let's go around the horn and do final trades. pete? >> mcdonald's got some paper out there. i think the stock is going to break through 100 and go higher. >> murph? >> great quarter out of dr horton. >> justin brown in today for josh on the final trades. bbx. can you say it? >> i was thought he was going to pick mattel or hasboro. halftime's over. the second half of your trading day begins now. >> apple crisp, apple strudel, apple sliders, apple pie, any way you slice it, apple is having a great day. after the seven-way split, is this is stock you want to buy? trouble intensifying in ukraine, folks. you need to keep your eye on this one. ukrainian forces moving against positions held by pro russia gunmen. russia calling for new exercises on ukraine's border and warning that any attacks against russian citizens will be met with very sharply. all right. the gold market responding right now. gold has been moving up.

and warren buffett, let's move on to him. warren and the boards. >> well, i voted for compensation plans that i haven't agreed with. i've even sort of muttered a yes on some mergers that i didn't think made sense. it happens. >> if warren buffett with all his money, power, influence, can't say no to a board or to a management, can anyone? are these boards worth it or have they become yes men and yes women? first, though, let's talk with this and more with sue in the house today. >> i sure am, ty. good to see you. we're going to start with apple. a lot to talk talk obviously. up better man 8% now. see that spike in it's a nice one if you're long that stock. announcing that split. how stocks that have done splits historically speaking are going to do in the future. we'll talk about that in a second. first, out to josh lipton on apple's lifeblood which is

product line. >> apple earnings released, some fears raced new ones. apple told us it shipped 43.7 million iphones, that was more than the street expected. tim cook when i spoke to him yesterday said that was the most iphones the company ever shipped in its march quarter. apple continues to grab a lot of u.s. market share when it comes to phones as well as profits. in fact, if you look at a global basis, apple controls nearly 60% of smartphone operating profits. tablets, it looked like a different story. company shipped 16.4 million tablets. that was less than analysts expected but a lot of that had to do with inventory. actual sales to customers were only down about 3%. apple has lost tablet share to cheaper android devices. apple, remember, is also playing a different game than rivals, actually making money off its tablets. the big question, of course, looking ahead, when are new products going to come? i asked tim cook that. he said new products are in the

pipeline and products he was clearly very excited about. investors, they expect to see a new phone with a bigger screen. that would make strategic sense. a lot of the global smartphone growth, especially emerging markets, is in those larger screen sizes. a wearable device such as an iwatch is high on the list. morgan stanley estimates wearables could contribute more than $17 billion of revenue in the first 12 months. it's also possible, though, apple launches a new service such as a mobile payments pl platform. analysts say that move would make sense given the huge amount of commerce that already goes through ios devices. sue, back to you. >> thank you, jeff. before we get to sheila, we have breaking news from the bond market. rick santelli is live in chicago with that. there's the seven year note option in today's trading. >> last auction, 29 billion, seven-year notes. 3.127 yield. offered at 2.315.

we wput it in the middle nicely on pricing. securities available. $2.60. or $2.60. very close to the ten auction average. as was the indirects. whisker under 50. the directs also. a little light but close to their ten auction average at 19.1%. 31 is % goes to the dealers. that might be the best news of all, investors ended up with the seven year. c-plus is the grade. we move on and see how the digestion phase turns out for today and tomorrow. sue, back to you. >> we'll check in later for that part of the story, ricky. thank you. back to sheila on splitsville as we're calling it and historical perspective on how stocks that split do. >> let's start off with that history. seven for one stock split is pretty rare, hasn't been seen in 34 years. general you're seeing the splits really are not in vogue these days. 12 a year on average over the

past 5 years versus 64 in the '90s. we're definitely seeing splits come down. stock splits have nothing to do with overall valuation but making the actual stock price more accessible for investors. who are the big well-known companies that have gone splitsville? mastercard did this huge split in january when it was more than 800 bucks a share. ten for one split. really slicing things down when it comes to stock price. sales force, another big one, split when the stock pfs 100 bucks per share. underarmor joined that stock split club. that stock was over 100 bucks a share. slice things down into half. a few weeks ago google did announce its two for one stock split. it's important to note that split was more about voting control versus a share price. here's what's interesting. if you take a look at these stocks we went through and how

they've performed, they've actually underperformed the market since splitting. there's hope here because academic research shows that companies that announce splits actually have outperformed peers by 9% in the following year. retail trading also does go up. perhaps some other reasons for companies to consider splits. tyler? >> sheila, thank you very much. it has been tough going this year for shareholders down at u.p.s. first a search in package volumes over the holidays led to gifts missing their christmas deadline. today u.p.s. missed earnings expectations because of the long winner. simon hobbs just spoke with top management. he's at the nyse. >> tyler, in fact the long winter wiped $200 million off earnings at u.p.s. in the first quarter. bad weather shut down parts of it they say for more than half of its 63 operating days. according to jim barber, president of international. to clear the backlogs, extra

outsourcing, fuel, a jump in overtime pay reduced margins, a hit of 220 basis points. although importantly management says the remainder of the year will perform as they're originally guided. today being exactly eight months to christmas, u.p.s. says its peak season committee is working hard to ensure it better deals with the ever-surging volume of holiday traffic. u.p.s. says flexibility and capacity will be added at existing locations through the use of what they call mobile delivery centers. think basically big trucks that can be driven in and attached at short notice. u.p.s. says it's also working with its big customers to get information sooner on the svolue of packages they're about to hand over or data from enterprise systems who's buying what online now. u.p.s. is expected to announce it's reached a five-year deal on a contract with its national trade union after the teams have appeared to have, tyler,

effectively overruled three local bargaining units. back to you. >> all that earnings talk got my attention. what really got my attention, eight months until christmas, sir. i already bought your christmas. sheila with the market flash. it's a big day for the home builders. dr horton and pulte, a tight supply of homes is helping them raise price. this suggests the market is gaining strength ahead of the crucial spring season. note the fixed year 30-year rates average 4.49% last week, down from a high of 4.8% in september. another indication that perhaps housing demand is picking up. tyler? >> sheila, thanks very much. let's show you where we stand on an up and down day in the market. the industrials, dow up 20 points at 16,52 2. s&p, 1,881. nasdaq at 4,156. earlier today, up about 30 points. russell 2000, 1,14 the quote. up 1.92.

peter, chief market analyst at the lindsay group and cnbc contributor is bearish. gentlemen, welcome to both of you. >> thanks, tyler. >> peter, let's start with you. you do not like the u.s. market. w why? >> it's a variety of metric that are extended on top of a fed that's coming back on qe. that's my main concern. after qe 1 and qe 2 the market roll over by 15%. i don't think this is different. it's a form of tightening. it's taking away a trillion dollar annualized stimulus program down to zero. i think markets are way too nonchalant with that reality with that valuation backdrop. >> peter is worried about high prices, most especially i assume in momentum tech and other names. >> yes. >> worried about high prices and taking the juice away in the form of qe. are you worried about those two things? if not, why not? >> there's no question we're facing the unknown resolution to this unprecedented liquidity. that's a fact. but the fact is will we have a

15% or 20% decline as a result? i think that's one possible outcome. but i don't think that's the most likely outcome. most of the individual investors we work with have some sort of balanced account so if there was a 15% or 20% drop in the market, they might be down 6, 8%. it's not fun but it's not life altering. we're always worried about things. quite honestly, i'm worried about geopolitical risks than i am about the fed not exiting qe appropriately. >> geopolitical risks specifically ukraine or that and others? >> every time i say i'm worried about geopolitical risks think about the most current thing then something surprises me. there are things out there we don't know about that could surprise us. i think ukraine is certainly on the list. i think there are a host of other things around this complicated world that could come and bite us. could bite us. >> you're clearly in las vegas. do you like the gaming tables better than the markets? >> well, as we say here, it's sunny and warm with no state income tax. so we find it to be a very -- >> that's pretty good. >> -- a very business-friendly

place to be. yes, our clients like it and it's a great place to run a wealth management business. >> if the water holds up, mike, if the water holds up -- peter, now, i paint you as the bear here with respect to the u.s. markets. you see opportunities in emerging markets. why don't you tell me which ones you like and why? and weave in some of mike's concerns about geopolitical risks. >> well, the u.s. market has been the obvious standout. emerging markets basically have been left for dead over the past couple years for obvious reasons. a lot of growth slowdowns. central banks that can't get their act together, governments that can't get their act together. that creates an opportunity from an valuation perspective. everyone hates china, knows it's slowing down, got a credit, real estate bubble, blah, blah, blah. the stocks are cheap there and they're taking on reforms that are longer lasting in terms of freeing the market control. important election in india coming up. if modi wins the election, there's going to be a multiyear

run in india as he liberalizes that economy. as two examples. >> peter, thank you very much. great to be with you. michael, all in on blackout there. will you? put some money on the table. >> will do. thank you, tyler. >> put a little bit of that in for me, too. all right. coming up, a new product in the housing market. one public company says it has found just such a thing. see what they're talking about and could it really change the entire landscape of this industry? plus, we talk warren buffett and the boards. if he can't say no, even when he wants to, can anyone? >> taking them on is a little bit like belching at the dinner table. i mean, you can't do it too often. you do, you find you're eating o in the kitchen, pretty soon. and under the most demanding circumstances. experience builds character. experience builds confidence. and experience... has built this.

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welcome back to "power lunch." it was a tough day for defense stocks. ratheon's revenues fell and the company did not change its full-year forecast. right now trading at 96.49 a share. warren buffett on cnbc yesterday admitting he sometimes has a hard time saying no at company board meetings even when he's the biggest shareholder in the room. case in point with coca cola. take a listen. >> we abstained because we didn't agree with the plan. we thought it was excessive.

and i love coke. i love the management. i love the directors. but so i didn't want to vote no. kind of un-american to vote no in a coke meeting. but the -- i didn't want to express any disapproval of management, but we did disapprove of the plan. >> so, if mr. buffett with all of his money and influence and power cannot say no, can anybody? are boards with it? are they simply a room full of yes men and yes women? a difference of an opinion from an attorney, stewart grant who's gone up against apple and sutherbys on behalf of shareholders and brad feld with the foundry group, early stage vc firm. advertise bo "startup boards: getting the most out of your board of directors." we welcome you to "power lunch." stewart, what do you think of what mr. buffett did or did not

do at the board meeting? >> little surprised, sue, at what warren did. he said it's un-american to vote no. one of the great things about this country has been balance of power and exactly -- that's exactly what a board needs to do with management. boards need to be able to say no, need too be able to push back. i'm surprised that the board was even willing to put up a comp plan in which warren buffett disagreed. that discussion should have taken place way before this was presented to the shareholders. >> brad, whey don't you weigh in on that as well? i know you deal mostly with private boards bust also have opinions on public boards. tell me. >> i thought it was an odd statement. it felt passive aggressive. you know, if a large shareholder has an opinion that's different than what's being proposed for a vote, they should vote no. and as a director on a lot of companies, whenever a large shareholder has ever approached me or anything on the board about something, it's always generated an interesting and productive conversation. >> brad, if i could stay with you, your book is called

"betting the most out of your boards." there's a movement in the country that is basically focused on whether or not boards of directors are even necessary. what do you think? >> i think boards are incredibly positive and effective. the -- in a company where the board is engaged and actively in support of the entrepreneurs, the founders, the folks running the company, healthy discussion, healthy debate is very powerful. >> but stuart, part of the problem is apparently at some corporations, we are not gett tg healthy discussion and not getting pushback from board members. >> that's exactly right. that's been changing over the last several years. if you go back a decade, you clearly had a room full of yes men and it was men. you're seeing boards understand they do have an obligation to push back and the company works better if a board forces management to justify its decisions, to think through its process and mr. buffett's doing a disservice if he's on the

board or as a large shareholder isn't pushing back to get the most out of management. >> is some of that pushback when it does occur, stuart, coming because of the activist investor that is in the case of mr. ackman, for instance, does a lot of homework, does a lot of research into the company and comes to the board saying this is what i found out, what we think you should do. how much of the role of the activist has, i'd say, you know, stimulated more board substitution? >> or the other way around. how often is it the board doesn't do its job so activists can step up and do it for them? i think a well-functioning board that pushes back on management, that challenges that offers alternatives without micromanaging but offers alternatives for management to think about are the companies that are least likely to be under attack by activists investors. >> brad? >> yeah. i'd like to react. i think what stuart's saying is

nonsensical. you know, an activist investor often has an agenda. that agenda is often very short term in focus. you know, the idea that the activist investor is doing the job that the board should be doing is completely illogical. and in a lot of cases an activist investor is simply talking their own book. they're promoting an agenda without really understanding the company or having deep understanding of what's going on with the decisions the board is trying to make. the blanket statement is nonsensical. >> very quickly, stuart, do you agree they don't -- some activists investors do not do their due diligence and have a short-term agenda? other activist investors do their homework. >> there's no doubt some investors do, some don't. i wasn't suggesting the activist investor replaces the board. what i'm suggesting is without a strong board, without a board that's holding management to task, that a company is more likely to become subject to that activist investor.

and so the healthiest anecdote to the activist investor is having a good, solid participatory board, not one that is tremendously deferential. >> all right, gentlemen, appreciate it very much. great conversation. ty, over to you. >> thank you very much. apple and facebook beat the estimates on their earnings. will microsoft and amazon? those tech giants are in line ready to report after the bell. what investors need to know ahead of those numbers. as we head out to a quick break, biggest percentage winners on the nasdaq right now. "power" will be back right after this. cars are driven by people. they're why we innovate. they're who we protect. they're why we make life less complicated. it's about people.

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viagra home delivery, a convenient place to fill your prescription online and have it shipped at no additional cost straight to your door. viagra home delivery. get started at viagra.com. welcome back to "power lunch." check out shares of royal caribbean cruise lines. that stock moving lower after the world's second largest cruise operator said its quarterly profit fell by 2/3. the company shortened or canceled six cruises during the first quarter which is typically the strongest season. down about 1.5%. sue? >> all right, sheila, thank you very much. let's take a look at the overall market in today's trading session. we've been pretty much in the green with the dow jones industrial average up. the s&p up almost 6.5%. nasdaq the biggest percentage gainer on the session. kenny, director with o'neal

securities. kenny, you wrote in your morning quote that we were gangbusters. >> when the "wall street journal" writes an article about market action and quotes a 22-year-old college student saying he's got 500 bux and been trades stocks and it's a great time to be in the market, you've got to be worried, right? >> is the problem quoting the 2-year-old? >> i think you have to be worried. look what happened this morning. futures are up. we hit right at 1885, 1886 on the s&p. natural sellers there. the buyers ran out of steam and just have been bouncing back and forth. not collapsing by any stretch. really kind of churning, right? >> the 22-year-old is the future. >> i'm not putting it down. >> this is take our kids to work day. >> i was going to say. >> they're all here. >> if the kids behind you start trading stocks, we're at a market top. >> kenny has been very busy in the last few years and don't

know what to do with everybody down here. they're all over the place. >> been there, done that. >> your wife, evelyn, is on line one, kenny. >> here's the -- >> what are you seeing? >> i've been away for a few days. calling around talking to some of the desks right now. the stuff that led the market earlier in the year is back again. a lot of people worried because stuff that let it down, the biotech and techs are all back again. these people got hurt the last few weeks had to sell off on those had to get back into the market. a little bit of concern there. we're within a stone's throw of new highs in the s&p. >> we've done this now for the last couple days. get right there and stall out, right there and we stall out. i think that just says it's got to catch up with itself, right? >> farm, we've had a number of good pharma dealers earlier in the week. rumors of a ge deal with austin. that's a huge potential deal. still rumor. only a rumor right now. mna activity picking up. earnings, 40% of the s&p. almost 70%. beating expectations. not bad. >> not bad. hey, bob, we know that you're the king of the pocket square.

but i'm here with daum. i'm sorry, babe, he's giving you a run for your money. >> daum does it straight across and the mad men look. we go with the slightly more utray style down here. i'll leave it at that. >> we will leave it at that. >> you brought it up. >> i know you did. ty, over to you. nasdaq the big winner today thanks to facebook and apple. >> the nasdaq higher for the seventh time in eight sessions thanks to the big moves we're seeing in last night's earnings. winners, citrix system, texas instruments, lam research and of course apple. aside from apple's big beat on its top and bottom line, investors talking about its buyback program. $90 billion. also impressive, how much apple spent in buybacks in the second qua quarter, $18 billion according to s&p capital i.q. the most a company has spent in a quarter on buybacks. apple breaking a lot of records today. 8% dividend hike which is effective in may also catching

the attention of investors. that giving apple a dividend yield of 2.5 %, higher than the yield of stocks on the s&p tech index. sue, over to you. >> thank you very much. we had the note auction. let's check out the bond market once again with rick santelli tracking the auction post auction. ricky? >> thanks, sue. i told you we'd talk about digestion here. the digestion process is going well. look at the intraday of seven. auctioned them off 28 minutes ago. yields coming down a bit. that's kind of normal sometimes after the auctions are over. you see the same with tens. most maturities are highly unchanged. some say the effects of crimea and ukraine may be true but you did get spikes on date to this morning like durable goods. the last chart, how do you say 12, 12, 12? that's the last time the dollar versus the chinese currency were at current levels. i say the export market for some of china's products might not be as good as everybody wants to make it out to be, otherwise

this dynamic i think wouldn't be as firmly in place as it has been. tyler, back to you. >> rick, thank you very much. reports saying today ukrainian troops have killed at least five pro-russian forces at a checkpoint. russian leader vladimir putin saying his country's army is launching military drills on the ukrainian border. putin saying, quote, if the kiev government is using the army against its own people, this is clearly a grave crime. sue? and the gold market, ty, reacting to that video footage and also those reports. right now, prices are about to close. we have about almost a $6 gain in the gold market. silver is the biggest percentage mover followed by copper. actually copper outpaced that a little bit. copper and silver, big movers on the trading session followed by plat trk palladium. you don't hear about new products in the housing market once but diana is reporting on

one. >> making a bold move that flies in the face of current trends. building is under way. will other home builders copy the blueprint? will this change the entire industry? find out in two minutes on "power lunch." >> today's powerhouse is home to the nation's oldest stock exchange. it's the fifth most populous city in the u.s. and the birthplace of kevin bacon. can you name that city? ♪

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welcome back to "power lunch." we have stocks marginally in the green. biotechs in the red although just a little bit. biogen, celgene, regeneron leading the way. sales come in below forecast. its profit fell due to research and development. those rnd spots. one bright spot, alexeon pharmaceutic pharmaceuticals. certainly in focus, sue. back over to you. >> sure is, as is the housing industry. dr horton soaring on the back of its earnings beat. that stock to the upside. that's not the only big news. the nation's biggest home builder also unveiling a brand

new target targeting first time buyers. diana joins us with details on that one. >> after reporting strong earnings from a focus on higher end homes, dr horton, nation's large largest home builder is turning the tables announcing a new bargain brand, express homes which target the entry level buyer. express homes priced between $120,000 and $$150,000. this market is underserved. there is demand, he said, there is not product. the low end of the housing market which was largely millions of distressed homes following the housing crash, all cash investors who turned the homes into rentals. first time credit dependent buyers just couldn't compete. that appears to be what horton is targeting now. as for credit issues, the ceo thomas had an interesting comment saying he expected to see, quote, encouragement from

the government in terms of trying to get more people into entry-level homes. we haven't seen much movement on mortgage reform but apparently the builder is willing to bet on it. tyler? >> diana, thanks very much. it is the single busineest days for earnings. more than 60 s&p 500 companies report their latest earnings today. microsoft, amazon, starbucks among the big names reporting after the bell. i think i patronized all of them in latest quarter. the shares. a touch point. microsoft done 20 cents. amazon to $335.20. up $10. 3%. starbucks roughly flat at $70 and change. let's look at how they're performing so far this year if you can figure out the graph, you're a better person than i am. look at the numbers there. amazon is down 16%. starbucks about 10%. but microsoft is higher by 5-plus percent. josh lipton is in silicon valley on mike soft. we welcome morgan brennan back

home, here on amazon, welcome back for a couple days. jane wells in l.a. on starbucks. let's see. who do i want to go first? josh, you. >> me, me. oh. >> tyler, we know investors are big fans, but can the new ceo keep winning over wall street as he implements a new strategic software giant? since becoming ceo on february 4th, microsoft's stock is up about 8%. the nasdaq is flat over that same period. that will be the first time leading the microsoft conference call, nadella. revenue of $20.4 billion. beyond just the top and bottom lines, the street wants to hear more detail today about the company's newer strategies. so, remember, for example, microsoft recently announcing office will be available for the ipad. fbr says that move could generate up to $5 billion per year for microsoft. there's know knokia acquisition. microsoft hoping that's going to

move the needle on its very small share of the mobile operating system market. nadella also made it clear the cloud, key part of this strategy to jump-start growth last quarter. commercial cloud revenue more than doubled. analysts say windows 8 struggling to gain traction. investors who want to hear hints about future rin dwindows relea that could provide tail winds going forward. back to you. >> thank you very much, josh. now to morgan, what investors need to know ahead of amazon's earnings. i had two boxes from amazon yesterday. >> it's all about top-line growth. whether that's slowing down. the street is looking for 23 cents per share on $19.43 billion in revenue. that would be a 21% increase in revenue from a year ago. but analysts' primary concern is unit sales growth or how many items amazon has sold. that slowed considerably in the past two years. that's a key reason the stock is down about 16% this year. analysts are calling for 24%

unit growth as more states levy sale taxes on items as well. we're looking at early impact for the 25% prime membership price hike, looking for weather and currency effects, momentum in cloud services and early sales for fire tv. tla there's also the new content streaming deal with hbo and lastly any hints about the much speculated smartphone the company is reported to be doing. according to the "wall street journal" that's expected to be unveiled in june. >> star buck, what you got? >> you're going to need more coffee. investors have not been waking up and selling the coffee this earnings season with dunkin' and mcdonald's. the street is feeling caffeinated. nearly $4 billion in revenues and 56 cents a share. same-store sales expected to grow in the 5% to 6% range.

starbucks locked in lower coffee prices last year so that's good. and it's bullish on things like mobile payments calling it a game changer and being used 5 million times a week in starbucks stores. other headlines, is taco bell's breakfast rollout hurting? probably not yet. admitting it's proving very hard to change breakfast habits. starbucks promising it's going to bring back the old pumpkin loaf bowing to complaints. does starbucks want to take a 10% stake in soda stream as an israeli newspaper reported? an analyst had better ask that question on the call, sue herera. >> i'm sure somebody will. thanks so much. thanks to all of you. apple is surprising investors with a seven for one split, but will this move finally put apple into the exclusive dow 30 club? we'll talk about that when we come back. the dow has turned negative now. >> the city featured in today's powerhouse is the hometown of

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♪ my mom works at ge. ♪ welcome back to "power lunch." airlines may have been soaring flying high and making money, but at least today not united continental. the carrier is posting a $1.33 loss in terms of per share for the quarter on weaker than expected sales. the company is blaming all those flight cancelations from that brutal weather in the midwest and northeast this past year. united continental is currently trading, see they're down 9% toward session lows. meanwhile, southwest and americanairlines followed by delta's lead in terms of beating earnings and an overall forecast. both are higher on the day as well. airlines, a tale of two different types. ual on one side, sue, and american and love on the other side. back over to you. >> thanks very much. our powerhouse time. this time, the powerhouse is in philadelphia.

we're exploring the bella vista neighborhood in the city of brotherly love. also where our parent company, comcast, is located. mike mccann is an agent is berkshire hathaway home services, fox services. nice to have you with us. let's get to the first listing, 849 south 7th street apartment 4a. $235,000, list price. $2,800 yearly taxes. two bedroom, one bathroom. 840 square feet. tell me about it, mike. >> it's a restored schoolhouse. loft style space. excellent for single female, single male, young professional couple and it has parking. >> oh, it has parking. that's big. a nice view. >> yes. >> unbelievable. 11 1/2 foot ceilings. loft sleeping area in addition to another bedroom. >> terrific. all right. second listing. 745 climber street. the list price, $450,000. yearly taxes about $2 ,500. four bedrooms, two bathrooms and 1,400 square feet.

looks like it has a lot of character. is it in the historic district? >> restored home. fantastic block right down the street from a great little restaurant. bella vista is loaded with restaurants. this is a home for a growing family. one or two children. there's some parks in the area. great rooftop deck. skyline view. nice restored pine floors. fantastic community block. block parties. >> oh, that sounds great. all right. let's go to the powerhouse of the week and give it time. 1431 bainbridge street. list price, $1,350,000. taxes, $1,200. five bedrooms, 3 1/2 bathrooms. 4,000 square feet. tell us about it. >> brand new construction. park place town homes. excellent for our comcast country executives. brand new construction. ten year tax abatement.

4,000 square feet. two car parking. european kitchens. five bedrooms. 3 1/2 bath. seven stop elevator. fantastic skyline views. >> thank you, mike. we'll leave it there. looks like a great place. >> okay. >> thanks so much for joining us. ty, over to you. >> all right, sue. seven for one stock split and dividend boost. will apple finally join the dow 30? will new rules for ecigarettes vaporize growth? and he's loving it. ronald mcdonald getting a new look. the power rundown is next. and zuckerberg says instagram is years away from being an important part of the business. it's already a moneymaker for some, right, courtney? >> it is. hundreds of instagram influencers are making enough money from photos to make it a full-time job whether their followers realize it or not. we have the details coming up on "power lunch."

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our rundown, we'll go through three topics today with bob pisani, sima. apple said it's going to split its stock seven for one to make it more affordable. will you buy? 15% say i've always been in on apple. 29% say yes, it is more appealing now. and 55% say, no, i'm still not

going to buy. even at the lower per share price. what is next for apple? will the tech giant head now on to the dow jones industrial average? bob, what do you think? >> well, i think the problem with being in the dow for the long term has been the price of the stock. and splitting seven for one i think goes a long way toward making it more possible for it to go into dow jones industrial average. as for going anywhere else, there's been speculation it might come to the big board for years. i seriously doubt that. i think it would take a lot of competition to get them down there. bigger chance of going to the dow, though. >> what do you think of that? as for the dow or leaving nasdaq where you're posted today? >> that would be interesting. apple's stock split makes it a good candidate for the dow. we'll have to see if that happens. just in terms of this price drop, a lot of this is psychological, right? a stock trading around $80 is much more appealing than one

trading around $530. so i think this stock split could open the gate to retail investors who were looking to bet into the stock but always saw it as just way too expensive. >> all right. popularity of electronic cigarettes growing. fda proposes the first regulations on the devices including banning sales to minors requiring health warning labels and approval for new products. is this a smart or the right move by the fda? >> i think, you know, there's various studies that show young people are taking interest in e-cigarettes and that's an issue because there's still limited research on the safety of these products. i think until we know the long-term effects maybe heightened regulation is the answer for now. >> and they are nicotine devices, bob. >> yes. thank you, tyler. nicotine products, under 18-year-olds, flavored brands. really? i think the fda has an obligation to look at something like this. >> let's talk about mcdonald's pushing its spokesclown to the forefront again. fast food giant saying they're

going to be using a ronald mcdonald hash tag on its social media accounts. here's ronald's new week. earlier in the week mcdonald's posting a lower quarterly profit. why the push for more ronald mcdonald? i find this a little disturbing. the clown a little disturbing, bob. >> he's always been a little bit disturbing if you look at him in that way. two things. earnings down 5%. same-store sales down 2%. it was taco bell that ran the ads with the dozens of ronald mcdonald's saying how much they love their products better than mcdonald's. that requires a real aggressive response from mcdonald's. >> ronald mcdonald is definitely in need of a makeover. i think he looks sleeker. good job, mcdonald's. >> thank, phoenfolks. sue, over to you. shares of facebook up 136% in a year. yesterday ceo mark zuckerberg said he's not worried about

instagram monetizing and won't be for some time. some young users on instagram found a way to make money for themselves. here's courtney reagan. >> to years ago if you would have told me, your favorite brands in storage, you're actually going to, like, they're going to choose you to be the face of an event for an ad ve s advertorial in a magazine, okay, sure. >> once my following was 400,000, brands wanted to pay me to mention them. >> justin livingston and daniel bernstein are ought after bloggers paid enough by brands for mentions in photos in social media to make it their full-time jobs that pays between $60,000 and $225,000 per year. >> when you have a person with 2 million instagram followers, that's direct consumer advertising. it's just a no brainer. >> once the idea is set with the

client, then we go hire out of this pool of instagramers taking photographs and talking about the campaign in the caption. >> reporter: it's cheaper, social, but is it sneaky? >> when i do give swrnaways, th are clearly advertising for the brand. >> readers aren't naive. for a lot of bloggers who have found success, this is something that is a business now. >> they're typically disclosing by thanking the client or saying they're excited to be working with the client. >> that's enough. >> that's enough, sure. other times you can add a hash tag sponsored or commissioned. >> would it bother you to know some people are being paid or compensated in some way to post an instagram picture wearing their new pair of nuke nikes? >> doesn't bother me. >> that isn't what instagram is for. >> i envy them if they're getting paid to show off a cool pair of shoes on instagram. >> reporter: they say it has to feel authentic. >> i stay true to myself and won't work with a brand just because they want to pay me. >> i don't want to feel like i'm

shucking some product like a snuggy. you know, it's like my reader is going to be like, wait a second. >> wait a second. >> so instagram doesn't make any money off of this, but certainly the influencers do. and the brands actually do pretty well by only paying these influencers a marginal amount for what they have to pay for traditional advertising. >> it's a great story, court. thank you so much. we're going to go to the nyse. sarah with breaking news on coca cola. >> i'm hearing from david winters, value investor in coca cola that raised a very public campaign against coke's equity plan that was approved yesterday at the shareholder meeting. warren buffett saying he did not agree with it. he abstained from the vote. now david winters is saying coca cola's plan failed to attract support from a majority of shareholders including its largest shareholder berkshire hathaway. wintergreen believes no company should implement an equity plan without the support of a majority of its shareholders, least of all a great company like coca cola.

he wants coca cola's board of directors to withdraw or scale back the current plan. remember, he said it was a raw deal for shareholders. it dilutes their value by as much as 14% to 16%. shareholders did overwhelmingly vote in favor of this plan. then we learned warren buffett whose berkshire hathaway owns 9% of the votes. he said 66% of outstanding shareholders actually approve the plan. >> this story has legs on it. thank you very much. we'll be hearing more from you. let's hear from daum now with a market flash. >> a company that raises its dividend but still stocks fall. avery dennison. dividend of 35 cents a share. down 2% on the day. sue, back over to you. thank you very much. sentencing day for kpmg's former senior partner after an insider

trading scandal, jane wells has the latest for us on that. first, brian is with me, what's coming up on "street signs"? >> you talked about the cash hoarding that's happening. >> absolutely. >> you know how it really is? the numbers are going to blow your mind. we have a fun list of the stuff the herreras could buy with this money. >> okay. great. i'm looking forward to that very much. >> 7,000 new york yankees payrolls. >> oh my god. >> and other stuff like that 37 that's coming up as well. that's going to be a lot of fun. plus, we'll talk on what i'm calling the seattle slew of earnings. amazon, star buck, seattle -- >> i got it. >> i'm tired of horsing around. we got a lot more to do on "street signs." >> we got to go. >> i say neigh to that pun. if you wear a denture,

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it's about people. we are volvo of sweden. sentencing day for kpmg's former senior partner in l.a. after an insider trading scandal. jane wells, what can we expect? >> tyler, scott london is about to be sentenced in federal court in los angeles. he pled guilty last year to passing inside information on companies like skechers to an acquaintance. prosecutors are asked for three years in prison and $100,000

fine. the defense is asking for no prison time, just probation. he should know shortly what the answer is. by the way, cnbc also learned kpmg is moving against london as well and hope to get details on that later. guys, back to you. >> jane, thank you very much. that will do it for this edition of "power lunch." >> "street signs" begins now. see you tomorrow. american companies are now hoarding so much cash they could give every single worker a $10,000 bonus. hi, everybody. we're calling it the great cash stash. who's hoarding all the money? why? what it means for your money. plus, why this week may be the best week ever for billionaire activists and how states are having a nicotine fit over e-cigs. how are the markets doing ahead of this night's seattle slew of earnings? >> you know, it's a very strange trade in the markets. we're off session highs. pretty much green and the nasdaq