small caps, up 9% and rolling. >> murph? >> hertz. i think it's a great opportunity to get this thing into the mid 30s. >> there's the dow top of the screen, up 115 points. best month for the dow since july. have a great weekend. that does it for us. "power lunch" starts now. "halftime" is over. the second half of the trading day gets under way right now. "power lunch" is all over it. >> rain and snow this weekend but today, the bulls are back. a big day for the markets and we are all over it. the nasdaq hitting a new 14 year high, a new high for the s&p 500 as well. as you see it moving 12 2/3 higher. >> the people who work at the s.e.c., should they be allowed to own stocks in the first place? a new danger for facebook popping up on the front page of

the "wall street journal" today. is this company failing to police its site and protect its customers, especially its young customers, from predators? plus, a high tech way to steal your car. police in chicago have their hands full with someone who has found a way to do it with some sort of mysterious black box that enables them to get the codes in those keyless entry systems. and weather of course is going to be a big problem from the west coast to the east coast. there you see a storm moving in out there. east coast -- west coast rain, east coast snow, ice. middle of the country, maybe up to a foot. the forecast three minutes away. let's go down to sue at the nyse. we start this hour with the stock picking prowess at the s.e.c. a new report is out showing how well employees at the securities and exchange commission can do while regulating everybody else. there are some nuances here and

eamon javers is in washington with more on that. but we are posing the question whether really, the s.e.c. employees should be able to own individual stocks in the first place. you and i are restricted. we are not allowed to own individual stocks. >> reporter: yeah, that's right. cnbc has a tight ethics policy for those of us who work here. we are not allowed to own individual stocks or trade. over at the s.e.c., not so much. they are allowed within certain restrictions to own those stocks and to trade them. this new study from an emory university professor raises the question of how successful are the s.e.c. employees when making trades and are they taking advantage improperly perhaps of any information that they have inside the s.e.c. about what's about to happen to public companies. take a look at some of the findings here from this study. you will see what we're talking about. starting with the conclusion they made which is some of the profits from the s.e.c. employees potentially stem from trading ahead of s.e.c. sanctions. it also says it appears the

s.e.c. employees take advantage of non-public information, that's the conclusion to the study, and they say abnormal returns stem from sales ahead of price declines. they found really that the profits that a lot of the employees are earning come from avoiding those big tick-downs in stocks and sometimes those are related to s.e.c. actions. we talked to the s.e.c. about this. they dispute this pretty intensely and gave us a couple points why. take a look at those as well. starting with the basic fact that s.e.c. employees were ordered to divest a range of stocks during the time period of this study so that a lot of these sales were in fact forced by the s.e.c. on to their employees, who told them we want you to get out of all these stocks all together so therefore, would not be inappropriate. actually an ethics move by the s.e.c. they are saying all stock trades are reviewed and approved by the s.e.c.'s own ethics office. also, that s.e.c. rules mandate that they actually have to hold this stock for six months. they are trying to prohibit

s.e.c. employees from engaging in speculative activity. the s.e.c. pushing back here very hard on this study. >> indeed. it appears that they are. how does this particular policy at the s.e.c. compare to policies that might be in place in other parts of the government? >> reporter: look, a lot of people say hey, wait a second, why is the s.e.c. even doing this at all, why are these employees allowed to trade. when you look at other areas of the government, you've got de facto bans on trading. the president of the united states, for example, does not trade individual stocks. he does not own individual stocks. he has a broad index fund. he's allowed to but doesn't. he restricts himself. the treasury secretary, we talked to folks over there, treasury secretary jack lew does not own or trade individual stocks. that's a ban imposed on himself by himself. he would be allowed to if he wanted to. >> a lot of them would put it in a blind trust. thank you very much, eamon. appreciate it. big day here on the floor. the s&p 500 hitting a record intraday high, overtaking its

prior record of 1858.71. that of course was set on monday. bob pisani is here and you know, for the bulls, we just keep pushing higher. >> once we broke decisively above that resistance level, about 1850 for the s&p, we moved right up and it's not just the s&p. take a look. the midcap index and the russell small cap index have been new highs as well. small caps being helped by the biotechs that are doing so well in the last two months. let's take a look at some of the sectors that are doing well in the month of february. solar stocks -- there's retail. let me point out what's going on with retailers. beat on earnings revenue mixed, guidance below expectations from gap, ross stores, decker's was a disappointment, pier one, all below expectations today. some of the sectors that did better in the month of february, solar stocks, pharma, silver, gold and the biotechs all doing a lot better this particular month. there you go for the main winners. biotech has been a real big mover here. i want to point out the first of many tech ipos today.

veronas went public on the nasdaq, helping companies do data security analysis. listen to this. priced at 22, opened at $39. 22, opened at $39. >> a gain of 85%. >> a whole wave of tech ipos you will see in the month of march. i will be all over that. you will see a lot of them. coupon.com next week. >> i love coupons. but i can't own it. all right. let's send it to dominic chu. >> i love coupons, too, but that's beside the point. how about two medical stocks getting whacked today. medivation plummeting after revenues would come in lower than expected in 2014. then endologix sliding after it forecast its slowest annual growth rate in ten years, hurt by weak sales in the united states. endologix makes minimally invasive treatments for heart disorders. two big medical names in the news today. tyler?

>> thank you very much. i hate coupons because it's always the person in line in front of me who has a fistful of them. weather has really been hitting the housing market. pending home sales out today. diana olick, who never carries coupons, is live in washington. >> reporter: not true, exactly. but you're right about the weather. realtors are blaming the weather yet again for flat home sales in january. but not entirely. also, a huge lack of supply of homes for sale on the market today is really keeping sales far lower, especially in the west. take a look. pending home sales or signed contracts to buy existing homes fell the most. weather obviously not a factor there. sales rose from december to january in both the northeast and the south, where the cold hit hard. realtors are positively begging builders to add supply as housing starts are still historically sluggish. another factor, keeping that inventory low, negative equity, are borrowers still under water

on their mortgages. 3.9 million came above water in 2013 thanks to fast-rising home prices. that puts the negative equity rate at just under 20%. that's the lowest since the housing crash. but economists expect that rate to head near 17% by the end of 2014 but home price gains are moderating and some markets will stay flat. another issue, of course, is negative equity, when you have less than 20% equity in your home and likely cannot afford the cost of selling your home and then buying another one. that is also keeping homeowners in place and keeping them from listing their homes. back to you. >> thank you very much. the rain is on in l.a. and throughout california, where they certainly do need it. they haven't had much in a long time. but look at oscar there. this is video from los angeles, where they are getting ready for the oscars. looks like the stars will be

walking down the wet carpet, not the red carpet. rain in the west this weekend, today, tomorrow into sunday. snow in the east and midwest, and maybe lots of it. here's the weather channel's tom niziol. >> we are dealing with a major storm system for a good part of the u.s. take a look here. one picture worth a thousand words. this is the spin in the atmosphere that is winter storm titan already bringing very heavy rainfall to coastal california, inland as well. certainly as much as three to five inches anywhere in the los angeles basin. some of the foothills could see more than half a foot of rain. that much rain in a short period of time is going to cause a lot of flood problems, especially in burn scarred areas. up into the sierra the rainfall will turn over to snow as well, as much as two feet or more running along the crest of the sierra mountains. that will cause travel problems on the i-80 corridor going up through donner pass as we get into tonight and tomorrow. the system then lifts out across the plains. as it does, it produces a huge

swath of snowfall greater than six inches in dark blue from kansas city through indianapolis. look at this, everyone. it continues into sunday, through monday morning time frame, all the way from columbus through philadelphia, new york city, with well over six inches of snow possible. on the south side of the winter weather, we have the potential for a lot of icing conditions. all in all, this will be a major storm system that will affect a large population of the u.s. from today right in through monday morning. back to you. >> thank you very much, tom. take a look at this. this is in los angeles. tom just mentioned the fact that the rain is coming and it's needed but they don't need it all at once and that's what's happening. firefighters had to conduct a river rescue this morning. as you can see, the river is moving quickly and it also of course is swelling because rain has been coming so quickly, three to five inches expected throughout southern california,

certainly. a little bit less in northern california. once again, they do need the rain but they don't need it all at once. the ground is just too hard. it can't absorb it because of the horrific drought they've had out there. and it's an historic drought so firefighters had to do a river rescue and they are on alert there because once those rivers start swelling, it gets extremely dangerous. back to the markets now. the nasdaq composite and nasdaq 100 trading at a new 14 year high. both indices up over 3% so far this year. outpacing the dow and s&p 500. but it's not the big cap names like the usuals, apple, amazon and yahoo! and intel and those kind of stocks that are leading the charge. it's different ones this time. seema mody has the story of the nasdaq run for us. >> that's right. some traders are concerned that the outperformance of the nasdaq is similar to what we saw in the year 2000 right before the tech bubble burst. but keep in mind, large cap t h techs not participating in this year's rally, yahoo! intel,

apple down 3% to 6% year to date. despite these losses, the nasdaq continues to hit new multi-year highs thanks to gains in three specific subsectors. cloud service space, akamei tech higher after beating expectations in the fourth quarter. momentum players, tesla, facebook, we continue to talk about these names, continuing to rise as investors hunt for high growth. lastly, health care playing a significant role. illumina, second best performing player. alexei pharmaceuticals up better than 30% year to date. then there's a generic drug maker soaring on better than expected earnings thanks to an uptick on its generic business. experts say because this year's gains are spread out across a couple sectors, that there may be less of a concern of a bubble brewing here at the nasdaq. sue? >> good point. thank you, seema.

apple's ceo tim cook is still going at shareholder meetings. the voting pretty much as expected. all management proposals were passed, including one involving executive compensation. all the shareholder originated proposals were voted down. carl icahn's proposal for a $50 billion share buy-back didn't make it to the ballot since he withdrew his call for such a move earlier this month. mr. cook also told the crowd that the company's apple tv products generated more than $1 billion in revenue last year. josh lipton is at the big event and will have all the details for us in just a moment. take a look at how apple shares are doing in today's rally. a tenth of a percent gain at $528.20. but the stock is lagging this year. the s&p 500 is up about 1%. apple is down about 6% so far in 2014. again, josh lipton is at that meeting and will join us with more headlines any minute from now. you don't want to miss that. there is also a lot going on with bitcoin, the virtual

currency today. on the left, that's the founder of one japan based bitcoin exchange, bowing in contrition as mt. gox appears to have collapsed. the details of exactly what happened are not 100% clear. on the right, the world's first bitcoin retail store opening in hong kong. vietnam just banned the use of bitcoin. so it's going to be very interesting to see how this whole story really develops and unfolds. we really don't know enough detail on it yet. >> no, we certainly don't. i'm going to bow in contrition before i mess up this next tease. next up, we got a lot. phil lebeau on three big stories. phil, take it away. >> reporter: we have video you have got to see. there is a new high tech way that people are stealing cars here in chicago. it involves a mysterious black box. we will also be talking

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welcome back to "power lunch." the s&p 500 is hitting a record high today and 9 out of the 10 sectors in the s&p 500 are up. even telecom is pretty much flat on the day. health care and consumer staples are really jockeying for

position right now. leading the way higher, big names here. check out edwards life sciences, up more than 3% year to date. also davita health care. warren buffett purchased 1.1 million shares of stocks earlier this week to add to his position. he's the biggest shareholder there. also, amgen, up about 7% this month alone. and cigna on the insurance side of things, up about 3% in today's trade. back to you. >> thank you very much, dom. used cars, pilots and phil lebeau. the high tech way thieves are breaking into and stealing cars in chicago. phil? >> reporter: thanks for lumping me in with the thieves. let's talk about this new way we are seeing people steal cars. this video is something else. take a look at this surveillance cam video. you see somebody going up to a car that is parked there. they have something in their hand and then they can open the door. they are not smashing the window. chicago police are looking into

what exactly is this mysterious black box that allows a thief to in this case get inside the car, take whatever's on the inside. we do know that not only in chicago but around the country, police are looking into what this black box is all about that allows them to override the car computers. let's move on to auto sales. cold weather all month. we thought it was going to ease up in the second half of the month and things would improve for the auto dealers. hasn't happened. as a result, a number of analysts today and yesterday are out with sales estimates for the month putting the range of sales at about 15.2 to 15.5 million vehicles. that would be the pace of sales. if that's the case it would be roughly in line where we were in january. gm and ford are raising incentives to clear out inventory, particularly when it comes to the pickup truck lines. the auto makers are reporting february sales on monday. finally, there's new indications from a report out of washington that the so-called pilot shortage we have been hearing so much about, especially when it comes to the regional airlines, it may be

overstated. the government accountability -- accounting office, gao, says that airlines will need 4500 new pilots over the next decade and while we have had 11 of the 12 regional airlines say they can't meet their pilot hiring target, the gao says the issue is not the availability of pilots. there are plenty of pilots out there. the issue is are you paying enough. we are calling up a charter republic airways because republic has come out and said already listen, we are going to have to pull back our services for some of the main line carriers because we can't find enough pilots. the gao is saying they're out there, you just have to pay a little more. >> thank you very much. let's go to josh lipton with breaking news from the apple shareholder meeting. >> reporter: yeah, here at apple hq in california, tim cook is still on the stage fielding questions from shareholders. the meeting was only supposed to go about one hour but is going a little longer. we will continue to bring you updates. i want to bring you headlines.

cook talking to shareholders about this company is committed to introducing new products, new services, and to that end, he talked about research and development spending which is up 32% year over year. cook's point was listen, we want to introduce now products this year and are putting our money where our mouth is. he also talked about acquisitions. with that big cash pile, investors want to know what they are doing with it. cook saying they bought 23 companies in the last 16 months. he went on to say we're not opposed to buying a bigger company but it has to be the right fit. also, cook mentioning where's the growth really coming from now. he talked a lot about the emerging markets, brazil, russia, india and china. to put it in perspective, in fiscal year 2010 he said he had revenue of less than $4 billion. last year, they did over $30 billion in revenue in those markets. that's where he sees a lot of growth. in terms of cash, in terms of buy-back programs, remember, apple has committed to this $100

billion capital return program. cook saying that the board is thinking about ways to develop that program and will have an announcement regarding that program in the next 60 days. finally, when it came to votes today, those shareholders did approve and re-elect all eight nominees for director. guys, back to you. >> josh, thank you very much. there's a look at some of the boards of directors at apple. rome is burning again. perhaps not quite that, but it's pretty darned close. the eternal city is on the verge of a detroit style bankruptcy meltdown. plus, are russian troops moving into ukraine? michelle caruso-cabrera just returned from this country on the brink. michelle? >> reporter: john kerry issuing a warning to russia a few hours ago, saying to them stay out of ukraine. there are militias everywhere. ukraine is now accusing the russians of an invasion. more "power lunch" in two

minutes.

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here's what's at stake. until this morning, rome was looking like the next detroit, bankrupt and on the verge of a municipal shutdown. no subways, no buses, no trash collection, no day care, not even enough money to celebrate the canonization of the new pope. but the italian government freed up enough funds to keep the eternal city open for business at least for now. the last time rome went bust and literally burned was during roman emperor nero's rule in 64 a.d. in present day, venezuela, a wave of anti-government demonstrations sweeping through that country. with the death toll now at 13 and hundreds more arrested. the protests began in full force earlier this month by students demanding an end to rampant crime, food shortages and record inflation. in an attempt to curb that unrest, venezuela's president declared an early start to

carnivale. >> when in trouble, declare a party. that's the lesson here. secretary of state john kerry warning russia today stay out of ukraine. this is video from earlier today. we don't know who these troops are, but they are blocking roads, controlling access to one of the airports in ukraine. there is heavy russian naval presence in that area which borders the black sea. pro-western elements accuse russia of an invasion but there is no, and i mean to repeat, no confirmation of that being the case. but obviously, very heavily armed troops. michelle caruso-cabrera just returned from the ukraine and is with us today. we start this hour with john kerry's most recent comments. >> diplomatic initiatives what's going on right now. secretary of state john kerry spoke with his russian counterpart lavrov and expressed the u.s.'s concern in rising tensions.

he says he raised the issue of two airports that appear to be taken over, the appearance of russian armored vehicles and said it's important not to inflame the situation there. kerry says he was told by lavrov that russia has no intention of violating ukraine's sovereignty. it's really difficult to know what's going on. for example, we just got these reports. ukrainian airlines says the air space is closed. has been closed. yet an official at the airport says no, it's not. who knows what's going on. >> crimea and certain parts of eastern ukraine are more affiliated with russia, right? >> they speak russian. >> so they have some ethnic ties to russia that others don't. you were there in kiev. different part of the country. >> far to the west. >> far to the west. you saw militias there. who are these guys? who funds them? where did they get their weapons? are they organized in -- by any central authority? >> first, you should know there's no official police presence anywhere from what we

can tell on the ground, it seems calm but you're right, this is in front of the central bank. take a look. these are ad hoc militia guys with surplus military gear, bats, hand-made shields, and they are volunteering, here you see them guarding the former presidential palace. they have been brought together as a volunteer group by one of the protest groups. i'm going to be blunt. they appear to be mostly unemployed and mostly unemployab unemployable. these are guys who need a job and need something to do and are desperate to do it. it gives a little bit of feeling of lawlessness. the question is what happens when -- >> did you feel safe there? >> i did. yeah. absolutely. i did. but i always knew at the same time though that there was really no official police presence and you don't know if one guy tried to kiss me, he was clearly drunk. i don't think they are going to be able to keep control if and when things get bad. >> thank you. sue, down to you. >> thank you very much. michelle did a fantastic job in ukraine. good to have you home, though. the nasdaq hitting a new 14

year high, third straight day. seema mody is following the big movers for us. >> that's right. a big day for the markets. the nasdaq on pace for its biggest monthly move to the upside since july of 2013. as you can see, it's not tech that's helping the nasdaq move higher. take a look at the five best performing stocks on the nasdaq 100. monster beverage on top of that list. earnings actually missed street expectatio expectations. investors seem to be focused on the jump in sales it saw last quarter. amgen is the largest biotech company by market cap. discovery communications and staples in the green. want to point your attention to 3d printing companies as well. 3d systems is higher after predicting a $1 billion in revenue for 2015. earnings were in line with expectations. shares of 3d printing companies up over triple digits over the past three years in hopes that this ground-breaking technology will revolutionize multiple

industries. this is one subsector to watch. back over to you guys. let's go to steve liesman. steve? >> chicago fed president charlie evans making some very dovish comments at this point saying the public needs to understand that the federal reserve is willing to overshoot on its inflation target. he says that is the best way for the fed to get to its goals of full employment is that if the public understands that the fed is willing to go beyond the 2% target. the reason is because every time we get a tick up in inflation, markets tend to think the fed is going to raise rates soon. evans saying the fed needs to do a much better job of communicating. meanwhile, charlie plosser speaking at this monetary conference, says the 6.5% threshold outlived its usefulness and may be irrelevant at this point. the fed needs to fix it but first needs to explain to people what the point of the 6.5% unemployment rate is. there was a paper delivered this morning, very interesting, that

warned the federal reserve that you could have financial stability even if it comes from non-leveraged assets. just saying the market is not leveraged is not enough to say you can't have financial stability from monetary policy. sue, we have five presidents here, federal reserve presidents and a bunch of governors. we are following this all day today. >> terrific, steve. we'll get back to you as the news warrants. let's see how the bond market might be reacting to mr. evans' comments. rick santelli is tracking the action at the cme. pretty dovish comments, ricky. >> reporter: pretty dovish is right. they didn't really impact the market but i could see a lot of traders on the floor paying very close attention to the words on the screen when steve was discussing the issue. down here it's pretty simple. they feel as though there was a threshold of 6.5% unemployment to get close. forget about it. i think with regard to inflation or your definition of inflation, whatever it is on pricing, they will pay attention to, traders on this floor just aren't convinced that with forward

guidance being guided anything but forward in their opinion, that this is going to be a big shaker. they are watching markets and yield curves. of course, the fed's powerful. they have $4 trillion to prove it. as far as ten years, it's a three six day and three six year. we are up three basis points a day. you look at a year chart, we are down 36 basis points. when you look at a nasdaq chart as it's getting closer to 5,000 level, it's up 160 points on the year, about 4%. it's up 4% and ten year yields are down 36. that's what we're paying attention to. back to you. >> we are paying attention to the gold market which is closing right now. also, of course, the stock market. let's take a look at where the metals are with the big rally in the stock market, the gold market is to the down side and the silver, copper and palladium markets are kind of mixed. palladium showing a slight gain on the day but mostly a down side bias in the gold market and the precious metals. but it's the opposite in

equities. the s&p at an all time high, nasdaq at a 14 year high. here's where we stand. we are up 121 points on the dow jones industrial average. the s&p 500 is up 13 points. the nasdaq is up almost 17 points. and the dow jones industrial average is the biggest percentage winner, not by much, but enough. the dow jones industrial average up three quarters of a percent or 123 points. facebook sitting out of today's rally a little bit. as a matter of fact, it's flat. we'll see whether or not the market can pull it up into the green. the stock has sat out pretty much all week while the s&p and nasdaq keep marching to the new highs. the social media giant now under fire for exposing teens to inappropriate ads. is facebook losing control of its site and failing to protect its users? we will talk about that.

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welcome back to "power lunch." check out the smaller cap telecom company losing half its value today. the company reported a 22% drop in quarterly sales and forecasts

slower user growth in mexico. the stock is trading more than ten times its normal trading volume. its market cap has shrunk to $215 million. you can see there, a big move down for nii holdings. back to you. >> down 51%. wow. thank you very much. we'll watch that stock. we are also watching facebook because the company is under fire for exposing teens to ads that may be inappropriate for them. they range from people rating their looks to diet programs, web modeling and accessories for guns. is the company failing to police its site? joining us now is jeff elder, who wrote today's front page story in the "wall street journal." the facebook ads teens aren't supposed to see. jon fortt is with us as well. he covers that beat for us. nice to have you both here. your story was fascinating and frightening. as a mother of three kids, you think you're policing their web presence but some of these were very -- the ads looked pretty

innocent and they may appeal to the younger people who are interested in modeling and it takes them some place they don't want to go. >> we saw these ads that said modeling on them and talked to two little girls, 13, 14 years old, who clicked on those ads thinking it was fashion modeling and it turned out it was recruiting for adult web cam jobs. they were not prepared for that. that's the kind of thing where when those inappropriate ads show up on facebook, it's a click. it's not like watching a television commercial. you click and you're in a different world. >> and you can repeatedly show up in different places once you have clicked on that ad, correct? versus just turning off the tv. >> well, there was another ad that we saw out there many, many times. it was a full ad campaign for an app that connected young teens to adults for dating. very alarming. when those kids connected with that app, adults would rate their attractiveness, make

comments on their photos which were very inappropriate, asked the teens for dates and essentially were put through to the teens' facebook pages. some of that being brought into that, you can imagine the parents' distress. >> facebook, once they realized these things are happening, they addressed it. it's not like they are sitting ban and not paying attention to it. are they just too big? is it too much for them to police? >> i would say this isn't a change in the nature of the net itself. these companies that do these escort services or web cam, they have been around for a long time. just before, they were more marketing through google. kids are still on google, they are searching, and these same ads might be popping up. you just don't know the age and identity of the people who are being targeted. in a sense, there's the

potential for accountability because facebook has people's real, pretty close to real identities. we can figure out this is being targeted to a 14-year-old. five, ten years ago, we wouldn't have known. the question is, now that we know, how good is facebook going to be about policing this sort of stuff because their reputation depends on it. >> what about that? how good are they now, because you exposed this whole problem. they were very receptive to your questions and addressed them but what's your gut sense? >> i wouldn't say facebook was very receptive to my questions. >> maybe i didn't put that quite the right way. what i mean is once they found out about a problem, they moved to address it. >> yes, they did. they took the ads down that we pointed out. they also have their hands full. jon and i were talking earlier. a million advertisers, a billion users, that is a lot to keep tabs on. they also, the whole world was looking at them in 2013 to make money. can you make money. they did. they made $7 billion in ad revenue. did they overshoot the mark

getting ads out there that weren't there. i think facebook would tell you the system is not perfect and we are working to address it. i think they are. but to jon's point, how much of a priority that is in the ad system and for its citizenship is a thing that will show us this adolescent company, here's what they're really made of. >> which brings me to the are they too big? have they not put enough personnel and enough resources in that particular area? >> i think this is kind of like security. if you plan it the right way up front, you can make something pretty secure but it's very difficult to retrofit something afterwards and make it more secure. in this sense, the ad system, they have to look at it and see are we able to police it, are we correctly getting these ad segments defined and labeled on the way in so we can make sure we get the outcomes we want on the end, that teens aren't exposed to the wrong kinds of ads. if they have done a really good engineering job up front, maybe they can do it. if not, they might have a whole

lot of rebuilding to do to address this problem. >> great to have you both with us. we didn't even get to address the issue of whether or not the kids are actually putting their real age on it which is another problem. >> our kids were. none of our examples were the adult ads shown to kids listed as adults. >> thank you so much to both of you. ty? there are some big cap winners on your screen. united health, american express, merck, jpmorgan, goldman sachs. the s&p 500, new high today. new 14 year high for the nasdaq. more on the big question, how high can these markets go? uhhh. no, that can't happen. that's the thing, you don't know how long it has to last. everyone has retirement questions. so ameriprise created the exclusive.. confident retirement approach. now you and your ameripise advisor can get the real answers you need. well, knowing gives you confidence.

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welcome back to "power lunch." check out shares of kbr. the stock is sinking after the construction engineering company reported fourth quarter sales that missed analyst expectations. its ceo said earnings for the quarter were significantly less than anticipated. this is a company that specializes in construction

services for oil and gas. that stock is down about 13%, 14% in today's trade. >> let's take you through today's yahoo! finance question of the day. a new report raising questions about stock trading by s.e.c. employees. so we asked should regulators, staff and even congress be banned from owning stocks. remember a couple years ago, this big kerfuffle over congress people and staffers owning equities. yes, 54% of you say. no, say 8% of you. two out of five of you, 39%, say that only if they are directly involved with handling insider or inside information. sue? >> very interesting. let's talk more about stocks because the s&p 500 hitting another record today. the dow jones industrial average just a minute ago was up 120 points. bob pisani joins ty and myself to talk about this. it's interesting, because we do have international tensions out there and the market does not seem to be worried at this point about those.

other people make the argument the reason the market is up is people are taking money out of other parts of the world and putting it to work here. >> if you look at the emerging market stocks in the last week or so, really, that's not quite so. they certainly dropped in january, part of february but pulled up very well. ukraine was the best test. this wasn't some small country. this involved potentially cold war tensions. a lot of people said gee, if there was something that would affect it, this was it. bigger than turkey, venezuela and thailand, even, yet it's not really. i think the argument still is the u.s. still the best place and secondarily, europe. those seem to be the places where people are involved the most. >> january was a month relatively of despair. i think now we can look back on it and say well, maybe some of those explanations of what was going on was a lot of tax related selling in the first month of the year. turned out actually to be true. go ahead.

>> here we have a very broad rally, at least today. >> i think there are elements of the tax selling that are true. another element is a lot of people came in very, very short in january, short the stock market, short the bond market, because remember, the prevailing paradigm, the fed tapering program is going to continue. a lot of people believe that the tapering program, that the fed's aggressive action was one of the reasons the stock market held up so well, one of the reasons bond yields were so low and everything was going to change. it didn't really happen and it hasn't happened. i think short covering accounts for a lot of the action we've seen recently. remember, too, we are really almost sideways. we went into new highs at the end of december and are a little above that. so far this year, the stock market is largely sideways. i'm not putting down the rally we've had but we're not blowing up here on the upside. >> no, but you know one thing that doesn't make too much sense, is the fact that bond yields are still down at 2.67%.

that part of the bond/equity equation doesn't make sense to me. almost like the bond market knows something the stock market doesn't know or hasn't factored in yet. i'm not sure. >> something's got to be resolved here, i agree. the bond market is saying the economic data indicates not just that it's not good right here, but it might not be good for the next several months, certainly. i think that tension's got to be resolved. >> we will be back with you shortly. one of the former darlings of retail taking another hit. we will tell you which one and why, next. plus -- >> when we return, an investment banker airlifts himself out of finance and begins a successful helicopter based business. escaping the queue in a cockpit. ♪

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lululemon down on the trading session. its price target is lowered to $46 from $53. core customers are moving away from the brand. [ inaudible ] upgraded the neutral from negative due to

faster than expected revenue growth. the stock is up better than 2%. tupperware cut to a hold from a buy at argus research. that firm citing the company's weakness in a number of key international markets, down just under a percent. for more stocks let's go to dom chu for a market flash. >> a roller coaster week for jazz pharmaceuticals. earlier this week the company reported fourth quarter results and announced a management shakeup. it rebounded thursday only to give back those gains today. you can see that stock down about 5% in today's trade. tyler? >> thank you very much. imagine making lots of money as an investment banker and then realizing you would rather be flying helicopters. could you make a living at that, and what would your family think? >> the first person i mentioned the idea to was my wife. she looked at me and she said are you crazy? i married a banker.

hi. i'm javier diaz. i used to be an investment banker. i worked for 12 years in investment banking. i am actually from colombia. i worked with a lot of latin american clients. after a few years i moved on to deutsche bank. i don't think that anybody that's in banking loves banking. they love the perks. they love what they can do. so from that perspective, yes, i liked it very much. but i hated being behind a desk. i have always had aviation in my blood. it runs in my family. my father was an amateur pilot when i was growing up. it always was in the back of my mind that one day, maybe i will own an airplane or helicopter. when i was working in deutsche bank, i started [ inaudible ] my day job, somebody working as an instructor, then i bought a helicopter and started doing the

same thing. after a few years of doing that, i started to realize if i really want to make this work, i have to be in it 24 hours a day. in the case of chris, he hires us a lot. >> right now we are heading to west 30th street heliport in new york city where i am hopping off and heading off to a meeting. in 2007-2008 recession, i had to reinvent the business or the company because we were mostly focused on charters at the time, and you know, the charter market just went down tremendously. so we have developed a company here focused on the new york and northeast market for movie production. i also have a flight school that stays busy year round. if i want to put in 24 hours a day into this company, i can do it but if i want to get home for

dinner and be with my kids, i can do it. so that to me is priceless. overall, financially it has been very, very positive. people are saying you actually get paid for doing this? i say yes, i do. >> follow your dreams, do what i love. his wife quickly switched gears to support him and she is now very happy with his career change. if he's happy she probably will be, too. small cap stocks in the spotlight today. the russell 2,000 hitting a fresh intraday high. more winners in this rally when we come right back. [ male announcer ] legalzoom has helped start over 1 million businesses.

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strong way to end the week for the bulls. we have a triple digit advance in the dow jones industrial average and the s&p is at an all time high. let's take a look. dow jones industrial average up 109 points on the trading session. that's equal to two-thirds of a percent. there's a new high there for the s&p 500. it's up two-thirds of a percent as well or just about at 11 1/2 points. nasdaq composite is up eight points on the trading session. take a look at the nasdaq intraday chart. we did see a little fall-off in the last couple minutes. we will watch that very closely

and see what happens. transports confirming the move in the dow. the transportation average is up about 60 points. the ten year note, 2.67% on the ten year yield. three winners right now, target, national oil wells and kroeger. good to have you back, ty. have a great weekend. >> same to you. stay dry if you're in the rain, stay warm if you're in the cold. that does it for "power lunch." "street signs" begins now. that's it, big boy. nice move. hi, everybody. mandy and i have your spring playbook. it is raining out west. it is set to snow again here. mercury is finally out of retrograde. we have warmer weather stock picks just for you. plus, the party that amazon.com may actually be late to. kate kelly ominously detailing the widow maker trade. is "hoof