here without the s&p dropping. certain sectors are getting hit. >> market is going to trade higher. fundamentals in the economy are getting better. >> guys, thank you so much. have a great rest of the day. we'll head over to power lunch because that show starts right now. >> halftime is over. the second half of your trading day begins now. >> happy birthday to murph's mom. and candy crushed. the company behind candy crush is getting slammed in the first day of trading. it's down $2 a share. the opening now standing at 2 $20.18. we have a great slice of the all american survey this area. pot, where does america really stand on marijuana? would you mind if a pot impoir y y

-- imporium opened in your neighborhood. you might be surprised to see how the opinions divide in the east, south, west and north. on other kinds of drugs, we're finding out today by pharmaceuticals are so expensive. we'll tell you all about that. plus a major recall today from nissan. does it seem there are more and more recalls going on these days? first to sue at the nyse where king digital is trading kind of, sue. >> absolutely. you're right. king digital a very highly anticipated ipo. i think it's fair to say that although the game they produce may be sweet the stock has soured. the ipo did not go as well as many people anticipated. i think that's an understatement. i guess the question is why? was it the fundamental with the ipo? the pricing and the number of shares out there or is it something else? >> it's actually a really slow float so you would expect a pop

from that. but there's fundamental issues. number one, 78% of gross bookings, revenue coming in is coming from candy crush and while extremely popular it's in decline. 95% are from just three games. so they're betting big on big games. they might need to diversify a bit. one in five users actually pays and the number of payers was down by 1 million from december over september. so a little bit of issues there as far as who is forking on the over. but on the positive side, they do have good expense management in contrast to zinga and they don't do advertising. they could bring in more revenue. >> all right. thank you very much. up to you. >> sue, yesterday here on power lunch, she warned investors beware of this ipo market. she is back now with more on what some of the top names that watch this side of the business are saying about the next several companies that are expected to go public. >> that's right. said we warned you that the ipo

boom may be slowing down with investors becoming more selective after the flurry of deals we've had this year and that could be expected today. the company is still in the early inning of its growth strategy. looking at the ipo pipeline. one ipo expected to list this evening. a clinical stage is in effect. it will be interesting to see if the recent volatility will list the performance. that will be something to watch. bio, a leader in china's online entertainment market and medical data provider ims health holdings and those are some of

the ipo's expected over the next couple of weeks, sue. >> given what's happening this afternoon to king digital, i'm sure they will be very closely watched as well. thank you very much. breaking news right now in the bond market. it's the five-year note up for auction and everybody was watching to see how this one would do. ricky, what kind of a grade? >> this was the definitive auction to watch. the 3s and the 5s. they were slammed. their yields popped dramatically. i guess that cheapened them up enough because we arrived at an a plus on the demand side of today's 35 billion five year note auction. the yield 1.715. that was below the low yield i saw in the one issue. low yield, high price, right. just shy of 3 at 2.99. best since september of last year. actually september of 2012.

50.9% on indirect. that was july of last year since we've had a level that good and on those direct, 23.1 since may of last year. no matter how you slice this one, the five year was just like out of the shoot like secretariat. back to you. >> thank you. >> in the late 90s he was the start of i was kid behind the first social network. unfortunately bust is really a fascinating lesson for anybody trying to tap into the public markets. he rejoins us now. welcome back to power lunch. good to see you again. >> good to see you sue. >> weigh in on what's happening to king digital today. everybody thought it was going to go well. it was in the sweet spot no pun intended but the market is not receiving it well. what do you make of it? >> i tend to think when people are buying in at peak hype like

when facebook went public or groupon went public, it's going to deflate. it will deflate either immediately or in the next six months when the lockup agreements for employees are allowed to get out but on top of it, i think when you're talking about a hit driven business like zinga and when i talked about the ipo i said this, it's like the film studio business. you're buying in at peak height and there after it's going to have slow growth in the long run. there's still highly anticipated ipos in the pipeline. does it tell you anything about the ipo market overall? and the stock market overall? >> yeah, i mean, for the first time since the late 90s i'm starting to get the feeling again that we're starting to enter an ipo mania and most of us remember how that went after the 2000, 2001 bubble burst.

we're in an area with too many companies going public. the multiples to earnings are high so i'm concerned about that. >> given what you know, would you pull it or go to market? >> i would go to market. this is great for the company that raise maximum cash. it's great for the company that needs the money but it's not going to be great in terms of the stock value and for people that are buying in at the public market. it's fine for early investors. it's great. they're getting out. but if you're going to buy in at the ipo at peak height you should be prepared for a 6 to 12 month deflation and be prepared to hold it for the long hall. >> thank you for speaking with us. we'll see you a little bit later as well. all right. let's go to dominic from market flash. >> check out cheers of baxter international, reuters is

reporting a sale of its vaccine business. this unit which includes vaccines for meningitis had sales of $300 million. separately, mork nonew york tim reporting a shortage of nitro glycerin. interesting news on that front. back over to you. >> thank you very much. if you have been following power lunch and many cnbc programs all week, the biotech index has been getting beaten down. it's lost 10% of this month or the past 30 days or so. it's the way many people play the biotech sector as a whole and it is down more than 11% in the past month. the issue that kicked off the drop is in part a hepatitis c drug that came under fire for being too expensive. sheila has been watching the fall from the top.

why are so many of these drugs so expensive to begin with? >> i'm going to have all of those answers for you in just a second. first i want to show you just how much expensive a drug, this is the drug under scrutiny how much expensive it is for the united states. here at home it costs $84,000 for a 12 week treatment. that's $1,000 a day if you're going to be undergoing that treatment. in europe, the same drug t same treatment costs thousands of dollars less. so in uk the proposed price is only $57,000. in germany only about $66,000 and get this, when you're talking about developing markets like egypt, a 12 week treatment is just $900. that's about a 99% discount from that discount in the u.s. i want to be clear. this is the same scenario that we see from many different drugs and here is why. the u.s. government is

prohibited by law from negotiating drug prices. they can't do it. also medicare can negotiate discounts to lower the price. but this is all off a list price still set by the drug maker and this is very different in how it works in most other countries. in most other countries around the world t government does negotiate and in europe certain of these drugs can be up to 50% less and in developing markets analysts are telling you certain drugs when available can cost pennies on the dollar. so the question now is how did drug companies justify for charging so much more in the u.s. a lot of common themes, first of all, it's about drug spending. it's a pretty small part of the health care spending. also they say these big list prices actually make up for all the drugs that don't make it to market. remember, there's a lot going on when it's talking about

developing these drugs. finally they say they price the drug as cording to a company's ability to pay. so look, u.s. drug prices will come under more scrutiny. analysts say don't expect many changes in the short-term. this is a deal that's been debated for a long time. it's going to be hard to see any real changes at least in the next two to three years. >> absolutely. sheila, thank you so much. well, there's been another major recall from one of the big auto makers. this time its nissan recalling 1 million vehicles and investors shrugging it off today. the stock was down 15% in the last six months. phil is live in chicago for us. >> this is one of the huge recalls. it is a massive recall that nissan announced more than 1 million vehicles all 2013 and 2014 models. the reason for the recall, there is a piece of software that needs to be repaired. if it is not repaired the passenger air bag may not

deploy. among the models impacted, the sentra, the leaf and nissan's top selling vehicle, all the models are sold here in the u.s. about 60,000 are sold here in canada. nissan knows of two accidents involving defective software. remember the sales are up 9% last year slightly out pacing the industry as a whole in the u.s. the market is shrugging this off. even though it's a huge, huge recall that's been announced if it's not catastrophic or one similar to what you have seen with general motors right now and we usually have two or three a year, generally they're going to take it in stride. sue, back to you. >> phil, thank you very much. a week after getting it's drilling license back from the u.s. government after it was revoked due to a massive spill in the gulf of mexico, bp has another spill on its hand. the oil giant says a malfunction at its refinery in indiana let

crude oil into lake michigan just a few miles southeast of chicago's city limits. the environmental protection agency says the spill appears to be contained and bp says it's crews surrounded the spill and they're in clean up mode. shares of bp have been up today but they have been down almost 6% in a month. today, ty, almost a full percentage point gain. up to you. >> all right. thank you very much, sue. this is our senior economics reporter and this is our senior economics reporter on a marijuana survey. that is the story, steve. >> yes, tyler, good joke there. as part of our all america economic survey we looked at the question of marijuana in america. how accepting are americans? would they allow it in their backyard? are there differences between north, south, east, and west? this one has people talking today at cnbc. i'll show you the results, next. >> plus the attack on warren buffet from one of the biggest names and facebook's next big buy. it seems there's a new

billionaire in the valley every day curtesy of what mr. zuckerberg is spending. that's all next on power lunch. .

welcome back to power lunch. check out shares of lab corp. and quest diagnostics both moving higher after a bill was proposed in the house of representatives that would prevent medicare and medicaid services from cutting the the fees it pays until at least

2017. >> both shares up about 5%. over to you. >> thank you. well, officially it's spring. but that's not stopping mother nature from pounding the northeast with snow once again. this is the jersey shore area. but cape cod, nantucket and martha's vineyard are expected to bare the brunt of the storm. forecasts are calling for about a foot of snow. when is spring really going to spring? >> i don't know and baseball's opening day is like sunday and monday next week here in new york. >> yeah. >> check out this chart. facebook up 150% over the past year or so. big reason why mark zuckerberg has gone on a spending spree. oculus, $2 billion the price tag there. what does the company do? does it make any money?

josh lipton, josh. >> yeah, facebook making headlines buying oculus for $2 billion. you put on this headset and you should feel like you're inside the video game. a totally immersive experience. they had raised about $90 million from big named vcs here in silicon valley but who are the people behind oculus. the founder is a young guy, home schooled, son of a car salesman. very bright. began taking courses in college. he initially thought he would become a journalist but then switched tracks and pursued a career in tech. no surprise an avid gamer. palmer luckey thought virtual reality often didn't live up to expectations. we now know he at least has one big backer. last night on the call with analysts facebook said the

oculus head set was like nothing he had ever experienced. back to you. >> thank you, josh. appreciate it. slated ceo and internet pioneer is back with us. what do you make of mark zuckerberg going on this spending spree, $2 billion today alone? >> brilliant. when i talked about facebook's ipo, it seems like a lifetime ago now. a lot of people were dismissive of the stock because it had deflated quite a bit but i talked about how it's about mark zuckerberg's long-term plans. there's huge growth potential and what he has done is making an offensive bet that there will be a shift in how people consume the internet. he's made brilliant defensive moves by buying instagram and by buying what's app. but those are moves to his business model. oculus has a product that's completely transformative in terms of how you experience the

internet. you could turn your head to the left see your parents. you could turn your head to the right and see your colleagues. that's something that we don't quite understand yet but if facebook wants to protect itself and be prepared for the future, it was a brilliant move. >> it sounds as though you would put him in the visionary category if i'm reading you correctly. >> oh, he's a visionary, all right. one of the smartest things he did from a technical standpoint is he created a two class stock structure for facebook so that he has much more voting power. now he was anticipating that this would be because he would be making big, risky, innovative bets and he didn't want to get outvoted and have to deal with the masses of shareholders that don't understand this type of long-term thinking. so he was thinking way ahead of the game and he set himself up for success and he is proving out these type of bets. steve jobs was doing this with apple. we all remember apple being a computer company 7 or 8 years ago. now it's a tablet. it's a phone company.

it's evolved. they made big bets and facebook needs to evolve beyond just being social networking. it needs to prepare itself for the future and zuckerberg is doing this. >> it sounds like he is. what do you make meanwhile of mark's comments via twitter toward warren buffet? i mean, was he simply having a bad day? what's behind that. >> no, he is a pioneer and he's brilliant and he's right. i mean, this is an area where, you know, the old white guy that doesn't know how to use the internet fully is making comments about a future currency. now i remember when e-mail was launched, okay? back in the mid 90s, people and universities looked at me cross eyed when i said, hey, do you have an e-mail address? now he-mail like bitcoin is software and every time its had a problem or has been hacked or there's been scams, e-mail has gotten more robust. bitcoin is software as well.

it evolves. it's an evolving system and quite frankly you just need to go and speak to one of the bitcoin geniuses in terms of who is backing a lot of the bitcoin industry and creating one of the first bitcoin exchanges. there's 32 institutions representing billions of dollars looking to speak to him specifically to deploy capital this summer. there's tra tigsditional instits waiting to get in. >> thank you, always a pressure to speak to you. >> thank you. >> ty up to you. >> colorado's move to legalize recreational marijuana has become a hot national topic but how do americans really feel about having weed in their own backyard? we're not talking about weed. steve with very surprising

results from our cnbc all american survey. >> interesting results of 800 americans surveyed across the country. everybody has been asking where do you support legalization and those numbers turned around and now they're a majority. we asked people more personal questions about do they accept marijuana in their town? 56%, these run very much along the lines of support for legalization. notice it's town. your town or your city. 48% though comes down a little bit when it's in your neighborhood. would you invest in a business that grew or sold marijuana? just 34% acceptance and 28% say they would work at a business that grew or sold marijuana. my read on this data is as you get closer into people's personal lives, that support declines. i had one person write on facebook to me that said living in a town in colorado with four dispensaries, it ain't so great despite what that american may think in the abstract as legalizing marijuana.

here's where results get surprising. even in the south, 50% report. midwest more, there's your average of 56% and your results are accurately reflecting america when in the west you have the highest percentage, 66%. and one more thing i want to show you is by demographics, 65 plus that's the least acceptance. all the people that accept it, they were at woodstock. women, all percentage there. even blue collar workers up near the 60%. this is an interesting issue we'll be following for a long time here. it's one of the big social and economic issues in america today and you can see there's been movement here. >> very interesting and your cover band is playing tonight. your 100th gig at garcias. >> thank you. >> there's a plug. two see steve tonight everybody. sue. >> all right. thanks so much.

good luck tonight stevie. titans of silicon valley. who has the touch with the next new hot tech? that list is out and we have it. plus. >> coming up, a power pitch giving new meaning to the power of the purse. >> never have a dead battery again. >> making high-tech cotour. >> this falls into the sweet spot of one of the big points for womens. >> or will this start up be passe? stay tuned to find out. ay tuned. and guaranteed one-second trades. and at the center of it all is a surprisingly low price -- just $7.95. in fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and e-trade. i'm monica santiago of fidelity investments, and low fees and commissions are another reason serious investors are choosing fidelity. call or click to open your fidelity account today. a short word that's a tall order.

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this hedge fund along with starboard value have opposed the plan to spin off it's red lobster restaurant chain. it's doing what is in the best interest of its shareholders. that stock is up about a half a per cent. back to you. >> all right. the metals market starting to close right now. let's get you up to date on where things stand. we have everything on the down side with the gold market closing down about $8 on the trading session. we have a loss of better than a full percent in the copper contract. platinum and palladium down also better than 1% and the markets thelss trying to hang on to a gain in the dow jones industrial average. doesn't look promising as we move toward the lows of the trading session. right now the dow is up only a quarter at 16368.19.

so it looks like we penetrated a support area there. the s&p is in the red by a half a point and the nasdaq composite is down a half a percent today. >> time for our series the power pitch where entrepreneurs get 60 seconds to make their pitch and we decide whether they can become the next best thing. >> having a dead cell phone is the worst thing ever. so with this bag, you won't have that problem anymore. >> my name is loni edwards and i'm the pounder of empowered. a line of tech enabled fashion. we launched at the end of january and sold out in 48 hours. our first product the all in one is an attractive bag from the outside with a powerful battery built into the inside. it's compatible with all of your

portable electronic devices. it will charge your iphone, andro android, camera, digital camera, et cetera. you plug them into the included cord and you recharge the bag by turning the cord around and it's both easy to recharge your devices as well as recharge the bag. the bag come with a removable and adjustable strap but it's allowed to be worn three ways, cross body, shoulder or as a clutch so it's very versatile and has also a built in wallet for functionality. we launch with 11 colors. we'll be announcing more soon as well as additional styles and men items. >> she is on the right side of your screen and she can hear us but she can't react to us just yet. on our power pitch panel is angela lee. the group reviewed thousands of start ups and investing in just 11. angela also trains women to become angel investors.

we also have fenner in fonstad who is called one of the most powerful women in venture capital and also forbes mitus list veteran. thank you for joining us today. let's huddle up. what did you think? >> she hit on a consumer need and i love the fashion tech space. i want to understand how is she going to be differentiated among the competitors. >> good point. >> this falls into the sweet spot of one of the big pain points for women. the high-tech problem of charging their phone. it's in the right place at the right time. i'd like to learn more. >> i'm interested to know what else she has in the pipeline, it's hard to live on one product alone. i'm also interested in how she is going to get the word out there. i'd like to hear more about her marketing and distribution plans. come sit in the hot seat. you brought along a beautiful red empowered purse.

i have a black one with sparkles. very nice for evening and angela you're holding more of a daytime one as well. jennifer i'm sorry we don't have a purse for you but you get the first question. >> today's busy woman has the opportunity to take a battery pack and throw it in her purse and throw it in her bag. how do you hi about that option versus your solution? >> the battery pack, you have to remember, this is built in seamlessly, you don't have to think about it. it's easy to recharge the bag on the go and it's in the back z zipper pocket and it's an attractive bag without it and the price point is also part of it. the bag is $149. >> one of the hardest things to do is change consumer behavior and what's the feedback been as far as having to charge your purse overnight. >> we haven't had negative feedback about that. you're charging your phone anyway and then when your phone dies you just plug it into your purse and you last throughout

the day. >> talk to me a little bit about demand at the moment. what kind of indication have you that you have on going demand? i know you sold out of the first 200 products that you made. how many more products can you make say on a monthly basis. >> we're doing preorders to keep up with that and keep the inventory in line with the demand which is working well. we're introducing new styles. a large tote bag is already production. >> i think people are wanting to buy american. i think that's a great thing to play up. you wouldn't think to maybe bring your costs down. have you thought about outsourcing. >> he is able to do a new production run and within a week he'll make 100 or 200 more bags where as overseas we have to wait to get that production run. >> what about for the man part of the equation? do we have a man purse orman bag in the future? >> we're working on a man bag. it will either be a passionable

backpack or briefcase style. >> are you in or are you out? >> i'd like to invest as an investor in a company and not just a single product. so i would like to see what else could be developed. not just the specific technology. as a result i'm out for the moment but i want to stay in touch. >> what about you jennifer? i think that there's an opportunity to see how she plans to extend, make the extense blt of this into other products and in particular what value she is going to build her brand around. whether it's around the innovation or the fashion piece of this. i'm intrigued. i'm out but i'm very intrigued and would like to learn more over time. >> it's a product that personally i would buy. it's a great price point. it seems like it's very well made and i really like the fact that you're committed and dedicated to making things here in america. so if you can also put that into your promotion that would be a great thing. i'm going to say i'm in on this. loni, what's your reaction. >> i'll sad you guys were out but it's great feedback and

we'll be comin out with new products and i'll keep you updated. >> thank you very much to loni edwards and our panel lists. that is today's power pitch. >> well, are you out or in on empowered? you heard what our panel had to say. i say if it looks good and it carries lots of stuff it could be a nice hit there. you can log on to power pitch at power pitch cnbc.com. >> i like it. it solves a lot of problems. you don't have to carey more things than you want to. it is very sleek. gloe let's go to mary thompson. she is going to give us an update on the markets. we dropped. we're in negative territory. >> this is a pattern we have seen over the last three days. we have seen the best levels happening in the about the first 40 minutes of trading and then it's all downhill. recently we saw the nasdaq drop

below yesterday's low of 43. that seemed to help celebrate the decline we're seeing on the down side today. right now the dow is at its lowest of the session off 40 points. this on a day when there was so much buzz about the king digital entertainments debut. it was disappointing but we want to point out there's another ipo today. in order anglia. this is an operator of schools in southeast companies. it priced at 16 and you can see that it's debut has actually been received a little bit better than king digitals which is down over 15%. investors are definitely taking a defensive posture today. they're moving into health care stocks. getting a bit along with consumer staples. tech is leading the decline and they're moving money into the emerging markets which are looking stronger. the emerging markets, eft climbing above it's 2 hyund00 d average. >> thank you very much. appreciate it.

let's get the interest rate read as stocks start to sell off. find out whether or not after that solid, solid five-year note auction where interest rates are headed now. over to rick right now. ricky. >> well, you know, we talked about how secretariat came out of the shoot. rates going down and stocks going down. i remember a day when that was normal flying procedure. we finally busted out of that range. that tight closing range. we went from the 150s to the 170s. we're moving back down. the two week chart clearly shows that and this is the euro versus the dollar. imagine a line underneath it. we're getting below that. guess what happened a half hour ago. french jobless claims benefits came out and basically more people are now functions as unemployed in france. it's a record level and we want to definitely monitor this, especially a week away from an ecb meeting. back to you, sue. >> thank you, ricky. we will indeed keep a very close

eye on all of that. all right. to dominic with the market flash. >> check out shares of both direct tv and dish network. both spiking here. this on a bloomberg report that the two are talking about a possible merger. it says that dish approached directv's ceo about a possible deal. there's been a lot of talk about them combining. a number of media reports going back to late last year. still those stocks both at session highs. sue, back over to you. >> yeah, 6, almost 7% gain for dish. >> thank you, the people you need to watch in technology. that is straight ahead. plus the aviation sector flying high today and one company in particular is feeling the need to expand. >> we're always talking about big orders for boeing and airbus. now there's one city in the midwest that's going to be benefitting because of those orders. we'll tell you about the city and the company behind it when

power lunch returns. wer lunch r.

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welcome back to power lunch. a big day in lafayette indiana why they announced they'll be building an engine final assembly plant. several hundred will be employed as they build the new leap engine at this plant. why is ge adding this plant? because it's demand for jets, not only commercial but military continues to move higher. as you take a look at the demand and growth over the last ten years, ge aviation ceo says they expect this demand to continue. >> the commercial airline market is robust. you know, we think demand will grow an additional 6% this year alone, worldwide. you know, we make it here and ship it to the rest of the world, over 60% of what we assemble and build is shipped outside of the united states. >> take a look at shares of general electric up, you know, a nice move over the last year or

two and, again, this is the latest move by ge aviation as they have now added seven plants in the last seven years in the u.s. to keep one rising demand for commercial airplane engines back to you. >> check out chairs of spirit arrow systems which is a major supplier to boeing and airbus. 10 former employees are suing the company alleging that spirit arrow laid them off because of their high health care costs. the charges were filed with the office of civil eithers. the stock is currently off it's session high so still up about half a%. back to you. >> thank you. venture capitalists known for taking big risks on little known start ups that become the next facebook or facebook take over. this year's forbes list ranks the titans of silicon valley where the top players along took part in exits. bruce welcome back to cnbc.

>> yeah. >> how did you put this list together? what does it measure and what do we mean when he we say exists? >> it's a performance ranking of venture capitalists that place the earliest bets on the biggest tech start ups we know of. the backers of those companies dominate the top of the list. we look at an ipo or a sale of a company like oculus as an exit and take that dollar amount and apply all kind of factors to it. >> but it's the guys that were there first on the biggest deal. >> you get higher ranking if you're an early stage venture capitalist and not late stage. >> he is number one. why. >> well, pretty much what's app. he was a solo player in that one. >> do you know how much he made on what's app? >> north of $3 billion that they'll split. >> north of $3 billion. >> with their investors. >> moving to number two, mark

much in the news. >> yeah, he was number two last year. another string of hits. facebook is a goodwin for him. twitter was a huge hit and pinterest and oculus. >> if you're number two, it's okay. it's okay to be number two. let's move on to peter. >> he was a hiej player. he's one of the earliest investors and would be of the most powerful players on the board. >> and still in the top five at number four and jim quickly on those two. >> he also scored well with that big data. mysterious security company and just announced he is stepping down from excel so we might not see him in the top five anymore but he was a huge backer of facebook and legendary pictures. love spotify. >> my wife likes etsy. thank you very much. >> sure. >> sue. >> ty, the new york times taking a big gamble to try and boost it's ad revenue but is it

blurring the editorial lines. morgan is on that story for us. >> blurring the lines or ensuring financial survival. we'll explain to you can decide after the break. after the break. ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ from td ameritrade. so our business can be on at&t's network for $175 a month? yup. all 5 of you for $175. our clients need a lot of attention. there's unlimited talk and text. we're working deals all day. you get 10 gigabytes of data to share. what about expansion potential? add a line, anytime, for $15 a month. low dues, great terms. let's close!

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>> for $8 a month they'll get consent from the website but also make use of what is called paid posts or native ads. you have probably already encountered them online. these are the web's versions of magazine ads. they're formatted like an article and they're a platform for brand story telling. they typically show up in editorial content streams and

even though they're labeled as ads it's easy for readers to overlook the labels. they command a much needed premium over other ads and a user friendly format for mobile. that's why the times is expanding it into this new app. >> native will be in many cases a primary form of advertising in digital and in mobile and i think a lot of digital publishers are moving to that or embracing native because of that. >> so we have seen similar adoption at other outlets. most notably forbes magazine and the washington post and now the times is also launching a new subscription called times premiere. that will become the paper's highest tier offering with full access to the paper's many platforms plus bonus content. that will cost you $45 a month. as for cnbc, cnbc digital properties have native advertising units as well. they adhere to strict

guidelines. >> where do you draw the line between editorial and paid content in the digital space? my old friend, the director of communication and media at montclair state university along with charlie worzel. i gather you have seen at least a beta version of one of the new new york times apps. what can you tell us about it and specifically about the insertion of sponsored or advertiser content right in the news stream? >> i did get a chance to play around with the app for about two days so far. and there aren't any ads yet in the test version. but the app it's is very slick. and it is -- its very useful. in terms of ads though, i don't feel like the line will be blurred very much. a lot of people are working with native advertising now.

i think users are getting used to it. it's not in the time's interest to confuse readers. >> least of all the new york times. you worked in print and washington post and time inc with me and msnbc and now you're on the academic side of the world. are you you concerned about the blurring of editorial content and what we used to call in the magazine business advertorial content. >> i'm not concerned about it at a place like the new york times where they believe in disclosure and transparency and have lots of rules. it's full of start ups and new enterprises and people that aren't in the history of the split between advertising and editorial. >> so long it seems to me guys, this we have to wrap because we have breaking news, as the content is clearly separated by

color, tie points highypography it's clear what it is. >> when you don't see the clear advertising banner. >> it's blurry. we have to leave it there. i'm sorry but we have break news with michelle. >> we have gotten a copy of what appears to be the new cuban investment law and there's two things within it. first, for the first time in the history of the socialist revolution, if this law is approved on saturday, they will allow wholly owned foreign companies. they always said we welcome foreign investment. we will still retain at least 51% of the money because therefore they get almost no foreign investment. so one wholly own foreign companies they claimed. two and this is going to sound funny, they promise they will

not expropriate anything. they promise there will not be expropriations. if they want a company they'll pay for it and do it under arbitration agreeable to both parties. this is the draft we believe to be improved on saturday. things are changing dramatically in cuba. they have lack of rule of law being one of them. but this is some of the incremental change we have been watching there. >> but it's such a fascinating story. we have serious deterioration going on in the markets right now. they are telling me there's big geo political jitters running through the markets. the nasdaq moved to the down side and it's penetrated support at the 4200 level. 4205 with support. went through that and then went through 4200 support. so we're down about 40 points on the nasdaq composite.

the transportation average is down 100 points and the dow jones industrial average is off 61. we will back be in just a moment. blan save you fifteen percent or more on car insurance.d everybody knows that. well, did you know pinocchio was a bad motivational speaker? i look around this room and i see nothing but untapped potential. you have potential. you have...oh boy.

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. >> markets deteriorating just a bit. that will do it for power lunch. >> that's right. we will see you tomorrow. mandy dris up at the top of the hour. you have the markets covered. >> yeah, we do. put on your reality goggles. we'll take you on a tour back to the future. while everything that used to be in is in again. also three shorts not for the reason you might think and panera is taking it on the chin today. that plus more starts in two minutes from now. join us then. join us then.tall order. while investing billions improving everything from booking to baggage claim. we're raising the bar on flying and tomorrow we will up it yet again.

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siemens. answers. it is 2:00 p.m. on wall street and we are going back in time because it certainly feels like it's back to the future. we're in a new cold war with russia, microsoft is the new hot tick stock and we have ipos with no profits and virtual reality thanks to facebook buying a gaming start up. >> we're up as much as 98 points earlier today and suddenly we're