>> there's you and john ham. looking at it right now. cortes, quick. >> like natural gas here. ung can hold 18. >> joe, quick. >> add to my gold shorts. >> more fast at 5:00. power begins right now. >> a busy hour it's going to be. three hours to go in the trading day and the nags are nagging. new concerns about higher gas prices, softer home sales. both weighing on the markets. is it really the best time to get into stocks in a generation. >> we'll see, ty. starbucks on a tear this year. a meeting with shareholders getting underway as we speak. we'll bring you the very latest, ty. >> and a huge week for lions gate. everyone talking about "hunger games" and we're going to hear from the ceo and talk with the real madman. this special tebow edition of "power lunch" begins right now. >> that is too good.

i'm seema mody here at the realtime exchange. welcome to "power lunch" where we have two out of the three, ain't that bad. the s&p after trading lower for much of the morning turning positive within the last hour right here. above 1,400. the nasdaq has been positive all day fuelled by shares of oracle and the dow creeping back well off of its lows. still down 11 points. taking our pulse of the markets, oil on the move today advancing toward yesterday's high of $108 a barrel. we also have our eye on silver. it's leading the metals higher. and we're keeping our eye out on the euro. taking a look at some of our midday movers, hartford financial getting a bump after announcing plans to sell most of life insurance realitied business. stock up 4.5%. and we previewed general mills yesterday. it's off today lowering its forecast citing higher commodity costs. stock down around .6%. and lastly, hewlett packard formally announcing its restructuring plan.

we'll get you more details on that hp restructuring later on "power lunch." but for now let's get over to our trading floors. bob pisani joins us from the nyse. bob, is it just housing data that our markets are trading on? >> no. there's a little bit more than that. a little nervousness in europe. important thing here, four-to-three advancing to declining stocks but again starting to talk about europe. there was no big specific news today. i want to point out what happened in spain with the 10-year. again, this is one of those situations where they just -- the yields just start creeping to the upside here. look at that 5.4% in the spanish 10-year. that's the highest level since going back to february. and, again, no big news. but all of a sudden just creeps up in the last five or six days and suddenly you wake up and everybody's passing the charts around. here in the united states, now, you're going to get news on the existing home sales. diana will give you what's going on, but we had some of the big, big building materials to the upside. wallboard, that's what they do. big building materials company.

they come out and said we're going to make a profit this quarter. they haven't made any money in four and a half years. what happened? suddenly they were able to raise prices on wallboard and make it stick. and the volumes have been holding up. people haven't been refusing to buy despite the higher prices. this is great news for the overall building materials industry. and you can see u.s. chips put them up here that a brand new 52-week high, a building materials company at 52-week high, people were shocked to see it. but there you go. finally, just want to note going into sharon here, you think you'd be able to make money with oil at $105, but oil service stocks are down, baker hughes talking slightly lower profits. natural gas, sharon, is a real problem. and demand is still muted in the oil industry. sharon. >> you're absolutely right. we did get some of those demand figures from the energy department today. you know where cushin, oklahoma, we are looking at the futures,

wti contract got bit of a bid today. we learned supplies for overall fell last week and we saw a decline for the first time in four weeks. that might be what caused the slide but traders looking at the spread between brent and wti. something to keep your eye on this trading session. sue, back to you. >> sharon, thank you very much. let's switch on the "power lunch" power surge and drill down on the stories driving the day. two of the main men getting grilled on capitol hill today. speaking about the banking system's exposure to europe. our steve liesman monitored today's hearings. steve, it seems the remark about energy may have actually been the market mover here. >> yeah. for a little while there, sue, markets seemed to take a modest dip as fed chairman ben bernanke some of his first comments about the recent spike in gasoline prices. let's be clear, he was responding to a hypothetical question of the doubling of gas prices.

he said that would slow growth in the short-term. but then he seemed to take the question literally. >> higher energy prices create at least short-term inflation pressures. and moreover they act as a tax on household purchasing power and reduce consumption spending. and that also is a drag on the economy. so, yes, higher oil prices, high energy prices are a concern. >> bernanke said the u.s. is highly unlikely to lose any money in the european central bank dollar swaps it set up. also said the financial exposure to europe is limited. more on that in a second. the treasury secretary said there are no plans to ask for more funds from the ims, europe must provide its own firewall funds. and looking at what bernanke said about the specific exposure to the european financial crisis, he said some gross credit default swap exposure for u.s. banks most is hedged and disbursed. there's material exposure when it comes to the core, but

limited to the prif ree. one area of concern, 35% of u.s. money market assets still in europe. sue, he said things are better in europe but still a concern about financial contagion. >> understandably so. steve, also, when they are on capitol hill, politics always seem to get involved and sometimes get in the way. what were the politics of this morning's hearings? and did the fed or treasury take a hit? >> i was looking at this hearing, sue, as a barometer as to whether or not what the fed or treasury has done or what's going on in europe would be part of the political debate that's going on. and i think there was a little bit of probing and examination going on here. i don't think there was any big issue that came out as something where either the obama administration or the fed is going to be a part of the political discussion. i think there are those out who have their feelings about the role of the fed and treasury, but i don't think it's where the wider political discussion going to happen in the next several months now. >> fair enough. thanks, steve. >> a monster week for housing data. we have a slew, yes, a slew of

reports from the state of the mortgage market to the amount of shadow inventory out there. our real estate correspondent, diana olick, has been crunching the numbers and is here to walk us through them. diana. >> that's right, tyler. an awful lot of numbers to get to. and most of them showing some improvement albeit slow and measured. take a look if you will. existing home sales down slightly. but since january was revised up, the 4.95 million unit pace was right along expectations and the strongest in five years. we were hoping to see a bigger bump thanks to exceptionally warm weather this winter, but not so much. home prices flat year over year, we're going to have to see distressed inventory drop further. as banks ramp up foreclosures, that's not likely to happen. which brings me to another report saying for every two homes available for sale in january, there was another one in the so-called shadow inventory. that is 1.6 million homes with loans that are either seriously delinquent, in the foreclosure process or bank owned.

all of those however not listed for sale. california, illinois, new york, new jersey and texas make up half of the nation's shadow inventory. and it's numbers like that that cause more than 100 economists in zil lo's home price expectation survey to "temper" their recovery expectations. they now see a home price decline of 0.7% from previous decline of 0.2%. on a brighter note, the delinquency rate dropped 5% month-to-month in february. and it's down 14% from a year ago. that's from lender processing services. a little bit on the bright side. tyler, enough numbers for you? >> that's enough numbers, yes. let me throw some more numbers at you. rising interest rates, which on the one hand is usually poison to housing, on the other hand it might bring people into the market for fear that they're going to lose that opportunity for a super low mortgage. >> exactly right, tyler. it seems counterintuitive, but

what in today's housing market doesn't? we've seen rates go up over that 4% level, which is an emotional barrier, some folks telling us, some analysts saying maybe this will get potential buyers off the fence and gets them to buy because they're afraid rates will go higher. we're hearing rates will not go that much higher, not past 4.5%. what this will effect is refis. you're not getting as much bang for your buck. purchase applications remain pretty much steady down just a little bit. we'll talk about that on the blog later today. real realty.cnbc.com. >> keeping a close eye on starbucks. hitting a new 52-week high today as the ceo meets with shareholders right now. the stock up 0.25% at 53.85. it comes as starbucks expands its partnership with green mountain. courtney reagan is listening in on the big meeting. >> that's right, sue. they are having a shareholder meeting in seattle right now. it's being web cast.

we're monitoring it from here. we'll bring you news as warrants. it's interesting that starbucks and green mountain coffee are expanding their partnership. starbucks recently announced it was going to come out with its own single cup coffee machine some time in the fall and there was some worry that would damage the partnership and hurt green mountain partner sales and brand. but sounds now that it will be sold for use in green mountain's kurg machines. starbucks also coming up with new ideas to bring more customers into the store to either expand their hours in the morning or at night with that fear, the wine, the juice. lots of experiments going on which is interesting because howard schultz says he wants that commitment back to the core of what starbucks is, which last i remember was coffee. >> indeed. i think you're right on that one. thanks, court. special programming note. maria bartiromo will talk with

howard schultz on cnbc. he'll join her this afternoon on "closing bell." turning to autos, this could be the kind of comeback toyota has been waiting for. just over a week after it went on sale, the new prius is running laps around america's two most popular electric cars. our phil lebeau behind the wheel in chicago. sales of the prius are red hot, right, phil? >> they are, tyler. not surprising given the fact that the national average for a gallon of gas is $3.87 a gallon. nine states are now over $4 a gallon. initial demand for the prius c, that's pretty strong. in fact, the base price coming in just under $19,000 along with the offer of 50 miles per gallon, that has people interested in buying the prius c. some dealers know that. look what we found on the internet via twitter. somebody took a shot of a sticker price of a prius c, the markup $6,900. take a look at the comparison between hybrids and electrics. and in particular what we're seeing. now, so far in the first two

months of this year there were 1,600 volts sold. the nissan leaf, not quite as many. 1,154 sold. and in eight days toyota has sold 2,164 c models. that's good news certainly for toyota as you look at shares over the last three months. they've had a nice move up 30%. finally, guys, quickly want to show you something that always gets a lot of attention. take a look at the average miles per gallon of new models being sold. it's at an all-time high. 23.7 miles per gallon. clearly we're seeing the rotation towards the smaller fuel efficient models. >> phil, thank you very much. phil lebeau reporting. >> breaking news from the nfl involving tim tebow and the new orleans saints. our sports business reporter, darren rovell, has details. >> thank you, sue. out of all the teams that won -- that could have won the tim tebow sweepstakes, who would have thought it would be the new york jets? that's right. tim tebow is going to the new york jets traded for a fourth

round pick. he will not be starting, that's for sure. mark sanchez just signed a contract with the jets. i'm sure they'll be able to use him. he'll come to the big apple and marketing dollars could soar depending on how much playing time he gets. the story with the saints is the nfl was investigating bounty gate where they had a cash pool to award players for big hits. the investigation started after the super bowl season. and they have just come down with the penalties. the saints are fined $500,000. they will forfeit their 2012 and '13 nfl draft picks in the second round. shawn payton, the head coach of the new orleans saints, will be suspended without pay, that's about $6 million, for the 2012 nfl season. greg williams, who was the defensive coordinator and the source of the bounties has been suspended indefinitely. so having bounty pools where you hit players and get $1,500, now this is going to cost the saints

and coaches millions. back to you. >> darren, thank you very much. >> fascinating story. indefinitely on that defensive coordinator, williams. which i suspect means he'll have to petition to come back into the nfl. >> yes. and then it has to be reviewed. indeed. >> very interesting. and a head coach for full year. and he's one of the best -- >> i was just going to say he has a good track record in terms of wins. obviously a story we're going to follow because it does have big financial implications right here on cnbc. when tyler and i return next on "power lunch," a huge call from goldman sachs saying this is the best time in a generation to buy stocks. is it really? we'll tell you where those opportunities of a lifetime may be in this market. >> and fed ex reports earnings tomorrow. will it deliver for investors? should you buy the stock ahead of those results? >> and the cast of "madmen" ringing the opening bell today. forget about them. we'll speak with the real madmen of advertising. that's straight ahead. [ donovan ] i hit a wall.

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welcome back to "power lunch." rick santelli here on the floor of the cme group. all you have to do is look atd a two-day chart of 10s and see rates started to come down before any 8:30 data was released. it's running out of gas. both backing away. if you look at a chart when it really started to -- selling started to pick up, it was right the day of the fed meeting. you can see how it flat lined a bit.

look at the british pound they're going to double exports this might be the sacrificial currency you want to be short. sue, back to you. >> thank you very much. goldman sachs making a very bullish call today. the firm telling clients this is a once-in-a-lifetime opportunity to pick up stocks following a 20-year period of underperformance. so where are the opportunities? joining us in the studio is market strategist with opus capital management. and market strategist with steefl nicholas. it's a pleasure to have you both in studio. thanks for joining us. >> good to be here. >> jeff, i'm going to start with you. do you agree generally speaking the chance of a lifetime given the underperformance of the market the past few years? >> i think it's a pretty good chance. as a firm we take a bottom's up approach. a cross check on a top down call like that, if you look at the portfolio, it's trading around 12 times with a growth rate of about 12, pay rate of about 1. that's a good opportunity to be

buying equities. >> it is hard to argue with, kevin, right? >> when you look at those valuations and put them up against a bond yield which is essentially a multi-generational lows, it's hard to imagine that bonds will provide a lot of upside competing away capital from the equity market. as long as fundamentals are improving, we see equity markets move higher, maybe substantially higher in the years to come. >> my only quibble is this would have been a ballsier call. i'm feeling like a muppet here. >> we were excited in october. >> okay. >> fair enough. >> i don't think a whole lot has changed. >> essentially, when you take a longer view and look where the s&p was let's say ten years ago, we've had -- let's call it for what it is, a sideways decade for equities with a lot of volatility. bonds have had a fantastic run. commodities have had a fantastic run. and capital's going to go to wherever the returns are the best. and looking forward with improving fundamentals, which is

something we can say now, which is something we couldn't say in october, i think all of the -- >> let's cut to the chase here, jeff. give us three picks of yours. they are interesting because they are small companies that most of our viewers may not have heard of. >> these are companies. >> go quick. >> secular growth can grow through slower economy. new park resources would be one. meth anex is tropic. >> what do they do, very quickly? >> newpark resources is involved in the -- >> resources. >> but in the enp providing drilling services. and they're unique in the fact that they have these products that are environmentally friendly and a green fracking company, basically. >> okay. green fracking. and methanex is. >> a chemical derivative, but

the exciting story there is it's being used more and more in energy-related applications. so blending with gasoline for cars and trucks in china. >> which is the growth story. kevin, where would you be deploying cash in terms of sectors? energy i know is one you like. we heard the fed chief talk about energy a short while ago. >> sure. i think the market is looking at improving fundamentals. small cap stocks make sense in this. when we look at the individual sectors, the more cyclicly oriented like consumer discretionary. >> i was just going to say tech still works for you? >> it does. in technology space and healthcare, you've got sectors with very good fundamental macro trends. they're going to be with us for a long time. and their balance sheets are fortress lights. >> lots of cash. pleasure to have you in studio. come back. >> thank you for having us.

>> let's head now to bertha coombs at the nasdaq with three in 30. >> thanks, tyler. yesterday we saw oracle shares rise about 1% going into earnings. cautious outlook for the fourth quarter giving back gains. meantime broadcom is up trying to beef up business to provide chips for internet hd tv and made a small acquisition on that front. and clean energy helping to boost the russell 2000, the best performer of the indices today, clean energy with a 10-year deal to provide a logistics firm with fueling stations for nat gas trucks. back to you guys. >> thanks, bertha. hewlett packard holds its shareholder meeting this afternoon. coming up when we come back, hp is moving ahead with its bold re-organization plan. what's a better play for you right now? would it be hp or dell? >> later, the fight for your wallet. which companies are best positioned as consumers go cashless and maybe even cardless using their phones to pay. this is $100,000.

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that for us. >> hi, sue. shareholder danlobe putting the company's feet to the fire to accept his board nominees according to a filing today. nominated a slate of four directors including himself to replace four yahoo! board members that won't be standing for re-election. third point also wants access to court documents detailing a failed deal with microsoft in 2007. this is the latest in the fight between the hedge fund manager and the troubled media company which started back in september following the exit of barts. yahoo! then took moves to try and unwind itself from asian affiliates, alibaba and south bank, meanwhile yahoo! is keeping its options open, sue, literally all of them. lawsuits, restructurings. >> you also have new information i understand on the facebook ipo, acorrect? >> sue, my sources tell me facebook will hold an additional meeting with south side analysts in april to discuss the

financials of the company in more detail. that was one big question mark left unanswered in monday's meeting with sandberg. this will likely involve discussing the company's prospects on a go-forward basis in order for analysts to create models for research. ne forward looking guidance on the table the company could choose disclose more broadened financials in the forthcoming documents. we know these meetings are incredibly standard but interesting given the size and attention paid to the facebook deal. one we're keeping our eyes on. >> thanks, kayla. >> another tech stock we have on radar is hewlett packard. shares are falling amid confirmation that the company is combining pc and printer businesses into one unit. the company also holding its annual shareholders meeting tonight at 5:00 p.m. eastern time. so how should you play hp right now at $23.45 a share? tony is the senior analyst at

sanford c. bernstein. good afternoon. >> good afternoon, tyler. >> do you like what hp's doing here? is it a smart move? do we know enough of the detail sns. >> we don't know that much. obviously they're combining the two divisions. this is a cost centric move. they are not going to generate growth out of this move, but the two divisions share the same customers. they have the same channel partners, purchase many of the same components. so i think the thinking from hp if we put these two together, we can create some savings. are investors cheering that on? no, because i think there are broader concerns about hp's growth portfolio, ceo meg whitman has not outlined a strategic direction for the company and she became ceo six months ago. so i think investors are finding this somewhat undernourishing. >> you have an outperform on this stock, but what would you like to see management do or say to that point you just made,

which is this is not a growth-oriented move. this is a cost-centric move. what would you like to see them do or say with respect to re-igniting some growth? >> right. so, look, hp is an elephant. it's $125 billion company. so stimulating growth is something that is very difficult to do. and it has to happen somewhat gradually. our perspective on the stock is it's incredibly inexpensive. it's literally the third least expensive stock on a price to forward earnings in the entire s&p 500 if you explit financial companies. and a very inexpensive stocks investors really believe is going to shrink going forward. i think what hp needs to do is to manage the company for its assets, which is it has a great brand, has great scale, great distribution. it needs to be operationally very effective. it needs to be strong on capital deployment and needs to gradually re-invest in r & d.

but there are no silver bullets. >> let's get your quick thoughts as we show hp versus dell. whose business do you like better? whose stock do you like better? >> i think both businesses are low-growth challenge businesses. dell is business centric, hp has about 75% of revenues coming from hp, 25% coming from printers. those are very low to no-growth businesses. on balance i like hp better largely because margins in printing business are 10-year lows. margin in service business are weakest in the industry. so i think there's a lot of room for improvement. by contrast dell low-growth business but margins are at peak historical levels. so i think the opportunity for improvement is more significant at hewlett packard. >> very interesting argument. tony, thanks as always. appreciate you being with us. >> my pleasure, tyler. >> fed ex earnings out tomorrow.

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welcome back. here in the metals market we're seeing a slight pop in gold and silver at the close. again, just a slight pop after yesterday's slide. keep in mind there is still concern out there about the future of gold prices and whether we'll see the bull market here continue. particularly when you look at what's happened to gold etfs, we saw a drop in those holdings even though we've seen declines before and holdings keep up, this time down by about 100,000 ounces in the last day or so for gold etf. that could be a change in sentiment for the long-term investor, sue, back to you. >> indeed, sharon. thank you very much. as the world's second largest delivery company, fed ex earnings are due out tomorrow and widely considered to be a bellwether for economic strength

or weakness. our next guest bumped his price target to $110 just last week and suggests buying fed ex shares now ahead of earnings might be profitable. here is kevin sterling with bbc capital markets in richmond, virginia. nice to see you. welcome back. >> thank you, sue. good afternoon. >> in general, why do you like the stock? >> well, we recently raised our price target to $110 last week. at the end of february and early march, we began doing channel checks and we saw apple was buying air freight capacity to ship ipads. with it we saw a great spike as much as 20%. and those rates have stayed at a high level since. you've got all the accessories coming as well. so demand has been strong. so we think you should look forward, we think fed ex is going to give a positive outlook tomorrow regarding an improving air freight market. as you mentioned, fed ex is the second largest package delivery company, but they are the world's largest cargo airline. >> right. >> we think improvement air rate

is good for fed ex. >> so go apple so goes fed ex, or is that too strong correlation? >> that's probably too strong. it does help. you saw apple buy up a lot of spare capacity. we had a lot of capacity part the past six months or so. air freight volumes have declined and carriers were dropping capacity and then you had a big buyer in the market and bought capacity. so others looking for air freight capacity have to pay the higher rate. >> does that offset -- does the success of fed ex offset fuel cost increases and the fact that consumers sometimes cut back on things like overnight delivery if they feel challenged in other parts? >> fuel will be an impact in the quarter, as you know, it's risen. and over the long-term fuels will pass through, but in the short-term it could be a headwind. that could pinch them. we have had favorable weather, as you know, in the quarter. so that's going to help offset some of that fuel impact.

a year ago we had some very difficult comps with the weather. but about the consumer, yes, you do worry about demand destruction with the consumer, however, if you look at retail sales and inventory, that ratio is extremely low. and retail sales are pretty good in february. and, you know, it's interesting heard some discussion on "squawk box" this morning about retail sales possibly improving with pick up in housing. if that's the case, that's great for air freight. >> let's talk a little about fed ex versus u.p.s. which got a downgrade yesterday. got hid hard. what does fed ex have going forward that u.p.s. perhaps does not? >> right. fed ex by revenue is the largest package shipping company out of china. so they're a great way to play the growth and export demand out of china. also, fed ex has been growing and taking some market share from u.p.s. domestically. if you look at their ground network, which encompasses a lot of e-commerce, they've been

taking some share there. so that environment even the whole pile of e-commerce has been growing rapidly. room for both fed ex and u.p.s. to grow. but i think u.p.s. has more on the airside out of china versus u.p.s. >> thank you, kevin. >> big week for lionsgate. "hunger games" opens in theaters on friday. the stock again at a new 52-week high. it's $15.67 now up almost 90% so far this year. julia boorstin is in los angeles. lionsgate ceo has a lot to smile about, doesn't he, julia? >> that's absolutely right, tyler. i think that "hunger games" is certainly going to be the biggest movie this year. and the ceo told cnbc this morning that he thinks that "hunger games" will open with over $100 million at the u.s. box office this weekend. the movie is well on its way to beating "twilight"'s massive opening.

movie tickets.com has sold out nearly 1,600 screenings, 700 of those are from midnight shows. a sign of a truly devoted fan base. the stock has soared over 17% just in the past week on expectations that "hunger games" will kick off franchise and lionsgate's "madmen" returning on sunday. the ceo says he's working to build more brands like these. >> we started thinking three or four years ago how do we have more franchises repeatable makes it easier to do and you don't have to start with scratch each time. we have in a few months "what to expect when you're expecting." >> it's not just movies. buzz is building for "mad men" despite a 17 month hiatus and returns on sunday. certainly a big weekend for the studio. tyler and sue, you can bet wall street will be watching the box office numbers and the "mad men"

ratings closely. >> absolutely. julia, thanks. >> up next on "power lunch," bye-bye greenback. why the future of shopping may be more about flash than cash. >> there are companies out there that are making money in the booming world of mobile payment technology. we'll talk about those when tyler and i return. [ male announcer ] you are a business pro. monarch of marketing analysis. with the ability to improve roi through seo all by cob.

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exchanged on mobile devices these days. new industry research estimates mobile payments will facilitate up to $74 billion in transactions by 2015. last year a san francisco-based start-up called square handled $2 billion of those transactions. their small plug-in device turns any iphone or ipad into a cash register and provides business owners with useful sales statistics. >> this is so cool. >> and now all the big names are getting in the game. google's wallet platform lets customers pay at big retailers like home depot with mobile phones. these services could put pressure on traditional credit card companies and may limit their ability to charge high vendor fees. so, will companies like square put the cash register out of business? >> joining us with more on mobile payments and the major players in this space, denee

carrington. good to have you with us. >> thank you. thank you for having me. >> my fundamental question here is what's so convenient about using your phone that's more -- that makes it more convenient than pulling out my debit card or my credit card? >> i think that's a great question. in fact, consumers are not shouting about how inconvenient it is to pay with a credit card. however, many consumers utilize mobile technology and many of the aspects of their lives. the important aspects of their lives. including shopping and commerce and carry their phones with them. they're beginning to do things like looking for a store information, product information, while they're shopping. and so the mobile phone is being integrated into that shopping experience. and i think really the opportunity is to deliver value at its services that make your shopping smarter. >> i sure get that. i mean, i've used red laser and another one of the price comparison things that's out there when i've gone and price

compared. but i would think that for a vendor, a company, a retailer, a walmart, a gas station, whatever, that it would cost some money to equip your location with the card -- with the phone reader device, wouldn't it? >> it does. it . i think where we are right now is at the early days, in the early days of mobile payment. and there are a lot of market movers who are helping to create the infrastructure. so it does take money -- cost money, for retailers to outfit their point of sale terminals to support mobile payments, but that's beginning to happen. >> right. >> it will take several years. >> could take several years. we're looking at a list of several of the players in here. and they are big familiar names like google, like verizon, like at&t, like apple computer. is this any time soon going to be a meaningful sliver of their

businesses? that's question number one. and if it's not, are there other smaller players who make some of the infrastructure or devices who could be the biggest beneficiaries from a stock market point of view? >> i think over time this will be quite a large industry. what we're looking at right now is really the transformation of the payments industry as a whole. and i think there is opportunity to be had both by traditional and large players as well as new entrants and innovators into the space. i think that we will see that this will be something that over the next three to five years really becomes more integrated into our shopping experience. we will see more opportunities to use a mobile phone to make payment. and there will be incentives for consumers to do so by people developing these mobile wallet services. >> i see. incentives like a mileage program or some kind of rebate

per use. denee, thank you very much. >> thank you. >> you may see it, the cast of "mad men," we'll speak with the real mad men and see what they think of the economy and the future of social media. 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. ♪ [ male announcer ] the 2012 m-class continually monitors blind spots,

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coming up on "street signs" at the top of the hour, the apple bears have been hibernating, but we managed to find one. why he says the apple run could soon be done. we also have a stock up more than 2,000% over the past three years. yes, 2,000%. plus, could america become the new middle east? a new report says the u.s. has the fastest oil and gas production in the world. we're going to debate that. now back to sue and tyler on "power lunch." see you at 2:00 p.m., folks. >> see you then, mandy. well, a lot of attention this morning on "mad men"'s return.

it's making a ton of money for lionsgate. and the cast rang the opening bell this morning. so ty and i decided to get in on the fun. and they created avatars. they got my hip measurements correctly there, ty. but it gets better than that. we've got the real mad men on "power lunch." let's meet the team behind iconic ads like "got milk" and the budweiser lizards. jeff and rich, welcome. nice to have you here. >> thank you. >> i know you probably get these questions a lot. but one does wonder, given the success of the series, how realistic from your vantage point is "mad men". >> they're better looking than us. >> i don't know about that. >> it's hard to follow those guys, you know. we can't keep up with that.

bit like what billy bean looks like with brad pitt playing him in "money ball." i'm sure he feels a little worse about himself now. >> we didn't get the chance to drink the whisky and smoke the cigarettes. we have an h.r. department now. >> that's very true. that would never fly these days. >> no. sexual harassment seminars. >> i remember working in the 1980s and they brought around literally on friday evenings a liquor cart. that is done. they don't do that anymore. let's talk a little bit about one of your clients, which is chevrolet. you did their big -- as we look at the "mad men" thing. you did their big super bowl ad this year. the question is, is detroit back? and how much stronger is the car business today than it was say four or five years ago? >> well, chevrolet certainly much stronger than they were four or five years ago. they had their best year in history last year. and they're the fastest growing carmaker in the world. in that sense, we're back.

you know, i think that we are still waiting for, you know, a sort of confirmation of that two or three years like that in a row and the feeling that american cars are back. but i think americans are much more liable to buy an american car now than they were two years ago. >> i mean, it really feels good. detroit is something that needs to come back as a city. >> yes. >> and i think we're actually proud that we're helping our little part in that. >> yeah. >> i just bought a chevy traverse. love it. >> good for you. >> he has a lot of company in that. part of the success of the chevy campaign and others many people think has been heavily influenced by social media. this is twitter turns six years old. google, a client of yours perhaps. how is social media and in general that movement changing the way that you do your business? >> well, first, we like to talk about the commercial was this rock you threw in the pond.

>> yep. >> and that was the -- everything. now it's the ripples and the ripples is youtube and social media. you do something good, it's seen everywhere. you do something bad, it's seen everywhere. >> the biggest thing we did on the super bowl wasn't a commercial, really. it was an okay go video advertised in a commercial, but people went online and i think there were 16 million or 17 million people that have hit on that and watched the thing now. which is really amazing thing considering it's a three-minute piece to watch. >> you know, you mentioned that you do something good, everybody sees it. you do something bad. but net/net if you had to summaryize it, social media influence, good or bad? >> oh, it can be both. you have to monitor it. if it starts getting out of hand in a bad way, you have to watch it. you have to get in there and talk. >> the genie's out of the bottle in social media. we're not going back. go ahead. >> let's turn to another company in the news today, a former client of yours. i don't know if they're still a

client, but hewlett packard is now combining its printer and computer business. they've had some struggles keeping their business growing. i'm sure you've ahead situations in which you've been called onto help relaunch a brand. how do you do that? what might you do in the case of a company like hp? >> well, i think you use logic. i think they're doing the right thing. a printer is connected to a computer. so why would you have two separate companies? i mean, it's one company. everyone likes to look at apple. it's a good example. it's one idea. >> hp has to be a technology company. it has to be bigger than just the boxes they make. that's what apple does. apple has a handful of products over the years to make them better and better and thought of a technology company. >> how would you position hp against apiplapple,? >> i have a lot of friends at hp, so i have to be careful here.

no. i think that you play with your strengths. and it's the largest pc company in the world. and they're waiting for microsoft, the new operating system. okay. optimism. you can smell it. the public smells a company on the rise. and when you don't have that self-confidence, they can smell it. so the first thing i would say is, you know, get that back. >> great observation. >> yeah. the self-confidence of hp has always come from technology, from engineering. and i think that the engineers have to bethe thing. they have to have fun with that again. have to feel good about it. that's what we love about them. >> we're out of time. gentlemen, thank you very much. >> good to see you. come back. we'll have more time. >> two hours left in the trading day, that can only mean one thing. charts of the day. >> next. ncer ] the next generation of lexus cannot be contained. [ clang ] the all-new 2013 lexus gs.

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so who's in control now, mayans? demand media expands on the big board. [ kareem ] i was fascinated by balsa wood airplanes since i was a kid. [ mike ] i always wondered how did an airplane get in the air. at ge aviation, we build jet engines. we lift people up off the ground to 35 thousand feet. these engines are built by hand with very precise assembly techniques. [ mike ] it's going to fly people around the world. safely and better than it's ever done before. it would be a real treat to hear this monster fire up. [ jaronda ] i think a lot of people, when they look at a jet engine, they see a big hunk of metal. but when i look at it, i see seth, mark, tom, and people like that who work on engines every day. [ tom ] i would love to see this thing fly. [ kareem ] it's a dream, honestly.

there it is. oh, wow. that's so cool! yeah, that was awesome! [ cheering ] [ tom ] i wanna see that again. ♪ let's look at the markets. a little turn in the markets. we have the dow now negative by 30 points. and the s&p, you could almost call that unchanged. just a slight downward bias. but the nasdaq, it's holding strong up .3%. >> look at a