objective of that portfolio, which has got about $17.8 billion of relatively complex securities includes commercial real estate, cdos, mezzanine abs cdos. let me refer to what's behind that change in objective. they say the investment manager's objective is to repay the new york fed senior loan including interest. and they went onto tell me that the change in objective reflects a strategic decision by the new york fed to explore possible sales of some of the assets in the portfolio in light of improving market conditions and the success of maiden lane ii sales. yet another vehicle in which the fed successfully sold out all the securities in it. some of those or many of those less complex than these but they did use a reverse inquiry

method. dealers stepped up and one was ultimately chosen to buy the assets that will fore sale at the particular time. this doesn't mean that the new york fed is going to move ahead with sales right away, but it certainly indicates a significant change in their posture in terms of sales from this portfolio and the likelihood of course that in fact there will be sales of many of the securities you're looking at right there. the market seems to be much more warm -- or warming to the idea of buying them. while it's $17.8 billion in terms of where it's at least stated for fair value, the expectation is that the new york fed may receive a good deal more than that. could end being a positive as well for aig. news of which we already heard from kayla tausche may also be looking at an ipo. again, the new york fed spokesman confirming that they have changed their decision strategic decision to explore possible sales of some of the

assets in the portfolio of maiden lane iii citing market conditions and a successful sale of the assets in maiden lane ii. send it over now for the beginning of "power lunch" with tyler and sue. >> thank you very much. three hours or a little less to go in the trading day. stocks getting beaten down on worries about europe and disappointment with the fed. investors think qe-3 may be d.o.a. that's because the economic data keep getting better. we'll look for the stocks that will be winners when the fed takes the safety net away. ty, major layoffs at yahoo!. the company trying to become smaller, nimbler, more profitable. but is size really their biggest problem? we'll talk about how to fix the stumbling giant. >> eddie lampert says major retailers have to adapt or die. is he taking his own advice at sears? what about the other big box stores? >> indeed. i'm sue herera with tyler

mathisen. we're basically tracking this big market selloff minute-by-minute. stay with "power lunch," which begins right now. i'm kayla tausche at the realtime exchange. might be r.i.p. for qe-3. a weak bond auction in spain ramping up europe worries. jobs growth solid here in the u.s. but service sector less than forecast. add it up, the bears are growling at their worst level since march 6th. nasdaq worst day in a year down 1.75%. the s&p 500 losing about 17 points. and the dow down 153. take a pulse of the markets. dollar index rising as hopes for qe-3 sink. gold falling to a 12-week low. and oil down big on a surge in supply. let's take a look at our midday movers. sandisk getting hit hard. already lowered soft q-1 guidance trading down nearly

10%. ibm lower after downgrade from b of a. and citi one of the financials sinking down to 34.97. look at some of the winners. aig higher after an upgrade from bernstein. just heard more news from david faber about the giant. brown forman on a rise. and u.s. airways taking off on a record load factor as well as potential merger talks with american airlines. now to the trading floors. bob pisani joins us from the nyse. >> hello, kayla. there's worry about spain and that's worried our market a little bit, but we also had a separate event here today. there's the open, which was not particularly pretty. but right about here we saw stocks moving further down as the ism services number came in. that's a little after 10:00 eastern time. numbers a tad disappointing. new orders light. and a lot of people watching these very carefully. remember, we're the engine of growth. we're getting better growth than

the rest of the world. that's the thesis. it didn't help today. once europe closed right around here, we came off the lows here. yes, we're down today but off lows earlier. europe closes, we tend to act a little better on days when europe's a concern. here's your big sector weakness. apple for once moving in line with the market down 1.3%. materials, financials and energy, all your risk-off trade there. i've been asked about the vix. the vix is about 17. the way to understand the vix, i'll put it quite simply for you, when the vix is around 16, the market is pricing into probability that the s&p will move about 1% a day in the next 30 days. and that's about what's going on. the dow moved 100 to 130 points, that's about 1%. nothing remarkable with what's going on. if the vix goes to 25, now you're pricing in moves of 1.5, 1.6%. that gets more radical. nothing really going on here that's of spectacular interest right now. brian shactman, we're having a rough day on commodities, aren't

we? >> that is if you're long, bob. thank you very much. so much changed at 2:00 p.m. eastern time with the fed minutes came out. you take a look at crude today already trending to the downside. took a little leg down further when the announcement came out. it's not the only thing factoring in crude right now. a bigger than expected bill in inventories and saudi arabia saying even if the u.s. had the spr still maintain production levels. u.s. production levels continuing to grow. of course that's a major story in the long-term. and we haven't talked about iran in a long while. all of that contributing to bearishness in price when it comes to crude. if you want to see the impact of fed minutes, look at a two-day of gold. it drops off a cliff. it's continued today down more than $50 for the entire day. the next psychological level is $1,600. same thing with copper. it's a global growth proxy right there. we're not growing enough to make the bid come in there. the key thing is, sue, is that no qe-3 means some stability in the u.s. economy, but maybe not

enough growth to see bids in oil and in copper. >> thanks, brian. very good points. all right. let's further that discussion and switch on the "power lunch" power surge and drill down on the stories that are driving the day. we start with this big market selloff. as brian mentioned, after the fed hangover from yesterday, some mixed new data on jobs and manufacturing. our senior economics reporter, steve liesman, is here to break down and wrap up all of today's numbers. hi, steve. >> sue, i've got a bit of a different take on this data. i thought it was actually pretty solid. that might be really the problem with the market. solid data lessening the chance of more easing from the fed. and could be raising the chance of an earlier tightening. the market seems to think for the moment that an easier fed is more important than better growth. let me show you what i mean. yes, the ism services data accounted for about 2/3 of the economy did come in less than expected, but the number was very high. it was up towards the top of the 50s coming down to 56, still a good number. and look at the internals. they fell, but they fell from up above 60 where nobody thought it

was going to maintain. new orders still at a high level. and that should say employment, not unemployment. sorry about that. that was one indicator that went up. better service hiring was confirmed this morning in the adp report, the private payroll company saying 209,000 private sector jobs created in march. that was in line with the estimates and forecast for the friday payroll number. four of the past five adp reports have been above 200,000. adp says the sector created 164,000 jobs in march. second straight month above 100,000. manufacturing also strong. small business adding 100,000 jobs. the adp numbers have been very close the past several months. in fact, the past two months only been a 6,000 job difference on average. over the past year it's been just 20,000 jobs. not bad. better economic news comes out from the fed yesterday seemed to down play in their discussion in the minutes of the march meeting the possibility of more easing. that prompts morgan stanley this

morning which had been one of the more vocal folks on the street calling for new qe to lower estimate for the probability of new fed easing from 2/3 to 1/3. >> you mentioned the jobs report will be out on friday, but we don't have markets trading here ahead of the easter holiday. what can we expect in terms of the number and maybe the delayed reaction to it? >> you can expect to see me at work, sue. i'll be here. >> excellent. >> the markets may be closed. we're looking for 200,000. i think you're going to have to make your bets, as such they are or investments short term chase may be called, on thursday you're going to have to go. but since the adp has been sitting on top of the bls, nobody's really changing their forecast today. and if that trend continues, it's not going to be a whole lot of volatility if it comes in in line. the more important question, sue, will be the unemployment rate, which people think is more closely -- tells a little more about where the fed's going to go with their policy. if that drops again, then i think the idea of more fed -- less fed easing will increase.

>> bring your own bagels and coffee. i think the cafeteria's closed. >> thanks. >> thanks, steve. president obama signing the stock act into law an hour ago. members of congress now subject to the same insider trading laws as everybody else. eamon javers joins us now. eamon. >> tyler, in case there was any doubt, it's now absolutely positively against the law for members of congress to engage in insider trading. as you say, the president signing the stock act here at the white house just a little while ago. let me run through a little bit of what the stock act does and does not do, importantly. it does prohibit members of congress from engaging in insider trading. it also extends similar prohi bixs to the executive branch and prohibits members of congress from getting special access to ipos which is an interesting and potentially controversial one here in washington. also blocks bonuses for executives at freddie mac and fannie mae. what it does not do equally important there was a provision initially that would have required political intelligence

firms that gather information here in washington and sell it to wall street market moving details coming out of the nation's government, the nation eat capitol, those firms would have been required to register under the law that was signed today. that is not the case. they will not be required to register like lobbying firms do. and, sue, a little bit of an unfortunate note here today, congressman slaughter, who was the lead sponsor of this and really pushed this bill over the past six years was unable to attend the ceremony today when the president signed the bill. she'd broken her leg. so the president extended his condolences to her. >> as we do as well. thank you very much, eamon. hundreds of flights still canceled today after tornadoes tore through north texas on tuesday. bertha coombs is live in arlington, texas, with more. bertha. >> reporter: hi, sue. arlington is west-southwest of dallas on the way towards ft. worth. the folks in this neighborhood kind of count themselves lucky. nearly 24 hours after those storms started, some of them

managed to find roofers to get some of the tarps on the top of their roofs so they won't have leaks. another man told us that the insurance adjuster had already been here. so the process has started. home depot in arlington is keeping doors open 24 hours a day to help people start with their repairs. meantime, back in dallas that fantastic video we saw yesterday of those trucks essentially getting thrown around like toys. schneider says they're glad all of their workers heeded the early warning system, got out, they were safe. no one was hurt. but they lost about 100 of 250 trucks have been damaged. they're still trying to work with all of their customers to try to get all of the logistics and shipping back online quickly. we were in lancaster this morning. that is the other area that was hit very hard south a little more east of dallas. and there about 300 homes have been hit. some of the national weather service assessors are out.

they have three teams out trying to assess just how big these tornadoes were and whether or not these were tornadoes. but this morning we were in lancaster, mike seidel said from the damage he saw there he thought it was at least an ef-3. that's winds of 136-mile-an-hour. really amazing amount of damage here. incredible guys that no one was killed. >> yes. if there's a silver lining, that's it, that no one was killed. thank you, bertha. now to the unfoldi ining controversy over this weekend's masters golf tournament. at issue, whether the famed club should invite the new ceo of ibm to join the all-male membership. darren rovell is live in augusta where a news conference with the chairman of augusta national just finished up. did he tip his hand at all? or did he stay with the party line? >> yeah. as expected, tyler, a total party line by augusta national chairman billy payne no

commenting. take a listen to what he said when asked about it. >> all issues of membership are now and have been historically subject to the private deliberations of the members. and that statement remains accurate. >> reporter: after that it got heated in the media room as reporters continued with that line of questioning. from one reporter who asked payne what he tells his granddaughters about the club's no-women member policy. so which payne responded that his conversations with his granddaughters are also private. ceos are traditionally invited to be members if they're also sponsors where predecessors have been. does she desire to be a member? or is she even a member? both have declined to comment. the most pressure's probably on rometty. does she have the obligation to be a trail blazer?

does the valuable masters sponsorship go with it? to be honest the reason why we're having this conversation the masters at augusta national don't care for the business. if they chose to make a statement here, they wouldn't care if ibm left so you would think in 2003 remember when activist chose to make her stand, they decided not to have sponsors that year. back to you guys. >> darren, thank you very much. when we come back, fighting the fed funk. there's a golfer named fred funk. this is the fed funk. markets in a slide because there's no sign of more stimulus from the fed. but that's because the economy's getting better. who wins when things are looking up? is the fed's safety net gone? >> as we head to break one of the biggest casualties today of those fed minutes continues to be the commodities complex with gold, silver and copper the biggest percentage losers. sugar though up 1.25%. ♪ stream, stream, stream...

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welcome back to "power lunch." rick santelli here on the floor of the cme group. i guess nothing will demonstrate how aggressive the selloff yesterday after minutes was. better than a two-day chart of 5-year notes. right at the heart of the curve was trading a bit below 1%. 12 basis points later you can see. you can see how it's tapered off today. don't lose sight of what happened yesterday. the minutes really didn't give you anymore information about qe or stimulus than the statement did. so if you look at a one-month chart of 5s, you can see that we haven't reached the high yield that we did after the 13th

statement. and if you look in 10s, very similar. if you look at the dollar index, very similar. why is this so key? because at this point many are still looking at the range to have been carved out already by some of the high yields of about seven trading days ago, which makes friday's number for jobs so important. why? because without the net perception of the fed, a bad number could really get things moving. now, let's go back to sue. >> thanks, rick, very much. well, as you know stocks have been selling off today after the minutes from the last fed meeting suggested perhaps no more stimulus. but that's because the fed thinks the economy is getting better. they're not the only ones. here's what texas specific group founding partner said earlier on "squawk box." take a listen. >> numbers are actually not that bad. last quarter better than people thought. going to see 3% growth or something like that. the u.s. is not in trouble in the short-term. long-term maybe another story. >> all right. but the market is down triple digits today. so where do you find upside in

the market? joining us is bob, senior portfolio manager of the our growth fund. and i'm going to start with bob, if i could. it is perverse, the economy is getting better and it feels like it's getting better, yet the market reads it completely differently. what is an investor to do in an environment that's so counterintuitive? >> i don't think you can take a one-day selloff and say it's not really -- the market's not going good. the market's been doing good since march of '09. i have a different take. i come from a retail investing background working with investors over 20 years at morgan stanley. i notice this same phenomenon every year and it happens around tax time. people who owe taxes tend to be heavy investors. so if you owe taxes, not that you're getting a refund, but you have to write a check and a

quarter ly estimate, that's all that's happening. this economy is getting better. to answer your question, we think investors should focus on fast growing companies that trade at fair values. and that's what we do simply in our fund. and we've done for 25 years. >> bob makes an interesting point. let me try this one out on you though, the economy on the one hand some people say it's getting better. that's what bob says. but could the market be saying here today and to the extent that things have been selling off a little bit in recent days that the economy may not be strong enough absent the fed's presence in the marketplace to continue the kind of growth we've seen? in other words you take the training wheels away, can the bicyclist stay on the bicycle? >> yeah. i think clearly there's a certain amount of people out there that thought the fed was going to do qe-3 and then factored that in. when they pulled back on that, you're going to see some of those people exit the market.

however, i think the net result is the fed saying the economy is strong. they're not saying they won't provide training wheels. i think they have them on the side of the garage, just don't have them on the bike right now. if we have problems again, i think you can see them step back in. if that was the case, i think the market would have fallen further than now. >> where would you allocate cash? the economy getting better, second half of the year might be stronger certainly for stocks even though we've come pretty far pretty fast. where would you put new money to work? >> we still like the large cap area. we like stocks but somewhat defensive within the stock market. small cap and mid cap look overvalued. we think the large cap looks really strong. i agree with bob on the growth side of things. we like large growth. companys that can continue to grow even though gdp is 1.5%, 2%, growing faster than that should be rewarded and companies that paid higher dividends were the desired companies last year i think will go to the sidelines. >> bob, you have some interesting stock picks there.

i know you want to tell us about them. i'm going to ask you to drill down on one, orico gold. >> this is a mexican gold miner. and they are growing rapidly. as a matter of fact, the last quarter -- it was just announced like three days ago, their profits were up like 70%. revenue up 60%. next quarter estimate to be up over 100%. gold is still up year-to-date. i know gold is down $50 an ounce right now. we didn't buy it as a play on gold, per se. we bought it on a play on a very rapidly growing gold company that you can buy for about eight times earnings. they just had the best quarter that they've ever had. let me tell you how good it was. the analyst, their seven analysts following this company would guess they would come in at 16 cents. they came in at 31 cents. they weren't even close. >> yeah. >> and yet the stock it's the best quarter they've ever had. forecasting them to make well

over $1 a share. the stock trades under like $8 or $9 a share. when it wasn't doing as well, it was at $14 a share. we're buying because it has 25% plus growth as below a 12 p/e. >> do you still like emerging markets? if so, which ones. that bodes well for asian economies. >> we're equal weight for emerging markets. i think the idea china will go from 8, 8.5, 7, 7.5 doesn't scare us that much. china's effort to get away from being export driven and to a more consumer oriented economy is going to be very, very helpful. there will be hiccups, but we definitely like growth and emerging markets. >> thanks, gentleman. >> thank you. >> thank you. >> we're going to take a quick break. straight up a shakeup at yahoo!. that company is laying off 2,000 people. trying to become smaller and a more profitable company. can they really cut their weight to that kind of growth?

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welcome back to "power lunch." let's check in with scott wapner, see which stock he's focusing on right now. hi, scotty. >> hey, sue. i'm focusing on starbucks because goldman sachs added it to conviction buy list. they see 25% plus average eps growth likely over the next three months. they also raised the price target to 66 from 49. yeah, the stock's not doing all that much today, but it's basically been sitting at its multi-year highs here as the starbucks story just continues. that's why i'm following it on my screen today. >> thank you very much. we are watching yahoo! today after the company announced some massive layoffs. the troubled internet giant slashing 2,000 jobs by the end of the year. yahoo! hopes the retooling will save it $375 million. last week on "power lunch" before the announced layoffs we spoke to yahoo! board member and intuit ceo brad smith about where he thinks yahoo! is going. >> i'm excited about the changes that scott thompson, our ceo, is

driving. i love the changes we continue to make at the board level. and i'm bullish on the future. >> so should investors be similarly bullish? jon fortt is at yahoo! headquarters. and cnbc.com's john carney here with us here. how do you fix yahoo! topic number one, jon fortt. >> i've been putting a lot of thought into this. one, pick your battles. right now yahoo! is fighting with investors. dan loeb a third point with investments over in asia and also with what would be partners like facebook. they really got to pick one. number two, they need to decide what yahoo! is. is it a media company or platform company? if it's a media company, they need to staff up on media creators and buy technology. if it's a platform company, they need to staff up on techs and buy the media. they need to get rid probably of everything else. then, finally, they need to stop believing their own hype. they talk a lot about how many eyeballs they've got. unprofitable eyeballs, eyeballs you can't monetize are like

unprofitable revenue. doesn't really count. >> they wanted to get more nimble. i didn't think yahoo! had so much a problem with nimbleness but rather what jon fortt just touched on which is the idea that what do they stand for? >> i think that's absolutely right. right now yahoo! does not know what kind of company it wants to be. it needs to make some very tough choices going forward about is it a platform, is it a media company? it also needs to free up people internally. they do have some very talented people there, but yahoo! was under carol barts a very top down organization. they need to pick the winners inside their organization and say we're going to let you innovate and make changes and then hold those people's feet to the fire so that they're responsible for the changes, they benefit from the changes they make. right now the corporate structure just really isn't working out. >> let's switch gears and talk about google today. it's been about a year since larry page became ceo of google. let's give him a grade.

jon fortt, you go first. >> i would say b plus. take a look, the stock is up. granted pretty much everything is up lately. up 10%. morale is high. he's rated high on glass door. android has been gaining a lot of share. it just topped 50% in the u.s. core search business is healthy. one ding i would say is that their reputation has taken some hits. but i would say google plus on social still finding its groove. android fragmentation looms, the most popular tablet belongs to amazon, not google. final final finally motorola mobility, absolutely got to get that right. that's the most important thing. >> all right. john carney, a b plus from jon fortt. are you an easier or tougher grader? >> i'm exactly the same. i gave him a b plus as well. it's a little boring. i'm sorry about that. i do have some other points. i think the morale is up at yahoo!. i talk to people there and they sound a little happier under

page's leadership than they were before. they think there's potential for innovation. but frankly we haven't seen it yet. that's why he doesn't get better than a b plus. they've made some superficial changes to some of their products like g-mail. but nothing really game-changing here. they bought motorola and we'll see what happens with that. presumably they want to make a really good google phone, but right now we see nothing so far. so i think what it's a sort of b plus let's wait and see what happens. they've gotten rid of a bunch of products they really didn't need. but they keep launchi ining pros that aren't really working. google music, google play. i'm not sure these are where they should be going. they're launching them before they're ready, it seems to me. that can hurt the brand. >> john carney, jon fortt, thanks very much. straight ahead we're going to update the market action on this very busy day. and the metals getting clobbered today. we'll go live to the nymex for the closing prices. >> and a rare and extraordinary interview today with eddie lampert on cnbc.

he said big box retailers have to adapt or die. but is he following his own advice when it comes to his sears franchise? and which big retailers are adapting? which ones are dying out? some opinions in two minutes. carfirmation.

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welcome back to "power lunch." let's reset the markets. that stock selloff sticking around. check out all the major averages down into the red. nasdaq having its worst day in 2012. most notably take a look at the vix. up 11.5% to 17.5. a level we haven't seen in quite some time. let's look at today's movers. starl starting with sears. chairman eddie lampert in a rare interview on cnbc. we'll have more on that later in the show. and webmd down better than 9% after saying it expects to buy $5.5 million shares. that stock not loved by investors today.

and aig up more than 3.5% on an upgrade from sanford bernstein. and cnbc reports on a potential ipo as well as potential sale of maiden lane iii upgrades. zynga, a possible partnership with online gaming taking shares down into the red for the first time today. also closing their secondary offering. we also have a spate of upgrades. gap upgraded at piper jaffry. southwest upgraded at barclays. and starbucks in the red today. gold and other metal prices getting ready to close right now. let's look at the nymex where brian shactman is standing by. >> hi, k kayla. a lot of traders say they basically rotated out on monday. some got out of the way of this freight train. of course the fed minutes were another catalyst. the adp report this morning confirmed the u.s. economy's doing okay. qe-3 might be off the table.

fundamental repricing in go 1600 is the next level not necessarily technical but more psychological. even something like india where they've hiked taxes on gold and tons of retail outlets in india refusing to buy gold because they're protesting those taxes. everything factoring in there. i just want to point out the complex across the board is weak. look at silver, copper, everything else to the downside. silver the biggest loser down at least 6% on the day. blood bath in commodities if you're long, tyler. back to you. >> brian, thank you very much. we're continuing to keep an eye on the markets and on retail. earlier today as kayla mentioned, billionaire investor eddie lampert was on cnbc exclusive interview. he shared his thoughts on the retail environment and how big box chains, including his own, have to adapt or die. >> companies, especially in retail, are finding themselves in the need of reinvention jc penney, sears, seeing best buy,

recent commentary in the need of reinvention. and that means that you're going to have to try new things. and if you're unwilling to try new things and to fail and learn, you don't have a shot. >> let's bring in retail expert and courtney reagan to this conversation. thank you for joining us. >> thank you very much. >> he mentioned three companies including his own. sears, jc penney, best buy, are any of them doing reinvention right? or can you think of other big boxs that are? >> well, i think best buy's probably furthest down the road. at the same time best buy probably has some of the biggest challenges. if you think about the really core issues with big box retail, you've got obviously digital competition, which is a big piece of that. you also have a demographic trough with big box retailer where you have boomers ageing out of the need for large stores. and others still on their parents' couches.

>> they don't shop the same way as we did. >> not at all. but the core issue of course is that in addition to that there's a life stage issue where they're not buying the same things and not buying from the same places. so best buy and the other challenge with best buy is grappling with entire categories transitioning to online either because the shopper likes buying that way or the product itself has become digital. >> courtney, bryan sounds like he was talking about you. you're a young shopper. do you go and shop at big boxes, or do you think it's too early to write them off? >> i'm probably best buy's worst nightmare in that sense at least from a consumer. i'm one of those that goes in, tries out the product and then price compares, perhaps buys it on amazon. i know we've largely accused best buy in different ways of perhaps being an unintentional showroom for amazon. i'm afraid it does happen. it happens to a lot of us that can price check with the bar code scanners. that's a big hurdle. i'm not sure how they get over

it or other retailers get over that. if i did, i might be a lot richer. >> you sound a little guilty about this, courtney. >> i know. i feel badly that i do that. i want these retailers to survive, but i want a good bargain too. >> of course you do. mr. lampert mentioned the fact they have to reinvent themselves, retail and big box stores need to think differently and try new things. is he himself doing that with his sears franchise or not? >> i think they're trying to. and i think sears has rightfully gotten some good publicity for being clever about how they've tried to attack, you know, different type of relationship with shoppers. the core issue that sears has is that if you look at some of the big box trends, whether it's demographics or what's happening in the mall-based retail and its need to drive traffic or the increased competition that courtney was referring to for sort of single purchase discretionary items where i can shop the store but price compare and buy. sears is kind of on the wrong end of all of that. >> is there anybody who's doing

it right? >> as of today, i don't know that anybody's doing it particularly right. i think you can look at some of the things that best buy has tried to do are very interesting. the emphasis on geek squad is a very useful thing to do. i can get shoppers that might not be comfortable enough to get to purchase online for high-tech categories the reassurance perhaps they can do that. i suspect over time you'll see more and more retailers find a way to help shoppers in store get over hurdles, if you will, and so i can move from browsing to buying. i think the other thing best buy's done a nice job of or started to do a good job but needs to do much better with is selling things in sort of organized solutions. i think today that's probably one of the real areas brick and mortar retailers can excel in. not just selling you the item you came in for. if she walked in to buy a stereo, that's great, but what about headphones. >> is what you want to do not what you're here to buy? >> exactly. >> courtney, let's talk about e a lot of people have

their eye on and that's jc penney and its new ceo. what is he doing? what is the thrust of that store's transition? >> you know, tyler, i think maybe the better question is what is he not doing. ron johnson is really trying to transform jc penney from the bottom up, from the top down. he's changing the merchandise, he's changing the way the store looks. he's changing the pricing model. it's going to take some time. we're getting some conflicting views from both jc penney and the analyst community. some believe that it's working already. others believe it's going to take time. but there is hope. i think, again, this is a wait and see. it's going to be very hard to change the consumer mindset if you're used to taking in your 20% off coupon to jc penney to realizing that perhaps that discount is already built into the prices. i think the difference that we're going to see visually will make a very, very big impact once we can get that far down the road. >> courtney, thanks very much. bryan, we'll have you back soon. thanks a lot. >> thank you. >> all right. as we continue on "power lunch," straight ahead if you've got

$400,000 to spare -- i know you do. >> yeah. >> phil lebeau has just the car for you. he's live at the new york auto show. hi, phil. >> reporter: hi, sue. this is the newest rolls rois. phantom series 2. all are very special, but this one has the starlight headlighter. what is that? they say it's like having heaven over your head. we'll explain and talk with the head when "power lunch" returns. looking for a better place to put your cash? here's one you may not have thought of: fidelity. now you don't have to go to a bank to get the things you want from a bank. like no-fee atms -- all over the world. free checkwriting and mobile deposits. now, depositing a check is as easy as taking a picture. free online bill payments. a highly acclaimed credit card with 2% cash back into your fidelity account. open a fidelity cash management account today and discover another reason serious investors

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that's going to have to be done by a certain date. you always have homework, okay? i don't have homework today. it's what's right here is what is most important to me. it's beautiful. ♪ ♪ phil lebeau is on site at the new york auto show with a first on cnbc interview with the ceo of rolls-royce. over to you. >> reporter: thank you, sue.

i am joined by the ceo of rolls-royce. this is a beautiful car we have behind us. really this is the world's first peek at the rolls phantom series two. what makes this so special? i know all rolls are special, but this one in particular. >> exactly. what we have done is we have completely updated the electronic systems of the car. let's say a new mmi system. you can stream your music directly into the car via bluetooth. complete new transmission, eight-speed transmission. we have brought down emission and fuel consumption by minus 10%. and of course we have modified the form of the car in the way that we are now the first manufacturer who is offering l.e.d. lights. >> no doubt you have the amenities and technologies in the vehicle. is the market for ultraluxury vehicles, is it slowing down?

your sales were down last year and down so far this year. do you look at this and say it's ebb and flow when it comes to the ultraluxury markets? >> no. i would say it's increased over the last two years. >> here in the united states. >> in the united states we had an increase of 17%. the first three months of this year were fabulous, i must say. we are confident. >> largest market right now china? >> last year was. i would not be surprised this year the united states coming out and being -- >> reflection of the economy? >> reflection of the economy especially here at the new york auto show. you see a lot and feel a lot of positive consumer sentiment is my feeling and also talking to a lot of your colleagues, everybody's confirming that. >> one of my colleague's is getting a shot back here of the starlight headliner. you said this is heaven over your head. >> exactly. as we say. because you can also -- if you were born drn whatever we can also do that in here. very little fiberglass cable.

>> you can actually pick the design. >> and you pick the design. exactly. we do that for you. >> just one of the many things you do. >> one of the many things between drink cabinets, refrigerators, embroidery, whatever you like. >> most outrageous thing you've had somebody ask for in the last year? >> there is no. >> most unusual. >> maybe in a way of that we saw a completely different style headliner and of course also we have seen recently a safe being built into our car to store jewelry when the driver wants to make sure his jewelry is properly placed even in his phantom. >> because everything has a proper place. >> absolutely. >> thank you very much. ceo of rolls-royce on a day as they introduce the new rolls phantom series 2. sue, i know you would love that star line headliner? >> who wouldn't, phil? it's an amazing addition to an

amazing car. take pictures. bring them back home. coming up next, when we continue, 2/3 of boomers will receive some inheritance. average windfall is $60,000. not in my family. of course some people get more than that. >> how do you make the most of inheritance? stick around and the experts will tell you. picked up back in the '80s. tdd#: 1-800-345-2550 like a lot of things, the market has changed, tdd#: 1-800-345-2550 and your plans probably have too. tdd#: 1-800-345-2550 so those old investments might not sound so hot today. tdd#: 1-800-345-2550 at charles schwab, we'll give you personalized recommendations tdd#: 1-800-345-2550 on how to reinvest that old 401(k) tdd#: 1-800-345-2550 and help you handle all of the rollover details. tdd#: 1-800-345-2550 so talk to chuck tdd#: 1-800-345-2550 and bring your old 401(k) into the 21st century. tdd#: 1-800-345-2550

welcome back to "power lunch." it's time for three in 30. three stock stories in 30 seconds. start with thoratec. the fda announcing the company recalling its heart mate ii left ventricular health system. moving over to cree. sandisks revenue warning and last but not least one of the few names positive here on the nasdaq 100. we have 97 negative. this is one of three positive up 3% recovering some losses for the week. tyler, back to you. >> courtney, thank you very much. baby boomers could inherit more than $8 trillion as their parents pass on. aarp estimates 20% of boomers

have already received their family's money. so what should you do if a windfall lands in your lap? financial expert that sharon epperson talked to say when they advised their clients about how to make the most of their inheritance they get, number one on the checklist is to outline financial goals. >> look at your long-term and your short-term goals. the biggest mistake we see as everybody rushing out once they get that inheritance for the short-term goals. buying the new car, maybe having a renovation or that family trip to europe. if you plan out how much the costs would be for the short-term goals as well as those long-term goals, you may realize that those long-term goals of retirement and some of those other really important things you want to achieve you might not be able to achieve them if you go ahead and splurge too much on the short-term goals. >> what we've been encouraging baby boomers to do when they receive an inheritance, pay the government, get rid of them as a partner in your planning going forward. and i think to stacy's point,

look at those variables. >> so you pay the taxes on the inheritance up front, that's what you're saying? >> absolutely. i think today's boomer recognizestaxation will be higher in years ahead. and if they have the opportunity now to pay the government off quickly, they should do it. >> a lot of people are planning based on what their parents have now. will they have that when their parents pass away? >> that's such an important point. people look back and know their parents might have received money from their parents and expect that the same may come to them. so i think the key message is don't plan on it because you've got a lot of seniors who are living far longer than they did in the past coupled with the fact that you've got a very low interest rate environment. we just came through a terrible bear market. so no one should plan on an inheritance even children of fairly affluent parents. >> very important point from christine there. inheritances are not a silver bullet. you can't really count on them

even though researchers at boston college found market volatility can have a substantial impact and boomers parents may pass on less if their own retirement needs are expected and they have to dip into the principle to keep paying bills. >> and after the '08 financial crisis, a lot of them have had to do just that. coming up, just over two hours left in a very busy volatile downside trading down. we'll check the markets and have charts of the day. back in a minute. americans are always ready to work hard for a better future. since ameriprise financial was founded back in 1894, they've been committed to putting clients first. helping generations through tough times. good times. never taking a bailout. there when you need them. helping millions of americans over the centuries. the strength of a global financial leader. the heart of a one-to-one relationship. together for your future.

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over the past hour relatively stable at these lower levels. all of the major market barometers that we follow are down more than 1%. the industrials up 135 points or 1.03%. nasdaq having one of its worst days of the year down 53 points at 3,060. >> charts of the day. you go first. >> i get to go first with the u.s. dollar index over the past week. it is as you see moving markedly higher from tuesday into wednesday after those fed minutes were released. and that is one reason why, sue. >> the copper market