also learned the football season is come, the trade-off for that and domino's pizza, dpz, they will do well in that environment. >> "power lunch" begins right now. halftime is over. "power lunch" and the second half of the trading day starts right now. >> we welcome you to "power lunch." take a look at this. this is isaac. upgraded to humanitariun within the last half hour, now barrelling towards new orleans on the anniversary of katrina. this is a look at home prices, the latedest report card on housing. prices up in the june period year-over-year, first time we've seen that in two years, signs of a pretty slow but steady recovery. this is the republican national convention in tampa, where isaac and worries about housing and the economy will be battling for attention as the convention kicks off in ernest today. all of that is straight ahead. and today, my partner, i'm

delight, simon hobbs,@the exchange and we'll be working through it for you. and we begin with isaac, winds at 75 miles an hour and new orleans is bracing for the big storm. we do have full team coverage with meteorologist, todd gross, tracking the storm and scott is there focusing on emergency preparations as well as the impact on the oil industry itself. we will begin with todd. what's the latest? >> reporter: sue, it has become a category 1 hurricane now. we waited all day for this to happen. when you look at the history books is when it did happen. you can see the organize coming together a little bit on the satellite photograph bit not quite there in terms of a super storm. the bad news it is moving towards new orleans with the worst part of the storm moving towards louisiana coast. taking a look at the winds right now, the winds you're seeing are

wind gusts, so far fairly tame but the storm is still 90 miles away and won't be there until tonight. it's starting to cook. we will be keeping a close eye on that. one thing we will keep an eye on, not just any 6-12 foot surge but the rainfall is projected to be massive. we're talking 15-20-inches of rain along the louisiana coast. eastern louisiana, western mississippi, that could cause some flooding of rivers, streams and streets. we'll be keeping an eye on that story and the economic impact of that as well. simon. >> of course, they often say it's the water element far more often than wind the most destructive. scott cohn is on so far dry land in new orleans. it was dry the last time we spoke to you, scottie. >> reporter: yeah. it's a little bit strange to be talking about a hurricane that is this close and be standing here without any rain gear and

without any rain falling. i can tell i, the winds are picking up and the clouds are building to the south, where the storm is, as it moves ashore. in this quadrant of the storm, there's always a danger not just of wind and rain but also tornadoes. we're being vigilant as now hurricane isaac moves in on new orleans. there has been a lot of comparison, because of the timing, between this storm and hurricane katrina. there's not much similarity other than that. a lot has changed in terms of new orleans' preparedness. there is now a 14.6 billion$14. upgrade of the levy system that protects new orleans including flood walls and new gates. they closed the gate at the 17th street canal for the first time. that was one of the big sources of the doctisaster that was

hurricane katrina and now we're told there's no comparison between now and seven years ago. >> this structure did not exist. the storm surge from hurricane katrina came right up from behind us and went all the way down the intracoastal waterway into the heart of the city of new orleans and lower ninth ward and east new orleans. that can't happen anymore. >> in addition to that, people are still vigilent. seven years ago is still fresh in people's mind compared to what happened to the city. even though it is a much weaker storm, people are heeding evacuation, boarding up business, gathering essentials, doing what we're supposed to be doing as we wait for hurricane isaac to bear down on new orleans. >> what time is that supposed to hit? when is the latest estimate from where you are? >> reporter: we will start seeing effects soon and already seen rain bands will deteriorate as the night goes on. we think landfall late tonight

and early tomorrow, really bearing down on new orleans probably in the wee hours of the morning. >> scott, the view from new orleans, thank you very much. because we are in this preparation stage, the big gulf coast impact is on the energy sector because it forced more than 80% of the gulf's owes and natural gas production to shut down. cnbc's brian shactman is in new orleans also impacted. >> reporter: i need scott to wind up a little quicker. while he was talking, the wind picked up and it's obviously raining. the mississippi has been completely empty of barges and ships, just a lot of waves. not just oil that comes up, you get oil from north dakota and other shipments from missouri. not a drop today. that's the key here. oil, per se, not the key issue, the ability to refine it. 10% of all gas used in america

is offline. >> we can't really console ourselves with the eagle for play in regards to how well off the u.s. is going to be. it's really the making of that crude oil into something useful for us. >> reporter: listen, guy, we're getting a little wet here. we will retrench to a different spot. i want to point out doesn't mean oil isn't important, a quarter of the country's oil comes from the gulf. only 55% of rigs have been evacuated but still accounts for 80% because there are still rigs open off the coast of texas. they just don't produce as the rigs in isaac's path. >> brian, time to put a jacket on, thank you very much. brian shactman there. the threat to oil and refining has some once again talking about the strategic petroleum reserve. we did think perhaps at 10:00

a.m., the president might make announcement, nod towards that as a possibility. he did not. in today's yahoo! finance poll, at what point should the president tap the spr? $95 a barrel? 110 or $125 a barrel or only in what you could strictly call an emergency. vote now. sue, over to you. >> simon, thank you. joining us is the former mayer of new orleans, a good friend of "power lunch." we know him well. welcome, mr. mayor, a pleasure to have you with us. i wish it was on a happier topic. your thoughts as this storm bears down on new orleans. >> the mayor, mayor landrieu, parish president young and the governor seem to have done, from where i sit, the right things by

communicating in advance. people should be aware a storm of this type, which carries a lot of water and a lot of rain, could have flooding effects. if it's not from storm surge, it could be from localized rain. we have to be highly diligent. i know people are on pins and needles as they wait for the effects of this storm to begin. we're at the phase hoping certainly for the best, meaning hopefully this will not have a dramatic impact. i would suggest the effect will go far beyond new orleans to southern louisiana, even southeastern texas. when the storm gets inland to places like baton rouge and jackson, mississippi, it will continue to have the effect of heavy rains. this is not just if you live on the coast, it's far beyond that. >> a very good point. the city, it seems, from what we've been able to glean, i far better prepared.

fema has been on the ground a few days in preparation. give us a comparison of the federal government's role in trying to manage this potential disaster. >> it is good to see the partnership between the federal government, local governments and state government visibly working together to prepare the people, prepare the city for the advent of the storm. certainly, during katrina, you had open warfare between the federal government, state government and the local government. as i've said many times, i thought all three fumbled the ball in one way, shape or form. when i served as mayor in the late '90s, we had hurricane georges during the clinton administration we had a level of cooperation with the feds. that level of cooperation in actuality and visibly, is so critical to ensuring when the storm takes place, flf needs to be adigszal steps to protect the

public, need to be additional steps to protect public safety, everyone is communicating, on the same page and can act in concert with each other. >> mayor morial. simon. both political parties are keeping one eye on isaac and the other on the republican national convention in tampa, which kicks off in ernest tonight with ann romney speaking and new jersey chris christie in the spotlight, carried live. we should be very clear, even at this stage, now, it is still a very delicate political dance for both sides here. >> it is, although, simon, i think the danger republicans have been concerned about they will look bad having a convention while the storm is moving through the gulf and maybe hitting the gulf, i think that may be a bit overrated. they did get a taste today what an incumbent president can do,

advantage he has simply by doing his job when he came out and cautioned residents about this storm. >> as we prepare for isaac to hit, i want to encourage all residents of the gulf coast to listen to their public officials especially if they tell you to evacuate. now is not the time to tempt fate. >> of course, know is going to go on in tampa. you have mitt romney arriving today to hear his wife, ann, give a speech tonight. mitt romney speaks thursday and ann romney's speech tonight, i think, is going to be very significant, something that could help deepen the personal commitment between mitt romney and the american voters, maybe even more important than chris christie's keynote. >> what about on the subject of chris christie, the new jersey governor, is his appearance devalued, john, as a result of the front page article on the "new york post" yesterday, that he didn't want to run as vice

president because he didn't think romney would win? >> i don't think so at all, simon. chris christie is a very powerful messenger for republicans and unites the tea party and has mainstream appeal, shown that in the state of new jersey. he's a feisty speaker and will take the fight to president obama and make the case, he's been able, in a largely democratic state to get some things done mitt romney could do if he elected. >> john harwood, thank you very much. we'll be talking more about governor christie's address tonight on "power lunch". >> governor christie and arne romnarne -- arne r-arne arne- ann romney's speeches will be in primetime coverage. the president saying he will not attend this week's economic

conference in jackson hole, draghi, what does it mean? >> it doesn't mean anything. there's so much work to do, they have something to announce or he's not going because getting something through to announce 7th 6th behind the scenes. to the most realistic came from our view of the guest saying he didn't want to up stastage ben bernanke because draghi is moving the markets because he has a big job to do potentially thursday while bernanke is in his own academic confusion what might be done down the line, possibly until december. >> interesting to see what happens. confronting the crisis, investors gearing up for fed chief ben bernanke's big speech at the end of the week. the question they want to know,

is more qe coming. coverage on thursday and friday as well. time for a cnbc market flash with bertha coombs. >> hi. we're watching the worst performer in the s&p today. deutche bank cutting the stock from a hold. slowdown on orders kla is on the end of shipment. you can see the stock just recently hit a new 52 week high and it is up nearly 12% in the last three months. simo simon. >> thanks. up next on "power lunch," this hasn't happened in the least two years. a new bullish read on the health of real estate in america. as you head out, a look at some of today's most active stocks and how they're trading. follow us on twit ter twitter @powerlunch. get breaking news. finds out what's coming up and

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we're going to check on treasuries. the stock market may be treading water but anything but in the bond market. treasury yields moved to lows we haven't seen in about two weeks based on the news ec brb draghi will not be going to jackson hole and pushed the yield to

10.62% on the 10 year and the 30 year earlier this week bumping up close to 3%, wave now moved down to 2 3/4%, a pretty dramatic yield to the yield curve and also by the fact the consumer confidence report came out and levels we haven't seen to the downside in about a year and half. that's what's moving treasuries today even though we have low volume and a not a lot in stocks. >> home prices moved for the fifth month in a row. what is that saying about the overall state of the housing market? who better to answer that question than i do ann olick from washington. >> s&p's david blitzer said this morning, this is a clear sine wave seen a turnaround. take a look at his numbers and keep in mind, a three month running average that ends in june. all three composites were up a

year ago. the top 10 city composite up .5% year-over-year. they posted better annual returns in june compared to may. just charlotte and dallas saw a deceleration. clearly, the improvements are strengthening. blitzer say there's not much seasonality even though we're still in traditional strong seasonal numbers even though we're looking year-over-year. analysts are pretty positive overall but many warning of rising interest rates. record low rates offer more buying power that hopes to boost home prices. investors have been muddying that number swarming the low end distress markets and bidding up prices. witness a 14% annual price jump in phoenix where foreclosures are the bulk of the market and now in short supply. however, a new report says many

investors are dropping out due to higher prices, all things to watch going forward to see if these recent gains are here to stay. much more on this online on the blog. realtyche realtycheck.cnbc.com. >> thanks. the housing crash broke the banks. a new report showing bank earnings on the rise as well. eamon javers is in washington with the details. hi. >> hi. we're also getting good news in the form of the fdic's quarterly banking report for the second quarter of 2012 starting with bank earnings up about 27%. banks earned $34.5 billion, 63% of them reporting higher earnings. non-current loan balances declined for the ninth straight quarter and total loans and leases grew by $102 billion. that number had been down before. the fdic's problem of banks fell from 772 to 732.

they were cautiously optimistic about all of this. >> the industry continues to recover at a gradual but steady pace. this recover features rising profitability, attributable primarily to improving asset quality. more recently, we have also seen fewer bank failures and problem banks and signs of return to loan growth. >> one of the key numbers is that lending number, up $102 billion. that is an important number. in the last quarterly report, that number had been down, a good sign for the economy if lending is up and banks are injecting that capital back into the economic's bloodstream. >> thank you. from washington. next on the program, analyzing the analysts, find out if today's wa ae's wall street and down grades are the right

calls. harley davidson and sally beauty holdings. country was built by working people. the economy needs manufacturing. machines, tools, people making stuff. companies have to invest in making things. infrastructure, construction, production. we need it now more than ever. chevron's putting more than $8 billion dollars back in the u.s. economy this year. in pipes, cement, steel, jobs, energy. we need to get the wheels turning. i'm proud of that. making real things... for real. ...that make a real difference. ♪ a passionate belief, and the foundation on which merrill lynch has been built. today, our financial advisors lead from a new position of strength. together with bank of america, they have access to more resources than ever before. a steadfast commitment to help you achieve your financial goals in life. that's the power of the right advisor. that's merrill lynch.

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so go to legalzoom.com today and see for yourself. as much advanced technology as the world around it. with the available lexus enform app suite, you can use opentable to make restaurant reservations. during the golden opportunity sales event, get great values on some of our newest models. this is the pursuit of perfection. welcome back to "power lunch." shares of brown shoes, naturalizer and famous footwear, sales were a little soft and they were a little cautious although they see things turning around. this stock is up nearly 60%

year-to-date. >> thank you very much. time to do analysis. i'm here with ed from capital management. welcome back. >> we will start with citi on cruise lines. based on our checks, cruise lines have shown an improved check over the last month. what do you think of the cruise lines themselves? you wanted to focus on carnival. >> i like carnival better. they had that terrible disaster at the beginning of the year and regained all their loss and technically speak, better than royal caribbean. they announced they have strong bookings the rest of this year into next year. i would definitely take carnival over royal caribbean. >> another type of leisure is motorcycles. harley davidson retail sales, in july, retail sales may have been down mid single digits. do you agree with that?

the stock down almost 9%. this is a seasonal transition time for them as well. n that's true. i hate to be so agreeable. i believe the analyst is correct. harley drivers are skewing older. young people don't really want a harley these days quite as much. i'm concerned about that. we had a very warm winter and there's still plenty of inventory available in the shops according to the analysts. i'd have to say i'm cautious on harley. wouldn't buy it but wouldn't sell it either. >> and jpmorgan on sally beauty holdings with an overweight rating and basically a 33 target price, saying quote sally this is market leader within the stable u.s. professional beauty and supply industry. stock up 2.63%. >> they will push more expensive

products and good for the store going forward. good strong sales and sally is a beauty. >> all about hairspray, isn't it? i'll see you later. metals market about to close and we'll hit the floor for the final numbers. the worst drought in a half century causing a big economic hit to the u.s. what wall street is forecasting when we come back on "power lunch." at optionsxpress we're all about options trading. we create easy-to-use, powerful trading tools for all. look at these streaming charts! they're totally customizable

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gold prices closing. sharon epperson with the details. sharon. >> we're looking at gold prices around $1670, slightly weaker but really just traders waiting for jackson hole, waiting to see what happens from the fed and european central bank and that will determine the next leg for gold prices. we have seen anticipation from perhaps stimulus from central banks and buying and increase in holdings of gold exchange products, looking at the key gold etfs all seeing a record level of holdings as of last friday. in terms of what we're seeing elsewhere in the metals market, south africa a very big factor

in platinum factors and might be a peace cord reached in south africa and one reason we're seeing a sell-off in those metals. >> how significant is it oil was down and gasoline rallying on storm concerns and today we reversed those two trades? >> certainly significant if you're trading it and trying to keep up with the reaction to tropical storm isaac. keep in mind, traders are looking also what is going to come out tonight from the american petroleum institute and the american energy department in terms of oil inventories and will show what's happened in the past week. we will see a decline because of a dropoff in canadian imports and that is causing prices to rally in the crude market, what traders are talking about and the fact that president obama didn't talk about the spr at all and those anticipating that would pressure oil prices, that didn't happen, oil prices

recovered a bit. oil prices the story and profit taking. let's see what happens after the storm hits and makes landfall, that is when we will know what happens to those refineries and see what happens for the gasoline industry. from the nymex, let's bring in paul. as you look at how stocks are trading, do you see hurricane isaac reflected in them? >> no. i was asking repeatedly, can you play hurricane isaac? the stocks are acting like it's not a big deal. the obvious are marine transports and tide water, they move the boats around in the gulf and those that go up if there was a significant increase in the business potential. when katrina hit seven years ago, they did really well. the market is not acting like that. you can see this in natural gas. remember when katrina hit seven

years ago, nat gas went to $15 at one point. right now, we're trending down still in natural gas. things have changed a lot in the last seven years. most u.s. gas is on shore now. refiners in the gulf coast are usi using natural gas right now. that's all shut down. not a positive, a negative, they're not outilizing it. the world is a lot different than seven years ago. jackie, how are things looking at the nasdaq? >> we're watching the nasdaq very closely and it is the best performing market of the three today but not saying much, up .1%. the stocks up about 1.3% as well. the 10 three gainers, autodesk and autodesk with a 3.3% move acquiring assets from another

company. they are continuing their investment in product life cycle management. that's what i was trying to say. the stocks are higher and we're watching stocks like lam research in the green today and last but not least, all eyes on apple yesterday after it closed at a new record high, trading slightly lower today, 673. keeping an eye on google as well wondering how that verdict in the samsung suit will impact the company, they're saying not that much, 1% up today. back to you. >> we should note yelp is another big mover, shares sliding ahead of expiration of its lockout. remember it debut the march the 2nd, up 25% give or take since then. let's send it to the west coast with julia boorstin. >> hi.

57% of yelp shares could hit the market. they're down 3.7% after being down as much as 4.7% earlier today. the fact insiders didn't sell shares in the ipo is raising concerns some could sell shares tomorrow. venture investors do tend to sell soon after an ipo and elevation partners and besimer venture partners have the biggest state, 10% each and mask levchin and jeremy stoppelman own large parts of the stock. other social networks have dragged it down 32 bucks in march. we'll have to see what happens tomorro tomorrow. >> i suppose no stigma after you saw peter thiel selling so

heavily on facebook. >> also, they don't have roles on the board as peter thiel does. >> rising and lifting the back of the poultry producers today after the company posted better earnings despite there are record high feed costs, they have been able to charge more per chicken. 14.7% more for boneless breast of chicken and they are warning those feed cost are expected to move higher. big gain in sanderson farms. an update on our top story, isaac now declared a category 1 hurricane, new orleans bracing itself for the arrival of the storm. greg has the latest on its path for us. >> not long ago, about 12:20 eastern time, isaac was upgraded from a hurricane to strong tropical storm, maximum winds at 75 miles an hour and continued to move to the northwest.

at 75 miles an hour, you shouldn't be too concern the wind has come up 5 miles an hour whether tropical storm or weak hurricane, prepare for significant impacts, particularly storm surge and flooding as it continues to move to the northwest. let's look at the exact center of circulation in relation to the southeast coast of louisiana. we can see the center of circulation is right about there. for reference, there's new orleans. the heaviest rain and strongest winds are in this band surrounding isaac's center several miles out. keep in mind isaac will move very slowly the next couple of days with rainfall totals in excess of 10 inches. its impact hundreds of miles to the east of the center. look at these rainfall centers in the southeast. primarily a heavy rain and storm surge event with storm surge totals in eastern louisiana perhaps 6-12 feet.

overall, a significant long duration event. >> you just showed us the rain on that map. one of the things talking about in the markets today, the fact later in the week, as that storm slowly moves through that the rain might not actually help the drought conditions because the ground is so dry, you may have massive flooding. >> exactly right. that, too, but such a deficit even the rain accompanying it in other swell conditions wouldn't be a lot to mitigate much of the drought, a big time long term concern. >> thank you. that big drought across the midwest is having a real impact not only on the family farm but overall u.s. economy. jane is live at the farm progress show at boone, iowa, with more on what they're talking about there. >> hi. s there is a $375,000 sprayer. i will tell you something that will shock. despite the drought, because of the higher prices we are going

to get, knelt farm income this year in america will go up almost 4% to $122 billion. farmer carol miller sure hopes so. >> what you're seeing over here on the hill corn that has been wind damaged. >> where you see the holes? >> with the holes. >> miller is getting ready to harvest corn early because it's dried out. what she thought would be a catastrophic loss, plus she has crop insurance to cover most of that drought. >> some of these small ones can fool you when you start counting the kernel. >> some farmers will have more money this year with crop insurance than flf was a normal yield because we planted so many corn acres. livestock producers, on the other hand, this is potentially explosive for them. >> yeah. they don't have the same kind of insurance. the biggest losers may be

insurers, which include federal taxpayers and american financial, ace and wells fargo, the only one outperforming the s&p to date. a little bit of flavor. this show is like the detroit auto show for farmers. watch. this is just one example of that. the unveiling of the self-driving combines, plus entertainment provided by -- wait for it -- the crossbows of death. that was my favorite thing, starring the hartzells. >> simon, you don't see that everyday. >> no, nor the nice one you're sitting on. next, new jersey governor chris christie putting finishing touches to his keynote address tonight of the republican national convention in tampa. how will his own economic policies standing up in the garden state? we will grade chris christie

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♪ in today a's ya hoo finance poll, we asked you in which situation should the president use the strategic petroleum reserve, $95 a barrel, $110, over $125 a barrel. 72% said only in a real emergency. the vast majority of people say, not now. let's see what's coming up on "street signs." coming up at the top of the hour, a special report on isaac. right at the top of the hour,

get the latest track from the national hurricane center and talk to the president of the tulane university, who was at the helm when katrina struck new orleans. is the city and school better prepared this time around? and katrina authority douglas brinkley will be joining us, the best selling author of "the great deluge" and served as a historians on the katrina documentary. you have to join us, 2:00 to 3:00 p.m. eastern. back to you on "power lunch." >> we will see you then. the spotlight on governor chris christie tonight. christie has a reputation for fiscal toughness. what is his economic record in new jersey really like? we put that question to two people joining us from tampa, two new jersey statehouse reporters, melissa hayes with the record and mike simons with the asbury park press, also the co-author of "chris christie," the inside story of his rise to

power. good morning to both of you. we broke this into business development jobs and taxes. melissa, how does he rate in terms of business development for the state? >> he has done a lot to bring businesses in. cut corporate business tax. is new budget has another tax cut in it. brought amazon to the state of new jersey but also losing busine business. a pharmaceutical company announced plans to close their office and move out-of-state. >> are his taxes creating more corporate opportunity or is there more it to than that? >> certainly, the state has been very aggressive or willing to extend such tax incentives to get people in, and it's been one of the criticisms he talks about fiscal conservative and not sending dollars out, all of that is money foregone he's been less conservative with. >> you give him overall a plus on that, both of you?

>> business, business groups in trenton are very supportive of him, which pligmight not be a surprise. if they're a barometer, sure. >> let's look at the jobs picture. you can look at it a couple of different ways, when the latest state by state report came out on employment, new jersey did not fare very well but in the private sector we had job creation. >> it was 9.8%, the highest since it was created and he has created private sector jobs. we lost public certificate jobs because of cuts to municipali municipalities and school districts. he is trying to do more to bring businesses into the state, like amazon and other companies and reach out and even visit their headquarters in other states.

he thinks he's doing a good job. we lost over 100,000 jobs before he took office. he's bridging the gap to try to bring it back. >> he really touts his record in terms of cracking down on unions, teacher's union, challenging the tenure issue. that resulted in job loss. has he, though, overall, been successful in creating jobs despite the overall state unemployment rate? >> right. the loss of politic sector jobs was particularly concentrated in his first year, 2010, primarily in local education. since he became governor, that is still down, but in recent months, that part has actually leveled off and not been going down the way it had been earlier. he likes to focus on the private sector job creation. if you compare that to where new jersey stands in relation to other states, over the last 12 months, the state ranked 30th. to the extent there is a new

jersey comeback, as he likes to say back home although doesn't plan to sane the keynote, that doesn't appear to be limited to new jersey, something new jersey and other states are going through. >> we're going to taxes. he has not cut income taxes but he has vetoed efforts to increase taxes, but he has put a cap on property taxes, which melissa, is one of the number one issues. >> yes. he pushed through a 2% cap on local property tax levies. there are exemptions, pension benefits and health contributions are one of the exemptions. on average, taxes went up 2.4%. he did help level that off. i think it was $183 more for the average taxpayer. >> what does he have to do tonight to secure his future. he's one of the rising stars in the republican party and a lot of people feel four years from now he might actually be the nominee. >> he can certainly give a roll

licking speech and people expect that. that he might not want to be an overly aggressive attack dog because he is still governor of new jersey, which is a more moderate in fact democratic leaning state. he'll have to balance a lot of different things. but he's relishing the opportunity. >> i'm sure he is. we'll all be watching. thank you both very much. governor christie and ann romney are speaking tonight. the headliners at the national convention. don't miss our headlines at 10:00 p.m. up next, new york, cracking down on high octane energy drinks. another case of the nanny state, we will debate. [ male announcer ] drive a car filled with

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it's power rundown time to cut through for truth and justices. we kick off with gm halting production of its chevy powered volt for a month. this is the second time. they say it's not due to slow

demand but i see they've only sold 10, maybe 11,000 volts so far. >> demand may be greater than zero but not as much as the production they've been coming up with. they were very confident they were going to be able to sell them. americans don't want them the way they were hoping they would. >> all electric vehicles are disappointing. the american leif sells a few hundred a month. it is very difficult to get people to change without a compelling value proposition. with gas prices still relatively down, value proposition isn't there. >> also problems with technology. i heard a lot of antidotal report saying these things crash, not meaning crash into an object but crash like a computer crashes, run lots of lines of code. a lot of software to make them work. i don't think the technology is all there to make people happy with them. >> that's hearsay on carney's part. let me be clear. new york's attorney general is cracking down on energy drink makers investigating their

ingredients and health value. is this another case of the nanny state. i'm sure you applaud it, don't you? >> i think it's awful. people need energy. we sit at desks, it's unnatural for people to be sitting around all the time. people need a way to get their energy levels boosted up. that could be caffeine or energy drinks. they say everybody should drink more coffee. people ruin the energy benefits of coffee by pouring sugar in. if energy drinks can delivery the caffeine without the sugar, you should go for it. >> i will take the opposite side of this trade. i'm not in favor of banning anything. i do want to know what's in it. why don't they put the labels what's in it and amount. i want to know how much caffeine is in it. these are the companies that say, we will provide you with the biggest kick you have ever seen, you will have hours of energy. fine. i want to know the interaction with other drugs and don't think it's a nanny state.

>> it has twice the caffeine as a cup of coffee. >> that's great. people get the caffeine without the side effects of too much sugar and milk. >> and putting how much calories are now on menus, i think that is useful. >> the faa says it will study the policies using electronic devices while on a flight. if changes come, this would make flying a more enjoyable experience says the producer, john carney. >> americans should right now, every single one of us should stop obeying this rule. we would be a better country if we stood up for our freedom and say, we're not going to turn off our electric devices ever again. >> put carney up there. >> we are 730 million passengers on airlines. at least a few of those must have kept their electric devices on. not one accident happened, it's

safe technology. we should rebel. >> airlines have to prove to the faa that these devices are safe. that's the core problem. that's why the airlines come out and say, hey, we don't know. we will tell everybody not to do it. tell everybody to shut off the devices, shut off the particular connection, the cellular connection and let them use everything else. that's the answer. >> we should be able to read our kindles and nooks and e-readers but we shouldn't have to turn them all the way off. >> the legal problem, the airlines are the ones liable. >> still ahead, we've been talking about the oil impact on refineries. what about shipping, the gas made out of the gulf? i wish i had read this before. could a potential bottleneck be the real catalyst for pain at the pump? i thought that went very well. tdd#: 1-800-345-2550 you should've seen me today.

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with the dow and s&p down fractions, what are your final thoughts? >> long term bonds going up, euro going up. they can't both b