that's all for us. jeff, thanks for spending time with us. >> pleasure. >> markets holding onto their gains. "power lunch" begins right now. oh, i'd like to be where he is. but it's not so bad here. three hours to go in the trading day. a big day for apple. the company makes its big dividend announcement today. but no big move for the markets. is it time for you to buy the pause, or a warning of things to come? >> a huge week of housing data starts on a sour note. trading lower, so is the spring selling season already in jeopardy? >> and get a load of this, the annoyance of every airline flier, the faa now agrees to take another look at using your electronics. how far and how fast could the change be? sue herera's here. so am i. welcome back. >> we're back together, baby. >> we're back together. "power lunch" begins right now.

happy monday everyone. i'm seema mody at the realtime exchange. and after a sluggish morning all three major indices went positive just before noon and are holding. the dow up 27 points, s&p up 7 and nasdaq up 24. taking a pulse of our markets, nat gas continues its march even higher. take a look at the 10-year note. the yield on the 10-year holding its move from last week. money flowing out of treasuries and into equities. lastly, we're keeping an eye out on the euro. to our midday movers. take a look at bank of america. one of the stocks piling the dow higher after morgan suddenly raised its price target. stock up 2%. on the flip side, sprint getting hit hard after a downgrade at bernstein research. and look at starbucks. keeping an eye on this stock. they opened its first evolution fresh juice store today. it's now up .1%. bob pisani, our man on the floor, tracking all of the

action on the market. how's it looking down there? >> well, it's looking pretty good. now, remember something. we're less concerned about europe. europe is not smacking around the stock market anymore. that doesn't mean there's no concerns about volatility. we have volatility around other issues. we have volatility concerns around interest rates. and volatility concerns around oil. take a look here. get a tight shot. here's the 10-year, the yield on the 10-year. remember something, this was at 2% last week. the 10-year yield. now at 2.34%. and it's been moving up all throughout the late part of the day. this is an intraday chart that you're looking at right now. that's very important. that kind of stuff moves the market. that's influencing things. we want to see what it's doing? steeper yield curve, helping financial stocks of course increasing the dividend helps the financial stocks, but we've seen moves to the upside. here's the barclays tlt, the etf for the bond market for the longer term bond market for the month. and take a look. you see been dropping now for

days continuing to drop. this is where there's been very big volume. investors in law bonds are selling this etf. that's my key point. there is money coming out of the bond market. now put up the financials before i get ahead of myself here. there you go. all of them up again today. these have been the market leaders for days now ever since numbers were announced for the dividends. but it's the steeper yield curve also helping. another strange thing that's going on today, the dollar has been moving to the downside. the euro has been moving to the upside. here's your intraday chart. you see that? normally on that kind of day sometimes you get a little pressure in different parts of the stock market. not today. of course this is a big help to materials. most of the big commodities priced in dollars. so the material names which have been moving sideways recently are all moving to the upside today. 2%, 3%, 4%, u.s. steel a bit of an outliar elsewhere markets to the upside. bottom line, tyler, is the markets are moving on interest rate issues and the u.s. economy and not so much on europe

anymore. i think that's a very important change. >> absolutely. as i said, i'm not talking about greece anymore. let's switch now to the "power lunch" power surge and drill down on some of the stories driving the day. are you looking for yield? try apple. the tech giant putting its $100 billion to work and finally giving shareholders what some have been clambering for, a dividend. but that's not all. our courtney reagan was in on apple's conference call earlier today and has the details. >> that's right, tyler. just 15 hours passed between the time apple announced it would hold a conference call and the call itself. it felt like an eternity for some investors that have been waiting years for this news. the world's largest company announcing a quarterly dividend of $2.65 a share and a three-year $10 billion share repurchase program deploying a total of $45 billion in cash leaving plenty of cash available for strategic opportunities in the future. now that $45 billion will come from current domestic cash and

future expected earnings in order to avoid the hefty tax consequences of repatriot ating. over the last couple months ceo tim cook and peter oppenheimer began announcing it was eminent and expected a dividend. the buyback is kind of an added bonus. the dif depd will begin on july 1st and represents a 1.8 dividend yield based on the fourth quarter 2012 earnings and 2008 100% increase to the dividend apple paid last time. innovation remains the most important objective at apple and oppenheimer added the company as a pipeline of new products. customers will be pleased. tyler. >> on the conference call, courtney, tim cook was asked about what he thought about the possibility of splitting the stock. what did he say?

>> that's right. there were a couple questions in the question and answer portion, the ceo said it's something we consider but we don't think it makes sense at this time. we don't think that it provides value to shareholders. i'm not sure if shareholders agree or disagree, but he said at least they had considered it. not something they want to do at this point. >> all right. courtney, thank you very much. so does this put pressure on other techs like google to also put up a dividend? plus, what does this say about the ceo, tim cook? we're going to talk more about this latest move from apple later this hour. to housing now. this is a big week for housing data. a good barometer of how the market is recovering. today not such a great start. and housing stocks which have been on a tear as you know lately are taking a hit on the back of that data. our diana olick is in washington with more on what's behind all those numbers. hey, diana. >> hey, sue. what it says is we're still bouncing along this bottom here and we cannot rule -- we can't discount exceptionally warm weather for that earlier surge

in sentiment we saw during the winter months with spring started very early, that may have taken a little bit from the spring market, which is starting now. take a look if you will. home builder sentiment is still double what it was six months ago. now at 28, but of course that was unchanged and revised down in february. now, we're nowhere close to 50, which is the line between positive and negative. builders are still cautious according to the report. still facing headwinds from tight credit and a rising number of distressed properties competing on the market. breaking down its components, current sales conditions fell one point. sales expectations over the next six months gained two points and buyer traffic held unchanged. regionally the index gained 5 points in the northeast, 2 points in the midwest and in the south fell, but fell a whopping 10 points out west following a 22 point gain. that is not great news for kb home which does a lot of business out west. overall stocks big builders

tanked on this news, of course. but they have been on a tear, as you said, sue, still up over 65% in the last six months. >> diana, on another part of the housing sector, some of the biggest names on wall street are now lining up to become landlords. they're bidding on some of those fore closed properties and you have been very much out in front of this story and speaking with a number of these fund managers. when are we likely to see this move? >> the answer is in april. we've been talking to a fund in phoenix looking to invest in phoenix properties and las vegas properties being sold through fannie mae through the fhfa where they're looking for investors. it's a very difficult process because you have to qualify twice with the fhfa, then you have to show them that you're able to manage all these properties. that's really key in this program to sell these bulk foreclosures because, you know, owning an apartment building is pretty easy. you have one building m units and one manager. but if you've got several, maybe 100 properties out over a wide range, you're going to have to

have some kind of company to management it. that's why this company we're talking to in phoenix is doing a joint venture with a management company. they're hoping to get in on the bids. but then the question is how much of a discount are investors going to be asking for? and how much are fannie mae and fhfa willing to give? >> a still unfolding story. diana, thanks a million. >> meanwhile airline regulators taking a new look at the dreaded ban on using some of your personal electronic devices on planes. our phil lebeau has the latest on this developing story. phil. >> tyler, i think a lot of people who fly a lot, i'm one of those, would agree this is one of those reviews a lot of people are looking forward to the faa taking. it's going to be reviewing the ban on the use of personal electronic devices, not cell phones, during takeoffs and landings. it's important to note they are going to take this fresh look at things like kindles, ipads, et cetera, but not smartphones and cell phones. the faa now allows pilots to use ipads in the cockpit. when they announced this change

late last year, it got a lot of people talking, wait a second, how can you use it in the cockpit but not elsewhere in the plane? they determined it does not interfere with the plane when they're using it in the cockpit. for now, tyler, this is a fresh look at whether or not we will be able to some day keep our ipads, our kindles on when we're taking off and landing. >> is there any proof, phil, that passengers' electronics devices setting aside cell phones cause any interference on navigation on the airplane? sgr it's very uncertain at this point. they cannot definitively say it does not cause interference. that's why they have this rule in place, tyler. because they cannot 100% rule out that possibility, they're ering on the side of caution. >> and why is this not being extended to cell phones at this point? >> well, it has to do with testing these devices. it's one thing to test the ipad in all of the planes. it's another thing to test each

individual cell phone model. think of all the hundreds of cell phone models that are out there. that's a much more complex issue to get into. for now the faa saying we'll take a look at some of these personal devices like the kindle, ipad, ipod. >> your quiet canceling headphones, whatever it is. >> bless those headphones. to the business of sports. developing news out of the nfl this afternoon. specifically what is up with superstar peyton manning? darren rovell joins us. it sounds like denver has got a big leg up on this one. >> yes, sue. in fact, espn is reporting that peyton manning will head to denver broncos commencing negotiations. it's not expected to be a snag. we don't really know what the details of the contract would be, but manning has informed his agent that he does want to be the quarterback for the denver broncos. manning of course leaving the colts after the colts had cut him. and then looking around and he had found the 49ers and the titans as well as the broncos,

of course. he eliminated those -- got it down to the three there. and the broncos look to be the suitor. the interesting thing here from a business standpoint the broncos have sold out every game since 1972. they have a waiting list of 32,000 names, which will take seven to ten years to come off of. and tim tebow now who is of course has turned into probably the most polarizing person in sports is now the subject of where is he going to go? are the broncos going to trade him? and there are two teams here in jacksonville and miami that need to sell tickets, they don't sell out. in fact, jacksonville has a tarp on 10,000 of their seats. tim tebow's from jacksonville. he went to the university of florida. and i would say that it's very possible that if tim tebow goes to one of those two teams, he does more for business in the nfl for an nfl team than peyton does to the broncos because it's just capacity. the broncos are already a popular team. >> very good points. darren, thank you very much. all right. let's look at some of the major

sponsors of the broncos and how they are trading right now. anheuser-busch is on the upside as is u.s. bankcorp, coca-cola and comcast, parent company of cnbc. but lowe's is on the downside by a little better than .05%. >> i thought because he went to the university of tennessee that that's where he'd end up. >> i was hoping for new york, but that's never going to happen because his brother's here. wishful thinking. up next on "power lunch," we are in warnings season. wall street bracing itself for lower corporate earnings. will this be the end of the bull run? >> plus, apple rolls the dividend dice. does it now put the pressure on other companies to do the same? will google be next? >> plus, making money in chips. we're not talking in qualcomm, we're talking potato chips. this is "power lunch" after all. we'll take you inside this booming business. [ clang ] the all-new 2013 lexus gs. there's no going back.

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one of the one of the biggest stories the last two weeks has been the yield on the 10-year note which has been soaring. right now we're at 2.354%. the move out of bonds hitting the headlines as well with "the wall street journal" saying a threat to treasuries' flight. is the bond bull run over? what does it mean for the individual investor? let's head to the cme where john brady joins us. >> hi, sue. >> it's been an awfully long run for the bulls in the bond market. at the same time we've seen a big backup in yields in a short

period of time. how much do you think there is? >> i think the upside to yield is limited. in the last two months yields have essentially traded between 1.70 and 2.40. and at 2.35 yields we're at the upper end. today we saw yield rise as fed dudley was not his usual self. the risks to the macro economy are tilted to the downside. especially with this housing data. he wasn't as dovish as normal, we still think any meaningful rise in yields is going to be met with money on the sidelines that remains yield-starved. >> i was just going to say, it doesn't seem like the individual investor, anyway, who have been socking money away in the bond market are convinced that equities are a better bet at this point. even though we've seen the move in yields. >> that's right. and there has been an asset allocation trade which has very much been responsible for the

rise in yields over the last three to four weeks. and i think specifically the retail investors still are a little nervous about perhaps going all-in in the equity market. as the equity market continues to grind higher, there will be that allocation shift out of bonds into stocks. and you'll have equity managers who may be force today chase performance in equities. and asset allocation trade does have the potential to really shift into high gear. so it's a difficult trade, but for investors, specifically institutions, have to keep in mind the threat of quantitative easing 3 is still going to be there most likely between now and the june fomc meeting. >> we have the next meeting where everyone kpexpects some st of a change. nobody expected anything out of the last meeting. but at the upcoming meeting, is that what could move yields decidedly one way or another? or is there another event before that? >> i think the fed's in a rough spot, sue. they have one eye on the election season, which may be rather contentious come the fall. so if they want to do something,

they'll want to do it sooner rather than later. what do i mean by that? before the june meeting i would suggest. but the data's been better than expected. so the fed's caught in a conundrum. i think they would like to support the bond market further and the housing market more specifically. but to do so with the way the economy's performed coming out of the fourth quarter is dangerous because the inflation numbers have been more elevated. so the fed's in a little bit of a quandary here. and we would suggest that the housing market's going to probably be the key, both the housing and employment markets will be the key over the next six to eight weeks. if the fed is forced to do anything, they will err on the side of buying mortgage-backed securities and support through the summer. >> thanks a lot, john. good to see you again. >> that's your bond report. stocks have been on a tear since the beginning of the year. solid earnings news generally one of the things propelling equities. but the market move coincides with a jump in oil prices, as you see there.

and concerns that higher energy costs could hurt first quarter profits. so could this derail the rally? joining us to discuss, chief market analyst and portfolio manager with loom is sales. >> hi, tyler. >> hi, guys. and chief investment officer at cabot money management. you say the odds of a 5% pullback in stocks right now greater than 50%. but you say that the odds of a greater than 10% pullback are well below 25%. what could change your view? >> you mentioned it at the start. oil more than $125 a barrel or more. a steeper backup in long bond yields, which i don't expect to take place. or the unforeseen, tyler. that you don't know around the corner that's going to unsettle stocks. given all that, the numbers are still very powerful that we get 5% corrections on average twice a year. we're due for one after the big spurt off the october 3rd lows.

but a 10% correction, i don't think that's in the near-term or probably at all in 2012 given the health of the economy, the health of corporate earnings and cash flow importantly and the valuation that stocks are selling at. >> rob, you say that the s&p is going to test its 2007 high. >> yeah. the reason i say that, tyler, is there's more liquidity on the sidelines today than almost any time i can remember in the markets. and i've been investing 29 years. $6 trillion in cds and money markets. and you've had money moving into the bond market over the last three or four years. now, last week i think we got the message things are changing in the economy. and yields are moving up. so i think that bond market, which is rather big compared to the stock market is going to have money moving out of it. so i think the conditions are really solid here for the market to just grind its way higher. and i think investors, many of them aren't prepared for that today. the other positive thing is deferred capital spending.

i think that's going to be unleashed in the next two quarters as we see the economy start to feel a little stronger. you're going to see people make those decisions to unleash that capital. so i feel very good about the market here. >> you know, david, the one worry that's out there though is that companies are still conservative in terms of their guidance. and the period is coming up where the window will open for them to either lower guidance, warn, you know, put all sorts of things out there ahead of their earnings reports. >> sure. >> are you worried about that at all? i mean, does warning season perhaps loom large over this market? >> i don't think so. and yet, sue, you always worry about it. when we sit down with individual managements, they're not giving any indication that they're not able to meet their expectation on improving revenue growth, net income growth and most importantly their cash flow or their ebitda growth. but i still think you'll see improving margin expansions on

an ebitda basis. that's why on a total return basis we're already back to 2007 highs when you include the re-investment of dividends, we're back there today. and i think that's just proof positive with apple's news today among others that it's going to be good dividend growth, good earnings growth and yield stocks that are growing their yield and their dividends will be a great place to make money this year. >> rob, very quickly. if you're as high as you are on making the case for u.s. equities, why are two of the three stocks that you're pinpointing here a beijing mobile security company, a mumbai bank, and then finally barrett gold. >> i think a lot of the growth happening in the world today is coming from the emerging markets. and i want the wind in my back. these are companies i've highlighted that really have great conditions in their environments that they're operating in. but i like a lot of u.s. stocks as well. and i think there's great upside to many of those. >> okay. gentlemen, thank you very much. appreciate it. we'll have you back soon.

good to see you both. >> thank you. >> concerns over greece and europe have been an overhang, to put it mildly, for the market for months. next on "power lunch," is greece out of the woods? what's the new biggest overhang to the market? steve liesman is going to join us with exclusive results of the cnbc fed survey. >> and of course we're watching tech, but apple is not the only tech company that we're tracking today. oracle reports its earnings tomorrow. we'll tell you what to do with the stock today. ty and i are back in a minute. [ male announcer ] if you believe the mayan calendar, on december 21st, polar shifts will reverse the earth's gravitational pull and hurtle us all into space, which would render retirement planning unnecessary. but say the sun rises on december 22nd d yoed to retire, td ameritrade's investment consultants can help you build a plan that fits your life. we'll even throw in up to $600 when you open a new account or roll over an old 401(k). so who's in control now, yans?ma

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of our u.s. olympic team. i'm i'm bertha coombs at the nasdaq. time for three in 30. you can't not mention apple today. wedbush raised to $750. fdn says i'll see your 50 and add 10. look at the intraday seems to be coming up against resistance at that round number of $600. a number of traders watching that. that's where the inflection point was last week when the stock was knocked down and this morning in the pre-market. meantime, qualcomm, big component maker in that new ipad confirmed by a number of teardowns this weekend at a new high today up 2.3%. and priceline actually today one of four stocks along with apple that trades above $500 in the nasdaq 100 today at a new high near $700 as boutique firm slots an $800 price target on it. sue, back to you. >> thanks, bertha. fears about europe's debt crisis taking a bit of a backseat

lately in this recent rally despite some serious headwinds for the region. how big a threat is the euro crisis to the economy? and what's the probability of debt defaults ahead? steve liesman is here now with exclusive results of the cnbc fed survey. hey, steve. >> hey, sue. this is a really interesting development. you'll remember we began the year with fears of another european financial crisis or the continued european financial crisis be the number one danger to the u.s. economy. not anymore. there's been a little bit of change. a little bit of say softening of the concern. we asked in our fed survey the probability of a euro country default in the next three years. you can see here portugal went up a little bit. ireland has eased off as has italy. that's a big change there that had been heading up. and then greece interesting number. it's come down from 88%. we asked about the probability of a second default and 72% to my mind is still a very high number suggests to me that perhaps the market is not so secure with the recent deal.

now we also ask the outlook for the eurozone the next five years. will any countries be ejected? that went up to around 30% say no. or only 30% say no. some ejected 69%. and you can see here, the emu being dissolved, that 6% has now come down to zero. and unsure also came down. so a little bit more faith right now in the eurozone. of course, what is the biggest threat to the economic recovery? i thought this would come up the european recession and financial crisis would be higher, but, no, number one is tax and regulatory policies in the u.s., high gasoline prices is number two. and then only at 17% do we get the european recession and financial crisis. let's see some of the comments that were out there. you can see joel is among those who are more optimistic. the fed is being cautious he says given all the risks out there. but once european default issues and gasoline price hike concerns are moderated, the fed will consider lightning their pessimistic view.

peter from links investment says greece will definitely leave the euro. there's no possibility of recovery under the austerity imposed on them. the euro will rise when greece leaves. and our main headline number, will the fed keep rates low through 2014? you can see a little credibility problem here. 57% of our 67 respondents say no. and of course they're saying there will be a rate hike well before that, sue. >> all right. you can read more about that by going to cnbc.com slugged fed survey. and steve's going to work his way back over to the set and we're going to talk more about this because ross westgate, she try today say, is here in studio with us from london. good to see you. >> good to see you. >> steve mentioned the idea of a second default for greece. obviously we're not out of the woods completely, but what's your take on that? >> i think when that bailout was agreed, if you'd asked the majority of investors in europe and indeed london and traders they would have said there's going to be a second one coming. okay. the numbers just don't work. we saw it as well on the

internal troika report that it was likely that the numbers were much higher. that they'd never get down to gpd levels. when you get to a bailout, what happens at that point? because we've had a private creditor restructuring already. >> right. >> so you're not going to get anymore private creditors being restructured. at that point if you're going to have to have more money being handed over to the greeks, a second bailout, what has to happen? well, if you can't have another restructuring, it's in the public sector that you're talking about. and that is the point at which you might say, hang on a sec, we've got to restructure ecb loans, we've got to restructure other government bodies that own greek debt. at that point people say that's the point when the politicians may decide they've cotterized greece enough to say maybe now you can go. >> in other words exit the eurozone? >> yeah. that's the way people are

starting to think about that. >> interesting. >> steve, let me just ask you, what -- if three out of five economists say interest rates are going to go up before the end of 2014. >> right. >> you have played the role. >> of all three. >> that's true. you have. >> all three out of five. you know, i think it's likely. and i think what's really interesting here is people, you know, in one sense it's a credibility issue. part of getting there is interest rates remaining low, i think. and the fed convincing people they'll be there. but at the end of the day, i think we've said this several times, bernanke wants to get this wrong. he wants to get it wrong for the right reasons. >> for the right reasons, yeah. >> he wants to get it wrong because growth is too strong and he's exited that problem of inflation concerns. i think the fed has some thinking to do. some of the comments we got were fascinating. they're talking about needing an exit plan and all kinds of stuff. >> what are the odds he's still the fed chief at the end of 2014? >> that's another interesting point. the board is going to change.

>> the question is you have to say what is the fed telling us? the fed is telling us that as far as it can see it will remain low. and the question is if i'm going to make a bet, who am i going to bet with? the fed or other metric out there? and i think right now the market is reassessing that. >> i was going to say, that's why we've seen -- part of the reason we've seen the backup in yields, i would think. >> i think it's absolutely right. i think what's happened is we captured at a really interesting time. we did this survey last week just when the market was rethinking this. if you're looking at where they're putting the 10-year at the end of the year, it's 2.6%, which is not much change from where it was. we got them right when they were re-evaluating that. we do this again in another month or two, it's going to be moved. >> we've moved on about worrying from systemic financial collapse because of the eurozone. and now going to be less effective by the eurozone, it's because we feel more confident that we're not going to have the systemic financial impact. >> right. we're not falling off the cliff. thanks. >> gentlemen, pleasure.

>> when we come back, so many questions following apple's big announcement this morning. when ty and i return, what did we learn about tim cook today? and what might it say about what the company will do next? >> and gold and the precious metals wrapping their floor trading session right now. we'll take a live report on the closing trades when we return. ♪ ♪ why do you whisper, green grass? ♪ ♪ why tell the trees what ain't so? ♪ [ all ] shh! ♪ whispering grass ♪ the trees don't have to know ♪ no, no [ all ] shh! ♪ why tell them all your secrets ♪ ♪ who kissed there long ago? [ all ] shh! [ male announcer ] dow solutions use vibration reduction technology

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welcome back to "power lunch." stocks continue to move higher with financials leading the way. the dow up 35 points now. the s&p and nasdaq both hitting new all-time highs around 9:00 a.m. this morning. take a look at the vix. we're below 15 right now. we're also seeing money flow into the commodities. gold and wti crude trading higher. and the yield on the 10-year note keeps on getting stronger. up currently at 2.34%. we're also seeing a mixed session for some of those retail movers. look at gap moving higher on a bmo upgrade. the firm citing that the brand's

credibility has been restored and more confident in a turnaround in all three brands. meanwhile, take a look at kohl's. at one point the worst performer on the s&p. from retail to commodities, gold and other metal prices getting ready to close right now. sharon epperson, what's the latest. >> seema, gold traders should be listening very carefully to the discussion we just had before the break on the cnbc fed survey because it is the central banks and their policies, particularly in terms of quantitative easing that have impacted what is happening to gold and shift in sentiment that we've seen. today though we did see gold prices stabilize. after that huge selloff last week. the biggest selloff we've seen in about three months' time in the gold market. we are looking at prices right now up around $10 around $1666 an ounce. $1680 will be the upside. if we don't get that, a lot of folks say we could see $1600. back to you in the studio. >> thank you very much. apple opens its $98 billion war chest with plans to pay a dividend for the first time

since 1995. now, as we've been reporting, ceo tim cook announced a quarterly dividend of $2.65 a share and a $10 billion share buyback in fiscal 2013. that's a direct di parture from the late steve jobs who for years resisted calls to return money to shareholders. let's bring in peter with all things digital and kate kelly. welcome back, kate. >> thank you so much. >> and john carney of the net net column here. let's start the round robin here with you, mr. cough ka. what's your headline on? what's your takeaway? >> i think as you pointed out this is a very un-steve jobs move. un-steve jobs move to pay attention to wall street or to acknowledge he's paying attention to wall street. steve jobs almost never came on an earnings call let alone hosted a call to talk about handing out cash to investors. doesn't mean it's something he wouldn't have done eventually, but he certainly never did

anything like this. >> so peter says steve jobs not. kate, what do you say is the takeaway? >> i have to confer with that. i think it's interesting he's making this move his predecessor would have never endorsed. tim cook has big shoes to fill and he's going to have to go in a different direction if he wants to succeed. while this is a safe move in terms of how to manage your balance sheet, it might have been a very bold move within apple. >> mr. carney, what do you think on tim cook? is this a departure from the jobs reign? >> yes, it's a big departure. it might not actually be going far enough. some of us were looking for higher dividend. remember, apple has no debt. they're still going to be accumulating cash. i'm not sure he's really departed all that far but at least making a change. >> peter, let me go and put out who this puts pressure on. it kind of ups the ante, does it not, on a lot of big and profitable tech companies that have yet to pay a dividend or do a share buyback. >> the most obvious is google.

i can't imagine larry page is waking up saying i have to follow in tim cook's footsteps. they're going out and spending a lot of the cash they make. they're going to drop $13 billion on motorola. apple hasn't spent that money that we can see from the outside. >> that's an interesting point, kate. do you agree with peter that the likes of google would not have to pay a dividend? >> i think shareholders might want to see that but the o nous is on them. i think they were in a bit of a unique spot. >> john, break the tie. >> i think that there's a little bit of investor immunity when it comes to companies. steve jobs got away with not paying a dividend for a long time. and as long as larry page is still there at google, you're just not going to get investors saying i demand a dividend. they're very happy with the

company and investors. i don't think they're going to feel a lot of pressure to pay a dividend. >> last question, john, you get to go first this time. is there anybody who should buy the stock today who shouldn't have bought it on friday? >> i think that anybody who believes in the long-term profitability of this company should. i mean, there are a lot of people staying away from the company because this were value investors, not growth investors. and now that the company has agreed, yes, we will pay a dividend, that uncertainty's taken off and i think that's a good thing. and it's going to expand the investor base a lot. >> kate, same question to you. should anyone buy the stock today if they weren't going to buy it on thursday or friday of last week? >> i think the folks i've talked to today have said they've been surprised by the upside reaction today. i do think this might attract a wider array of value investors because of the dividend. but i want to briefly draw attention to one interesting point which is the share repurchase is scheduled for an 18-mon bouout in 2013. but i wonder what's happening in apple's product lineup around

that time. is there a lack of product or product they worry about and want to tighten to boost price. might be worth looking at. >> that's the key question. if you're thinking about investing in apple, don't pay attention to the financials. pay attention to the products, what they're selling. if you feel confident tim cook and this crew will come up with amazing products, then you're happy. if you're not, the financial mechanics aren't going to make you happy. >> all right. folks, thank you very much. >> coming up next on "power lunch," we stay with tech, but this time we're going to talk about software giant oracle. it's gearing up to report its earnings tomorrow. and as you may recall, it missed earnings estimates for the first time in a decade. that was back in december. >> with the stock up 15% so far this year, is oracle still worth betting on? should you buy ahead of the results? [ artis brown ] america is facing some tough challenges right now. two of the most important are energy security and economic growth. north america actually has one of the largest oil reserves in the world. a large part of that is oil sands. this resource has the ability to create

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this world. today the stock that's up nearly 4,000% since the 2009 bottom. and a rocking recovery, we talk to the ceo of hard rock seeing what he is betting on. now it's over to sue and tyler on "power lunch." >> thank you very much, mandy. we'll see you at 2:00. shares of oracle gaining about 16% this year. and they're up about 0.10% today. number three software maker set to report earnings after the bell tomorrow. should you buy, sell or hold ahead of those results? joining us is analyst with rbc market analysts. good to see you, bob. >> hi. >> i see from my notes you said last quarter was the worst quarter you've seen in nine years for this company. yikes. that's quite a statement. what do they need to do this time around? >> well, the biggest thing they need to do is improve their sales force execution. they've lost key partners in hp who basically they compete now against. and they've had to replace those feet on the street. getting that kind of awareness and new strategy in their partners' hands has been the

major issue for them. and they've had tough comparables from a year over year perspective. we look at next quarter only a 12% year on year increase. the comparables get very easy starting next quarter. >> it's interesting though given that miss they had in december and what you've just laid out that the stock has been able to perform as well as it has. are you surprised by that? >> a little bit surprising. when you look back into the late december time frame, the stock dropped all the way down to $25 and has rebounded basically to $29 where it basically was when they announced their last quarter numbers. look at other comparable companies in the same time period, microsoft up 72%. you've seen the rotation out of oracle into other software names. >> you mentioned the fact they need to make some changes, but you also said they need to start looking for growth. is that through acquisition sns if so, what areas of tech do they need to get their tentacles into? >> well, they've refreshed their entire application portfolio.

they've come out with their fusion applications. they've also made two obviously key acquisitions in right now technologies and toleho focused on software as a service. clearly that's the future on software. oracle's starting to accelerate investments in this area and a key driver going forward. >> and you have a hold on the stock, correct? >> yes. >> thanks a million. good to see you again. >> thank you. >> keeping a close eye on lions gate shares up about 6% right now hitting a new 52-week high coming ahead of this friday's much-anticipated release of "hunger games." julia boorstin in los angeles looking at the big winners and losers. everybody's reading the books. is everybody going to go to the movie, julia? >> it certainly looks like. lions gate cashing in on expectations that "hunger games" will open bigger than "twilight" with up to $170 million at the u.s. box office this weekend alone. the stock up as much as 9.5%

earlier today on news that fandango has already sold out more than 1,000 screenings. fandango says by all measures "hunger games" is tracking ahead of "twilight." another sign of eager fans, movietickets.com says half of ticket sales are for opening night midnight showings. the loser here, carl icahn, he sold his stake in the company 44 million shares for $7 each. now the stock is at twice that. so based on that calculation, icahn gave up $300 million in value between what he sold and where the stock is right now. sue and tyler, back over to you. >> that's going to hurt. julia, thank you very much. yikes. coming up next on "power lunch," hot start-ups. the best place to get your million dollar idea off the ground. >> plus the multibillion dollar business humble but delicious potato chip.

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we're kicking off our week long series on areas with booming start-up activity. and we turn to a first on cnbc. start-ups actually declined in 2011. that's according to the 16th annual kaufman index which is a leading indicator of new business creation in the united states. despite the fact that the country is in the midst of its highest levels of entrepreneurship since that index started, 2011 saw nearly a 6% drop in business creation from the previous year. so, some of the winners, well, the top state for start-ups was arizona followed by texas and california in a tie for second. those not fairing as well were west virginia, pennsylvania and hawaii among others. the service industry garnered 54% of total entrepreneurship activity and manufacturing at the bottom of the list. the least educated group, high school dropouts, remained the most active in the start-up

space while the largest decrease occurred among college graduates. from cloud computing to new age beverages, make sure you catch "power lunch" week long coverage of the hottest industries for start-ups out there. ty. >> sue, tonight on "how i made my millions" at 9:00 p.m. eastern time we're going to tell the story of a very, very interesting three-generation pennsylvania family business. they've been making herr's yours. they make chips and other snack foods for 66 years and they've been growing all the while. today there are over 340 different herr's products everything from fireman's barbecue potato chips to honey cheese curls. in fact, they come up with about ten new products a year. >> don't get any better than this, tyler. >> no. i got to have some of these. those are very good. i think i found my calling, is to be a taster for you.

you ever see that "i love lucy" there's too many potatoes, i don't know how you keep up. >> that's exactly this. >> that's exactly this. from washing to slicing to three minutes in the fryer, the temperature a trade secret. >> this is a warm potato chip. it's not much better than that. >> that is delicious. >> "how i made my millions" you can see the whole story tonight. ordinary people with extraordinary lives. that's what we chronicle every time on "how i made my millions" 9:00 p.m. eastern pacific right hire. sue, if god didn't want us to have potato chips, he would not have made them. >> he would not. >> i want you to taste something. >> you get the best assignments. >> lack is potato chips. they advertise this as the ultimate dipping chip. or the ultimate chip for dips

like me. very crunchy. very good. >> they are delicious. this company employs about 1,500 people. >> $250 million in annual business. >> 340 products? >> 340 products. >> wow. >> ever wonder what a kettle chip is? >> no. but i bet i'm going to find out tonight at 9:00. >> small batches cooked at a lower temperature but longer. how about that? >> yum. i wish i could make herr's our chart of the day. but we have charts of the day coming up in a minute. wgg ♪ when your chain of supply goes from here to shanghai, that's logistics. ♪ ♪ chips from here, boards from there track it all through the air, that's logistics. ♪ ♪ clearing customs like that hurry up no time flat that's logistics. ♪ ♪ all new technology ups brings to me,

that's logistics. ♪ our machines help identify early stages of cancer and it's something that we're extremely proud of. you see someone who is saved because of this technology, you know that the things that you do in your life, matter. if i did have an opportunity to meet a cancer survivor, i'm sure i could take something positive away from that. [ jocelyn ] my name is jocelyn, and i'm a cancer survivor. [ mimi ] i had cancer. i have no evidence of disease now. [ erica ] i would love to meet the people that made the machines. i had such an amazing group of doctors and nurses, it would just make such a complete picture of why i'm sitting here today. ♪ [ herb ] from the moment we walked in the front door, just to see me -- not as a cancer patient, but as a person that had been helped by their work, i was just blown away. life's been good to me. i feel like one of the luckiest guys in the world.

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