have to remember that this is really a by fur kated market. one-third of the market being disstressed properties, foreclosures, mostly largely being bought with cash. so without a mortgage. and the rest of the market is a lot of first-time home buyers. so rising rates could hit the home builders. as for refis, so many people have refinanced already that i don't think that's going to effect it that much. >> if, steve, the fed does move -- let me pose another way and pick up on the thought that katie and i'll get to bob in just a second. are rates moving up for the right reasons? for good reasons? in other words that the economy is stronger than people thought? >> i think they are. and i think you asked the right question. it's the context. there's a knee-jerk reaction higher rates are bad. higher rates are not bad if they come along with a higher growth

outlook. remember, one of the things that's kept rates low is a lack of risk appetite. if money is moving out of the safety of treasuries into stocks, that has a positive knock-on effect to the u.s. economy in the terms of a wealth effect. turning higher because of inflation concerns or because of concerns about default as in the case of greece, that's a reason to be concerned. and when it comes to diana's market, i think the issue of housing is okay. at the margin it's better to have what do you call it 4% mortgage compared to 4.25% or 4.50%. but it's also way better to have a job than not to have a job to apply for and get a house. >> that's what's juicing the market as we speak. that's what's juicing the spring market is this optimism over the jobs market. we're up over 4% now just because of treasury yields. is that going to affect home buyers right now? i don't think the difference between 3.88 and 4% is really going to affect buyers because a lot are all cash. again, the only thing might be that refi program where they're

trying to get under water borrowers refied under the new government plan. you might not get as much bang for your buck if rates are going higher. i wonder if the government isn't going to be the fed watching that because they've already put forth this big plan to help under water borrowers. >> let's bring in bob pisani grateful for his work every day. the interesting thing when interest rates move up rather rapidly as they have over the past ten days so that it's anat ma to stocks. >> historically stronger -- higher rates, stronger dollar has been headwinds for stocks. but stocks have been so unloved and frankly underowned for a long time that i think they can have a heck of a lot more to go before we start to see that kind of pressure on them. something's happening this week, tyler. people have been hiding for years in treasuries, in the safety of treasuries. now we're starting to see the very early stages of a reallocation trade going on.

i think right now a lot of people putting money into cash rather than stocks is an intermediate step, but something is clearly going on right now. >> bob, one thing that's distinguished this period here since the '08 financial crisis is the exact opposite correlation or the opposite correlation with stocks and inflation that we normally get. and what's happened is the stock market has tended to rally. my daughter wrote a piece on this. stocks have started to rally with inflation concerns. that means what goes along with inflation concerns, a lack of deflation, a lack of concern or dem ewe in addition of concern about a financial crisis. so if -- >> a little inflation is a good thing. >> staving off the deflation concern. so in general inflation concerns have gone along with higher stock prices. i would caution there's an inflection point where too much inflation concerns will be bad for stocks. >> your daughter wrote a piece on this, steve? >> no. michael dar ta.

>> oh. what do you think of jeff saying rates have to rise -- >> quick. i want to get katie in before we run. >> i think jeff represents a part of the board right now. >> katie, you've been nodding. do you think first and foremost -- do you agree with what bob said? there's a reallocation trade going on? >> we hope there will be. so far we haven't seen it. as bob suggested a lot of money we've seen out of treasuries has gone into cash as sort of a holding ban. and we haven't seen a great inflow into the equities this year. >> a little inflation is a good thing? >> and the fed letting them know they're going to let it run is also a good thing. >> and diana. >> a little inflation in home prices is a good thing. we don't want to see lost affordability which does happen with rising mortgage rates. we want to see a bottom on home prices and see a little bidding going on. >> i know you have to go, but we have to mention the idea that there are two things, higher interest rates along with higher

gas prices. that is a challenge for the consumer. we're going to want to watch jobs and incomes as offsets for those. >> when's the survey out on monday? >> on monday. break the first part at 7:00 a.m. and throughout the day. >> thank you. katie, good to be with you. diana and bob, great to see you. how should you position yourself next week? get ready for the trader triple play. ♪ [ male announcer ] aggressive new styling. a more fuel-efficient turbocharged engine. and a completely redesigned interior. ♪ the new c-class with over 2,000 refinements. it's amazing...inside and out. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services. today is gonna be an important day for us.

you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms. how bout ya, joe? let's go ahead and bring it online. attention on site, attention on site. now starting unit nine. some of the world's cleanest gas turbines are now powering some of america's biggest cities. siemens. answers. 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. call now for our free guide and tips on planning for your retirement this tax season.

coming up next on "street signs," apple, apple everywhere. but is too much really a good thing? the debate on the power of the pad. and the casino royal, profit and pain from america's love affair with gambling. and a flood of chinese companies could be heading for the south. should we welcome them with open arms? that's coming up. it's all next on "street signs." back to tyler on "power lunch.." >> all right, mandy, thanks very much. check out shares of amazon.com.

they are now higher on the session thanks to a sudden midday turnaround when the stock touched and then bounced off its 200-day moving average. amazon up about 0.5%. it's been one very busy week for the markets. the dow staying above 13,000. nasdaq topping 3,000. s&p above 1,400 for the first time since the financial crisis. meanwhile, bond yields soar. and a couple of crazy days for oil. how to set up for next week. time now for the trader triple play. probably going to have one question each for all of you. gordon at the nyse, jeff grossman at nymex, jim at the cme. gordon, let me start with you. you probably just heard the discussion, maybe you didn't. i asked whether the market is worried about rising interest rates. is it? or does it see those rising rates as a good thing? >> i would have to say it's a good thing, tyler. the fact of the matter is at some point you've got to be willing to take some risk to get

some return. i think that's what you're seeing right now. with the prices being the way they are and what you're seeing in the equity markets, you've got to be involved here. you don't want to short this market right now. there's a lot of positives right now. you're seeing companies doing buybacks and ipos getting subscribed to. a lot of positives and a lot of reasons to think we'll continue. >> anthony, what's next for oil? and what do you think about the fact that now iran starting this weekend is going to have a hard time or harder time getting paid for its oil. >> jeff, by the way. >> i'm sorry, jeff. >> not a problem. >> what was your question again? i'm sorry. >> what is the effect possibly of iran not being able to get paid for its oil, number one. and what's next for oil? >> well, that again is probably going to change a little bit of the dynamics of the trade there so that probably the inventories could feel it a little bit down the road here. again, the market is reacting on the upside right now. but again most is just a

retracement of the move down that we took yesterday. i don't think we're going to see much in there because, again, it's a world market here. and i don't think that their influence can hold up for very long here. i think this market has to be sold on rallies until further notice. >> jeff, thank you very much. sorry to get the cross signals there. jim, i know it's jim, good to see you. let's talk a little about where yields may be headed. you think they could go even higher than the 2.30 on the 10 right now. >> i do think they can do that. >> how much, how soon? >> considerably higher. my first target is 2.40 within the next couple weeks. beyond that i have to recalculate. but there is something to remember about bond yields going higher. remember the biggest holder of treasuries or among the biggest holder is the fed. so in a normal bubble situation where we're correcting and people hitting the bid on bonds, the fed's not feeling the same trickle of sweat you and i might in our position because it's not their money. i do think rates will go higher,

but i think it's going to be more orderly than a normal overbought condition would dictate in long in yields. >> jim, you are short apple. do you know that can get you arrested in many towns. >> i'm the one guy short apple. no. i think there's other people joining me a little bit too. i love apple. i think it's one of the best companies that there is out there. i just think that hype you sell. it rallied too far too fast. it seemed to stall out a couple days ago and i short it. if it consolidates the next couple days and i don't get a crash, i'm going to get out of those shorts. as of now short apple. >> gentlemen, thank you very much. jeff, don't take it so hard. they confuse me for bill griffeth all the time. >> not a problem at all. >> up next, if you bought apple 10 years ago, you made a 4500% return on your investment. how about making 20,000% on your investment? we'll talk to some people who have made exactly that kind of killing. and we'll tell you how they're doing it. it's going to surprise you, next. [ male announcer ] you are a business pro.

omnipotent of opportunity. you know how to mix business... with business. 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. i could get used to this. [ male announcer ] yes, you could business pro. yes, you could. go national. go like a pro.

ttd# 1-800-345-2550 let's talk about the typical financial consultation ttd# 1-800-345-2550 when companies try to sell you something off their menu ttd# 1-800-345-2550 instead of trying to understand what you really need. ttd# 1-800-345-2550 ttd# 1-800-345-2550 at charles schwab, we provide ttd# 1-800-345-2550 a full range of financial products, ttd# 1-800-345-2550 even if they're not ours. ttd# 1-800-345-2550 and we listen before making our recommendations, ttd# 1-800-345-2550 so we can offer practical ideas that make sense for you. ttd# 1-800-345-2550 ttd# 1-800-345-2550 so talk to chuck, and see how we can help you, not sell you. ttd# 1-800-345-2550

talk about march madness, we've come outside where it's about 38 degrees. mull billion dollar business of

collectible cars auction on the rise again. and as an alternative investment to the stock market, more and more investors are looking to put their money where their heart is, into beautiful cars like these. for example, the historical automobile index or the hagi, the gift -- measure 50 collectibles has increased 30 times in the past three decades. a gain of nearly 3,000% since 1980. and the man who is at the top of the barrett jackson empires -- one of the men on top of it. good to see you. >> thank you. you too. >> why are sales of these beautiful automobiles hot right now? and you've had your best year ever. >> we had our best year since '07. >> all right. >> '07 was the peak. we started dropping off our market before the recession hit. and typically we see it coming back before the whole re -- come out of recession. so we went from 68 million last

year to $92 million. >> at your scottsdale auction? >> we were up 31% in one year. >> does this tell you that the economy's getting better? the people affluent to get into this kind of business or love these kinds of cars that they feel more confident? >> they do. we have a lot of indicators. the cars are one of them. corporate america was spending a lot of money with us. our gate was up. every indicator was up. for a few years we have not sold million dollar cars, we sold four cars over $2 million, almost $3 million. >> what are attracting the best? >> there's been a renaissance with the classics. we're with a classic here. for quite a while they were sort of flat because the generation that grew up with them was dying off. but there's been younger collectors coming in. and our demographics are actually getting younger that are buying the cars. >> what makes a good buy? how do i know that this one's a beauty and is worth buying and what isn't? >> well, we do when you buy at

the auction we do a lot of screening and we try to get pretty close to what we think the value of that car is. so at our auction it's a real marketplace. what always sets the value is rarity and desirability. whether it's art or cars. it's really the same thing. >> and you say that there's a new class of buyers coming in. who are they? >> they're typically entrepreneurs. i've got quite a few guys that came in this year that sold part of their companies, high-tech, oil guys, quite a few north dakota oil guys, louisiana oil guys. >> right. >> making good money right now. >> i'm going to look at some cars, kraig. your next auction is in palm beach in april? >> easter weekend. >> fantastic. let's go over here. roger. >> yes. >> this is your car. tell me what it is and why you loved it and what you paid for it? >> i paid $500 for this car in 1965. >> $500? >> yep.

>> what do you think it would fetch today? >> well, maybe $50,000. >> $50,000? >> maybe. >> you buy that, craig? >> yeah. >> what kind is it? >> a 1935 lasalle built by cadillac. >> did you invest in this car as an investment or because you loved it? >> i loved it. >> do you remember these cars? >> oh, yeah. >> do you take it out and drive it? do you rent it out to movies? >> i drove it 70 miles today up the turnpike. >> is that where you live? >> hopewell, new jersey. >> roger, thank you for coming. very nice. $500 to $50,000. nick, hey, this is my kind overcar right here, a corvette. >> this is my girl. >> what'd you pay for it? >> $2,500 at the time. >> what year?

>> '65. bought it on my 30th. an emotional buy, actually. gist sort of an early -- >> who doesn't love a corvette? >> exactly. >> is there anything special or rare about this particular model of this car that attracted you to it? >> you'd have to ask craig. i think he'd be more versed on that. >> the big blocks are the most desirable of the corvettes. >> so you pay $2,500. what might it be worth today? >> i have no idea. >> and you're not selling? >> i'm not. >> somewhere in the low 30s probably. >> nick, thanks for coming out. tim, what is this car we have here? >> '31 cadillac five-passenger coupe. >> did you fall in love with this? why did you buy it? >> because it was original car running that i could have fun with. >> what'd you pay for it? >> just less than $30,000. >> less than $30,000. what might it go for today? >> i was just telling him i think it's going to bring somewhere in the low 30s. >> are you from virginia?

>> yes. >> that's my home state. >> where do you live? >> lake anna. >> all right. does this corrosion here mean anything? >> pace car's all original. sometimes buying fine cars we just sold a '65 shelby in january for $350,000 that was a bond fine. if the car would have been restored it wouldn't have been that much. sometimes people like the patina of the original car. they're only original one time. >> every car show i go to people say leave it alone. >> thanks very much. thank you for bringing your beautiful cars. coming up, just more than two hours left in the trading day. our charts of the day when "power lunch" returns. wgw

wheeeeeeeeeeeee! whee! whee! wheeeeeeeee!

ah heads up. wheeeeeeeeeeee! everything you love about geico, now mobile. download the new geico app today. my job is to find the next big sound. they sound awesome tonight. and when i do find it, i share it with the world. you landed the u.s. tour ? done.

this is fantastic ! music is my life and i want to make the most of it thout missing a beat. fly without putting your life on pause. be yourself nonstop. american airlines. a very strong week for the markets. we want to check on chart of the week, chart of the month, chart of the night. >> bank of america. >> doubling december