in terms of the dow jones industrial average, if you look at the broader market averages like the russell, that's a one-week chart and that's pretty darn impressive. >> yesterday apple on the downside. today up nearly $25. one of the reasons why nasdaq is as high as it is today. that'll do it for "power lunch." >> "street signs" begins right now. have a great afternoon. welcome to "street signs." i'm brian sullivan. we've got it today. but does this market really need an apple a day? some say we're just rotten to the core without the cupertino kid. the real apple impact on these markets and if the old school titans can power us up even if apple doesn't. hey, gop. i say congress should pass the buffett rule. i'll tell larry kudlow why. larry will join us as part of his exclusive interview with mitt romney. a stern ruling for howard. stern in his battle with sirius xm. a big loss.

a big win for shareholders. and why some believe coconut water, dirty sock water, is the next beverage. >> i think it's delicious. thanks. bulls are back on wall street at least for today. dow is up for the fourth time in five sessions. trying for its first close above 13,000 since april 5th. dow and s&p both having best advances in more than a month. about 95% of the s&p is trading higher. led largely by energy stocks as oil is up a bit. nasdaq has been pretty volatile. close to having its best one-day showing in nearly four months. let's bring in bob pisani now. because, bob, i'd love to know what in the world changed overnight? >> so would i. well, back to you, kelly. i'll tell you something. you want to know the truth? the market today is dominated by short-term momentum trading patterns. they go with it until the middle of the day. that's the truth. however, you want a more satisfying intellectual reason? let me give you the top reasons people are mentioning why the market is up today. number one, the important thing is we had that successful spanish short-term auction. that's the big thing. that's what's really mattering.

two, the finance minister over in germany, he came out late in the morning and said spain does not need a bailout. revelation. that held the market. all of europe closed on the highs here. finally we just had apple up. apple goes back over $6 thur6$6. when it hit close to $600 in the middle of the day here, the market again lifted. it seemed to have some influence on the overall market. there's your official reasons, kelly. >> thanks, bob. brian? >> thank you and bob. we're going to kind of continue the theme bob just touched on. because we certainly do have a nice tuesday rally. both apple and the market are higher today. of course, that has been the trend for more than a year. look at this. it's a one-year chart of apple versus the dow. the dow actually is in green. maybe apple should have been in green. either way, you can see they track very nicely. and some suggest that apple is the carrot that drives the donkey to pull the whole market cart. but the past few days before

today have been interesting for other reasons. so now look at this. this is a one-week chart of apple and the dow. you can see that the dow has done okay. apple actually went down five days in a row before today. in other words, we did something that some said wasn't possible. we rose even as apple fell. remember the titans. not the movie. because it looks like old school may be back. look at the seven-day trading returns of hp. up 7%. alcoa. up 4.3%. caterpillar up 2%. some of the old industrial names and a tech titan may be left on the heap which has had a very nice run and drag the boats up. of course, apple is not in the dow. some say it should be. either way, we have been able to rise, guys, without apple coming in to today. we're going to chat about this right now. but later on in the show we're going to do something else with apple which i think is interesting. we're going to talk about

whether or not sales of macs, laptops, desktops, mac mini, old school computers actually still matter to a company, kelly, once known as apple computer. >> brian, thanks sfwlnchts short interest that led in the rally through the first quarter of this year and better quality lowest short interest stocks, mainly those that led last year, were the laggards in the first three months of this year. i think the turbulence we've had over the last couple of weeks reignited a bid in these large cap high quality names. some of which brian had mentioned. have performed very well in the last couple of weeks. >> do you think it's those big

names in particular? i think you mentioned some like coke and j & j where people should focus. or is it something where they should look at the market more broadly? >> i would focus on those names more so than the market. i view it as a market of stocks. within which we find some great value in those high quality, kind of hiding in plain sight names. two of which you mentioned. coca-cola and johnson & johnson. that certainly isn't to say abandon something like an apple if it happens to be part of your portfolio. but adding the ballast of those great quality companies should allow you to see good performance in your portfolio even when we'll expire some of the turbulence that we've had over the last couple weeks which i expect we'll continue to see going forward because of some of the european related risks that haven't gone away. >> mark, five days does not a trend make. today they're both up, apple and the market. the previous five, that's what we were trying to just show. apple was down while the dow was largely higher. bottom line it. can the overall market, the s&p, the nasdaq even, rise if apple

falls? >> well, it can. but it's going to need some help. given the fact that apple, obviously, is the largest company in the world today by market capitalization, representing almost 4% of the s&p 500 index, and even more in nasdaq, its influence is huge. as a consequence you need other players to participant to offset what could be the decline in apple. we're starting to see that. that's why to your point earlier, brian, you saw the market moving ahead even when apple wasn't participating. >> you're cautious on apple. where else are you cautious in this market? >> some of the sectors that look overbid to us are utilities and telecommunications. both of which are selling at, in our opinion, full valuations. even a sector like basic materials and industrials, which caterpillar, of course, has done real well of recent, suggests to us that they're having estimates of earnings growth that far exceed what we might expect to see given the uptick in analyst expectations in the second half of this year. so unless growth comes through

to support those higher earnings estimates, then we think those areas could be susceptible to a pullback. >> mark, i love the blame the media for things. >> you blame yourself? >> i look in the mirror and say, you're the problem. i'm not the only one. people criticize the business media. maybe fairly so in some way. they say you're too caught up in the market to market, day-to-day gyrations. one day spain is doomed. the next day it's fine. we're up. we're down. we've got to report what traders are telling us, right? they're focused on these events. but, again, one day we're doomed. the next day we're better. to kelly's point to bob pisani at the top, how does the average investor, not the day trader, but the mom and pop, your clients, whatever, how do they navigate these incredible gyrations? >> well, they're brutal, the day in and day outs. you have to be able to ignore them and try to lend some objectivity to what you're trying to accomplish in your investment portfolio. if you own equities which by definition suggest you should have a time horizon other than that of a trader of probably five years or more, then what

happens day in and day out really doesn't matter. in the context of an overall market that hopefully over time is going to lead to results that are better than what you'd find in fixed income yielding about 2% or cash which offers near 0% interest rates. then that's the approach that you have to take. i think investing in those quality names with tremendous ballast like the coca-colas, johnson & johnsons, microsoft and others of the world that not only have the quality to survive the turbulence but, in addition to that, pay a dividend so you get paid to wait and/or to help to support the share price when market prices decline, you'll do well. >> tie yourself to the mast. mark luchini, thanks. up next on "street signs," a speculation smackdown. the president taking aim square at oil speculators. but your guest says the president's plan is plain wrong. we are going to head to the front lines of oil and gas debates. later, a sirius defeat for howard stern. what it means for the king of all media and sirius investors.

guess what, everybody? yeah. happy birthday to us. 23 years ago the fine young cannibals topped the charts with this horrific song. >> it's a wonderful song. >> it is terrible. but luckily a fantastic channel. consumer news and business channel, cnbc, went live. >> look at that. >> it got us thinking, if you bought 1,000 shares of apple in the first day of 1989, how much money would you have made? >> i feel better about my hair. >> 1,000 shares on this day in '89. we'll give you the answer on the other side of the break. were go, so i used my citi thank you card to pick up some accessories. a new belt. some nylons. and what girl wouldn't need new shoes? we talked about getting a diamond. but with all the thank you points i've been earning... ♪ ...i flew us to the rock i really had in mind. ♪ [ male announcer ] the citi thank you card. earn points you can use for travel on any airline, with no blackout dates.

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okay. before the break we asked how much money would you have made if you bought 1,000 shares of apple on cnbc's actual birthday 23 years ago today. the stock price then was $9.81 on april 17th, 1989. would have cost you about 9,800 bucks. today those same thousand shares would be worth nearly $604,000. something like a 6,000% return. stopping today a five-day losing streak. they're up again. jon fortt, you have some breaking news on the oracle trial, no? >> that's right. larry ellison just got off the stand. he went through quite a bit of testimony. mostly about java and oracle's dealings with it. google is trying to make the case java is supposed to be

free. oracle came in behind and decided to start charging for something it hasn't charged for before. larry ellison's mission on the stand was to stay that's not the case. google is the only company dealing with java in the way that it is and not taking the license. ellison tried to make the point he's always thought -- he had always thought he would be able to convince google to take a license. but google, who's defending here, did manage to sort of make the case that oracle and ellison tried to make their own phone and tried to work with google first. when that didn't work, they then decided to sue. that's where we are right now. back to you. >> jon, thanks very much. by the way, it's worth remembering that in march of 1997 larry ellison said he was putting together a consortium investors to buy the struggling apple computer. a lot of people forget that. jobs wasn't running it. ellison was going to put together a bid for $700 million, buy apple and reinstate steve jobs as his guy. imagine if he had done that how

much ellison would be worth. he would be the richest man in the world by five-fold. >> he could have three carlo slims. president obama taking on the oil market today launching a sweeping plan to rein in speculation. >> we can't afford a situation where speculators artificially manipulate markets by buying up oil, creating the perception of a shortage and driving prices higher. and i call on congress to pass a package of measures to crack down on illegal activity and hold accountable those who manipulate the market for private gain at the expense of millions of working families. >> there you fgo. does the government need to crack down on speculators? bruce vincent, former chairman of the independent petroleum association of america. i have a feeling i know what your answer is going to be. you have to admit there's a role that speculators do play in this market to the upside. and maybe like we're learning

from nat gas, to the downside. >> yes. speculators are simply investors. they do definitely add to the amplitude of velocity in the markets. but they don't have the ability to manipulate price. we also need to remember how he's come out and talked about trying to increase oversight over speculation. dodd/frank was passed, a part of that, for that very reason. not all the rule making has been accomplished yet. we should let that follow through and see what the rule making does before we start bringing on additional regulation. >> do we have any indication, and i get your point. there are a ton -- i think it's a couple hundred, actually, of unwritten rums as of yet that have been authorized by dodd/frank but not put pen to paper. do you have any indication of how those rules are going to look based on speculation? >> no, we don't. one of the concerns that producers have is producers use these markets all the time to hedge our products. we're long on the product. and we want to be able to hedge -- take some of the price risk out. we want to be sure we can continue to do that.

there's been talk about having an end user exemption. in fact, congress actually wrote a side letter with dodd/frank that talked about allowing an end user exemption. we've not seen the rule making on that. we need to be sure markets allow end users, whether it be airlines trying to hedge fuel costs or producers trying to hedge their product if they're going to produce later, not be mixed up with financial investors who are -- aren't long or short of the product. >> because the market has changed. certain during your time being involved. what is it, then? what is it that's changed over the last 10, 15 years? how different is it now and why is it there seems to be this other pool of money out there influencing commodities and oil prices so much? >> the biggest change is the market's so much larger. the other thing about speculators, while others try to demonize them, the fact is they bring a lot of liquidity to the marketplace. which helps people like us in there hedging our product. it adds a lot of liquidity. it helps really improve the pricing you have on commodity derifties. >> what would it look like if

there was no one trading oil except those who used it? >> oh -- same thing would have if you started requiring margin requirements on the part of the producers p much of that market may go away. which would, in fact, add to the risk of our business. because we wouldn't be able to manage price risk. >> do you think the president or his economic staff fully understand the role that speculation and hedging play in the market? >> they may. but i don't think they do from what you hear. i think they're trying to reflect responsibility for high gasoline prices to some other third party. >> if oil was at 40, i don't think we'd hear anything about speculators driving the price down. >> no. >> by unfairly shorting oil. >> you're absolutely right. that's exactly what happened the fall of '08. speculation is investing. it can go south or is it can go north very, very quickly. it will do that quickly. and that's where it adds to that amplitude. the volatility. but it's going to go with the fundament ams. fundamentals say the price should be 40 -- >> what's the only way to get

the price to 40? >> oversupply or redooused demand. it always comes back to the fundamentals, supply and demand. you have geopolitical risk. value of the dollar -- >> either recession or a miraculous new discovery of oil. >> fundamentally does natural gas -- especially with the energy news. apple getting a lot of the attention today. fundamentally does natural gas deserve to be at $1.95. >> fundamentally does today because the industry's been so incredibly successful at unlocking this resource base in america. we've oversupplied the market. what will happen, just take time, is demand will pick up. you're seeing that already. an incredible boon to american manufacturing, american chemical industry, petrochemical industry. you're adding capacity. we're moving a methanol chain from chile into -- eventually

natural gas has to be able to compete for capital with liquid rich plays. companies like ours who have an inventory of both opportunities are going to drill the liquid rich plays first. you have to be able to compete for capital. it's probably going to take a couple years to get there. >> bruce vincent, president of swift energy, it was a pleasure. be sure to catch "mad money" tonight. jim will be speaking with the ceo of cheniere energy. 6:00 p.m. eastern on cnbc. before we go to break, look at that market. that's a lot of green on the screen. in fact, 29 out of the 30 are trading in the green in the dow. the only loser right now is j & j. put a band-aid on that. just barely below the break even point and my puns have officially broken below the breaking point. just ahead on "street signs," herb's disaster du jour is in the bag. a big flowery bag. and how tupac is bringing

new life to one small hollywood stock. happy -- not so happy tax day. accountants everywhere ready to hit the bar tonight. 63 million tax returns will be filed. 57 million including myself do it electronically while more than 6 million -- did i just say myself instead of me? i hate that. more than 6 million like the gold, old fashioned paper returns. i'd love to know who's still filing those and dropping them in the mail. "street signs" will be back after the break. ♪ ♪ [ male announcer ] not everything powerful has to guzzle fuel. the 2012 e-class bluetec from mercedes-benz. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services. i have to be a tree in the school play.

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look at whirlpool shares town about 3.5%. the company, really the industry getting an unfavorable rules as parking lot part of a trade dispute. a net negative for whirlpool. herb's disaster du jour time. this one is in the bag. a vera bradley bag. >> lovely quilted one. >> is this a man purse? >> not my man purse. back in january, as you probably remember. you don't. you were not here. i will remind you on this very show i red flagged vera bradley which, of course, makes handbag for inventory and other issues. it's off today after bull raymond james kept it as an

outperform. i got to love this. but lowered its stock target. this remains a heavily shorted stock with 77% of its float sold short or about 27% of its shares outstanding. that's after tumbling about 25% from its recent highs back in the middle of last month or so. >> is it where that target was still? >> i don't know where -- when you say the target, what do you mean? >> when he lowered his target. how much -- >> no, no, no. he just lowered his target. any time an analyst comes out, lowers target, keeps the stock at an outperform, it makes no sense. at that point you've got to lower your rating. think about it. this is back to the future with wall street. i'm sorry. >> herb on a roll today. >> don't apologize. you're making a great point. >> no, no, no. i get going on this thing. i can't believe we're still having these discussions. >> i know. >> fair enough. >> thanks, herb. a dead rapper, meanwhile, giving new life to today's sunshine stock. check out digital domain media. a hollywood special effects

production house up 15% today. here's why. ♪ >> that's right. tupac has been dead for 16 years. that was him, quote, unquote, performing at coachella music festival over the weekend. an eerie lifelike hologram. it may soon be going on tour. performing with dr. dre and snoop dogg. which musician would you like to see brought back to life? tweet us @streetsigns.cnbc. >> speaking of herbs -- herbs, it is by some considered to be the cilantro of beverages. the veritable lady gaga of drinks. team tebow of refreshment. we're talking about coconut water. either love it or hate. we'll put some to the taste test. first, larry kudlow has an exclusive with mitt romney. he just wrapped up with the gop

presidential hopeful. you know they talked taxes. we'll talk to him next. plus, brian explains why he thinks they should pass the buffett rule. [ horn honks ] hey, it's sandra -- from accounting. peter. i can see that you're busy... but you were gonna help us crunch the numbers for accounts receivable today. i mean i know that this is important. well, both are important. let's be clear. they are but this is important too. [ man ] the receivables. [ male announcer ] michelin knows it's better

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welcome back to "street signs."

a quick check of the market. dow still near 200 point gain on the day. the 10-year, though, barely above 2%. let's get to rick santelli. rick, maybe you can help explain why there's no more optimism here in the bond market. >> well, i think that's exactly it. just because you can be long an equity. an apple, a dow future. and call at the end of the day and get a check because we're up triple digits, that doesn't mean it's real in the eyes of the strategists in the marketplace. i think the credit markets, they're looking at it more like, listen, what changed from yesterday to today? okay. maybe a spanish auction went better than expected. if you look at their 2-year it's up 120 basis points since march 1st. 10-year is up 100 basis points since march 1st. i think the credit markets are looking for this to have a lot of fits and starts. i think they're kind of the adult trader in the room, so to speak. >> all right. rick, thanks. we'll keep an eye on that. still amazing. such low levels.

2.10% for the 10-year. >> today, spain's fine. tomorrow, who knows. >> between us we know three spanish words. [ speaking in foreign language ] we have already heard what president obama thinks about oil speculators. now, in an exclusive interview with our own larry kudlow, mitt romney responds and larry joins us now from new york city where they just wrapped up a short while ago the interview. larry? >> hey, brian. did we get the clip on romney responding to my question? because he basically said, don't blame speculators. he basically said blame obama polici policies. >> you know what, larry? i'm sorry. we just got it in just now. we're fast as can be. let's play it and you can respond. here's mitt romney. >> any issue that he faces, he tries to find someone to blame other than taking responsibility himself. now, as you and i know, speculators, which is a word which obviously has all sorts of negative connotations, are people who are investors who are trying to predict what the future price of gasoline will

be. and by virtue of being able to make investments based upon their assessment of the future, why, businesses are able to prepare for the future. so speculators have long -- if you will, investors in futures or people guessing the future of stock prices or of gasoline prices are playing a rule in our market. what are they saying? they're saying as they look out, they think the policies of this administration and policies around the world are going to lead to higher prices in gasoline and oil. >> all right. you could hear his riff. he basically is saying speculators are investors. investors are speculator. don't blame them. he was quite critical, as you might guess, of obama's energy policies. not enough drilling permits on federal lands. i followed up, by the way, a question about low natural gas prices. and romney agreed with me that those were game changers. but he said, you know, we've got to get the pipeline infrastructure to get them to where they're supposed to be. >> larry, i want to switch gears for a second. because i know the full

interview will air tonight on your show. but i'm just -- i just have a feeling you talked taxes. and let me -- i put this out on the web. i'm just going to let you know that i did. and it's why the gop should pass the buffett rule. i am now arguing they should pass the rule and move on. because it's hijacking the national dialogue away from issues of real money. and this is essentially petty cash. why am i wrong? >> well, by the way, romney said it was petty cash. he called it a distraction. >> he did? good. i should have quoted him in my article. maybe i'll update it. >> he's not in favor of the buffett rule for the simple reason it's a tax on capital and tax on capital gains. what we need is genuine tax reform. we should have lower rates and get red of the deductions and so forth. he's more of a tax reformer which i think is the right position. i think that the key point in the interview was talking about what's going to happen january 2013. tax armageddon or taxmageddon.

i asked romney right after you're elected, will you roll up your sleeves and get involved in this debate about all these tax hikes coming as the tax cuts run off? and he said to me, yeah, i will get involved right away. so i thought that was quite interesting. but, no, i'm afraid i can't join you, brian. i don't want to raise the capital gains tax. this is not the time. i don't know if there's ever a time to raise the capital gains tax. >> and i agree with you on the tax issue as it is a tax issue. the point of my article, which i know you haven't had a chance to see because i just came out with it. it just got published literally like five minutes ago. was that the gop has sort of been pushed into a corner by the president very smartly politically to where they now don't control the national political agenda from a dialogue perspective. the president has successfully pushed them in the corner as being perceived as millionaire defenders. all while these other huge problems, you know, health care, the deficit, obesity, you name

it, we've got all these bigger problems, those aren't even being discussed. >> well, i'll leave the obesity to you. i don't know. do i think obama controls the national agenda? to some extent he does because he's president. i think romney and the gop have some pretty effective rebuttals. the issue is not so much penalizing millionaires. what you want is progrowth tax reform. today is tax day. everybody hates the code. simplify the code. flatten the rates. broaden the base. get rid of the deductions and shelters for upper income investors. that's where romney's coming out. i think there's a clash of visions between romney's vision and obama's vision, which goes way, way, way beyond the buffett tax. >> larry, did romney really call it petty cash? >> i don't recall his exact wording. he may not have. i thought of it as he was saying it. but he said it was essentially a small issue. and i believe, kelly, that he said it was basically a distraction or a diversion. >> yeah. you know, he's had some issues with referring to large amounts

of money as if they were small. >> that's kind of my point, larry. let's call this, at best, 3% f of our deficit being raised if indeed we pass the buffett rule. yet it's taken about 95% of the political air time in the last two months. >> well, that's too bad. i think what congress should be working on is dealing with this tax cliff or taxmageddon that's coming down the road. look, i think the buffett tax is dead and it deserves a decent burial because they don't want to raise the capital gains tax. having said that, the big thing is $5.7 billion tax hike which comes january 1st, 2013, could be devastating to the economy. the interesting thing to me, governor romney said if elected he would roll up his sleeves and go to work on that right away. he won't wait. i think that's a very positive attitude on his part. >> larry kudlow, larry, thank you very much. thanks with rolling for the off the cuff conversation. we'll look forward to seeing the

entire mitt romney interview tonight on your show. thanks very much. >> thanks, brian, my pleasure. >> so the whole interview tonight on "the kudlow report," 7:00 p.m. eastern time. i will probably not be a guest on that show tonight. i thought i'd throw it out there. >> you'll be there in spirit. >> maybe not even that. coming up later on, bad news for howard stern in his dispute with his employer. is it good news for sirius investors? first, the official "street signs" coconut water taste test. yes, coke's in a $350 million business. we want to know, has the craze peaked? coming up. [ male announcer ] when a major hospital wanted to provide better employee benefits while balancing the company's bottom line, their very first word was... [ to the tune of "lullaby and good night" ] ♪ af-lac ♪ aflac [ male announcer ] find out more at... [ duck ] aflac!

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i'm scott cohen in the cnbc newsroom. cnbc has learned convicted ponzi schemer arthur nadel has died. the first mini madoff emerged in 2009. a sar sew ta, florida, money

manager and philanthropist which briefly disappeared as authorities were trying to get to the bottom of the alleged scandal. he was convicted in 2010. died in prison in butler, north carolina. he was 80 years old. "closing bell" is coming up next on cnbc. bill? >> we have an enormous program coming up at the top of the hour from here at the new york stock exchange. three of the biggest names in technology are getting ready to report earnings after the bell. instant analysis and investor reaction from intel, ibm and yahoo!. also talking with the ceos of t.d. ameritrade and u.s. bancorp. then stacy smith, cfo of intel breaks down his company's earnings just after they are released. good ole coca-cola, by the way, trading at a 14-year high. after earnings beat the street.

jumped 8% on higher prices and big growth overseas. just maybe coconut water had something to do with it. >> maybe. let's move on to that. coca-cola jumping on to the coconut water band wagon or tree, whatever you want to call it. already a $350 million industry. to this i say, why? have you ever actually tried coconut water? >> it's pretty good. >> pretty good if you like socks. >> it doesn't taste like socks. >> it's a very polarizing drink. some people can't stomach it, darren rovell. some people swear be it. kelly says she likes it. it's also known as a hangover helper. how big is this business? why do we have all this? >> it's very big. this is pepsi is entering here. one. they've been in for a couple of years. they own the largest distributor of coconut water in brazil. then you look at coke investing in xico, number two in the marketplace. >> over here. >> vitacoco is number one. there have been been failures. the reason for failures comes

down to taste and texture. why don't you guys try away here. >> is this independently owned? produced by all market product of the philippines. >> who owns vita coco. >> it has investments. madonna has a piece. a-rod has a piece. i'll start you off light. this is 10% coconut water. >> 10%? come on. >> sit all sugar, then? what's the other 90%? vodka. >> sobe life water. also pepsi. >> the fact it's warm doesn't help. >> that's only 10%. >> this is all sugar. i can tell. >> this is pure coconut water. 100% natural. you're not going to get out of this one. >> it's the cans that freak me out a little bit. i like the packages over here better. it has to be very cold. very cold. that helps a lot. great after a run. >> this smells like the stuff that we buy at home. >> can you see the color? >> panama jack? >> a little bit. >> it's like suntan lotion. >> tends to turn people off.

>> widespread panic. i like ladies lying in the sun that smell like coconut. >> that's very coconutty. >> i think, kell, is this your favorite? >> my favorite is the classic one. xico. >> straight up? >> i like it straight up. none of this. >> what is that? what are you feeding me here? >> vita coco. >> it's not clear. >> it's tropical fruit. >> see that color, folks? tangerine? >> coconut water is the first ingredient which is always good. >> i still like the plain. >> darren, you're going to get to a point where to make it flavorful enough for people to like it en masse, you're going to reduce the benefits of the health. it's going to be all sugar. >> zico chocolate. >> have you had it? >> no. >> i have. >> i haven't tried it. i want to try. >> here you go. whoa. sorry. >> what do you think? >> i mean, it tastes like somebody diluted chocolate milk three to one. >> look a watery yahoo!

>> this tastes like chocolate milk without the chocolate or the milk. >> will this hit $1 billion? a lot of bets against it. a lot of bets for it. >> if you work out and it's cold, it does taste -- >> if you work out. like you're the only one. if you work out, darren, you wouldn't look like that. >> after a workout it tastes even better. >> i do work out. >> exactly. all right. let's move on. remember when apple sold, you know, computers? guess what? they still do. do we care? we're going to debate it, look at their balance sheet. howard stern's big defeat with his contract dispute with sirius xm radio. that is coming up. i'm going to finish this during the break. [ barking ] appears buster's been busy.

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all right. one more stock to watch today. comerica. stock up almost 4%. the dallas based bank beating the street for a sixth straight quarter. nrg. nuclear power dpaen based in lovely bucolic princeton, new jersey. up almost 4% as well. after it was boosted to a buy from a hold by deutsche bank.

then you've got terex corporation. another big winner up 6.3%. they make cranes. equipment, not birds. and other equipment. boosted to outperform -- that was stupid. from market perform at wells fargo. i'll stop. >> all right. sirius xm shares popping after howard stern's lawsuit was dis missed. will today's ruling create a new buying opportunity? let's bring in amy young. a new face to cnbc. herb fwregreenberg is with us. calms for pla >> i definitely think it's a positive development for the stock. i think this really allows -- really removes an overhang on sirius stock. allows shareholders to really focus on the fundamentals of the stock rather than noise around

litigation. >> what are the fundamentfundam? >> i think we're on the recovery in auto sales, helping the company growth. their subscriber base. for the first time ever they're actually raising prices and should be okay for the quarter. this should translate to pricing power over time. you do have a positive catalyst given liberty media's stake in the company. i do think malone will ultimately take up his stake in the company above 40%. >> it's one of those companies, amy, where people think, i don't need this. then they use it and they're hooked. they can get cnbc and other fine channels. >> absolutely. >> do we know how many people when they get it in a new car, say they get a free couple month trial, what's the upkeep ratio? do we know how many people once they try it for free keep it and become paying customers? >> yeah. i think the lifetime value of sirius is pretty -- the turn is about -- below 2%. actually much better than something like a netflix and somewhere in line with regular

paid tv subscribers. i do think that sirius xm subscribers like the service. they do get hooked on it. they ultimately enjoy it. it's really about creating, you know, the lifetime value of val subscriber. >> however, you have to wonder if pan dora -- whether pandora and spotify and the other applications are a threat going forward. and also, by the way, if howard stern were to leave the network, what would the impact be? >> pandora is not going to be an impact for many, many years. howard stern's contract is through 2013. i don't see that being a threat. >> amy, i'm sorry to steal your thunder. i'm going to tell you why it's incorrect. i'm a spotify user, i'm a

pandora user and sirius. i don't subscribe to sirius for music. i subscribe for supporting events. spotify doesn't have live baseball or nascar radio, my favorite, is a draw? >> i definitely think there is a segment that really just listen to bloomberg, cnbc, that spotify and pandora cannot offer. >> though, i do plug in my iphone into the car and get pandora. >> do you think howard stern will leave sirius? >> i don't think so. even though he's on "america's got talent," he likes being on sirius xm. >> amy, thank you for joining us. we appreciate it.

>> thank you. >> we called bubba and i said if you do return the call, call her. earlier in the show, we laid out the real apple impact and the market. but what about the impact of the mac? it used to be called apple computer. now how important is the computer to apple? senior research analyst, joining us now, and herb is here yesterday the group came out and said mac sales may disappoint, the stock took a hit. does the mac even matter to apple? >> thanks for having me on. it matters matters but the percent of sales that apple gets from the macintosh is 20% and for comparison, it's more than 40% for the iphone. as far as profitability, we

estimate to maximize at 25% versus the iphone. iphone is really the story for the iphone. >> guys, one thing i really want to point out is that it was when gene munster from apple was on our show, i asked him what is the biggest impact and he said it would be the iphone slowdown and that brings you out of the ecosystem much more than the mac. the mac is in there. >> does that mean that the ipad is not part of the slowdown? >> absolutely. some people can take the air instead of the mac. where do you draw the line. >> let's ask tom. when i tunes gained traction, it was part of the iphone effect. you want it to work on itunes and on a pc but you want it to work the right bay so you go out

and buy a mac. >> it's growing at a faster rate in the last 20 quarters and there's other products that they have and smartphones in the way from desktops. the new iphone now you no longer have it sic it to your computer. you can sic it to the apple i cloud. there are many ways that it can make money off the phone independent of the mac. >> what's it it for the macbook pro? >> the difference is price point and incremental profitability. but to the extent that you can maintain or stay within the apple ecosystem woult having an apple computer, that speaks volumes about the ecosystem today. >> you know, to your point

earlier, if they say i need a new computer but i've got the cloud, i don't need a lot of hard drive space, i'll buy a $499 ipad and a blue tooth keyboard instead of a $1200 mac -- the reason i'm bringing that up is because that's what i'm looking to do myself. my mac at home is about five years old and i'm debating -- does apple care which one i buy? >> apple cares to the extent that what you're seeing is a lot of people are transitioning from a windows microsoft computer to an ipad and the keyboard, as you're saying. so this is giving an opportunity to pick up incremental market share. >> you will not give up your laptop. i guarantee you you will not give it up. you'll have addition nal memory and -- >> not with his music selection but i bet there are some that will. >> i may not buy the macbook

because i feel like i can get the same -- basically the same performance for half the price. am i risk to apple or is it the -- if we watch the market share at hp or dell or if those start to change, can we assume those people are going, then, from that to an ipad or into the apple -- how do we know how apple is doing, is my point? >> the company reports next tuesday and we'll get updated data on how many macs they are selling. but the real risk is somebody goes to an android smartphone and something that is not an apple tablet. what you see is consumers buying a lot more smartphones and tablets than lap toks and desktops. the real risk is if the next consumer doesn't buy the ipad or tablet. >> tom, thank you. we'll see you again. >> thank you. on this tax day, some

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