it will go a lot higher from here. it actually tests upward toward the 50 day. >> bb & t is a buy. >> joseph? >> weak quarter but capital one. >> okay. that's it. have a great rest of the day. "power lunch" starts right now. thank you, scott. good afternoon, everybody. just about all sectors having a tough month. the month's only two days old in trading terms, but we are talking one month here. look at industrials, down almost 8%. consumer discretionary down more than 6% and energy even down nearly 6%. but there are stocks already in correction territory and dom chu and sheila dharmarajan will show us them and answer this question. is opportunity potentially behind the doors there? speaking of a new man behind them doors at microsoft, a new guy has been named as expected, satya nadella, long time

microsoft executive. does he have what it takes to move the stock higher and get the company performing on all cylinders? we'll find out and discuss it. and here it comes again. more snow coming. two significant systems developing and targeting the eastern third of the country. let's check in, meantime, with sue down at the new york stock exchange. >> it's all that pesky groundhog's fault. stocks are higher today, up about 93 points after yesterday's big sell-off. the dow higher for only the third time in 111 sessions. 94 to the upside on the dow. the s&p up 15 points and the nasdaq up 44. the ten-year note, look at the yield there, it's crept up just a little bit more, 2.68% on that, because we were looking at a sub-2.6% interest rate yesterday. check out the other global indices today. japan taking a big hit, down 4%,

and overnight, now down about 13% for the year as a whole. the nikkei certainly has everybody's attention and they are watching not only the nikkei but the yen as well. up to you. >> thank you, sue. we are talking curling off camera. we will talk more about that later today. big, big show. u.s. stocks are rallying today but yesterday was certainly -- up 98 points right now. sheila dharmarajan is looking at some of the global markets. let's begin with it says dominici chu. >> my new name. you didn't get the memo. >> some of the blue chip names already in correction territory. >> there are quite a few. look at the s&p 500. out of those 500 large cap blue chip stocks, over 100 are already off by 10% or more, and another 30 are off by 9%, within striking distance, so 130 plus companies in the s&p are already at or near that correction phase. here are some of the big ones. check out s&p material stocks.

year-to-date, they are down 6%, more than halfway to correction phase. one well known name in that mix is u.s. steel. that particular stock is off as well. you can see there, down by 15%. that may go on the shopping list for some people, who are more bullish on the long term steel industry and are trying to buy on a pullback. another sector to watch here, a big one for sure, is s&p industrials. they are down by 6% as well. more than halfway to correction. a big name within this particular universe in industrials is a transportation company, fed ex. that stock is down by 9%, 10% here. so again, right there. then one more is a technology company that we all know about and that's apple. those shares of course down by 4% right now. maybe a stock here, you can see they're down by 9%. that stock could be one that goes on other people's shopping lists as well. again, big name companies that you can buy at a discount with a coupon if you want. >> off of their highs. sheila dharmarajan has been looking at which markets around the world are either already at,

in correction territory, or maybe doggone close. what can you tell us? >> we will take our trip around the world to talk about which markets are in correction phase or very close to it. if you're intrepid enough, we have etfs to consider. first, got to start in japan. everyone is talking about the nikkei, down more than 13% year-to-date. also, take a look at the topx. this is interesting. also in correction territory. you want to play in this market, check out the ewj, one of japan's most liquid etfs. another market that is already in correction territory is russia. olympics are coming up but the stock market down 10% year-to-date. rsx is the etf to look at. that tracks that market. there rls a lot of countries which we are calling correction watch countries. so a country like turkey, for example, down 8% year-to-date, also brazil and chile. right now, just a stone's throw away from that all important

correction territory. we do have the etfs as well. the brazilian etf is ewz. for chile, eca. here's the thing with these markets. yes, they are in correction territory but remember, these are all story driven markets. there is something specific happening in each of these countries which is really driving the move. of course, the big question is are these stories from these emerging markets going to make their way here in the u.s., are we going to start to feel that contagion effect. the million dollar question. trillion dollar question. >> thanks very much. sue, down to you. how do investors protect themselves if indeed the correction that we saw yesterday, that down graph, continues and pulls us more into correction territory? joining us, come on in, christina. christina hooper is with me, she's u.s. investment strategist and head of u.s. capital markets research and strategy. joining us in texas is matt frund, chief investment officer of mutual funds with usaa investments. welcome to both of you.

christin christina, i will start with you. yesterday the downdraft was swift and took a lot of people who are individual investors a little by surprise. what's your overall view of where we stand in the market right now? >> well, where we stand is at a crossroads. really, it's up to investors to determine their own destinies right now. they could get scared and walk away from this market. keep in mind this is a post-crisis environment and many investors still have the specter of 2008-2009 behind them. or they can view this as an opportunity. we have been telling investors for awhile now that as the fed tapers we will see more volatility because we will go from a situation where monetary policy supports the stock market to one where fundamentals does. that's not going to be a smooth transition. but they can opportunistically add to their risk assets in this kind of environment. >> matt, what would you be doing right now and what areas of the market do you like? traditionally as i understand it, you have liked dividend paying stocks and things like that. do you still hold with that view?

>> so we do, we think dividend growers are actually more attractive here than companies that currently pay a high dividend. we think they are systemically underpriced, the market is overpaying for current yield and underpaying for future yield or future growth. so we like that sector of the market. we also like europe here, international, non-u.s. stocks. their earnings are significantly lower than the prior peak as opposed to the united states which is much higher, and they have a much longer qe runway in europe than here in the states. >> let me give you the final word. would you be looking in europe? a lot of people on the street find europe attractive now. >> yes, valuations are attractive in europe but we would say diversification is the key. well diversified and discerning. >> thank you both. appreciate it very much. let's go back up to e.c. dominic chu has a market flash. >> check out gilead, at session

highs. the stock upgraded to outperformed with the price target raised to $103 from $65 a share, based on strong prescription trends and forecasts that 2014 sales could top $5 billion on a drug used to fight hepatitis c. those shares up big. back over to you. >> thank you very much. the search finally over for microsoft, the tech giant as has been reported has named the insider satya nadella as its new ceo. founder bill gates will give up his position as chairman to take on a new role at the company. josh lipton in san jose, what can you tell us? >> yeah, satya nadella is a company man, having worked at microsoft for more than 20 years, most recently v.p. of cloud and enterprise. kirk matern saying nadella was the best choice as his background will help maintain

microsoft's momentum in the commercial side of the business. granted, the cloud is not as much fun as the xbox but enterprise matters a whole lot more to this company's bottom line, accounting for 65% of gross profits. the microsoft board also seeing a shakeup. bill gates stepping down as chairman and into a new role as technical advisor. gates likely felt comfortable stepping aside as chairman with nadella now in charge. both men are technologists are deep knowledge of computer science. john thompson will assume the role as chairman. his record is mixed. as ceo of semantic he grew revenue ten-fold but also oversaw the controversial acquisition of veritas in 2004. thompson left semantic in worse shape because of that deal. as for steve balmer, he remains on the board at least for now. one question for nadella, will he have the courage, the self-confidence to stand up to gates, balmer and the board

especially since he has never run a company. tyler, back to you. >> thank you very much, josh lipton. our next guest is a seattle venture capitalist who has worked closely with microsoft and mr. nadella over the years, and he thinks nadella is not afraid to make the hard decisions needed to lead a company of microsoft's scale. mr. mcelwain, welcome. nice of you to stop by today. tell us what you know about mr. nadella. what kind of executive is he? >> well, satya is a very passionate executive and is an external facing executive, so picking somebody inside microsoft who is so engaged with the customers and the technology trends out in the marketplace i think will serve them well. i have seen satya interacting with very early stage companies, he's come and spoke at our ceo summit. we had a number of dinner discussions over the years about major technology trends. i think that outward focus and bringing that in at that

leadership seat of ceo within microsoft, and then having the task of inspiring innovation within microsoft so the company can be taken to the next level are the two things he will need to be focusing on. >> this is a company that is moving on from let me just say the sort of thomas jefferson and james madison era of leadership to another era, and that's different and that's tricky. is it going to be trickier for him with mr. gates on the board, with mr. balmer still on the board and in some way personally, very present still in that company? >> well, it's a unique situation to have the only two other ceos in the 40 year history of the company on your board, but i think satya's goal is to leverage both of them. i think that's part of what we're seeing with bill gates moving from the chairman of the board which is a job that has some important responsibilities but probably doesn't leverage bill's greatest strengths, so satya is saying already in

asking for this unique role for bill, how can i leverage bill's strengths to the betterment of microsoft. that is around technology vision, understanding big macro trends and steve, i think obviously has been operating the business for the last decade plus and i think the company is underappreciated in terms of all the significant things it's done, particularly in areas like, you know, the enterprise and now cloud as well as gaming and beyond. so i think satya's goal is to leverage the two of them on the board but then ultimately, he's in that seat. he's in that role of ceo which is a very unique position. you don't know how somebody's going to be until they take that seat. >> let me just conclude, and i don't mean to belabor the point at all here, but you're a venture capitalist and you advise boards and managements. if you were to have been advising microsoft, would you have advised them to pick an insider as the next chairman and would you have advised them to maintain the two founders on the

board quote, looking over the shoulder of that new chairman? what would you have said? >> well, if i was advising them, i would have said try to find somebody external if you can but it has to be the right fit. i think they had a comprehensive process, it took a long time, they didn't find the right fit externally and they did find the right fit internally. satya's got a real opportunity. there's a lot of big cap tech companies that are struggling. microsoft's probably the best among them and to quote russell wilson, why not us. why not microsoft as the big cap tech company that succeeds for the next decade. >> very thoughtful answer. thank you very much. i appreciate it. >> still excited about the seahawks. who can blame you. appreciate you being with us today. sue? after a quick break, a report that's casting doubt on claims that energy drinks are safe. this is one state gets ready to start treating energy drinks

like we treat cigarettes, with a watchful eye and a lot of laws and regulations. get ready for the snow. there is more on the way. the forecast is next. in today's market, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price, maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today.

welcome back to "power lunch." shares of jc penney are at session lows, hitting below $5 a share. the embattled retailer reported a modest rise in holiday sales but gave no details on its gross profit margin. it had $2 billion in liquidity

available at the end of the year, but stern agee reduced its price target to $3 from $9 a share saying it could need to raise additional funds by the third quarter. it remained neutral on those shares. sue? the dow is higher right now by 76 points. we were almost up triple digits. consumer discretionary leading the way. the dow is up 77, nasdaq up 38 and s&p 500 up 13. bob pisani joins me at post nine at the nyse. roberto? >> steady and quiet. near the highs for the day. >> steady as she goes. >> let me show you the internals on the market. we have been oversold really for a couple days and that's getting corrected. the volume has been heavy again today, not as heavy as yesterday. about three to one advancing to declining stocks. it's all about the oversold balances. when you get that, the groups that have been sold off the most on these kinds of days come back the most here. so retail has had a terrible time. it's bouncing back a little. materials and energy also bouncing back as well. same situation with the emerging

markets. all the heavily beaten up sectors that are down 8%, 9%, 10%, turkey, indonesia, mexico on the upside. poland should be in there, that's also bouncing back as well. finally, dominic mentioned jc penney. the key point about jc penney here is same store sales only up 2%. that's a real disappointment. the fourth quarter of 2012 was a disaster for them. there should have been some kind of bounce, even without knowing what the gross profits are, traders looked at that and said good heavens, if they can't get a bounce given the poor comps they had had 2012, not a lot of good news for the company. >> thank you very much. now to a story that "power lunch" has been following. a series of lawsuits against monster beverages claiming their energy drinks are unsafe. the stock, though, has weathered that storm. it is up 40% in a year and it is up three quarters of a percent today. new developments today including a new suit, news the state

legislature in maryland is preparing a bill to criminalize the sale of energy drinks to anyone under the age of 18. they would be the first in the nation to do so. and we have a freedom of information act document from the department of health and human services showing 93 adverse event reports from energy drinks in 2012 and 2013, showing 93 incidents, 18 deaths. monster drinks were cited in 27 of those cases, including five deaths. an attorney representing four clients suing monster joins us today. kevin goldberg. we wanted to tell you monster's ceo or a representative from monster was invited to come on today but the company said it did not want to comment publicly on pending litigation. they did give us a statement saying quote, there is no evidence that a monster energy drink has caused or contributed to any injury whatsoever, repeating the same bad argument multiple times does not make the argument any more credible. these lawsuits are just another effort by attorney goldberg to extract settlement money.

monster energy proudly stands by the safety of its products, end quote. mr. goldberg, welcome to "power lunch." how do you respond? >> well, these energy drink lawsuits aren't about extracting settlement money and they're not about kevin goldberg. these lawsuits are about a dead 14-year-old girl, a dead 19-year-old man, and a dead 21-year-old woman. >> you filed a freedom of information act and you got some of the data from the fda's center for food safety and applied nutritions adverse event reporting system. what did you make of that? >> it's just additional evidence that these drinks are very, very dangerous for certain segments of the population. the problem is that monster and other energy drink companies target their marketing at those most vulnerable. they target their marketing to children and young adults and anybody who has an underlying heart condition, everybody, this is very important and parents,

listen up. anybody with an underlying heart condition should not be drinking energy drinks. >> let me just quote from the disclaimer that is adjacent to the fda's documents that you got. they said basically that this reflects information as it is reported, it does not represent any conclusion by the fda regarding a casual relationship or association with the product or ingredient, due to the continuous inclusion of new updated information into the system, the reports released containing adverse event data may change over time. basically, this is a self-reporting mechanism that the fda uses basically to get information but there's no scientific link to the events that occurred. >> the medical and scientific evidence is conclusive that energy drinks are dangerous and that they can kill -- >> in what way is it conclusive? and what data do you have to support that it is conclusive?

>> i have a lot of data. >> such as? >> the american academy of pediatrics has said that children should never consume energy drinks. the american medical association has issued a statement -- >> that's a recommendation, though, sir. that's a recommendation. that's not data proving a link between the energy drink and a fatal or adverse effect. >> well, in the case we have a toxicologist report stating she died as a result of caffeine toxicity. there are many, many scientific articles coming out with evidence that energy drinks are dangerous, that they increase heart rhythm, they increase blood pressure. anybody who has high blood pressure, a congenital heart defect or who is taking stimulants, for example, kids who take adderall or asthma inhalers, these people are at great risk when they consume energy drinks. the warning labels don't provide this information to the energy drink companies. >> let me address the caffeine issue, because this is from the statement that monster energy gave us.

a 16 ounce monster energy drink contains less than half of the caffeine of a 16 ounce medium sized cup of starbucks brewed coffee which i happen to have with me here on the set. monster energy products generally contain approximately ten milligrams of caffeine per ounce from all sources. the leading brands of coffee house brewed coffee contain on average in excess of 20 milligrams of caffeine per ounce. our products are just as safe for consumers as a cup of coffee purchased at your favorite coffee house. so if it's less caffeine, according to monster, than a 16 ounce cup of starbucks coffee, what is it in monster energy that is so toxic or dangerous, in your opinion? >> it's not just the caffeine. it's the caffeine coupled with the ginseng, the turine. these herbal supplements have never been tested. monster and other energy drink companies are providing this

product to our children, using our children as guinea pigs. the product has never been tested with caffeine, has never been tested along with those herbs and the energy drink companies continue to target their marketing directly at our children, just like the tobacco companies target our children with the joe camel campaign. >> i would assume that you are in favor, then, of the move by maryland to criminalize the sale of these drinks to anyone under the age of 18. >> not only am i in favor of it, i drafted the bill and i have reached out to my legislators along with the help of my client. we are fighting hard to get the sale of energy drinks banned in the state of maryland. let me just tell you, we have the american heart association, the american academy of cardiology for the state of maryland behind this. we have leading cardiologists, a blue panel of experts who say energy drinks are dangerous for kids to consume, and they also

support the four lawsuits we filed. they support the fact that these energy drinks have killed three people and caused another lady to have a heart attack. we will stop filing lawsuits when monster changes its warning and stops marketing its product to young people. >> we will leave it there. thank you very much for joining us. >> thank you. >> monster energy's ceo or other representatives are invited to come on "power lunch" at any time and further discuss this story. ty, up to you. >> thank you very much. the northeast barely getting over yesterday's big snowstorm. lots of flight cancellations still, school closures and another major storm on the way tonight. winter storm warnings being issued in several areas. the northeast actually facing a triple threat this week with another one on the way for the weekend. let's check in with the weather channel for the latest. >> winter storm nika, major winter storm system going to affect a large portion of the united states from the central plains all the way to the

northeast and midatlantic. before it's all over, well over 100 million people impacted by this storm system. snowfall is going to be big. i will tell you what, we see an area of five to eight inches across the midwest into the great lakes with as much as a foot of snow in some locations. it doesn't stop there. let's take a look at new england. interior new england, upstate new york, another area with up to a foot of snowfall. here's an icy side to this as well, guys. i'm really concerned about that. in this purple area, enough icing to really glaze up roadways and possibly produce power outages not only in the midwest but in the east here. southern pennsylvania into portions of maryland, all the way into portions of new jersey, icing will be a problem as well. a major storm event by all accounts. >> tom niziol from the weather channel. cnbc 25, the contenders. a look at who made the list in the energy sector and who we might have overlooked and who you think will end up being on the final 25. that's next. tdd# 1-888-628-2419 searching for trade ideas that spark your curiosity

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this is the pursuit of perfection. there's nothing like being your own boss! and my customers are really liking your flat rate shipping. fedex one rate. really makes my life easier. maybe a promotion is in order. good news. i got a new title. and a raise? management couldn't make that happen. [ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex. welcome back to "power lunch." check out shares of mcgraw hill. the stock is moving higher after the company reported better than

expected fourth quarter profits boosted by its financial information and indices units. mcgraw hill owns standard and poor's rating services which declined 2% in that quarter so though shares at least floating near session highs. back to you. >> thanks so much. the nasdaq is a pretty big winner today. seema mody is following the big movers there. what a difference a day makes. >> really, that's the case over here. stocks are recovering. we are seeing the nasdaq back above 4,000 and that was a key concern yesterday, seeing the nasdaq break that key psychological level. in terms of stocks helping the nasdaq, take a look at apple. apple shares outperforming morgan stanley, citing wearable tech as a big opportunity for apple. internet stocks are rebounding. semiconductor stocks, though, the companies that specialize in chips that power smartphones and tablets, those stocks continue to lag. overall, we are looking at the nasdaq up 1% on the day. also want to put a check on microsoft, of course, because satya nadella named ceo. we are seeing microsoft shares

up by .4%. back to you. >> thank you very much. to the gold market right now, which yesterday had a really strong gain. let's see how things are shaping up at the close today. a little bit of profit taking, perhaps no surprise, because we had a $20 gain in gold yesterday and also a decent percentage move in the silver market. we are down $8.80 right now on the close of gold at 1251.10. to the bond market, where interest rates have been in focus for the last couple days. we broke the 260 mark on the ten year yesterday, back above it today. rick santelli is following it for us from the cme. >> you know, interest rates definitely having their counter trend tuesday because the yen is looking at an intraday of tens, up four basis points. but yesterday we see the 30 year bond comped to the seven month since we saw the lowest yields in the 30 year. today it's having the biggest bounce, up about six basis points. dollar/yen, this chart shows everything you need to know.

the dollar is towards the high of the day, yen towards low of the day. if you're looking for the bounce to continue in equities, probably pretty fertile day for it. hey, look at differentiation on risk. yes, we are seeing it. lqd, seven and a half month highs, investment grade. hyg, the junk index, not investment grade at two and a half month lows. tyler, sue, back to you. >> rick, thank you very much. contenders among cnbc's list of the most influential corporate executives in the past 25 years. our cnbc 25 include a number of big names in the energy sector. that's sharon epperson's beat. she's here with her top picks and who she thinks was overlooked. >> let me start with lord john brown, he's at the top of my list. the ceo during the time when bp transformed into a powerhouse, looking at renewable energy as well as expanding into various parts of the globe, mainly russia. russian oil reserves, that was a

huge deal. merger with amoco, another huge deal. >> a transformer but not a noncontroversial one. >> he had the texas city incident and the prudholm bay incident in alaska. it was the affair he had at the end of his tenure that caused his early retirement, the fact he told an untruth about his relationship that later came to light and then years later, described how he tried to keep his private life private for so many years. >> you think he is justifiably on this list? >> i think so. >> let's move on to another one whom you endorse. >> richard kinder is one to watch as he continues to grow kinder morgan, a company that started in 1996 after he left enron. he is probably one of the most successful anti-enron people ever, growing that company to 11,000 employees. >> ex-enron, not necessarily

anti-enron although he is probably that, too. >> i probably should say ex-enron. what's interesting about this company, as he's grown it and amassed millions, he owns almost a third of the company, somewhere around $8.5 billion in terms of the value of the shares he has in the company. he also takes only $1 salary but he can afford to do that. in 2012, he exercised some options, his stock was worth $1.1 billion. >> let's move on to a couple choices that weren't on our list of the top 200. that's not to say they may not ultimately be on the list of the final 25. >> i think richard kinder might agree with me because kinder morgan would not have all the pipelines, be able to transport all this energy and also benefit from the energy revolution if it wasn't for this boom we are seeing in natural gas and who is the father of that? who is the father of fracing? george p. mitchell. he is the person who in the 1980s and '90s really pushed for hydraulic fracturing and horizontal drilling and that of course as we know has been

adopted not just all over texas but pennsylvania and north dakota. that's the reason we are seeing the natural gas boom, a large part of the reason why we are seeing from places like the international energy agency reports that we are going to be energy independent in north america perhaps by the end of the decade. >> i have a feeling he is going to make at least the top 100. >> i think so. i will be the first one -- >> a lot of people have written about him. you also made a case for lee raymond. >> very quickly, former exxon chief. you look at how he transformed exxon and grew that company and even though he had to deal with exxon valdez as president, not ceo, there were many developments through exxon that grew that company to be the powerhouse that it is in the world. >> thank you very much. appreciate your help. sue, down to you. >> the dow is now up 100 points on the trading session. the u.s. major averages are down between 3% and 7% so far this year. so where are hedge funds making money right now?

we will speak with one hedge fund manager about that. he happens to be a two-time nba championship winner and good friend of ty's. plus, microsoft names a veteran insider to be its next ceo. he is not a big household name, either. how these under the radar ceos perform might surprise you. [ male announcer ] once, there was a man who found a magic seashell. it told him what was happening on the trading floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a...shell. get live squawks right in your trading platform with think or swim from td ameritrade.

welcome back to "power lunch." check out google and cisco shares. the two companies are signing a patent cross-licensing agreement that they say is an effective way to prevent unnecessary patent lawsuits. the agreement covers the majority of patents in both companies' portfolios. no financial terms disclosed. sue? stocks in green. we're up almost triple digits now. we were up triple digits a few moments ago. we're up 82 points now on the dow. the s&p is up 13. the nasdaq is up 41 points. kenny pulcari, cnbc market analyst, joins us. we were just talking about whether or not what we're seeing on the board today reflects a bottom being put in in the market. you're not sure. >> we talked about it, you get this sense in your gut whether you think it's real. the fact is it doesn't. we broke technicals very, very quickly the other day and then we have bounced back so the

market will need to test again lower. people should not be concerned about that. people should welcome the fact it does it because that's part of the building process. it's part of establishing a new base and new foundation. so it needs to do that. i would suspect over the next week or so, maybe even before the week is up, we are going to do that. listen, nfp on friday, the big numbers everyone is talking about, the ones people are going to want to pay attention to. specifically because last month was so off the charts. it was such an outlier. >> we'll see whether weather affects this one. thank you. appreciate it. ty? my next guest, wally walker, runs a long short equity fund that outperformed the s&p last year by two percentage points and was up by more than 23% last july through december, better than most of the hedge funds by far. he's an alum of goldman sachs, a stanford business school and my school, uva. wally has had equal success on wall street and in sports as a two-time nba champ, including with the seattle supersonics. that's why he's here in new

york, because he was here for the super bowl. he also served in seattle as the team's gm and president of the supersonics for seven years. wally walker, welcome. good to have you with us. >> good to be here. >> good weekend for seattle. >> great weekend. unexpectedly relaxed. >> means a lot for seattle, doesn't it? >> yeah. been 35 years, my hair was still dark, wearing the short shorts to a men's team that won a championship in seattle. >> 1979. >> 1979. >> that was a good team. let's talk a little about the markets. last year, you were net long most of the year. you have scaled that back so that now, you are 50% net long. what did you see to make you do that since the end of last year? >> we had such a great run, particularly late in the year, the fourth quarter. it was only 60% net long but got longer going into year end which turned out to be the right place to be. i really felt when it jumped as much as it did for reasons that might not have been totally fundamentally driven, it was

time to scale back and of course, most of my investors are individuals so i wanted to wait until after the first of the year to avoid paying taxes this april as well. >> you took some of the profits this year so you don't have to pay taxes. >> correct. >> one of your short positions last year was dollar versus yen. you have taken that off, you have covered it. why did your view there change? >> well, partly lucky. partly tax-driven. but last year, i'm not a currency trader. let me establish that first. but when manufacturers in japan were all crying for a weaker yen, and a weaker yen platform, it seemed an easy way to create alpha for my investors. the trade all year felt very crowded. then we get into the first of the year, continued to feel crowded, had a big move, time to take profits. >> let's talk about a couple areas in your portfolio that have been sort of areas of concentration. what have been the private equity companies like blackstone, kkr? why do you like them? >> i think it's an incredible

environment for those guys. you have low interest rates, you have corporate balance sheets flush with cash. you have the ipo window open. what's better than for the private equity companies, that kind of environment. stocks are cheap. they are trading at ten times and i just listed steve schwartzman on their call. he implores us investors to look at the relative valuation next to the other asset managers. i think he's right. >> facebook? another holding. >> yeah. i'm more of a value guy. you can't claim that's a value stock. in fact, for years, i was writing to my investors rationalizing about why we owned it. not so much lately. it's a great franchise. the metrics are phenomenal. there is optionality there. they have a lot of other ways to create revenue. >> quick thought on the mining companies. you were long in that sector. it was not a good year for them last year but you think there's value there. >> i got killed in them last year, they were down 50%-ish last year. a couple i know well, stayed with and they are one of the few areas that have had a good 2014. >> final question about the nba. where you spent so much of your

career. two questions. the stern years are over. david stern is not the commissioner anymore. how is the league likely to be different under adam silver, the new commissioner, how is the health of basketball and will seattle get a team? >> i hope it's different in that seattle gets a team. if rational thought prevails, it's the best available market, both demographics, size and passion. 41 years, the sonics were there with a great following. so i hope that is a change and if all's right, it will be. as to what changes with adam, he has been there three days. not sure. >> what's he been doing? >> why don't we have a franchise yet. but i know this. from talking to a lot of the owners last spring, he's very well respected and i know from knowing a lot of people in olympic tower in manhattan, very well liked and respected by those folks. he's got a running start, it will be a great tenure for him. >> great to see you. thanks for joining us. wally walker. sue, down to you. >> thank you, gentlemen.

microsoft naming a company veteran as their new ceo and while satya nadella isn't a household name necessarily, other big companies have done the same thing. what's the performance of these under the radar leaders? we will name names for you coming up next. ♪ so you can have a getaway from what you know. so you can be surprised by what you don't. get two times the points on travel and dining at restaurants from chase sapphire preferred. so you can taste something that wakes up your soul. chase sapphire preferred. so you can.

a 401(k) is the most sound way to go. let's talk asset allocation. sure. you seem knowledgeable, professional. would you trust me as your financial advisor? i would. i would indeed. well, let's be clear here. i'm actually a dj. [ dance music plays ] [laughs] no way! i have no financial experience at all. that really is you? if they're not a cfp pro, you just don't know. find a certified financial planner professional who's thoroughly vetted at letsmakeaplan.org. cfp -- work with the highest standard.

coming up on "street signs" it is shark tank tuesday on cnbc. barbara corcoran will join us on set. she has a personal story to tell us about the art of convincing. also, brian will be eating just a little crow over the bet he made with retail guru jan

nippon. and we will be curling. at the very least, it should be amusing. back to you guys on "power lunch." make sure you tune in. >> i will, ty and i went curling a couple weeks ago, it was ugly. trust me. i sympathize with you. i really do. it's not easy. see you at 2:00. microsoft naming satya nadella ceo, ending months of speculation as to who would succeed steve balmer. nadella is a 22 year company veteran who was in charge of creating microsoft's internet based or cloud computing services. the tech giant's lead independent director john thompson will replace bill gates as chairman, but mr. gates will assume a new role as technology advisor. microsoft stock surging 13% since balmer announced plans to retire last august. today, it's up a third of a percent. can an underdog ceo be successful? joining us are eric desenhall and sidney finkelstein with dartmouth tuck school of

business. nice to have you gentlemen here. what do you think? was this a good choice? >> i think in this climate of perpetual media, if you live by the high profile, you can die by the high profile. i think we are going to see a resurgence of people who actually are a low profile executive largely because there tends to be a situation where height actually affects performance because when somebody is hyped too much, it leads to a certain degree of expectations that are never met. i think that somebody like nadella will probably choose to achieve first and worry about becoming a rock star later rather than the other way around. so it will be an interesting thing to watch. >> sidney, do you agree with that? can an insider from the company shake things up enough? that's been one of the criticisms of microsoft. is he capable of doing that? sometimes people say you need an outsider to do that.

>> right. well, the first thing to say is that his background is really impressive. he understands technology, he has been involved in the cloud business which has got to be part of the future. can insiders shake things up, typically you think of bringing in outsiders to really move things around but it's not impossible. i think of people like disney, he's really done a tremendous job as michael eisner's successor. i think there is some real risk with thinking about some of these celebrity ceos from the outside that come in and you think they're the panacea, then you end up with ron johnson of jc penney coming from apple stores and it's a total disaster. >> what does he have to do first to prove to his investors, to his work force, to wall street, that he's the person that is best suited for that job? >> well, i think we have to redefine the bias against the sort of cimematic ceos. it will come back to turning the

company around in terms of fundamentals rather than worrying about how well he does in tv interviews. it's really going to come back to performance. i think that the expectation that he's going to wow everybody in some sort of high profile way is a very false expectation. so i think that it doesn't pay when someone tries to go against their nature and be somebody like nadella trying to be carly fiorina or steve jobs is not going to pay dividends. keep off camera for awhile. >> sidney, does it help or hurt that bill gates is going to be there and has a very significant role still at the company? >> well, obviously bill gates is the icon and founder of the company, and what it sounds like he's going to be a bit of a partner for mr. nadella. not a bad partner to have. but when it comes to change and moving things around and trying to kind of take advantage of some of the things that the googles and facebooks and amazons and apples have been

doing the last decade, that balmer's microsoft maybe hasn't been as good at, it's a little tougher to change. it's not just bill gates. it's also steve balmer sitting on the board. you have two former powerful people overlooking your shoulder -- looking over your shoulder and that makes it more difficult to make the bigger changes. >> all right, gentlemen, thank you so much. appreciate it. today's yahoo! finance question of the day, what's your take on microsoft as they named their new ceo. 30% say i like the company and the stock. 19% say i like the company but not its stock. 8% say i don't like the company but i like its stock. 44% say i'm not a fan of the company or its stock. wow. we covered all the bases. >> i like it on tuesdays but not on thursdays when it's raining in seattle. okay. facebook hitting a milestone today, ten years it has been around. here's how wall street feels about the stock. 37 buys, four holds and zero sells.

we'll tell you how it's holding up, next. it is "shark tank" tuesday on cnbc. you must and i repeat, must tune in tonight starting at 8:00 p.m. eastern time. the sharks will be feeding. syst. let's say you pay your guy around 2 percent to manage your money. that's not much, you think except it's 2 percent every year. does that make a difference? search "cost of financial advisors" ouch! over time it really adds up. then go to e*trade and find out how much our advice costs. spoiler alert. it's low. really? yes, really. e*trade offers investment advice and guidance from dedicated professional financial consultants. it's guidance on your terms not ours that's how our system works. e*trade. less for us, more for you. we are the thinkers. the job jugglers. the up all-nighters. and the ones who turn ideas into action. we've made our passions our life's work. we strive for the moments where we can say, "i did it!"

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welcome back to "power lunch." check out radio shack, at session lows. the chain says it will close 500 stores within months, according to the "wall street journal" it's already had about 4500 stores. the company which is due to report its q-4 results later this month is denying any kind of comment. gap upgraded to buy from neutral at ubs, the firm noting this a positive multi-faceted transformation at the retailer is underway. positive multi-faceted transformation. an upgrade to neutral from sell by citi, noting a solid start to 2014 for open table. today marks the ten-year anniversary of facebook. shares of the social networking site trading near an all time intraday high of $63.77. right now it's $62.63. we will tell you some top stock gainers of the day after this break. when you're with her. and it always has been.

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in a we believe outshining the competition tomorrow

requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. the market bounce is fading just a little bit. we're still up 52 points on the dow jones industrial average but we were up 100 just a short while ago. the s&p 500 is up ten. the nasdaq composite is up 32 points on the trading session.

so three winners right now, michael kors, xylem, and yum brands after its earnings last night, up 8%. ty? >> bit of a rocky road lately for yum brands but today, a nice one. that does it for this edition of "power lunch." >> "street signs" begins right now. hello, everybody. the s&p 500 is bouncing back from its worst start to a february since 1933 but the wall of worry still stands and we are going to walk you through all the things investors are dealing with and talking about right now as well as reasons to be optimistic. plus, industries that are bucking the downward trend. the facebook turns ten. where will it be in ten more years? one major retailer did something positive. that