>> steve grasso. >> nyx. the more we look under the hood of this bats issue, i think the better nyx will look. >> looking into the bats trading hall. that does it for us. options action, money in motion tonight at 5:00. follow power which begins right now. scott, thank you very much. three hours to go in the trading day. and the markets are finding some friday footing. oil leading the charge. the price approaching key test levels. the lift in oil and materials lifting the dow. so can stocks avoid their worst week of the year, sue? >> ty, new home sales surprise to the downside. the home builders getting hit very hard. so is there a recovery in the housing sector or not? >> and hunger mania officially off and running. is the box office and the cash register living up to all the hype? is there a way for you to make money from it all? with sue herera, i'm tyler mathisen. "power lunch" begins right now.

i'm courtney reagan at the realtime exchange where the markets are making a friday move. now, after trading down most of the morning, oil, industrials and materials driving the markets higher. let's look at what we got. our pulse of the markets starts with oil. after testing this week's high of $108, prices have given back just a little. and a big move on the metals today. take a look at gold we see here up $20. i'll tell you how to play it in our next half an hour. and the euro stronger today as well as we take a look -- we moved it off already because we have other midday movers to tell you about. let's look at alcoa. up almost 2%. financials fairing better today on a couple of notes from analysts. the sector, however, still lower on the week. shares of morgan stanley up more than 3.75%. and zynga getting hit hard on word that the ceo and two p.e. firms are selling $43 million shares in a secondary offering.

shares down almost 4.5%. let's get to bob pisani at the nyse. he's following lots of headlines on the bats ipo. bob, what is going on? you might be the only one that understands. >> i'm trying to be fair to everybody, this is epic embarrassment. imagine this, courtney, you're a stock exchange and you want to project the image, you're big, bad and modern. those old guys at the nasdaq, at the nyse, they're old school. we're lean, mean, we're electronic, we've got the better systems, we're fast so ipo we're going public. we're going to show the world here. what happens? well, the ipo price at $16. a little disappointing. and we finally get the opening trade. $15 put up bats here -- $15.25. that's a little disappointment. but then it's only one trade. and it stops. the system is halted. the system basically crashed. now, remember something. this is their system. it's their ipo. and it's the only stock that's listed on their exchange. can you imagine being more embarrassed by it?

the question is what the heck happened? that's what we're waiting for. we're waiting for some kind of explanation. my theory is this, courtney. the service that it was on was serving certain segments of the bats' markets. also was on the lower end of the alphabet for some of these stocks they were trading like the as and bs. they also had some problems at the same time with stocks on their exchange at anb. i think probably my guess is the servers crashed because all of the orders came in and overwhelmed their system. and, sue, that's my operating theory right now. and bats has told me they will have a statement for us momentarily. and i'm waiting for that. as soon as they do, i'll get it to you. >> i think we're all waiting for it. for the individual investor at home, bob, they may think this particular story does not affect them, but if they own apple, it does affect them in a big way because those shares were halted because of a trade that was made on the bats exchange. what happened? >> right. unfortunately you can't see this because it was taken off.

but there was an erroneous trade that was on the bats exchange that was way, way below the last trade. now, the question is was this related? i think there was a relationship between that because my theory is there was problems with the servers that they were having and that the bats -- orders for bats were probably on the same servers and it created some problems with the stocks. this goes back to the whole issue of how you trade today. all these trades are done electronically. and the system there obviously -- or it appears to be was not robust enough to handle all the huge inflow of orders. real serious embarrassment i think for bats there. >> indeed. when you get more, bob, come back to us. >> i will. >> thanks. >> picky people want to trade stocks with ticker anb. meanwhile, oil shooting back higher breaking through key technical level. sharon epperson is tracking the action at the nymex. sharon, what's moving oil? >> tyler, they're talking about electronic trading here as well. if you walked away from your screen at 10:00, you missed it.

a $3 jump in the price of crude oil and a lot of concern about what cause thd to happen. we know the previous high on monday was around $108.24 and that's basically what the high was of this move we saw around 10:00 a.m. this morning. there continues to be a great deal of geopolitical concerns and gee owe political risk in the marketplace and any chatter about israel and iran but add to that the fact we are looking at the brent crude that's moved out this week and it's now around $18. there are some that believe though the saudis tried to talk it down as we've tried to talk about the fact there's an oversupply of oil in the marketplace to meet this iran oil embargo, do they really have enough? do they really have that capacity? that continues to be something that causes the bid in brent to continue. and of course we're seeing wti as well. call of that means higher prices at the gas pump, tyler. sorry to say. >> sharon, thank you very much.

now let's switch on the "power lunch" power surge and drill down on stories driving the news this day. a big week for housing data ended this morning with some good news and some bad news on the state of the struggling housing market. our diana olick is following it all. and, diana, the numbers today were kind of mixed, i guess. new home sales down, but prices higher. >> yeah. i don't see them as mixed though. this is the last piece in a really full week of disappointing data for the housing market. sales of newly built homes really missing expectations by a lot. take a look if you will. february sales, that is signed contracts, not closings, down 6.6% in month-to-month in january revised to 5.6. at 13,000 units at the two-year average down 75% from the peak. but the slowdown pushed inventories higher. the bright notice is prices are up 6.2% year over year on new construction, but remember that's largely because builders can't compete with the far lower

existing home sale prices given the cost of material, gasoline prices rising and weighing on them. they're making up for that by throwing in higher end amenities and helping with financing. of course there's been an awful lot of talk aboutwetter and that may have come into play here because perhaps these are signed contracts in february, some of that spring demand may have been fulled forward from december and january when we saw better stats. again, these stats aren't moving on new home sales. and as we saw the disappointing numbers pr kb home, again, sentiment moving forward, homeowners feeling more bullish, saying there's more traffic. but we're not seeing the numbers. that leads us to question where the recovery is. >> fascinating story about bank of america getting into the landlord business. explain it. >> yeah. they're actually offering a pilot program and this is just starting for less than 1,000 borrowers. it's for troubled borrowers very close to foreclosures. they're going to offer them the chance to do a deed for lease program. that is they turn over the deed to bank of america, they don't

own the house anymore, they don't pay property taxes or anything like that. and then they rent the house from bank of america for a lower rent payment than the mortgage payment. and, you know, the question's going to be how many people really want to do this especially since so many people haven't been paying their mortgages in several years. they're doing it in arizona, nevada and new york. and they say, again, it's a very small pilot program. they expect if it goes well to expand it to more of the nation and then sell these properties to investors with renters in them because they say of course it's more valuable to an investor to have an open -- a house that's already got a renter in it and ready to go and they don't have to do the work and due diligence on it. again, we'll see what happens with this program. it's like what the government is doing with the fannie mae properties as well. >> diana, thank you very much. president obama making his choice for the next person to lead the world bank. and this nomination comes as chances of someone from outside the united states leading the world bank for the first time becomes more of a possibility.

eamon javers is in washington with more on the story. hi, eamon. >> hi, sue. this was a little bit of a surprise here at the white house today. the white house nominating jim physician by training known for his work in the developing world and against the spread of global aids. he's not a banker, not an economist, not somebody in the larry somers mold, which is what professional washington was sort of expecting here. but today at the white house the president was full of dr. kim's praises. >> nobody is more qualified to carry out that mission than dr. jim kim. it's time for a development professional to lead the world's largest development agency. and that's why today after a careful and thorough search, i'm nominating dr. jim kim to be the next president of the world bank. >> and dr. kim does have a little bit of a lighter side, guys. take a look at this video, which we unearthed from his tenure at dartmouth college.

you'll see him in a context we don't always see. that is the dartmouth idol annual conference. obviously dr. kim is pretty comfortable getting up there and singing along side some of the students at the dartmouth idol event. >> given the world's economic problems, he's going to need a sense of humor if indeed he gets the nod to be head of the world bank. >> and i can tell you, we've been reviewing the videos here at the white house. dr. kim is a pretty good break dancer. we might bring that later in the afternoon. >> excellent. we look forward to it. >> you bet. >> now goldman sachs out with a new report on mergers and acquisitions, goldman calling it a perfect storm for deal making. kayla tausche diving into the report. what are some of the names they're mentioning? >> there are some interesting ones, tyler. but i think what's most interesting to start with is it's usually the investment bankers who sign but now we've

got some research underlying that claim with goldman's note out this morning calling it a resurgence that's coming in the m&a world for three reasons. cash isn't going anywhere. they're encouraging changes to tax policy. and profit margins may have peaked. now, goldman recommends five names for strategic deals in the next 12 months. ariba, edwards lifesciences, monster beverage, onyx. and bond yields are at levels meaning equity is meeting up. goldman says lear and tennaco. and names with the highest analyst ratings and goldman says most well-rounded targets include pioneer natural resources, aerovoironment and cpsi. that basket was created in 2009.

that also might be because many long-rumored targets like some of those, the stock already trades with some deal potential priced in. dman says for names like american eagle outfitters and well care, the best trade is in the options market instead. the majority of goldman's target basket is full of names under $3.5 billion, which, tyler, is pretty resemiblent in what we've seen in terms of deal size. >> kayla, thanks so much. >> hunger mania is off and running. we've been counting it down for the last couple of weeks and now it's here. "the hunger games" opened in theaters last night at midnight selling out shows from coast-to-coast. shares of lionsgate though got slammed yesterday. and they're selling off again today. down about 2.25%. as you know there's been a run-up in the stock in anticipation of the movie. julia boorstin is in los angeles with the very latest. so far so good at least in terms of the theater numbers. >> absolutely, sue. the numbers are in.

and "the hunger games" notched the biggest midnight moving ever. $19.7 million from midnight showings. this is just the beginning. movie tickets and fandango both report "the hunger games" ticket presales are breaking records. together they've sold out 6,000 screenings. the film is expected to gross north of $120 million at the u.s. box office this weekend which would make it the biggest march opening ever. the movie cost just $80 million to make. so any opening north of $80 million would be considered significant financial success. but wall street will be disappointed if it brings in less than $100 million. the stock has gained almost 75% in the past month on building buzz for the film. but after partners downgraded shares to equal rate yesterday, the stock took a fall. it's down about 9% between yesterday and today. and nearly 30% of the stock's float is sold short. sue, we're going to have to watch these box office numbers this weekend.

there's no question that lionsgate stock will move on monday depending on what kind of ticket sales we see. >> you know, maybe investors that got into lionsgate on the run-up are some of the beneficiaries. who are the other winners in the games right now? >> well, one big beneficiary is imax about 270 screens showing this movie. they told me they sold $1.3 million worth of tickets from midnight screenings alone last night. that doesn't count the 3:00 a.m. screenings that imax did. that makes this movie the best performing imax movie other than "harry potter" films. there are other chains that will benefit as well. they're not only going to sell a lot of tickets but a lot of concessions. teenagers tend to buy a lot of popcorn and soda. then there's the book publisher facing a big spike in sales. and also hot topic, they've sold out of all the merchandise that's related to "the hunger games." we will see more merchandise after this film.

>> thanks, julia. appreciate it. coming up next on "power lunch," the dow and s&p, it's been a really tough week. they're headed for their worst week so far this year. treasury yields have been rising. what's an investor to do? are stocks really a safer place? >> caterpillar riding the wave of china's economic boom but with fears of a slowdown there, is it time to buy, sell or hold? >> and we're going to take a look at the gold market. up $18 right now but that's after nearly four weeks of losses. some say it's a buying opportunity. but one mining stock you should mine for when we come back. [ tires squeal, engine revs ]

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welcome back to "power lunch." i'm courtney reagan. today's bond report. treasury pricing leaping to highest levels in one and a half weeks on global worries. let's check the up to the moment movement, lower as far as yields are concerned all the way to the 30, 10-year at 2.352 to be exact. sue, over to you. >> thank you very much, courtney. stocks meanwhile on track for the worst week of the year as concerns about a global slowdown put investors on edge not to mention the rising interest rates that courtney just mentioned. will those rising rates derail the rally we've had since october? and have you missed the boat if you're still on the sidelines? joining us now two market veterans. ned, i'm going to start with you because you have been the perennial bull. now, you've ridden this market to the upside, but it has been a

rough week. so what about the individual investor who might still be on the sidelines? >> well, that's a good question because individual investors still very scared. unfortunately, the media isn't helping much by talking about greece again and interest rates rising. but most importantly, the retail investor has been burned over the last ten years by owning stocks. so clearly it's an option for them right now of getting in after the market's run. one of the interesting things i found is that flows into the mutual funds has been $160 billion bought of mutual funds on the bonds side. on the equity side there's been $135 billion in redemptions in the last year. this seems totally in con grewous considering the equity market been up 25%. >> mike holland, one of the things spooked individual investors in the broader market this week was concerns about china. and whether the economy was going to slow too much too quickly. do you buy that? >> not at all, ty.

in fact, even with the decline this week, we have the s&p up 10% year-to-date. we've got the nasdaq up 15%. so a correction here would be something you could expect. and in addition you can expect people looking for reasons to explain why we're down so much this week. china by an example we've talked in the past about the fact that the government has said they wanted to slow things down. they know how to do stimulus. they did it in 2008. they really heated up the economy, 10% plus growth. they said they were going to slow things down to 7%, 8%, they just did it. they know how to do stimulus. if it slows down even more, they're going to come in and do stimulus again. i don't see in any way talking to companies over there as we do on a regular basis -- >> so you like china and taiwan as well. >> yeah. the companies there, tyler, are doing very, very well. they are slowing down from mid-teens growth to high single digits growth given the slowdown but still growing. when we come out of this phase, they're going to grow again very

low. >> ned, i know you've liked technology in the past. but some of those tech stocks, i mean, you look at apple. it's had an enormous run. would you still buy tech? what sector of tech do you think still has compelling valuation? >> well, i really think there's a two-tiered market in tech right now. there are the new kids on the block. some of these game companies and everything else, i guess i just don't understand them. but it's sort of reminiscent of 1999 and 2000 when we had ridiculous multiples. the big cap tech stocks are cheaper today than they were three years ago. what's happened is the earnings such as apple's have grown faster than the stock price. p/e ratios are lower. price-to-book ratios are lower. price-to-sale are lower. finally there's a recognition out there that there's one sector that possesses growth that's at least two to three

times that of the s&p 500. and believe me or not, most of the institutions were very shy of buying technology stocks a year or two years ago. and people have been underweighted in tech. and i think they're still understood weighted in tech today. >> mike, let's move to energy, which is an area i know you're interested in. what do you like in there? >> well, tyler, just look at the headlines. i think you have to have an exposure to energy. i think if you take a look at exxon mobil, really my lifetime is the best managed company in the world. these are valuations once again as we talk about equity valuations around the world that are kind of ridiculously cheap given the uncertainty and unrest around the world about what's going to happen to oil and where the price of oil is today. i think natural gas -- we've got these dislocations that make sno sense. we're going to have to spend more money on energy. it's going to be a continued problem in the future.

so i think exxon mobil these stocks have to have a reason not to own them if you don't own them. >> gentlemen, have a great weekend. good to speak with you. >> thank you very much. >> thanks, sue. thanks, ty. >> one analyst said the next stock could hit $2,000 in the next two years. coming up next, what to do with priceline? higher again today. buy, sell or hold it? >> and a bit later, talk about a wrong number. wait until you hear the tally of cell phones lost just last year. it's pretty stunning. who have u, there's big news. presenting androgel 1.62%. both are used to treat men with low testosterone. androgel 1.62% is from the makers of the number one prescribed testosterone replacement therapy. it raises your testosterone levels, and... is concentrated, so you could use less gel. and with androgel 1.62%, you can save on your monthly prescription.

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take a look at shares of discover financial. they are up almost 4% right now. the company was upgraded to a conviction buy by goldman sachs. that's from a neutral rating. and they have a price target of $39 on the shares. last trade is at $33.73. time now for three in 30. seema. >> that's right. you know, we are lower on the nasdaq. micron tech the worst performing stock after reporting a larger than expected net loss per share due to some pricing issues. the stock down 3.7%. dell also moving lower on comments from bernstein saying it's difficult for dell to show material upside to their eps guidance down 2. 8%. apple has the largest weightage on the nasdaq. a single rate of 100 shares at a price of $482 hit the tape around 11:00 a.m. eastern time

coming from the bats exchange. that triggered shares to be halted by the single stock circuit breaker rule because of all the volatility. a bad trade was involved in the bats trade of apple so they recommend we wait for the bats response. >> thank you very much, seema. ty, over to you. >> tons of stocks hitting the headlines this week. we have the fast trade on the stories that will mean the most to wall street on this edition of buy, sell and hold. we're joined by "fast money" contributor steve cortes. he's in chicago. steve, welcome. good to see you. >> thank you, tyler. thanks for having me. >> let's start with priceline. an analyst earlier this week said he can see that stock going to $1,000 a share within two years. do you? >> i don't know about $1,000. but i am a buyer. this is one of the few names -- it's the only stock in fact that i know of that has outperformed apple so far this year. priceline has been absolutely on fire. i think at least for now you go with that momentum. and not just because it's trading well in and of itself,

but it's also trading very well relative to its peers. so for instance expedia very much looks suspect to me. i think that stock on the charts is topping out against $34. i think you go with priceline. nobody puts shatner in the corner. >> no indeed. do not mess with william shatner. let's go about as far away conceptually from priceline as we can go and that is to home builders. the xlf, home builder sentiment was better earlier this week. but then we get numbers like today's on new home sales, numbers like today's from k.b. where are you on the xhb. >> yes. i have no position right here. but i am definitely very suspicious of this sector. so unlike priceline, i think home builders, the news out of kbh was quite poor this morning. when you dig into the housing data, you find that new single family home construction is still pretty abysmal. it's all the multiunit stuff that's working. so because of that the home builders have almost doubled over the last six months or so. they've had an incredible run. i think if you're involved now, you sell.

>> hard to stay -- for goldman to stay out of the news. this week upgraded to sector perform from underperform at rbc. do you share that view? is this the time to buy goldman or not? >> i do. in fact, i own goldman. i bought it when the editorial came out and the stock took a hit and it's traded nicely since then. i think u.s. financials continue to trade well. i will give this major caveat, i am also short european financials against them. so as bullish i am on goldman sachs, i'm just as bearish on names like deutsche bank. >> and you are no muppet. let's go to caterpillar. cat going to expand china construction equipment company, but chinese manufacturing is slowing down. cat, buy, sell or hold? >> i am short caterpillar. i started shorting a couple days ago. a decent bounce today but had a terrible week. i do not believe, tyler, in decoupling. i do not believe u.s. cyclical names can continue to trade this well given house slow the international scene is in europe and china. >> and let's talk "the hunger

games" and lionsgate. going to see the movie, number one? going to buy the stock, number two? >> as a disclosure, as soon as the market closes today, i'm going to see the movie. i'm taking my junior high daughters. nothing says family entertainment like teenagers fighting to the death, right, tyler? no. listen. i read the book in one sitting. i could not put it down. i couldn't be more a fan of the story. but the stock has run a heck of a long way. my guess is it has priced in. so i don't have a strong view on the stock here. i think it's a hold. >> family entertainment. that is beautiful. steve, good to see you. >> tyler, when we were young that kind of movie we had 3:00 high and it was just a fight in the playground. now it's a fight to the death. things have gotten much more serious. >> they certainly have. steve, thank you very much. over to you, sue, on that happy note. >> thank you, gentlemen, i think. you know, more and more businesses have got their heads in the clouds. so coming up on "power lunch," the silver lining behind cloud computing. see which companies are poised to cash in. but first the closing gold floor trades are happening as we

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welcome back to "power lunch." it's time for a market reset. we have a mixed market right now, but buy a hair. the dow and s&p near highs of the day and nasdaq still negative but by less than a point. climbed off the lows of the morning fairly steadily since 10:00 a.m. look at crude oil below that 108 we hit earlier in the session but still higher by almost 2%. i know sharon's watching that closely as well as gold. gold is also higher today. and check out the 10-year yield. we're falling a bit. the yield at least 2.2334 at this point in the session. let's move along to the winners and losers for the s&p 500. a lot of names worth watching here today. discover financial and morgan stang the way higher on the upside after getting some nice upgrades from the likes of

goldman sachs upgrading the entire credit card sector to attractive. morgan stanley also getting a nice mention as well in another report. seema mentioned micron technology, definitely the biggest laggard on the s&p 500 today. nike also a loser after the earnings after the bell last night. now, let's go into sharon epperson. sharon has the metals closing right now. what a move gold has made in the last 24 hours. >> court, you're right. we're up $20 right now for the price of gold $1662 an ounce. metals are higher across the board. and the weakness in the dollar definitely a factor helping the metals market. but keep in mind when you look at the one-week chart in gold, we are basically where we started out the week. so at these levels around $1662, not much of a gain there. a lot of volatility in the fact that gold has been below the 200-day moving average technically means there's still weakness in the market. weakness also when you look at the outpost from gold etfs. in fact the biggest one-day outflow occurred on thursday. that could pertain to lower prices ahead. i'm with an expert here, the

president of m3 capital, an independent trader here. john, tell me what you think is going to happen with gold and the week ahead. etf may be a little back ward looking. what about the forward looking? >> what traders are focusing on is options inspiration on tuesday. i suspect we'll see more of a range-bound market at that time. after that two things, first being the economic data out of china and throughout europe. and after that what happens with the u.s. dollar. >> and the eurozone of course is going to be a major factor as well and u.s. economic data, how much will that play into what's happening with gold? how much has what the fed has or hasn't done already played into the gold market? >> we as traders trade perception and not reality. the perception for the last couple of weeks is that rates are going to be rising. we've seen the 10-years, 30-years, all picked up. that's dollar bullish. with the last couple days with the economic data around the world, that's more in question. a chance to be very bullish for gold. >> what about physical demand? we've seen the strike going on

in india. could that change your outlook for what happens to gold prices next week? >> it absolutely can. gold has a value to it as well as in times of crisis or central bank policy value behind that as well. net-net there's a lot of factors. whether it's china growth or dollar weakness, those are the two things i'm paying attention to. >> there you have it. and 1640 maybe to 1670 or so in the range we'll see in the first couple trading days next week. back to you guys. >> sharon, thank you very much. so as volatility in the gold market continues, what are the best ways to play it right now? well, let's talk about that with jeff kilburg, cnbc contributor and development director with treasury curve. good to see you again. >> hey, sue. pleasure to be on with you. >> jeff, you are bullish, how would you best play it right now? >> i'm also bullish short-term here. we just avoided the death cross where the 50-day moving average crosses down over the 200-day moving average. this is an opportunity to be

bullish. drill down to the miners, the gdx and the gdxj. it's been an opportunity here as we have seen the quantitative easing, the lack of clarity we saw rates go up in the treasuries, but we saw a flush out of gold. so right now we're seeing the gdx, the miners, come off about 30%. it's a wonderful buying opportunity. i think nova gold, nova gold is a stock inside the junior miners about 30% off the january 30 mark. i think it's an opportunity to come in and grab gold. at the end of the day, sue, central bankers across the world are not going to deviate from their plan of continuing to buy gold. >> so you like novagold and barrick. why barrick? >> they are the top producer of gold in the world. if you see the appreciation in gold which i an tticipate becau if you think about it we were knocking on $1800, the other day down to $1624. i think we'll see gold rally due

to the fact that death cross was avoided yesterday. >> right. do we test the highs again you think? >> absolutely. september 19, i am in the camp that quantitative easing is still on the table in some shape or form. they may not call it qe-3, but there's going to be some form coming domestically as well as abroad. think about the ecb. that's the first wave we've seen over there. so there is more printing going on. >> all right. so the move in yields is not significant enough to derail that bullish thought? >> no. i think it's confirmed with the 10-year back under 2.25% today. >> all right. jeff, thanks a million. good to see you. have a great weekend. >> thanks, sue. you too. >> speaking of gold and other hot commodities, go to cnbc.com right now. we have the top performing commodity etfs of 2012 so far. so check it out. >> and up next on "power lunch," get off of my cloud hot growth area in tech and we just had an ipo in that space yesterday. the sixth so far this year.

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of our u.s. olympic team. sadly, no. oh. but i did pick up your dry cleaning and had your shoes shined. well, i made you a reservation at the sushi place around the corner. well, in that case, i better get back to these invoices... which i'll do right after making your favorite pancakes. you know what? i'm going to tidy up your side of the office. i can't hear you because i'm also making you a smoothie. [ male announcer ] marriott hotels & resorts knows it's better for xerox to automate their global invoice process so they can focus on serving their customers. with xerox, you're ready for real business. i have to be a tree in the school play. good. you like trees. well, i like climbing them, but i've never been one. good point. ( captain ) this is your captain speaking. annie gets to be the princess. oh... but she has to kiss a boy. and he's dressed up like a big green frog ! ewww. ( announcer ) fly without putting your life on pause. be yourself nonstop.

american airlines. coming up on "street signs" top of the hour, rim from bad to worse. a citi analyst tells us why things are about to get even uglier for the blackberry maker. out of this world stock, our final out of this world stock is today. it's up more than 7,000 in three years. we're going to talk dollar thrifty. and hidden time bombs, how can you be invested in hidden time bombs and not know it? now back to "power lunch" with sue and tyler. we'll see you top of the hour 2:00 p.m. for "street signs." >> look forward to it, mandy. see you in a few minutes. the cloud computer market is booming. just yesterday we saw yet another cloud computing ipo,

exact target, takeoff. and the company gained more than 30% during first day of trading. the market's friendly reception to cloud-based ipos has been a trend in 2012. we look at which cloud computing companies will reign supreme. tech was the hottest area for ipos in 2011. and within tech, about one-third of those ipos were part of the booming cloud computing industry. salesforce.com and apple's icloud are leaders in the business and consumer markets respectively. meanwhile, one well-funded start-up, box.com, is looking to knockoff established giants like microsoft and its share point product. >> these are incredible disruptions that the enterprise base has never seen before. it's going to really mean that start-ups have a deep advantage in going against the traditional incumbents which really are focused on the status quo. >> by 2016, an estimated 90% of

corporate america will be using the cloud. and the personal cloud storage market will have quadrupled. as the cloud gets crowded, it's hard not to wonder when or if it might burst. social networking, mobile commuting and corporate network's need to store huge amounts of data, potential to create jobs and investments for investors. here to tell us more is daniel, senior analyst with fbr capital markets. thank you for being here. >> good to be here. >> it seems when you see an ipo take off like it did yesterday that cloud computing is here to stay. do you worry a little bit that everybody is talking about it that perhaps some of these stocks or players in the market are overheated? or are we just in the first inning? >> i think we're in the first/second inning. in some ways guys are still in the batting cage. i mean, you're seeing a next

generation technology shift that's just started. and there's only a few handful of companies today are facilitating that move to the cloud. and investors are focusing on those trends. and the stocks reflect it. >> let's talk about some of those stocks. some of the players you like. let's talk about the first round leaders. mc, vm ware, river bed, f 5, sit rix, those are some of the companies you like. >> uh-huh. >> why? >> pick a couple of those and tell me which ones you like the best and why? >> i think vm is a perfect example. they are facilitators moving to the private cloud. they're helping move applications and data into a virtualized infrastructure. they're really the only guys that do it. so when companies are moving to private cloud, vmware is the one going to do it and their growth speaks to it over the last few years. when you like at citrix two

names playing into the theme. >> you also give us a niche player, rax. what do you like about that company? >> as more data centers build out and as more cloud-based applications and data goes into the virtualized environment, rax is one that would benefit from those trends. even though they're a secondary beneficiary. >> uh-huh. >> they're ones that are really playing into the scheme as well. >> could i trouble to get in? i don't know -- i can never keep it straight whether something is or is not a zero sum game. but it would seem to me that as data moves on to the cloud, somebody gets hurt. >> definitely. >> who gets hurt? >> i think if you look at traditional infrastructure there's a lot of big technology players out there, okay, that are trying to move to the cloud. but yet it's the vmwares, the

citrix, they've had the lead. and you have network players trying to catch up. >> like? >> like a cisco and juniper. they're obviously, you know, playing into the theme. you have river bed and f5 which have been head on the cloud in computer space. >> what about the security issues? because everybody talks about whether or not the cloud is secure. you know, you're putting your data somewhere. if you're a big corporation, that's got to be a worry. is there a security play here? >> well, yeah, i mean, the best security plays for the cloud first and foremost checkpoint chkp and sourcefire also play into the trends. the only way companies move to the cloud is if you have the security around that. and there's really only a handful of players that play in the security aspect. >> dan, thanks a million. good to see you. have a great weekend. >> great to be here. you too. >> the smartphone wars are heating up big time. apple's iphone 4s snapping a strain of android market share

gains. in the u.s. iphone share nearly doubled in the december quarter to just over 41%. droid's market share fell from 51% -- to 51% from 52%. check out the stock performance of apple and google so far this year. google's shares have gone basically nowhere, but apple's are up nearly 50%. and hold onto your cell phone. a new report from the mobile security leader, look out, says americans lost about $30 billion worth of mobile phones last year. where are you most likely to lose it? philadelphia. where my son goes to college. he hasn't lost his yet, but he's had trouble. according to mobile security firm look out labs. now, when are you most likely to use your phone? no surprise here, at night. 67% of phones are located between 9:00 p.m. and 2:00 p.m. yes. where are they most often lost? coffee shops, bars. bars. restaurants and work. >> when you have one of those --

what did you do last night? the leisure drinks? the relaxation drinks? make sure you pick up your cell phone. coming up, stocks closing out one of the worst weeks of the year, oil spiking higher. big week next week for earnings and the economy. >> so how should you position yourself? get ready. get ready for the trader triple play. >> it's coming up next. 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. ♪

welcome back to "power lunch." three stock stories in 30 seconds. focus on the consumer, shares of dunkin brands sliding today. chairman sold 40,000 shares after the bell yesterday. the price was $25. small cap teen retailer wet seal also sliding after reporting a 79% drop in profit on weak demand for spring merchandise. apparently a miss. and nike suffering losses also down lower by almost 3.5%. the swoosh posting lower margins for the fifth straight quarter as those price hikes didn't fully offset higher costs. tyler. >> courtney, thank you very much. what a week for the markets. the stock on pace for the worst week of the year. oil is down. and then it spikes higher.

how should you set up for next week's busy session? time now for the trader triple play. at the nyse matt cheslock, at the nymex, yes, it is, the real, one and only, anthony. matt, we keep saying it's the worst week of the year. it's the worst week of the year. does it really feel like the worst week of the year? >> no. in fact the market's up 40 right now. so we can only go with what we see in front of us today. i think we're going on some expectations of what we're going to see next week as far as window dressing goes. one thing to look forward to after we get through the quarter's end is what leadership group will take center stage after that. we're seeing gold rally nicely today. i think that will be one group to look at after its performance over the last month. >> holly, what's next for interest rates? they've really moved up. and the past couple of days on the 10-year at least they eased a little bit. >> they have been doing a little bit better the past few days.

the odds are i think we're going to continue to do a bit better into the last week of the month. you've got a critical technical pattern in the 10-year futures call a reversal higher pattern. it's about 82% accurate you get additional movement upward take you to about 2.10 in yield. on the short-term time i would look to play from the long side. you have quite a few fed speakers next week. a lot of them are voting members. and on the hawkish to dovish scale, more of them come in on the neutral to dovish side. that could also help propel the treasuries higher if they continue to say that maybe the data's a bit on the weak side or rates are going to stay very low for an extended period of time. >> you know, anthony, oil feels like it's really basically just sort of stuck in a range. am i wrong about that? >> no. not at all. in fact, that's how i was going to start this interview was we're very range-bound right now. you get negative news, the china growth, and then the positive

news, the one that makes it move to the upside, which is the iranian situation. but when you look at numbers we're stuck between $104 on the downside and $109 the upside. i'm not convinced the market is going either way until we break through one of those ranges. 104 on the downside? 109d the upside? the thing that seems to be forgotten this week that came out is the saudis saying they'll make up for any kind of shortfall of production that comes from iran. i would like to see their numbers a month from now. if the saudis are starting to make that up in the next few weeks, you'll see it test that 104 area again. >> gentlemen and lady, thank you very much for being with us. ya'll have a great weekend. we appreciate it. >> thank you. >> thanks. >> coming up, just over two hours left in the trading week, a check on the markets and our charts of the day when "power lunch" comes back in two. [ male announcer ] you are a business pro. omnipotent of opportunity. you know how to mix business... with business.

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when people think of ge, they typically don't think about beer. a lot of people may not realize that the power needed to keep their budweiser cold and even to make their beer comes from turbines made right here. wait, so you guys make the beer? no, we make the power that makes the beer. so without you there'd be no bud? that's right. well, we like you. [ laughter ] ♪ let's get you up to date on the markets. ty, you made a great point saying it is perhaps the worst week of the year, but we're still in the green in the dow jones industrial average for today, anyway. we're up 40 points on the dow at

13,086.59. nasdaq basically unchanged. and s&p up as well about .3%. >> keep saying the worst week of the year for the dow. let's take a look at the week for the dow and see just how bad it's been. well, there it is. from the 19th to today it's down 1%. it's down 1%. i mean, if that's the kind of correction, i'll take that correction any day. >> i think a lot of investors would. one of the reasons that the markets had a little tough sledding is because we've had a backup in the 10-year note, as you can see. and as the price moves, the yield moves inverse to it. we're now at 2.2 %. i thought holly's point to you a few minutes ago is a good one. we have a lot of data. we have a lot of things into play in the 10-year probably next week. >> yeah. if this is the worst week for the dow, it tells you how good the other weeks have been. let's look at a stock that's had two very good weeks since we on "power lunch" started talking about lionsgate in advance of the release of "the hunger games." somebody's fighting over there.