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at shorts yen goes long japanese stock. >> watch where the market closes between now and the end of the day. have a great weekend. join me on twitter. and poufr"power lunch" starts r now. >> the second half of the trading day gets under way right now. and "power lunch" is all over it. >> oh, yes, we are. great jobs number today. but maybe things are getting just too good for the fed's comfort. only mr. bernanke will decide the answer to that question. will an improving jobs picture make the chairman and his marymen domare merrymen at the fed keep this party going? the big question, how do you play it? we have advice from several different quarters and what this means for the number one asset, the price, value of your home. sue is at the stock exchange. good day, sue. >> hello. we have a gain of 37 points in

the dow jones industrial average right now and that is good enough right now for some traders down here. but bob pisani is with me on the floor of the stock exchange. looking at specific stocks moving the market higher. >> we are down five days in a row. we are you've 2% almost on the week of the s&p 500. take a look the the dow. steady. we dropped a little after 12:00. i think that's because we add downgrade. take a look at major sectors. consumer discretionary lead and utilities and consumer staples are on the bottom. they look virtually the same. people ask me why banks aren't up today. good heavens. we had great stress tests. everybody passed. citigroup passed. >> they had great a run. >> chase, bank of america, regions financial, all of the regional guys down and sue is right. these stocks have had great runs. take a look at the xlf again.

this is the financial etf. that hit a new high, just the other day. and you can see now it is basically fractional. so you're right, big run up going into this. this is just a little bit of sell on the news. >> plus, friday, going into the weekend. >> we have lots more to talk about. i will drag you over to the other side of the exchange here. over to you, ty. >> better than expected, 236,000 workers headed to u.s. payrolls last month. that's what everybody is talking about. what does a better job environment in the u.s. mean for fed policy? will the bond buying recede? will rates go higher? is the fed punch bowl about to be locked back up in the closet? steve liesman. >> a better jobs report does put it into play. quantitative easing, the bond purchases they make, is quote unquote substantial improvement in the job market and most

economist insisting today that one month of job growth isn't substantial enough for the federal reserve. quote, those improving trends will be a sure policy maker but caution about the sustainability and robustness of the recovery will no doubt remain the key theme of the fed's rhetoric. that according to market. and isi economist say if recent trend continue, feds will reduce the pace probably later in the year. nothing but september but reducing it. this is the hot part of the job's report. 236,000 people found jobs in the month of february. estimate was 160. hours worked up by 0.5%. good number for gdp. diffusion, job growth, construction employment gains and temporary employment gains. that's a good sign for the future. unemployment decline to 7.7% driven by a lower participation rate.

there is a rise in the duration of those who are unemployed at an increase in discourages workers. some are warning of trouble ahead when it comes to the job market. for example, one economist saying the labor market was in descent shape before the sequester began and before the impact of the payroll tax hike but that does not mean the two factors, tightening worth about 1.5 percentage points of gdp does not reduce payroll growth in months ahead. so sue, sustainable yes. i mean, big number for today. definite improvement. but sustainable is something we have to see over months ahead. >> indeed. let's talk more about that. because kenny pull carry is with us and director of floor operations at ubs welcome to the party i goes tyler and bob, bob is next to me here, are in the mix as well. art, i will start with you. you heard what steve just said. we had a very good run in this market. what is your opinion of the

job's market and sustainability issue? >> i'm worried that one month doesn't make a trend and i think one of the things holding back, one of the reasons we gave back some early spike here is this is a little familiar. last year around this time -- >> exactly. >> -- we add very similar event. we've locked at revisions. that's kind of changing things there too. so it may be less than what it appears to be. one of the perception eps these days, is good news allowing for gridlock. >> kenny, i want to bring up a quote that actually dove tails nicely with what steve liesman was talking about earlier which came out earlier this morning. he said, what they would like to see, they meaning the fed, is sustained strength. we've had accelerations in payroll growth to art's point

and they have proven to be short lived in a couple of cases. the market seems to be looking at this as if the fed will take way the punch bowl. >> but again, see, i don't think the fed has taken away the punch bowl. and they did this a couple weeks ago when they interpret bit minutes. they came out the next day and said, whoa, don't anyone look nervous. i think the market needs to see sustained but it is plus 250 consistently. plus 300 really is the better number. that it is consistently. until we see that, we have this waffle. don't forget we have this dramatic move. no surprise at all. and we are still up. not even down. >> but these are great numbers and you would anticipate, i've gotten e-mails today, hey, bob, how come we aren't up more on the fantastic numbers. and you're right, the feds are part of the problem. steve, weigh in here. do you think that strengthens the case for the asset purchases later in the year? >> it does. but as art said, let's look at

the enormous amount of slack in the labor market. when you look at the broader leverage, when you see the u-6, people working for economic reasons, that percentage is 14.3%. a lot of people dropped out of the work force. i believe the anticipation of the federal reserve right now is that a sustained stronger job market will bring discouraged workers back in. you could theoretically have 200,000 a month in payroll growth, have a rising unemployment rate and fell the fed there is plenty of room to either sustain the policy or room for error if it gets it wrong. get to the place where you do not have inflationary pressures. >> first off, i want to wish art cashen a happy birthday. he celebrated earlier this week. we are lucky it have you with us, art. we haven't seen -- we have seen some declines in government pay rolls and we will see more.

and as that moves in from spring and summer, i wonder if that is dead weight -- >> tyler, i want to come in and put a tag on your question. which kind of goes to art. which is, can the market distinguish between minus 20k or 3 30k on government. will it still feel good on the economy, that you say is really coming. >> what do you think, art? >> i think it will have difficulty doing that. because we capitalists like to think that the private sector and jobs are highly pro productiv productive. but right now, in a rather fragile economy, a job is a job. and one or two less paychecks or 20,000 less paychecks, can be a problem. look at how much time we spent talking about the reinstitution of the payroll tax and what it would feel and that's a relatively small number. but it hurts a lot of people.

>> these numbers will make people feel better. what the newspaper headlines will be tomorrow. right across the board. nobody will talk about the labor force participation rate on the front page. >> bob, bob, a newspaper headline is all well and go for the weekend. but it doesn't replace a paycheck. >> but the point is, numbers improving, it helps the confidence levels. we have seen consumer confidence. this is what is confusinconfusi. today's number was up 60 but last month down 60. are we really flat. that the part where the market started to take a look. let's look at this again is it as pod as the headline number appears. >> i will tell you what is more important than headline numbers. when they sit around the kitchen table or dining room table, if she turns to her husband and said, hey, your brother called, he got a job finally. that more important than any headline. >> at what point do we get this good news. does the market say, hey, you

know what, we don't need the fed adds much any more. when does that become a positive for the market? >> they are not ready to see the training wheels off yet. that's what you see this morning. data came off and revisions and other things they pulled back and then the blogs sphere went out, three or four more months of this, they will taper down. they didn't say they would end, they would taper down. that's enough to pull the rally away. they today wait for denials to bring us back to where we are. >> which goes to the point of why is the market where it is? still dependent upon the fed. >> all right, gentleman. great, great job all of you. thanks so much. >> thanks. >> ty, back up to you. >> all right, sue. the question of the day for finance.yahoo.com is how confident of you are getting another job or better job? we will give you the results later today on "power lunch." sue? >> well, economic uncertainty in

february. taking a bite out of mcdonald's sales. higher gas prices, and delayed federal tax returns all playing a role there. but the decline was less than the street was forecasting and that boosted the stock to 11-month highs. another deal in the private equity arena. a $3.7 billion equating to $76 million in cash, 39% premium from october 24 date. the day before gardner said it was exploring a sale. but analyst say the price may still be too low. let's look at how the street is treating the stock right now. it is up better than 1 1/10%, ty? >> pandora trading at $14 a share. that's a big move there. 19% for pandora today. on-line radio company, reported better than expected earnings. and in a surprise move, ceo

joseph kennedy says he will step down as soon as a successor is named. he's had the job there at pandora since july of 2004. that's about as long as pandora's been around. today showing a brighter picture. next, a sector -- i just love that music -- where there isn't as much of an impact on home prices. diana orlick is in california. >> well, if it didn't get them it will hurt home buyers and recover prip what can builders do to help? plus, rising mortgage rates. your home and your money next on "power lunch." but we can still help you see your big picture. with the fidelity guided portfolio summary, you choose which accounts to track and use fidelity's analytics to spot trends, gain insights, and figure out what you want to do next. all in one place. i'm meredith stoddard and i helped create

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no bones about it, skull candy is getting its head handed to it. that's a 21% decline for that low price stock. head phone maker reported higher than expected fourth quarter revenue but expects to post a loss in the current quarter because of expansion costs and the loss of a major customer. sue? >> ty, the economy front and center today. we've been talking about it. that jobs picture is looking brighter and housing recovery is indeed under way. but there is a labor shortage in

housing. it is having a big impact on that sector. diana orlick is live in silver spring maryland with that sector. >> just a simple case of supply and demand. if you don't have enough skilled construction workers then you have to offer higher wages to get them. in turn, then you have to jack up your home price answers that's the problem in homes today. we did see a surge in residential home construction jobs but not as high as numbers need to be. housing starts are up 24% year over year. but residential construction jobs are up just 3% from a year ago. many are not coming back. they headed to higher paying jobs like trucking, energy sector, even highway construction. we were out in las vegas earlier this week where housing starts are up over a hundred percent for some of the home builders there. they are desperate for skilled workers. that has meant offering up to 10% higher wages which builders

then need to recoup by raising home prices. >> we have raised home median prices up over 15%. cost increases and it's not just labor, it is also materials, lumber has been going up and we're paying more for lumber. >> prices for newly built homes are always higher than those for existing homes but that spread is getting even wider. not so mention, it is now taking 15% longer to complete a newly built home than it did just a year ago because they don't have those workers. and that's hurting the builders. we've got a lot more on-line, realty check.cnbc.com. sue? >> weigh in on this, if you will for us. people talking about the fed perhaps pulling back on its stimulus a little bit which might raise interest rates. we seem to be in a rising rate environment. what is the impact going to be on housing? >> it is not a good impact, but we are still near record low

interest rates on 30-year fixed. even if it went up a full percentage point, it is still near a record-low interest rate. that said, higher rates could drive more borrowers to the fha because that's the only low down payment in the game there. that's an good thing because we are trying to move that share away from the government and back into the private sector. look, rising mortgage rates are not good for housing. that's bottom line. >> they certainly are not. but in the short run, might it have a converse, perverse effect, as you will, as rates begin to move that buyers might get anxious and say, hey, i want to get in ahead of the rising rates. and that m might raise prices and sales. >> that happens a lot. you have a lot of fence-sitters sitting out there right now saying, i don't want to buy right this minute because maybe prices will get better, maybe there is nothing i want it buy. but we won't go from 0 to 60,

even though it may feel like it in home construction right now. when we look longer term, we have to worry about the interest rates going higher. but you're right, it could get a couple of people off the fence. >> diana olick, thanks. a crucial sector that has the ability to move markets back and forth, next, three major banking stories on the horizon. on the docket, impact of higher rate, it that comes to fruition. on the banks. the next big stress test for them and the whale in washington. finally, will china be a catalyst for stocks? and ahead, one of the most influential women on wall street specializes in all things china. we have her here for you on "power lunch" in just a few minutes. ♪ [ male announcer ] this is karen and jeremiah.

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>> welcome back to cnbc. i'm josh lipton. windham is up about 2% guys, back to you. >> 17 out of 18 of the big ones passed yesterday's stress test, we will see those banks, i guess maybe not right now. that's okay. don't worry. let's look at three issues of concern right now. let's start first with neil wineburg. their cost of funding is very

low. they are able to make money. is a rising rate environment going to hurt them? >> they also complain their so-called net interest margins are really down. as you look, bigger banks are, better they would probably come. the big banks are asset sensitive. if rates rise it should help their interest margins and that should make it more profitable. >> one of the ways the feds should pull back on easy money is by paying the -- raising the rate they pay on reserves. and the banks with the most reserves, j.p. morgan chase, citi, wells fargo, will do more when feds pay on the reserves. >> another one which you say may be more important, what is the distinction between the two? >> hard it figure it out but the one yesterday is under had todo.

this will include plans banks have for payouts. if we find the banks don't have enough capital, the feds could put a kibosh on their payouts. >> you say in some of the number that came out yesterday, you were surprised by how good they are and it might loosen up their ability to pay. >> bank of america had more capital than the feds said they would require. citigroup did well. surprisingly, some of the banks people talk about as being strong were very close to the edge. goldman sachs, j.p. morgan, a very stressed scenario. they come close to the limit where the fed will cut them o off. >> it was about a year ago this time last year guys where the london whale was swimming around, bringing up big losses. jamie dimon will be there next week, what will he say, and is he likely to get a whoopin?

>> well, politicses love to be in front of the camera -- >> you think? >> i think. with too big to jail, stress tests, and everything else, they want to go through it with a fine-tooth comb and ask thefrg he can. >> i don't think it'll be enlightning. in part because j.p. morgan put out a big report about what happened. they will ask a lot of questions. you will probably get show boating from congressmen. >> no. >> but i don't think we will learn much. >> gentlemen, thanks very much. lots to talk about on the banks today. >> sue, down to you. >> thanks, ty. the china factor is up next. will china drive the next rally in the u.s.? we will speak with one of wall street's top mines on china. influencing the allocation of trillions in assets and she will join us, next. [ male announcer ] i've seen incredible things. otherworldly things. but there are some things i've never seen before. this ge jet engine can understand 5,000 data samples per second. which is good for business. because planes use less fuel,

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welcome back to "power lunch." i'm bertha coombs at the gold pit and we are waiting for the gold close. it looks like we might see gold

close fractionally hire. today it looks like we will close hire and maybe by just pennies, beat out and be higher on week, curbing a four-week losing streak for gold. gold has been under pressure as a lot of folks have sold out of their funds. a lot of gold funds have seen big withdrawals, record withdrawals. gold and palladium have been higher. copper is expected to bounce from here over the next three to fix months. sitting out the rally despite bullish employment numbers. back to you. >> bertha, thank you very much. we are up 40 point on the dow jones industrial average. bob pisani joins me. financials have a lot to do with it this week but that's not the only group with a great performance. >> we were talking about the materials, energy, financials, all week doing well.

doing well again today. i want to show you another group on fire today. that's the airlines. united started this recent round here thursday night. came out and said revenue per passenger is rising. that's good news. reduce capacity. higher prices a little bit and travels's holding up. that's good news. look at moves up 6%. i want to show you for the week, look at this. when is the last time you saw double-digit gains in a week on all of the airlines. monday delta said they would be profitable for the first time since 2000, for the first quarter i'm talking about. so bottom line is, higher profitability for all of the airlines. a lousy business for decades. but right now, a lot of these stocks, airline indexes have a new high. >> thank you bob pisani, have a great week pend. let's go to the nasdaq, seema mody joining us. hi, seema. >> hi, sue. big week in the markets. let's pull up the nasdaq. can you see while it is trading around the 12-year high, index

up only about 2% on the week. traders waiting for that break out in the tech sector. big headline from google today, announcing it'll cut 1200 jobs from its motorola mobility unit. higher cost and competitive market, remember google did acquire google mobility last year for $12.5 million. elsewhere, mixed session for social media. facebook gaining 4% yesterday after announcing an enhanced news feed. facebook is also underperforming its pierce in the social media space. look at groupon, that stock up on the day. about one week since andrew mason announced departure. shares up about 6% since then. back to you. >> thanks, seema, very much. to chicago where rick santelli is tracking action at cme. we have been talking about the

creep up in interest rates. talk about me. >> it manages to creep even though we know feds are heavily involved in buying it to keep the creep from getting too creepy. now if you look at an intraday chart you can see we are up about five basis point. up more on the week. open the chart up, go all the way back to april of last year. that's the time you will find the comp which means we have basically 11-month high yield. a whopper of a day, up about .75%. best levels in seven months going back to very early august. last chart, don't use this chart much. this is dollar versus peso. you can see the peso is pretty strong but bump along in the range. mexicans cut 50 basis points today. first cut in close to four years. partially controlled capital inflows and to spark economy. tapering off just a little bit. a hot economy, sue, back to you. >> okay, ricky, thank you very much.

let's talk china. taking wall street by surprise. soaring nearly 22% in february. is china the catalyst for a new market rally? chairman at china markets for j.p. morgan, jane, welcome back. >> thanks for having me. >> let's weigh in on the exports figure. we talk about the markets held hostage to the fed lately. we have also been held hostage to day out of point in china. is this the catalyst for another leg up in the u.s. stock market? >> i think we have to read beyond the headlines when it comes to chinese data. remember last year if february, china had chinese knew year. country was shot for ten days. it may not be directly comparable because of the way the chinese knew year fell in 2012. today's expert numbers were quite encouraging but we have to look beyond headlines.

you have to combine january and february numbers to make sense because every single year there's quite a lot of noise early in januarynd february due to the way chinese new year falls every year. >> it also coincides with the start of the 12th national people's congress. and i wonder whether or not it doesn't put more pressure on people's congress to make sure they get a sustainable economy under their hands. what do you think? >> that's right. the most important thing to note is that net exports no longer contribute it chinese growth. a lot of people still think that exports are major driver for chai nechinese gdp. it is no longer the case. most important is investor consumption. in 2012 and 2013 we expect chinese private con supgs for

gdp. one of the most important focus says basically private consumption, building social welfare and lifting lower income families. >> what about housing? i don't know if you were able to see the piece on 60 minutes of all of those empty cities and building that has been going on in china. weigh in on that, jing, and how important the housing sector is. >> housing market in china is very complex. it varyes a great deal from city to city, from province to province. top tier cities like beijing, shanghai and guongjo, prices have been going up. in third and fourth tier cities there is oversupply so you have sh sm ghost towns and ghost districts which worry investors. think that i going forward people need to distinguish between secular trend and cyclical trends. the market will do well over the

long run because of incan come growth and urbanization. on the cyclical, we have a slort term correction because the central government is clamping down on speculation and investment demand. >> we also are starting to see more purchases by large chinese corporations, you know, we have soho china, perhaps picking up an iconic building in the united states. do you see that, they have always been cutting edge. do you see that perhaps as the start after trend? >> it is already a trend. many chinese companies are beginning to purchase more property assets in the u.s. individuals in china are coming to the u.s. and canada to buy properties. actually, if you look at property values here in the united states, they are much more reasonable than prices in china. going forward i see more capital going from china to the u.s. to buy real estate and in other sectors as well as china is extremely capital rich. >> absolutely.

it certainly is. i was referring more to the fact that this is a particular building that we are talking about, that soho china is interesting in, is general motors building in manhattan. it is a trophy building, per se. i know there's been a lot of purchases by chinese corporations and individuals in the united states but it seems as if it is ratcheted up in terms of the size of the purchases. >> also, i think this is an indication that chinese investors may think the u.s. commercial property market might have bottomed. it had been in downturn for a number of years. chinese capital is seeking a home outside of china. so increasingly i think we will see a lot more purchases of chinese companies overseas. not just in u.s. but also in europe. >> all right. jane, have a great weekend. good to see you again. >> thank you very much. >> over to josh lipton for quick market flash. josh? >> we are watching 3d systems.

company canceling its conference presentation, due to it says, a schedule conflict. enjoying an intraday pop though coming off a bit now. tyler, back to you. >> josh, thank you very much. h and r block with a bigger than expected loss. saying costs would drive profits this year. navistar on continued heavy volume, this as investors believe the worst is over for the truck maker, as coo troy clark takes over the reins. smithfield foods splitting and beginning a cash dividend. big story today, 236,000 jobs added in february. taking unemployment down to 7.7%. today's yahoo! finance question asked, how confident are you in getting another job o or a better one?

11 percent essay very confident. 23% say somewhat confident and 66% still say not confident in getting a job o or a better one. beginning right now, with us is mark mario, former new orleans mayor and christie, special assistant to president george w. bush. gentlemen, great to have you with us. mayor, let me start with you. let me start with you. that poll indicated that people, two thirds, still don't feel confident that they can get a new job or that they can get a better job. what does that say? >> while the job numbers are good and it points in the right direction and markets are strong, many americans still remain unemployment, underem ploit or still lacking in confidence about the future of the economy. but let's say 236,000 jobs is good news.

but it isn't cause to celebrate for more than a moment because of the many americans who still remain unemployment or underemployed. there is a lot more to do. but this is probably with the combination of markets, and the job creation, one of the best months that we have been on this show to report on the jobs numberes. >> ron, take me through this. obviously these numbers are far better than the alternative which is job declines or weak numbers. but it was a real spike from january almost double, what the numbers were in january. they have been revised downward. are these gains sustainable or people falling out of the work force or what? >> i think it is a good news. any time you see 236,000 jobs and number higher than expected, every job created is a good thing. what troubles me a little bit, once you start getting in the weeds of it, we found 135,000, 136,000 people left the work force which in fact helped

contribute to the tick going down for the unemployment rate. when you look at u-6 number, the people of unemployed or underemployed, is still 15%. i agree with mayor morial that it is a good sign we are creating more jobs but it is a very soft belly of the beast a and i hope we don't slide the next couple of months. >> we will t about this more after a break. we will probe the question of whether the gop sort of lost a reason to gripe over the jobs rates today. if that doesn't keep you around, maybe this will. a surfing pig. i will explain after the break. the best i can. a surfing pig. zap technology. departure. hertz gold plus rewards also offers ereturn-- our fastest way to return your car. just note your mileage and zap ! you're outta there ! we'll e-mail your receipt in a flash, too. it's just another way you'll be traveling at the speed of hertz.

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foot locker stock down

6.25%. trampled despite fourth quarter earnings. disappointed that the company didn't top their hire expectations. other athletic stocks falling in sympathy with foot locker today. including finish line down a third of a percent. the biggest loss though is in under armour down almost 2.25 percent. >> sue, we are still talking about jobs with marc morial own ron christie, of christie strategies. i want to get your input on whether the tax increases and spending cuts have yet to be felt on jobs growth. and whether you fear that it will be. ron, why don't you go first? >> well, i think it remains to be seen, tyler. if you look at congressional budget office they produced a report that said the sequester could lead to the result of 750,000 jobs lost bit end of this fiscal year. and so with the sequester only about a week or so in, i think it is too soon to say and whether or not congressional leaders and president can come

to an agreement remains unknown at this point. >> mayor morial? >> i think it'll take many, many months to see what impact the spending cuts will have. but inside the report over the last several months and even over a year have been reducks in state and local government employment. so if we hadn't had the cuts in state and local government on unemployment, the unemployment rate would be lower and that job creation number would indeed be higher. i think it will take many, many months. i hope congress and president will sit down and dial back some spending cuts. attack the issue of tax reform. and perhaps come together around an infrastructure spending initiative that might be a multiyear initiative. there's much they can do together and i hope they work together. >> jobs, gentlemen, has been and will continue to be a big political issue. but unemployment rate, ron, is the at lowest level in four years. i guess the president and his

team could with some justification say, hey, look, what we are doing is working. has the gop through these numbers and the sort of momentum that is in the jobs numbers in recent months, have they lost an issue with which to hit president obama. >> no, absolutely not. if you look at reagan recovery from the recession he inherited from president carter, reagan was able to cut taxes, reduce spending and we have sustained economic growth and full work force participation. what we have with the obama jobless recovery, the way i look at it, if you look at real unemployment rate where it should be if of course all of the folks who wanted a job and had had dropped out, the unemployment rate is at 11%. there are millions of americans who decided to stop working or stop looking for work as opposed to the reagan recovery where folks are working and in a job. >> mayor, ron makes a good point. growth was quicker than it has been in current recovery.

obviously a different era, different times, but he makes some good points here. you would think this would sort of inoculate the president from political attacks but ron says, not so fast. >> let's not revise history on president reagan's watch. the deficit also increased substantially. while deficit increased military -- >> well this decreased the deficit at -- >> well, the president taking credit -- certainly for many, many years now, people saying the recover is not strong enough. he is due credit. but what is more important the need for the president and opponent in congress to work together. i want to see them work on tax reform. i want it see them work on dy g dialling back the cuts so it doesn't impact job growth and infrastructure spending. it is time for them to find a way to come together and the time for gripe has long ended.

i think the american people are unified in saying that. >> maybe favorable signs the president did good out to dinner the other night with a bunch of gop senators and had lunch with paul ryan, the republican vice president shl nominee. thank you. great as always to see you. see you next time. jim cramer says it best. bears make money. bulls make money. piggest get slaughtered. but this pig surfs. his name is zoro. one of my best friends is named zoro. he has been surfing over a month, this piggy. in record territory, we brought you a surfing pig as well. lou dobbs isn't going to give you that stuff, man. sue? >> he is so cute, ty. that's adorable. well, ferrari buyers are feeling need for speed but are they spending too much to get it? cnbc's wealth editor robert frank drives it home for us. hi, robert. >> hey, sue.

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peoptempur paidic may be sleeping better. the combined company along with serta and simmons parn aot bedding will control 60% of the market. ty? >> sue, the new ferrari. special for a lot of reasons. but one of them is that it is the first ferrari to have an apple installed suri system and ipad mini. this will baby goes for $295 k. you've heard probably the stock double, tech bubble, even the housing bubble, but the ferrari bubble. our wealth editor robert frank has that story. a ferrari bubble? >> as you mentioned, global asset val you us helps real estate but is also helping old ferrare is. index is up over 70% over the last three years.

this is an index of most sought after ferraris. most are them from 50s and 60s. we should probably call them middle age. can they go higher? we will find out this weekend. more than a dozen vintage ferraris will go up for sale on amelia island. this is amelia island, florida. this is a 1952 sport berlinetta. going and company is selling this bright yellow 1966 ferrari, gdp long nose, could top $2 million. there are, get this, some bargains left. 1968, 365 gt, two plus two as they call it, expected to tech 125 to $150,000. highest price ever paid for a ferrari remains $35 million, for a gto last year. one collector recently turned down an offer of $50 million for his car. price was too low.

and the bubble spreading far beyond ferraris. the next deal may be a porche. especially 1970s racers and 911s. this 1973, 911, could fetch more than a half million dollars this weekend. tyler, germans finally catching up to the italians when it comes to collectible cars. can you see prices and stunning cars on cnbc.com. >> there is more money chasing them obviously. are the ferraris particularly scarce. you just don't find them? >> he they are. the gto, highly most sought after kind, only 36 of them made. they are not making any more of them and there are more and more rich people so you have supply and demand. >> they are surely beautiful cars. just gorgeous. >> thank you very much. >> thank you. >> sue, down to you. >> yeah, but tle cost more than your house. from a bubble in ferraris to a bubble in some markets. jim and jeff are at the cme for pups guys, let's turn this into

a lightning round. jim we are seeing rates rise. not a lot but equities took front and center and we have seen money going out of the etfs knot stock market. what does it tell you? >> remember, the gold -- the positive market in gold las gone on for ten to 12 years. when it begins to correct, that correction has layers to work through and starts to get to average investors. do i think they will sell the gold and buy into the stock market? i don't think so. i think it is more likely they go to cash. but it is always the back beat of the fed bumping liquidity into the market. >> do you agree with that, jeff? we were talking earlier about the reliance of the market. on the fed. >> we are seeing more of a buzz. get back to the beautiful ferraris, just like when you driving, one of italy's most

winding roads, you have to be careful here. as we see this gold has come down, i want it use my best all state voice, protect your profits. so you will see this technical target in the s&p. only about a percent away. we should see them with this technical target but it is time to protect. >> have you ever really been on that road you were talking about or just read about it somewhere? >> i have, buddy. in a ferrari. you should come with me next time. >> i will come with you next time. have a great afternoon, guys. ty, back to you. >> we are talking about stocks lightly to lead us up or down into the close. when we come back in two minutes, as we round out this remarkable week.