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this ge jet engine can understand 5,000 data samples per second. which is good for business. because planes use less fuel, spend less time on the ground and more time in the air. suddenly, faraway places don't seem so...far away. ♪ >> this thing is going higher. dr. jay. >> a lot of put buying out in april. >> i mentioned earlier. energy is the cheapest in the s&p. i don't think that will persist. i want to play this through explorers and producers.

i like ieo. >> show me the dow. we will see you tomorrow. there is more "fast" at five. we are calling this the tepper bounce. >> "halftime" is over. "power lunch" and the second half of the trading day start right now. >> have i got a deal for you. remember the much maligned low down payment loans? it was seen as the main cause of the crisis. wait until you see who is behind it. and another day, another significant cyber attack. chase bank getting hit again. >> and the.

we're going to talk about and meet the guy who put dennis rodman and kim jong-un. that would be a unique idea about marketing. >> and now a picture of the vatican. we expect smoke. yes smoke. what is that bird doing there? that bird should not be there. we expect smoke any minute now. black or white. white would signal that a new pope has been elected in the conclave. this marks the third vote of the day. fourth overall. we are monitoring it closely and when there is a puff, we're going to bring it to you and that bird is going to fly away. first to sue. >> if that was a dove, you could say that that was divine intervention. i think it is a sea gull. we have a stunner to start us out. it's coming from the housing world. that infamous low down payment mortgage? it's back.

diana is back in washington. we saw this the first time around and it didn't end nicely. >> reporter: no, it didn't but the banks and the government are behind it. refinance business falls so they are looking back to that home purchase mortgage market yet again. sources telling me that they are buying more loans with 3 to 10% down payments because banks are selling more. a lot of it is because of fha. they keep hiking premiums. today so, low down payment borrowers are now shopping conventional shoppers again. fannie mae does require mortgage

insurance on the loans. the stock prices suddenly spike as another rate rise was announced earlier this year. where are the red flags? some are concerned that the private mortgage insurers are not well capitalized enough still to handle the current amount of delinquent loans. fha has the lowest underwriting requirements for your credit score. so if you start having more competition from the private guys and your higher credit score buyers go back to conventional loans, then fha is left with low credit score borrowers. they do not need more risk.

>> and that dampens demand. breaking news. tenure notes up for auction. what's happening. >> several basis points lower the one the market was trading. lower yield, higher price. an a plus auction. we had a bid to cover at 3.19. chasing every dollars worth of securities available. best since october. dealers only took 22.3% of these auctions. 30 on the nose for direct. this was one solid demand auction and the dealers have empty pockets and sometimes that's because everybody else was so aggressive. >> that's fantastic. thank you so much. you know, we really were not expecting this one.

americans spent at the fastest pace in five months in february. retail sales rising 1.1%. take a look at what's being taken out of your paycheck with the social security tax increase. it rose from 4.2% to 6.2%. so if you earn $50,000 a year, it costs you $3100. $6200 a year if you make 100 k. $12,400 if you make 200 k. so the numbers really do add up. despite the optimism from that retail sales number, a dough winning streak was in jeopardy. right now the market is still positive but it's only up seven points. still, of course, near that record territory. up 10% so far this year. the s&p right now, last trade is up 1.70%. that's about a tenth of a

percent increase. nasdaq is up three points. and gold is trading down $6.30. >> the private equity world has been pretty much offlimits for anyone outside of the 1%. a lot of people eager to get in are now asking this question. is this a club i really want to join? the new developments in private equity. >> the numbers would make you want to say no, you don't want to join this club. but money managers earn a fee for every dollar they invest. the more assets they have, the more they get in fees. now the firms are public and looking to increase that. one way they are doing that is to lower the barrier of entry. carlisle, just the latest on that band wagon. now you just need $50,000.

if you have got a net worth of $1 million or you make more than $200,000 a year. but for these titans, wooing individual investors is a new strategy. the first to do it? apollo management. it's a 12.73% since compared to the s&p, up 22% in that time. blackstone has offered a fund of hedge funds. you get access to money managers. but the problem is as of january 31, it underperformed the market from inception and year to date. finally kkr, its junk bond mutual fund was up. the problem was individual investors who had $25,000 or more were not added until later in the year.

>> and an index fund. it would have been better in an index fund. let's talk about the london whales testimony. >> we have been waiting for this list to come out. it just hit the wires moments before power lunch hit the air. we have the acting risk officer stepping in for john hogan who is on leave. we have mike cavanaugh who is the co-ceo of the investment bank. he was the author of the internal report. we also have ina drew. she was the chief of the cia. ina is no longer at the firm. we have three members of the office of the controller of the currency. they were supposed to be the unit that was actually regulating these investments. we have a full house on friday. so we will have all that for you on friday. >> appreciate it. sue, down to you.

>> thanks guys. shares of express on the express train lower today. the clothing retailer giving a disappointing forecast for the first quarter and the year. last trade on that stock down $1.55. different story for coach. the stock which is down over the past year starting to generate some bullish comments from analysts. citi upgrading coach to buy with a $56 price target. the shares responding to that up almost a full percent at 49.27. >> some very interesting big news in the auto sector coming in right now and phil lebeau has it live from chicago. >> they surveyed 91,000 vehicle owners and this is a reflection of how people feel about their auto service centers. should be a little bit surprising but it's not when you figure that dealerships are putting more money into their

centers. 79% of those surveyed said they will have vehicles serviced at the dealership. they realize this is the way to build brand loyalty. the top five, gmc, mini, buick, cheverolet and volkswagon. this is particularly interesting when you look at luxury automakers. the luxury dealerships, for them, their customer service rates higher than with mass brands. luxury dealers have been targeting service centers for some time. lexus, cadillac, jaguar, acura and infinity. this is the area where the dealerships are making a difference in terms of customer loyalty and building profits over the long term. >> i think that's exactly true. if i get good service from a dealership, i am more likely to go to that dealership to buy my

next car. tell us what the latest is on boeing and getting those grounded dream liners back into the air. >> the faa has approved the plan for fixing the battery systems. what will happen next is test flights, more testing. if boeing can meet the requirements set up by the faa, then eventually they could approve the fix. we're looking at perhaps by the end of april, early may, we might see the grounding lifted if these tests go as planned. >> early april -- late april, early may, the possible time line. >> right now it's still fluid. >> thank you very much. >> we're talking cyber crime, cyber terror. whatever it is, whatever you call it, it keeps hitting american internet sites including chase once again today. we're going to talk to a former white house internet security chief to get his take on how this country needs to fight

back. law and order online next on power lunch. >> and that sea gull is still sitting there because we are waiting on a decision on whether the body of cardinals at the vatican have decided on a new pope. white smoke means they have. black smoke indicates they have not. we are monitoring it and we will get it to you as soon as it happens. 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.

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we are back with breaking news on google. android taking a new role at the company. now runs google chrome and apps is going to take over android as well. he will be running all three areas. larry paige announcing this in a blog post. andy rueben staying with google and looks like he will do more moon shots, big ideas. he is moving on from android to do that. android is the biggest operating system for smart phones in the world. tiler? >> all right. thank you very much. netflix is higher after unveiling a new feature that allows subscribers let their

facebook friends know what tv shows they are watching. very dangerous. right now netflix up $12. that's almost a 7% gain. as for facebook, it is lower after the ftc ruled that ads on social media need to have full disclosure no matter how small the ad is. sue? >> a day after chase's website was hacked again, president obama is meeting with ceos to talk about stopping the online attacks. the meeting will be in the situation room. we are live at the white house with some of the details on that. >> j.p. diamond will be one of the ceos attending later on this afternoon. on this very big name list of ceos who will be meeting is

jam james -- we don't expect official confirmation of that until after the meeting this afternoon. this comes one day after the head of the nsa and u.s. cyber command testified about the growing threat of cyber attacks. he said that his cyber command will create 13 new offensive teams by the end of 2013. a very important story for wall street specifically here at the white house today. >> thank you so much. how can we stop these hack attacks? it gets more serious every day. he was special assistant to the president of homeland security in the bush administration.

the key question is what has to happen to catch these guys and what kind of punishment would be a disincentive to these hackers? >> that's a great question and it's great to be back. not all hacks are the same nor are all hackers the same. the spectrum ranges from nation states such as china, russia, the government of iran and its proxies all the way down to a kid operating out of his own basement in his home. we don't have the tools and instruments we need to address all of the issues. at the end of the day we're never going to simply fire wall his way out of the problem. you deter actors, not so much a tactic or a technology. we need to improve our information security. we need to improve our cyber security. we have a number of sticks that we're looking at such as the

promulgation of the executive order. we need to couple that with incentives and carrots. >> frank, it seems to me that this is getting worse every day. and that there is no way right now to enforce law and order online. is it -- am i mistaken? it seems as though those attacks are becoming more and more frequent. >> they are becoming more frequent. there are more actors involved. the bar is getting lower for people to enter into this space. and the penalties are not necessarily there when you do identify the perpetrator. >> what do you think the perfect penalty will be? i know there are a variety of hackers out there. is there one action that you think would be punitive enough to be a disincentive? >> ultimately, i'm most concerned about nation states. they are in the business of espiona espionage. and i think we have to elevate these issues diplomatically. and we have got to invest in

offensive capabilities to deter and compel those that are already engaged in this space. i think at the end of the day we need to continue to be ahead of the curve offensively. we need to get to the point where we have an 80% solution. you can't expect banks to defend themselves against foreign intelligence services but they should take steps to keep the noise out. >> right. >> we need liability exemption. uncle sam should become the insurer of last resort. we need additional prosecutions transnationally and we need potentially trade approaches. >> frank, thank you very much. i think with the frequency of these attacks you will be back very soon. >> thank you, sue. >> bob is here with me. >> the retail sales were up.

the business inventory numbers are great. we're at new highs. that's a bit of a problem. and there is a lot of bias data that is now priced into the market. that doesn't mean that we can't go higher. >> we're going to talk more about that in a couple of seconds. power lunch is back in two minutes time. >> how much do they want to pay? >> how much do you need to be succe successful. >> do these founders have what it takes? >> are you in or out of artspace? tdd#: 1-800-345-2550 seems like etfs are everywhere these days.

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now she is looking to recreate that same success in the art world. here is her power pitch. >> we help collectors and aspiring collectors discover, learn about, and collect art from the best artists in the world. our site is highly cure rated. our partners include the most prominent galleries in the world and museums as well. you can browse the site however you like. even if you're not quite ready to buy there is information to keep you engaged and informed. fromomrtist interviews to education and fun facts about the art world. our mission is to make art more

accessible to broader audiences. and to support museums and cultural institutions and artists across the globe in just over a year, we're selling art all over the world to virtually every state and 25 countries and we're growing really fast. >> she cannot react just yet. >> the founder of broadway angels. she has more than 20. >> some of your concerns, first. >> they all sell art. how do they get above the fray in terms of the noise in the space? >> julia?

>> my concern is the fact that a lot of these are hefty investments. you can buy pieces for a couple hundred dollars. a lot are thousands and tens of thousands of dollars. i wonder if people will feel comfortable making a commitment without seeing it in person. >> i thought the market may not be big enough to justify a real fast growth and ultimately large organization. let's get right to it with the person running artspace. i will let you ask a question first. >> a lot of questions that you appear to have, have high end names, maybe having -- how do you get them to put one of their pieces at a much lower site? >> we're getting the work directly from the gallery, from the museum or in certain cases from the artists themselves. so, as a collector, if you want

to collect those art itselves, you're typically looking at a limited edition to sell. >> what kind of margins are you making? and what kind of scale do you need to be successful? >> well, our business model, unlike most ecommerce sites is we don't take any inventory. we don't have to put any of our capital into owning any of the art. we're in between the buyer and the seller. we facilitate the transaction and the art goes directly from the gallery or the museum in paris to the collector in new york. >> how willing are people to buy a $5,000 piece of art without seeing it first? >> it's not unusual for people to spend that money sight unseen. >> we have seen what julia had

to say. are you in or out? >> i still have a couple questions about how big this potential market is, but i think there is huge potential to really revolutionize the way art is sold and to apply some of the same innovations. so i like the number of eclectic investors on board. >> she is in. how about you? >> this company has an amazing number of investors and people who -- the co-founder who really understand the art market and who have access to the high end artists. i'm a collector myself. many of them are so out of reach in terms of price. the idea that one could buy a high end piece of art blows me away. >> i'm not betting on the game, but i will bet on the player. a huge montization there.

take a chance on the athlete if not the game. i am also in as well. >> thank you. >> three thumbs up. we want to hear whether you are in or out on your art space. let us know whether you think you have what it takes if you have an idea. >> some say this was a pr stunt or was a work of art. we will hear from the man who sent dennis rodman on his mission to north korea and now he is using tech and media. >> thanks so much. >> markets were a little skittish today? >> i want to just show you things that are markets splitting a little bit. take a look at market leaders.

you might call them risk on. transports are doing well. japan has been risk on for a while here. this is associated companies usually with the u.s. steel stocks, copper stocks. commodity names. i think the concern here is people are buying u.s. based stocks because our economy is improving and getting better and they're selling some of the chinese and foreign names here because china is trying to put the brakes on growth a little bit. that's been down for the last couple of months here. our s&p 500 has been on the upside. it's not just then but emerging stocks in general. that bottom line is the green line. the emerging market index. the major one. there is the s&p 500. s&p is up 9%, emerging market

index is down about 3%. people are starting to look more at the united states as the growth part of the world right now. >> exactly. and the data seems to be supporting that. thank you very much. >> in the meantime gold prices. >> close iing. >> it has been a choppy session. in large part by the movements of the dollar. the largest gold etf as well. has seem some reduction in its holdings. that is something that some analysts are saying is due to

institutional investors pulling out metals across the board. >> thanks. back to chicago where rick is tracking the action at the cme. first, there is the president in the background there. he is working his way across to meet with republican congressmen to try and solve the impasse that we have. it's been several years since the president made his way across to shake hands and try and get this deal through. it was three years. he has been working both sides of the aisle. he is going to meet with senate counter parts this week. how are things going post auction, rick? >> it seems there are more people up and down those stairs than there are traders in some of these pits. you can clearly see what the ten-year note did. look at the chart of tens. we were at 205, boom. did a beeline for 10%.

ours are all scalloped to higher yeel yields. you can clearly see we continue to widen we talked today. 65 a closing important technical level. we went through it. it seems like all signals are red when it comes to being long. >> rick, thank you very much. retail sales jumping but americans seem to be losing faith in president obama's economic policies. why the disconnect? plus take a look at this. one big rock. it's considered the world's most perfect diamond and it's up for auction. guess how much it could go for? we will tell you when we're back. that is the smokestack. it is nighttime over in rome. the cardinals are deciding who the next pope will be. black smoke means no decision.

white smoke, we got a pope. when it starts puffing we are going to have it for you. all stations come over to mission a for a final go.

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a successful debut for silver springs nt work. >> and vm also gaining ground. dole foods falling. hurt by weaker fresh food sales. sue, down to you. >> thanks. there is a new washington post abc pole that shows americans are losing faith in president obama's economic policies. but on the other hand, we had retail sales surge despite the payroll tax increase. there seems to be a bit of a disconnect there. what's the market telling us?

good to see you again. >> welcome. >> there is a little disconnect. we were talking about this before the show. but you're encouraged by what you're soeeing in the market. >> very encouraged. >> relatively low valuations, particularly in this interest rate inflation picture. so there is a lot supporting the market move here. >> you lightened up considerably on gold. >> we put gold up as a hedging risk. we looked at it as systemic risks and a risk of a euro break

up. we have seen over the years the tail risks dissipate significantly with regulatory reform, monetary policy tools. as well as structural fixes such as the ecbs omt. we felt the need for that type of hedge had dissipated as well. it's interesting to look at the reaction of the market to the italian election. no one considers the euro break up a tail risk any more. >> where did you put that money? you're overweight information technology and moderate overweight on energy and materials. i assume that's all domestic? >> it is, sue. it's interesting. we didn't want to increase our risk exposure. we took the gold proceeds. we're not expecting inflation to be a near-term issue but we recognize the potential for longer term inflationary efforts

as they get unwound. so we're building that into our client portfolios. but keeping it very short term. >> why do you like energy and materials? is that a global play? >> it is a play on global growth. we're expecting the global economy to grow over 3% this year. it's a reflection of our view that the back end of 2013 will be loaded with economic growth. that would really benefit the cyclical stocks. >> we will see that next month. >> thank you very much. we are waiting for the 115 cardinals to tell us whether they have picked a new pope. that sea gull has left the chimney there. it is nighttime in rome. white smoke indicates they have reached a consensus with 2/3 plus one voting for a new leader of the roman catholic church.

black smoke? no decision. at this time we are just watching and waiting along with the rest of you. >> and the man behind the dennis rodman, kim jong-unmeeting is part of our power meeting when we come back. ♪ [ male announcer ] this is karen and jeremiah. they don't know it yet, but they're gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they'll find some retirement people who are paid on salary, not commission. they'll get straightforward guidance and be able to focus on other things, like each other, which isn't rocket science. it's just common sense. from td ameritrade.

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>> the colon cancer drug loses exclusivity. you see spectrum pharma down 36% this day alone. >> the highest they have been the

there. >> let's see what is coming up on street signs. >> hey, sue. thanks very much. i know the dow is up for the ninth day in a row. mandy and the whole team will have many guests on to talk about your strategies going forward. but we're here in las vegas. one of the dow components, home depot, is hosting its product walk. they rebuilt an entire home depot store here in a convention center in las vegas. we're not going to dig into data. we're going to go right to the source of the consumer and see how the american economy is doing. data? we don't need no stinking data. we have the ceos that run the show here. pretty cool. i will have a cocktail before the show so it will be better. >> we will be tuning in at the top of the hour.

meantime, power run down time. joining us, figure that one out. even josh looked over at that. >> am i the sugar? >> i'm the nut, i guess. let's get to the first topic, sugar. >> and wanting to start an okay pi sugar movement and that's exactly what we need to do. >> this was a federal loan. >> it was a federal loan to the sugar processors. they can't pay it back because the price has grown very low. >> it's ultimately price control. literally, the sugar act of 1934 is where they get the power to be able to do this. for most other commodities, the

companies deal with the price swings as they come. >> not just bail-outs. the entire sugar industry is a mess. we should get rid of all of these programs. >> it's the corporate circle of life. >> one sweet mess there. two other big topics. the man behind dennis rodman's mission to north korea and knocking the king apple off the mountain. we will tackle those two in two minute's time. how do traders using technical analysis streamline their process?

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>> ty, back to you. >> thank you very much. by now it is the picture seen around the world. but the man who sent dennis rodman on a mission to north korea, we haven't heard much until now. and i'm told that mr. rodman is actually in rome awaiting the election of the new pope. i'm not kidding. you can't make this stuff up. we have caught up with the gentleman who sent mr. rodman to north korea. hi, julia.

>> dennis rodman's trip to north korea was all the idea of vice media ceo, shane smith. >> i have been to north korea twice. i have done three documentaries. we knew that they love basketball and in particular they love the chicago bulls. we put a delegation that went there, mostly for community outreach to play basketball with the kids. >> enter dennis rodman. the goal was to get as much access to north korea as possible. >> the story of dennis rodman and kim jong-un is an absurdist one so the media picked up on that and said this is crazy. which it is. it's insane that, you know, that they sort of were hugging and all this stuff. but for us, all we really cared about was getting in and getting the documentary made.

so for us it was a huge success. >> these stunts draw criticism for being potentially unethical. to its ad network, generating $170 million in revenue last year. now despite the fact that it has edgy content, vice does have media heavy weight backers. they raised $50 million from a number of people including ad giant and others. tyler, certainly an interesting one to watch but it seems that the whole rodman thing is working in their favor. >> and let's talk about it a little bit more. the guy behind rodman drawing a lot of criticism for this. he is basically sending an individual into a country and patronizing a regime that has

been engaged in severe human rights violations. >> it will all come down into whether or not they engage in actual journalism. if the north koreans show them the sort of things that the soviets used to do and not actually show what is going on. but if they were able to use this as a way to get at north korea and really do journalism, good for them. >> they are billing themselves as a news magazine. if it's a news magazine but doesn't give an accurate picture. dennis rodman probably said it best. he said i'm making history. what i did is history. that speaks more volumes than something going viral. this will live on for a long time. >> it's an interesting story. rodman is in rome apparently lobbying for an african pope of african decescendescent.

>> rodman is actually watching to see what color the smoke is. >> i knew he was well sourced. >> i'm sourced with the vatican people. >> rodman is well versed in smoke. they are coming on stronger than ever. now tablets, there are more droid tablets, not necessarily samsungs, but more tablets being sold than apple. >> apple's marketing aim was not to actively pitch a lot of corporate clients but pick up all the business that blackberry left in its wake. a lot of people switched over to the iphone not because they loved apple but because they hated the blackberry. so they are actively getting out there. >> young people, i go out to

tech parties in new york city. you ride the sub way and you see lots of people with samsung galaxies. these are more affordable to people. i sort of feel old when i take out my iphone. >> that was their commercial. pitching it as something that makes you feel cool. >> i have a droid phone, made by motorola. i would say what apple needs to do is increase its size and screen size. that is a big draw for some of the samsung phones. >> when people take it out, people are like whoa, what is that. >> that is what they need to do. not get smaller, get bigger. >> you heard it fehere first. >> it's considered the world's most perfect diamond and it's up for auction. and we are still awaiting word

from the vatican. you're looking at a live shot of a chimney. ♪ you know my heart burns for you... ♪

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