don't forget to catch more "fast money" tonight at 5:00 p.m. jim rodgers with more on what's happening on the ground in china. an interesting day in the markets given concerns in china and in europe. "power lunch" is all over that. that show begins right now. indeed it does. three hours to go in the trading day. and stocks are seeing red. the s&p and the dow having their worst week of the year. and if the retail investor really is getting ready to step back in, is it already too late? the president and oil in the news this afternoon. see why one analyst says nat gas might be the better way to play. >> and he had the golden touch at the golden arches. find out mcdonald's latest challenge now that jim skinner is stepping down. i'm sue herera with tyler mathisen. you know what that means. "power lunch" begins right now. >> i'm mary thompson at the

realtime exchange. we had good numbers on jobless claims but not so good news on manufacturing from china and europe. s&p down half a percent. the nasdaq down about .25%. taking a pulse of the markets we are watching oil reacting to the president's speech in cushing, oklahoma, about half an hour ago. growth concerns are pushing metals lower. look at silver right now. it's down 3% today. and a bit of a flight to safety pushing bond prices up and the yield on the 10-year note ticking slightly lower. our midday movers of course we're watching fed ex because earlier today it reported strong earnings, but it's getting hit on warnings of tepid growth. right now fed ex down 4.25%. and the energy space getting hit too. oil and coal under pressure. alpha natural resources down 4.25%. and price line edging higher following piper jaffry's call. not quite there yet. it's up $6.07 at $709.75.

now to the trading floors. bob pisani joins us from the nyse. bob. >> hello, mary. good to see you. i want to pick up on the comment on energy mary was talking about. the energy complex has been under a lot of pressure in the last couple days and that's because of concerns about growth in china. the biggest variable in global oil demand is china. they consume about a quarter of all the oil in the world today, 85 million barrels, china gets a quarter of that, we get about a quarter of that. this week as there's been concern about oil services have been under pressure. baker hughes had specific comments that effected them this week. believe me, all the other stocks have been down in this particular sector. exploration and production companies that are weak right across the board. this is a one-week chart. they're down rather noticeably. one week you see pressure on it that began in the middle of the week. elsewhere you can see some of the shipping companies. companies that ship iron ore or that oversee shipping, these are

oil tankers, essentially. they ship dry goods and other kinds of minerals around. all these have been under pressure the last two days. they're down 2 and 3% as well today. finally, keep your head straight here. this has been an incredible quarter. we're up 10.7%. this is the s&p 500 quarter-to-date. 10.7%. that's one of the best quarters we've had in years. now, last quarter we were up about 11%. so this is not quite the amazing quarter that we had yesterday. but we still have a few days to go. and bottom line, tyler, is it's still been an excellent quarter overall. >> bob, thank you very much. let's switch on the "power lunch" power surge and drill down on the stories driving the news. oil prices dropping and president obama heads to the nation's largest storage area of unrefined crude. obama speaking in cushing, oklahoma, making his case to fast-track the approval process for a key stretch of a key pipeline. he also addressed the pain at the pump many americans are feeling. >> if anybody who says that just

drilling more gas and more oil by itself will bring down gas prices tomorrow or the next day or even next year, they're also not paying attention. they're not playing it straight. because we are drilling more, we are producing more. but the fact is producing more oil at home isn't enough by itself to bring gas prices down. >> sharon epperson is looking at how it is all playing out in the oil pits at the nymex. hi, sharon. >> hi, tyler. in fact, oil prices and gasoline prices are down today. but it doesn't have much to do with president obama's comments from cushing, more to do with of course what he was talking about the data from china and the eurozone. in terms of what we're seeing in the wti complex, about 50% of the gains we made in february are now gone. and we've broken below some key technical levels. what's interesting the trade that many traders have focused on the brent/wti spread

continues to blowout despite his commentary about the keystone pipeline and his vow to make it a priority to fast-track that southern leg that would take crude oil from cushing to the texas gulf coast. keep in mind there are many who say this still needs to be done to get rid of that glut of supply in cushing and the cost would be far less than the other ways to get from oklahoma to texas. and if you take a look at citi's analysis, taking it by truck would cost $12 to $17 versus by pipeline $1 to $3 a barrel. this is economically needs to be done. but the focus has moved on the spread widening. back to you. >> sharon, thank you very much. we're going to talk more about where oil prices may go from here in our next half hour. and why natural gas may be the smart energy trade right now. >> well, we're also watching shares of mcdonald's. there's been a major shakeup at the world's biggest fast food chain. the ceo, jim skinner, long-time ceo, is retiring.

the stock under his tenure has had an incredible run since he's been in charge. so the big question for investors is can the new guy taking over keep up that growth? phil lebeau is chewing on that, pardon the pun, phil. >> you know, sue, usually when you have a company this successful of this size there's a little bit of hand wringing when they change ceos. that's not the case today. jim skinner announcing he's stepping down and being replaced by don thompson, the incoming ceo moving up from the position of coo. he has served as c.o.o. since 2010. and mcdonald's is expected to stick with the strategy of improving existing store sales. that's really been the strategy underneath skinner. but they've also expanded and don thompson's been part of the crew there that has supported the expansion. take for instance with coffee drinks. mccafe has been a huge hit for mcdonald's. coffee drinks now among the fastest growing segments in the mcdonald's business. when you look at this stock over the last seven years, under jim

skinner, what a move it's had. over 200% increase in value for shares of mcdonald's since late 2004 when he took over. don't forget tomorrow "squawk on the street" will have an exclusive interview. we sit down with the outgoing ceo of mcdonald's. sue, it cannot be understated the success that mcdonald's has had the last seven years under jim skinner. when he came in we're going to focus on the core business. a lot of people said don't you have to do something extra? they've certainly used that strategy successfully. >> you mentioned mccafe which you mentioned incredibly successful. the inroads in breakfast, the cereals and oatmeals et cetera. we know what he did. but the new guy that's coming in, what is wall street's impression of mr. thompson? the stock is down a little bit today. not dramatically. >> but generally speaking if you talk with analysts and read the reports, very enthusiastic support for don thompson. he's well-known on wall street.

this is not like they're bringing in somebody wall street analysts are not familiar with. what we're going to see from him at least initially sticking with the strategy of expanding the core business, but doing it strategically. remember the problem for mcdonald's before skinner was they kept on adding stores particularly in locations that were not very profitable around the united states. that will not happen under don thompson. >> phil, thanks a million. >> goldman sachs on muppet alert. telling partners he's scanning e-mails for the term muppet and other e-mails that clieemployee offended clients. cnbc's john carney, our very own cookie monster, has been digging on this story. john, what do we know? >> let's start with the explanation of the world muppet. you might think that's a compliment, but in england where the writer lived, it's an

insult. it basically means idiot. so when you have allegations that managing directors at goldman sachs were calling their clients muppets, that's a pretty serious thing. they've been looking into it. they had a conference call with a bunch of partners and lloyd blankfein said we're going through e-mails to find out if there's any evidence of what greg smith charged which is basically that our managing directors are going around calling our clients idiots. one of the ways they're looking into that is by going through everybody's e-mail to see whether or not they can dig up, you know, some incriminating references to kermit or fozzy. >> let's talk about greg smith, what do we know about anything about goldman's relationship with mr. smith right now and maybe where he is. >> goldman has been trying to get a hold of greg smith. they wanted to interview him to be able to ask, you know, who exactly is it that you heard said this. greg isn't returning goldman's calls.

they haven't been able to get in touch with him. they're not in communication with him at all which is one of the reasons they're resorting through digging through old e-mails. that has some people at goldman freaked out. i had someone call me this morning and said i went and saw that muppet movie the other day, are they going to dig up my e-mail? and the answer is yes. if you used it, it's going to turn up in a search. >> thank you, john. meanwhile, a much-anticipated report released today giving fresh insight into how hackers are stealing and exposing your personal data. our tech reporter, jon fortt, joins us here in our studios. the motivation behind all of these attacks seems to be changing. the story is developing in a much different way. >> it's interesting, sue. historically it was hacking to prove you could do it. jobs and wozniak and now it's more profit for organized crime. this annual report shows activist groups stole more data than anyone else. groups like anonymous.

you might recall hit in may and sony a month later in june. so finding a few more interesting trends this year breeches that involve hacking skills were up 31%. malware was up 20%. that was actually down. a greater percentage of the attacks last year were pretty unsophisticated like burglarizing somebody's home who left the door unlocked. verizon put the report together with help from the secret service and federal police in the uk, ireland and australia. they got more impersonal, but there was more hacking overall. scary when you consider that mobile devices are stargting to get targeted. and what they're after is personal data. more on our smartphones than anywhere else. >> to me that's the frightening part is that it's so accessible. and it's on so many different devices right now. >> yeah. what is beginning to arise is

something called rooting particularly android phones where they can even take over your camera, take over the phone's functions as well as pull data off the phones. >> don't scare me anymore. >> it is a little scary, the key is to not download applications in particular that you don't know are the real deal. >> absolutely. jon, thanks. >> and we're keeping a close eye on capitol hill. senate members right now debates a house version of the so-called stock act bill which would ban lawmakers and their staff from inside trading. the senate is set to vote on a toned down version of the legislation. we're monitoring it and we'll bring you headlines as they cross. meanwhile, up next, stocks having one of their worst weeks of the year as small investors begin to get back in. is it already too late? >> and nike suiting up to report after the bell. can the earnings continue to just do it for investors? >> and forget calm blue oceans. calm blue oceans. calm blue oceans. there is a whole booming business in relaxation

beverages. i've sampled a few over the years. >> not those, ty. >> see those poised to cash in later on "power lunch." [ male announcer ] the next generation of lexus cannot be contained. [ clang ] the all-new 2013 lexus gs. there's no going back. see your lexus dealer.

welcome back to welcome back to "power lunch." i'm seema mody. hard disk driver makers on the rise. western digital getting upgraded by needham. and also bullish comments around seagate, the best performer on

nasdaq 100. wattson pharma reports close to buying for close to $7 million. up for a second straight day. this could be a transformative deal if they do close. lastly, a look at tivo, dismissing patent litigation with microsoft. the market always liking clarity. that stock up better than 1%. tyler, back to you. >> seema, thank you very much. the dow and s&p on track now for their worst weekly declines of the year so far. renewed worries on the eurozone and a slowdown in china overpowering positive news that u.s. jobless claims hit a four-year low. now, after a bull run over the past few months, have investors missed their opportunity to jump in just a day after goldman sachs says it's the best opportunity of a lifetime? joining us is chief investment strategist with raymond james. and destination wealth management ceo and a cnbc contributor. so which is it, jeff? the best time in a generation to get? or a time when the best moment has passed? >> i don't know if it's the best time in a generation.

i do think that stock valuations are still pretty inexpensive for the past few weeks i have been telling our advisors that the markets internal energy has in the short run been pretty much used up by the 30% move from the october 4th undercut low. and we could correct that and allow the energy to be rebuilt by either going sideways or getting somewhere between a 5% and 8% correction. it looks like we're going to get something like a 5% or 8% correction right here. i do think it's for buying because i think the economic numbers are going to continue to look pretty good. and i think the earnings are going to continue to look pretty good. >> you know what happens though, michael, the individual investor sees the huge runup in the market, they get in, michael, right before that 5% to 8% correction. and then what happens is they get scared, understandably so because we see an 8% to 10% move to the downside, and they get out. is that going to happen this time? that's what i worry about. >> you should worry about that.

that consistently happens. that's why people hire investment managers because they are trying to get that psychology out of their hands because investors tend to go in -- individual investors, tend to go in at really, frankly, the worst possible moment. i don't think this is the worst possible moment we are seeing right now. even though we see softness in the market, it is being primarily not so much europe but being driven by china and what's happening in terms of the slowdown and economy. i think perhaps most of the gains are captured, meaning at least 51% of the gains are captured so far this year. but i still think the trajectory is higher between here and the year end simply because yields are so low. i think investors are getting to a point where they recognize there's cash on the balance sheet for companies. i think in the end we're going to find the emerging market concerns while legitimate are probably somewhat overblown just like steven roesh said in the previous hour. i think it's an overstated

concern. >> jeff, where should i put money if i buy the idea this may not be a perfect moment, lifetime chance, it's nevertheless a time where you could still make some money if you don't try and trip yourself up with fancy footwork. >> yeah. i think that's right, tyler. i still like technology. i have for the past three years. and i still like energy. a name that we are fundamental analyst has strong buy-rated is tangoe. the software manages the telecommunication network is pretty archaic. these people had the greatest and newest software on the planet right now. >> who did they sell it to? >> like institutions like raymond james. we use their ordering and billing software and hopefully switch to their telecommunications software. it's nifty stuff. >> and you had another choice in the energy area whose name right now is escaping me. >> whiting petroleum. my fundamental analyst also has that strong buy rated. we think earnings prospects are pretty outstanding over the next

couple years. >> michael, how would you play this market? dividend stocks were the rage last year and some doing quite well this year. and then there's the high yield corporate play. would you do either of those? >> i probably wouldn't do high yield corporate. i would be looking for tailwind sectors, tailwind industries, tailwind sector for example is wireless connectivity. like qualcomm that continue to do well with the sales of ipad. and despite all the negativity around emerging markets right now, i think there's a massive tailwind with emerging market middle class growth continuing at massive rates. i think you're going to continue to see emerging markets come back. and lastly, commodities that i know are also of concern if emerging market growth starts to stall a bit. but i think commodities were tremendously oversold last year. i think they're an opportunity. >> all right. gentlemen, thank you very much. we appreciate you being with us. >> you bet. >> mortgage rates ticked up to their highest level in three months a bit earlier today. next on "power lunch," is it the beginning of the end of cheap

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the ride. let's check in now with scott wapner and see what stock is on his radar. >> i'm watching shares of caterpillar today. it's down about 2.5% largely on the fears of the chinese economy slowing down having a hard landing. but now it's emerged as really a battleground stock depending on what your view on the china economy is. it was much-talked about on our "halftime report" show today. steve cortes adding to shorts there. he's really negative on what's taking place in china especially for what it means for the multinational companies like caterpillar. we also had john rut ledge and steven roesh, two of the brightest minds on bhast happening in china. they say the fears about china going into a hard landing are totally overrated. john, cat pill laerpillar is on portfolio, he says he'll be adding to it. it's back a little lower now as we're speaking about it. but steven and john both say the fears about what's happening in china absolutely are overdone.

rutledge adding to his stock, cortes adding to shorts. that's the battleground. >> thank you very much. we've been reporting about the recent surge in treasury yields, but what do they mean for you and for business? kelly evans is here with a look at that. >> want to put this in context for people. >> exactly. for those who don't remember the double digit moves we've seen in the past. >> right. when .10% is a huge move. when we look at the benchmark 10-year treasury note, that's one mortgage rates are keyed off and everyone focuses on for a gauge of what's happening. we've seen that move from under % to over 2% in the context of that moving by about .03%. this move is what has helped spur talk and moves among people that the long 30-year rally in bonds is coming to a close and rates are only headed higher from here. we have them now of course seeing an immediate reaction, when the 10-year moves you see a repricing from mortgage rates to auto loans, so many products

across the economy are variable rates which means they're based on what happens in treasury rates. it's important. we've already seen this move. and, sue, we've already seen this morning a reaction from that. mortgage applications pulling back, refinancing not looking so attractive even at these levels. there's two camps. one saying rates are going higher from here. and they're doing so because inflation expectations are moving up. the growth picture looks a bit better. arguably if the economy's growing at something like 3%, that's where the 10-year should be, not where it is at 2.2 or wherever we are this morning. just want to mention though the broader context here there are reasons not to expect necessarily that this surge is going to continue. that being not just the fact that growth expectations aren't as great globally as they may look in the u.s. right now, but there is perhaps a structural change in the kind of people who want to hold treasuries, they want safe assets. they include global financial institutions who can't get enough of treasuries given many other products including say european government bonds no longer look quite so much like

safe havens. >> let's bring rick santelli into this argument and find out what he thinks. you heard the details there. what do you think, ricky? >> you know, i think if you look at 10-years today obviously we've come off a bit hovering around 2.25 after we've spent time on the selloff that started on fed day, the 13th, to around 2.4 for a 10. but, you know where we were at the end of last year? we were around 1.87. roughly up 40 basis points on the year. here's what we see, that business, big business, can get all the paper sold they want at very low levels. just think about the corporate bond indices or the lqd or hyg even though they've come off a bit, but maybe more importantly the people that can't interact in these markets are probably going to be much less affected by the 15 basis point run-up we've seen on a 30-year fixed mortgage. >> here's one of the problems, too, which is that generally speaking when rates rise that punishes borrowers and awards

safers. the u.s. economy as the argument goes is in need of borrowers and not savers. reverses incentives and encourages the kind of behavior we don't want to see. also by the way given the behavior in the way financial institutions work means you're probably going to see borrowing rates go up before you see a lot of an increase in the rates you're earning on the increase. and, sue, as we've talked about before at 5-year cds at 1.5%, the move probably isn't going to spur a lot of renewed growth. >> kelly, one point to make, when you say we don't want to see savers, be clear, the people you are referring to are ben bernanke. my parents would like to be savers and get paid for saving. >> but the trouble even the savers with this blip up in interest rates aren't making any money period in real terms. they're still getting financially repressed because inflation is 3% and you go to a

10-year treasury and you're earning 2.25 right now. and anywhere else on the curve you're still basically under water. >> and, look, there's certainly an argument to be made that it doesn't actually matter to people right now whether mortgage rates are 3.8% or 4.2%. what really matters is whether they're under water on their mortgage, able to access, it's totally valid argument but doesn't mean the economy isn't sensitive to the borrowing rates. when you look at rates in real terms after inflation right now that they wouldn't necessarily need to be lower to encourage that demand. this is again the line that you often get from the federal reserve which of course is a key part of driving down the rates. >> and the direction and speed of the movement rather than the absolute level, right? particularly when you've been conditioned to the idea that i am entitled to a 3.9% mortgage. >> by the way when mortgage rates jump, there is some hope that will spur people to refinance, we haven't seen that in the last couple weeks. >> all right. kelly, thank you. rick, thank you as always. >> i bet none of you knew this,

it is world water day. >> i did not know that. >> but i bet you do drink bottled water from time to time. >> you sit next to me, i do. >> next on "power lunch," tapping into the big business and why a simple bottle of water may not be as profitable as you think. >> touche. precious metals trading lower for most of the morning fini finishing up floor trades right now. a live look at the close when we come back.

welcome back to "power lunch." i'm mary thompson at the realtime exchange. a fifth straight monthly decline in chinese manufacturing casting a pal over riskier assets. vix moving higher. also pressure on the markets a weak read on manufacturing in europe. this is keeping gold and oil under pressure because of concerns about global growth in general. gold down 0.5%. crude oil down over 2% today. and it's actually causing a flight to safety into safe haven

assets like treasuries where you see the yield moving lower as the prices move higher and the u.s. dollar up fractionally as well today. in an otherwise losing session, western digital higher after strong buy upgrade at needham. up 4.25% for discover financial. on the other hand, fed ex lower after cutting its growth forecast for the year. consol energy down in tandem with the rest of the energy sector. fed ex a big story today down 4%. gold and other metal prices getting ready to close right now. for that we go to sharon epperson at the nymex. >> mary, final trades are coming in. and gold prices are off of their lows this session, but still we're looking at lower prices across the board in the metals complex. the data out of china disappointing. eurozone disappointing as well and that's pressured the entire complex. look at the drop in palladium, it's down about a% or so in this session. part of that may be due to the fact that investors are exiting their etf positions, not only in

gold and silver, but also in platinum and palladium. sue, back to you. >> thank you, miss sharon. the president calling for fast-track approval of the southern portion of the keystone pipeline as oil prices climb above $100 a barrel. joining us now with the impact of today's announcement and perhaps a very interesting energy play that you might want to consider is dan dicker, president of merck block and a cnbc contributor. good to see you again. >> thanks, sue. thanks for having me. >> you maintain that although the president may be able to short-term effect gas prices, long-term even what he called for today won't dramatically effect prices. >> actually, i think it's the other way around, sue. you know, as much as i'd like to say -- no president can really effect short-term gas prices. most of the country actually thinks he can. so this is a politically charged issue. and the republicans are obviously pouncing on it. and the president is obviously afraid of it too. i mean, that's why he stands in front of -- in a place like cushing and talks about an energy policy and tries to quell some of the problems that

they're having with his total energy policy here. >> you think nat gas may be the more savvy play for the individual investor. >> absolutely. what i hope the president will do and i'm certain president romney would probably do but i'm hoping president obama will actually start this right now is actually change his focus from what's going on in the crude market, which is -- he's right, it's a global marketplace and really has very little control over that despite the fact that we are domestically swimming in the stuff. what i would like him to do is move forward towards something that's more localized marketplace and that's nat gas. and in a lot of ways if he worked on pushing forward some incentives for natural gas, what we'd have is this kind of localized $2.35 mmbtu market that we could go to as a transport fuel as opposed to in europe where natural gas is $11, $12, $13 on mmbtu. >> exactly. you would recommend for the long-term investors, chesapeake,

sand ridge. >> all of which have been pummelled because of dropping prices in the natural gas space. >> they're getting hit hard today. >> everybody in the energy complex is getting hit today. but, again, if we can make some progress towards making natural gas this kind of local transport fuel in the next several months, if the president is forced to do that at some point and give some help to nat gas act which in fact failed just on tuesday, but if he tried to push it again, i think these stocks are really the opportunity in the entire energy sector. >> what is your definition -- because it differs for everybody, what do you consider long-term? you're a trader. long-term for you is probably very different than long-term would be for me. >> this is not a fast money trade at all. this is for a separate part of your portfolio. this is not for the next three or four months. this is the next three or four years. instead of looking like i do in the next three or four months that might give me a 5% or 6% or 7% return, i believe nat gas stocks are good for 100% or 150%

over the next three years provided you get a little bit of excitement going into the nat gas space as a transport fuel. >> all right. thanks a million, dan. good to see you again. >> sue, thanks. >> food for thought, ty. >> you think oil is a hot commodity? take a look at water. we can't live without it. if you're in the beverage business, you can't afford not to be in the hundred dollar bottle water market. i guess hundred probably billion -- i don't know what they're talking about there. pepsi and coke among the biggest players in the space. bertha coombs tells us while the market is growing, it isn't easy profiting from it. >> it's not. as more americans cut back on soft drinks and consumers in developing countries are more able to afford bottled water, the $100 billion market has more than doubled in the last decade. we started at the start of 2000 with consumption about 20.5 -- 28.5 billion gallons to nearly 61.5 billion last year after a little bit of a dip during the recession. that according to the beverage marketing corporation.

meantime, the u.s. is still the number one market accounting for about 15% of global consumption. so that's where we are. but the fastest growth, not surprisingly, is in emerging markets. china last year jumped over mexico to be number two. up 12.5%. but its growth was about 18% over the last two years in terms of consumption to market share. mexico still number two. brazil is number -- mexico number three, brazil number four and indonesia saw its market share jump about 10% in the last two years. while france is the largest seller globally, coca-cola is actually number one by sales. nearly $12 billion last year. that's about three times as much as their local competitor here, pepsi, in terms of revenues. in the u.s. nestle's springs and other brands outsell coke's dasani and have huge market

share. last year they lost market share when they raised prices in order to combat the other headwind, big falling margins. >> the retail price decline 35% over a 10-year period, we got to the point last year where that just -- we couldn't just do that anymore with commodities increasing the way they were. >> now, nestle costs margins and stabilizing but the rising pressure is only mounting. coke and pepsi trying to combat lower soft drink sales by growing water. >> they need to grow the category. they need to grow their brands. but it's also a category where they make less money than they do on carbonated soft drinks. >> and with water more than that carbonated soda price beats brand. during the recession consumers were more than willing to switch over to cheaper private labels. and that's actually what's growing the most, tyler. >> bertha, thank you very much. we find our stocks on the move in the strangest places and the

strangest ways. take a look here at ohio art. why ohio art up today by some 225% -- no, 141% over the past week. ohio art up $5 today. you wonder why ohio art? well, it makes the etch-a-sketch. why is that interesting? because one of mitt romney's campaign advisors described mr. romney as an etch-a-sketch kind of candidate ie, that he could be erased and reconfigured in a variety of ways. result, probably ohio art moves up. >> moves up. but by that percent. >> in one day. >> amazing move. >> up next, speaking of liquid assets, health drinks, energy drinks, low calorie drinks, drinks to help you chill out and relax. we will tell you the new growth areas and the companies that are cashing in. if you are one of the millions of men who have used androgel 1%, there's big news.

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coming up on "street signs" top of the hour, while the president is pushing the big pipeline in oklahoma, another democrat is pushing back saying it's a bad idea. the nfl handing down its version of the death penalty in the worst place possible. can new orleans survive another hit? and yesterday we made the bear case for apple and we're getting a lot of heat for it. why is it so hard to dis the apple? now back to sue and tyler on "power lunch." see you at the top of the hour. >> eamon javers joins us now from washington with breaking news. hi, eamon. >> hi, sue. just a few seconds ago the united states senate passed a stock act 96 to 3. clears the way for the bill that bans members of congress from

participating in insider trading making it explicitly illegal for the first time now to be sent to the president for his signature. the bill that just passed has three key changes from the version we talked about earlier in the year. political intelligence firms here in washington that mind capitol hill for data hedge funds can trade on, those firms will not have to register. also the executive branch is now covered by the provisions of this act. that's another change. and members of congress will not be allowed under this new law to get special access to ipo stock offering. some big changes here on capitol hill. >> eamon, thank you very much. as world water day sails on by and you get ready to drift off tonight, you might find yourself among ts nearly 70 million americans having trouble sleeping. but what if a relaxing shot of water could help you catch your zs? relaxation drinks are a fast-growing trend and the focus of today's hot start-ups. as you come off your day wired, maybe even twitching from coffee

and energy drinks, a number of start-ups are standing by with products to give you a smooth landing. as of 2011 nearly 400 relaxation drinks were on the market driven by almost 70% annual growth over the past five years. dream water ceo, a leader in the space, believes that start-ups will take the necessary risk while big beverage firms watch from the sideline. >> i think it's incumbent upon people like us to create the category and define the category. >> but the ability to satisfy that demand could be slowed by the usual roadblocks associates with increased scrutiny of ingredients and marketing tactics. >> we encourage fda oversight and overview. >> one way or another some analysts forecast continued growth for the companies attempting the impossible, to get us to relax. >> all right. let's continue on our theme of liquid assets and see how to make money in this niche

beverage industry. joined now by ibis world in los angeles. thank you for being with us. >> it was great. thank you. yes. >> relaxation beverages, let's start there with this category. i know one, it's called scotch. but that's not what we're talking about here, right? >> definitely not. these are specifically marketed as relaxation beverages. and they usually contain ingredients like mel to nin that help you relax and sleep. >> any of these like dream water and marly's mellow root, one can only imagine what's in that and healthy beverages like gts, are these largely marketed by small start-ups, private companies that i can't invest in? >> yeah. most of these businesses are private. and unfortunately it's really hard to, you know, really get invested in that space. but a lot of them are growing

rapidly and perhaps there is potential to invest on the side. >> i did one on vita cocoa. i did a story on them, they are a maker of a coconut nectar beverages, very healthful and so forth. are there however categories where i could invest, for example? >> yeah, sure. one is craft beer, for example, sam adams. >> that's relaxation, i can go there. >> yeah. it's definitely a beverage that helps you relax. it's an up and coming category experiencing really rapid growth right now. and everyone likes a nice cold beer when they're relaxing. >> yeah. there's an anheuser-busch with its new platinum light beer, which is low carb, low calorie, but higher in alcohol content. thank you very much. >> yes, sure. >> appreciate it. >> thank you. >> next on "power lunch," limber up. lululemon's shares hitting a new high as revenues top a billion

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welcome welcome back to "power lunch." what else would you want to talk to on "power lunch" but the "hunger games." the lionsgate film expected to be a blockbuster. while there's a feeding frenzy for opening tickets, stock is bombing today. cutting from equal weight to overweight. all as a 90% run-up in shares based on the best-selling trilogy. see grossing possibly $100 million, $600 million total. suggesting the run-up ahead of the hunger games has been overdone. tyler, back to you. >> leave it to hollywood to figure out how to get four movies out of a trilogy. that's good. nike and lululemon among the big stocks to watch today. lulu revenues top $1 billion for the first time ever. nike gearing up to report after the bell. nike up 14% this year.

lulu surging almost 60%. courtney reagan diving into lululemon's results, darren rovell looking ahead to nike. let's talk first about nike. what we look for here, they've just gotten back the nfl jersey contract. >> right. >> and they've got tim tebow. >> they do. so we're going to have an nfl deal. we know that on the 4th, on april 4th, they'll be announcing more details. we want to find out more about this. maybe they'll give us guidance on it. retailers told me april 27th is the date they'll start coming come out. fuel ban, nike plus, that's their digital space. what they're doing measuring your workout. how big is that? we know these things have sold out four or five times nike's put them out. how many have they actually sold? nike's like apple, they're secretive like that. london, olympics, we know europe is better for nike than a lot of other companies right now. looks like the olympics will be great for them. and the good thing that it is in europe. that helps out. and finally, pricing. they have passed the pricing on

to the consumer. $10, $15, $20 they have added to the shoes. and people still buying the swoosh. >> they want the jordans too. >> they also want lululemon. courtney's here to talk about that. they hit a milestone revenue topping $1 billion. >> that's right. >> it doesn't seem like there's any stopping to this particular stock or company. >> it doesn't. there's a lot of positive in these numbers. i know there were some concerns. but go through some of the positives, revenues hitting a big milestone for any kind of company, this retailer in particular because of profit. profit up 34% but $73.5 million for the quarter. that's an interesting number we're looking at. online sales up better than 100% because there's only 100 stores in the united states. people want the product and they can't get it because there aren't that many stores. that suggests that there is some interesting growth to be had there. >> you know, we talked to the ceo of lululemon last month down in florida at the retail conference. i also talked to her about the fact that she has had such success in a niche market that

the other players, like a nike, have not had that much success in. and asked her whether or not they were a buyout target. here's what she had to say. >> given the performance of the stock, given the performance of the line itself and the retail sales, there are a lot of people out there who feel that maybe you're a takeover target by the nikes of the world, by the under armors of the woshrld. what do you think? >> i don't know how many buyers are out there. >> she's mentioning the fact that the founder holds an enormous amount of the shares. but, darren, i got to think that if you're nike looking at that stock wanting to get into the women's apparel market in a much bigger way, that would be a way to do it. >> the first question, the first thing you look at is has nike lost something that these two niches, under armor and lululemon, they didn't let niches get in before. >> right. >> and do they acquire it? or do they think that they can make something like that? what is the power in the brand? i know nike feels good about themselves. and sometimes that might be to a

fault that they can always make something bet. >> has nike done big acquisition sns. >> not really. converse seven years ago over $3 million bucks. >> it's valued at $10 million. i think they have to maintain that brand. it's a very strong community. >> that's a rich price. >> it is no downward dog, that's for sure. thank you very much. i learn from you. coming up -- >> bad teacher. >> oh, thanks. two hours to go in the trading day. charts of the day coming up next. [ donovan ] i hit a wall.

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all right. the market check for you right now with the dow jones industrial average off 70 points. the nasdaq is off about 11.3. and the s&p 500 is off 9.75 points. >> jim skinner, the ceo of mcdonald's has the best record of growing stock value since he took over in 2004. but the ceo who has the best record in the dow is john chambers of cisco. since he started up 945% for cisco. of course it's front loaded. >> easy to forget that when you look at that chart. >> yep. >> i picked