today. >> metlife. day after day it's going higher. >> netapp, i bought it today. >> and joey. >> i am long charles schwab, buy it. >> that does it for us. tomorrow we are at the new york stock exchange, post 9 for the big alibaba ipo. we will see you all then. have a great rest of the day, and "power" starts now. we have a very busy hour of developing stories. on my left, the markets moving up, 95 points on the dow. on my right, we have scotland, the vote is under way. we will get to michelle caruso-cabrera in edinboro in one minute. first, though, to sue as stocks climb. sue. >> and we're green across the board, ty, with the dow jones industrial average almost up triple digits on today's trading session. and all of the market indices are positive. bob pisani is right here on the trading floor with me. you know, there are a lot of reasons for this market to the upside, but everybody's saying it's alibaba. >> alibaba cures cancer at this point. >> if only it could.

>> among the traders this morning, let's take a look where we are. have you noticed? i noticed that the open said this, all the major indices opened on the upside. the dow industrials and transports, you love this, sue, dow theorists, new highs, both together, that's a good sign. s&p 500 touching an intraday high. the russell 2,000 small cap indices doing well. the nasdaq doing well. why are we rallying? there is where the little humor goes in. just put up the full screen and i'll show you something here. the most logical reason we are rallying at this point is because hedges are being unwound after the fed meeting. so traders went out and bought protection in case the fed got hawkish yesterday. they didn't. and today they're covering. that's the logical reason we're up. on top of that, there's a big options and futures exploration tonight and tomorrow. that may be playing into that. that's having some synergistic effect. but finally, and this is what sue and i were laughing about, many traders feel a lot of this is the alibaba effect. put up the nasdaq and i'll tell you why. on monday a lot of people sold tech stocks.

the nasdaq was down. the theory was they're selling tech stocks so that three days later, they can buy -- they'll get the money, and three days later they can buy alibaba. >> it takes that time for settleme settlement. >> now a lot of people are discovering they're not going to get much stock, so instead they're investing it back in the market. that's why the nasdaq is outperforming today. again, this is all a little bit of theory. there may be some of this, but the logical explanation just has to do with a lot of people covering now that the fed is not really as hawkish as some people had feared. >> all right. >> you believe whatever you want, folks. >> we'll see you in a few minutes. >> it's a lot of fun. >> thank you very much, bob. in just a few hours we will know if scotland will remain part of the united kingdom or whether it will break out on its own. as scots vote, president obama weighed in on twitter, writing "the uk is an extraordinary partner for america and a force for good in an unstable world. i hope it remains strong, robust and united." the polls close in four hours. our chief international

correspondent michelle caruso-cabrera is live in edinboro. she spent the day with one of the most influential people in this drama. we spoke to him earlier in the week. michelle, sir tom hunter's still not saying if he's a yes or a no, is he? >> reporter: no, he wouldn't tell us how he's going to vote today either. but what was very clear is throughout this debate, he has wanted to make sure that the business community was heard regardless of the outcome. meet sir tom hunter, one of scotland's richest men. >> this is the biggest decision i will make in my lifetime and my kids' lifetime. >> reporter: he made a quarter billion dollars in retail, and now he's used some of it for a national education campaign leading up to the referendum. >> i knew, first of all, i couldn't leave it to the politicians alone. >> reporter: so he hired some of the world's leading experts and published a website with their opinions. he normally lives in the scottish countryside, but leading up to the vote, he's staying at the balmoral hotel in eddinboro in the same room wher

j.k. rowling finished some of the harry potter books. hence the owl on the door. and he's done numerous tv appearances including "power lunch" earlier this week trying to get the voice of business into the debate. >> governments don't have money. governments just spend money. the only way we can afford all the things i believe in, free university education, free care for elderly, taking care of those who can't take care of themselves, is if we have a vibrant and flourishing business community. >> reporter: he's not in retail anymore. now he's invested in software, and he goes to silicon valley at least once a month. >> i love going there. i always say to the team, find me the brightest kids. i'll buy the wine, and they will educate me. and it's always the best. >> reporter: but he still thinks scotland is a great investment. >> scotland is a wonderful place to do business. >> reporter: one of his greatest inspirations, the scottish-american, andrew carnegie, carnegie hall,

carnegie steel. sue, you won't be surprised by that. back to you. >> absolutely not surprised by it at all, michelle. i think you told us earlier in the week, this also marks the first time voters in the uk who are as young as 16 will help decide a significant matter of state. it's going to be very interesting to see. >> reporter: yeah, it's been extremely controversial, that 16-year-olds could be allowed to vote. and it's curious to see what the outcome will be. we have seen that the younger voters tended to be much more in favor of independence compared to older voters. so that could definitely influence the outcome. >> michelle, thank you so much. michelle caruso-cabrera. ty? sue, for months silicon valley has been pulled in two directions. the government wants tech companies to give up information. privacy advocates and consumers want companies to keep it secret. the new apple software makes the question obsolete. the protection is reportedly so deep, so profound, it makes it impossible for apple to comply with warrants or requests for

information. eamon javers in washington. that's not so good for police agencies or intelligence officers, is it, if even apple can't track the security. >> reporter: yeah, that's right, tyler. police agencies, intelligence agencies here in washington have gotten so dependent over the years of being able to track that data cloud that we now all generate everywhere we go with warrants and legal authorities, they can target specific people that they're watching and get a lot of information about them. this move by apple could be the start of a sort of trend of technology company resistance to that ability by law enforcement and intelligence. that's got intelligence folks here in washington very nervous. in fact, just today, we had the director of national intelligence, james clapper, laying out his vision for the future of u.s. intelligence. and he talked about four key threats that face u.s. intelligence. among those is resistance, noncooperation by u.s. companies. take a listen to what clapper had to say just this morning.

>> the strategic environment also includes the recent factors that affect intelligence community capabilities. what i have referred to on the hill as the perfect storm. that's dogging and degrading our capabilities. the theft and leak of nsa and ic documents and loss of collection as a result. the resulting damage relationships with foreign and corporate partners. >> reporter: and sue, that corporate partners piece of his statement is aimed at exactly this trend, the frustration that a lot of technology folks have felt with these disclosures by edward snowden about the level of cooperation that they've had with the nsa and whether there's blowback for the tech companies with their own customers. that's why you're starting to see some of this resistance. and that's also what's really concerning to u.s. intelligence and law enforcement, sue. >> absolutely, eamon. u. thank you very much. wall street is getting ready for alibaba tomorrow. they expect 350 people on the

floor tomorrow for that. how does an ipo this big get done? well, yahoo! is a major stakeholder. what will yahoo! do with its big cash windfall? maybe a dividend for investors. and the bottom line, is it a good idea to buy the stock when it begins trading tomorrow? all of that is coming up in just 20 minutes' time. ty? all right, sue, to housing now. and after soaring to post-recession highs, home construction plunged last month. what's behind that one? diana olick is on the story in washington. di? >> reporter: well, ty, look, it was a huge headline. housing starts down over 14% month to month, but the devil, as always, is in the details. a huge monthly swing in multifamily apartments pushed the overall numbers down, but apartments are still hot. they're running at quarter century highs, and that's why i want to look at single-family. single-family housing starts fell 2.4%. they're up a little over 4% year over year, but they're still running at about half the normal

pace that you would need given population. now, we showed you yesterday how that is completely out of whack with the jump in home builder confidence. but here's something else that's totally out of whack. that actually begs the question, are we building too many new homes? new census numbers today show the number of vacant single-family homes rose last year 10.7% of all homes in the u.s. are empty. now, back in 2000, before the housing boom, that was closer to 7%. and on top of that, household formation was just 321,000 last year. that is much lower than the 1.2 million we should see based on population. all of that formation, by the way, is in rental households. now, the number of occupied single-family homes actually fell by 184,000. so you've got to ask the question, why do we need to build so many more new homes when so many people are going to be doing this, that is renting. we're talking about it online. realtycheck.cnbc.com. sue? >> thanks very much, diana. well, the dow and the s&p

both hitting record highs today after the fed said it's keeping interest rates low for a considerable time. are market conditions good for alibaba tomorrow? rich weiss from american century investments, art hogan is chief market strategist at wanderlich securities. rich, the market is up triple digits. i know you don't comment specifically on alibaba, but it does seem to be a fairly decent environment in which to bring a company to market. >> oh, i don't think there's any question. i think they've perfectly timed this. and how it goes tomorrow is anybody's call, depending on the pricing. but economically speaking, u.s. is at roughly 3% real economic growth. you've got a stock market that's, at best, fairly valued, maybe even a little pricey here. so they've timed it very well. and let's face it. you look out a year, and it's not likely to be as favorable. i think they might be hitting a peak here as far as their ipo pricing. >> yeah, do you want to weigh in

on that, art, and would you step into alibaba in its first day or so of trading? >> well, that's a great question. i think rich is exactly correct. really hitting the sweet spot in the market. you know, which has not been easy to do. this is a week where we've gotten the federate decision behind us and there's a tailwind. the market seems to be finding the path of least resistance. here comes alibaba, a company that's been around since 1999, but we've just started to hear about it over the last couple years. exciting and it plays right in the sweet spot of what we'd like to do. we'd like to invest in the generational shift in china from a net exporter to a net consumer. so if you want to have exposure to that, alibaba is the way to do it. they've got 80% market share of e-commerce, growing revenues at 46%. the thing you have to calculate is just know you're not going to get it on the ipo price. then you have to calculate what is it trading after it the aftermarket. to put numbers around that, if you were to say the multiple at the price will probably be at $68 is 24 times forward

earnings, if it trades to 80, you're up to about 26 times. and if it trades to 100, about 30 times. understand facebook trades at about 36 times forward earnings. if you think facebook is fairly priced and you want to split the difference between 24 and 36, 30 times gets you $100 stock and that's the kind of math you have to do. >> absolutely. that's a very helpful primer for the individual investor. rich, where are you finding value? because a number of people i've talked to do think that we're a little rich in certain parts of this market. where are you finding value for your investors? >> yeah, we'd agree with that comment, sue. what's made you money over the last several months or year have been the late-cycle growth stocks, health care sector, tech sector, even utilities. but that's likely not to be the right place or the richest place for values going forward. we're actually repositioning portfolios and would suggest if your investment horizon is 6, 12 months out which the stock market is typically peering out

that far, you need to consider where we're headed. that means utilities, possibly even consumer durables with the likelihood of higher interest rates in the next six months or so, decelerating earnings and sales growth virtually across the board in the u.s., the opportunities are really now greater outside the u.s. than they are inside. we've certainly been the market to be in over the last several years. the recently -- the recent currency bump has helped as well. but you have to look to europe and elsewhere now for the best values and for the largest growth. so we're looking to increase our international exposure. >> all right. gentlemen, thank you very much. really appreciate it. rich and art. let's go to dominic chu for a "market flash." >> check out peabody energy, the worst performing stock in the s&p 500 on this up day. goldman sachs has down graded shares to a sell rating from a prior neutral saying it believes lower coal prices will hurt peabody's margins. it cut its price target as well

to 13 bucks a share from a prior 15. peabody down near session lows off by nearly, tyler, 6% today. back to you. >> thank you very much, dominic. authorities in australia staging the largest counterterrorism operation in the country's history thursday to disrupt a gruesome plan by islamic militants living in the country to carry out random public executions or demonstration killings. australian media reporting the suspects wanted to kidnap and behead a member of the public and drape the body in an isis flag. australia just the latest example of radicalized islamic militants waging terror from within on the home front. we've already seen murderous attacks in belgium and england. steve emerson is an author and executive director of the investigative project on terrorism and gafar hussein is a director at a counterterrorism think tank in london.

welcome. mr. hussein, let me begin with you. how close a call was this? >> from what i'm hearing, it was pretty close. the australian police intercepted a phone call which suggested that these individuals -- or one individual is a quite high-ranking member of isis, and he had been given instructions to now carry out this attack in response to -- as a tactical response from the isis point of view to the fact that the australians are now sending troops to the region to help in the international effort to defeat isis. we're starting to see a number of things isis doing now, all of which are aimed to kind of prevent or the international coalition which has been a real game changer in isis in iraq. >> mr. emerson, react to what mr. hussain just said, but also put in context the idea that the biggest terror threats may now come from within, not from without, and who are these people? are they nationals of australia

or people who have gotten in via a passport? what? >> well, you know, after 9/11, the biggest threat was from al qaeda, sending in operatives or trying to remotely detonate planes through, you know, operational devices that could be remain undetected. then we went through a period of homegrown terrorists who weren't directed by al qaeda but were recruited online or by the muslim leaders in their own community. now we're into jihad.3 where we have people volunteering to battle in syria or the west in iraq and in syria gaining the incredible experience of fighting and then possibly returning back to their own countries in europe, australia or the united states. now, you have to remember that the people who are being recruited get vetted before they go to turkey, which is the infiltration route.

then they get embedded between at the border between turkey and syria to see who is willing to die and who is willing to be the most vicious. so when they return back to their home countries, you already have a preselected number of jihadis willing to die or carry out vicious acts of violence like beheadings. we haven't experienced that in the u.s. yet, but it certainly has been experienced in germany. it's been experienced in britain and now in australia. >> mr. hussain, how easy or difficult is it to track these individuals who mr. emerson just described have a rather circuitous path, often moving through turkey into syria, into iraq? how easy is it to track them so that when they try to come back into the united states or great britain, they can be identified, detained, investigated? >> well, it's not straightforward to stop people going or people returning. turkey is a very popular holiday

destination for many british people. and millions go there every year. it's very easy to get a cheap, low-budget flight to turkey and then get a coach to the border and cross over. if someone's done that for a few weeks or even longer and decides to come back, unless they've popped up on social media and talked openly about what they've been doing, we're not going to know what they've been doing, these individuals. so it is very worrying that it is quite easy, in my opinion, to get back into europe, certainly, britain or america, certainly very easy to get back into europe from turkey and from syria. part of the problem is that the turkish government has actually turned a blind eye to these individuals because they have their own tactical objectives of overthrowing the assad regime. and in the past they have not done enough to secure that border. many individuals are getting the know-how, getting the motivation from individuals they come across online and then arranging to meet at the syrian border so they can go over and join isis. >> we're very tight on time. mr. hussain, thank you very much. steve emerson, where is the risk most prevalent, and what would

you expect the next sort of terror target to be? would it be those kinds of streetnappings, or would it be the kind of attack we saw in the shopping mall in nairobi about a year ago? very quickly. >> i think it would be the latter. i think we're probably going to see -- you know, it's impossible to predict -- a freelance, a homegrown terrorist returning from iraq or syria who decides to detonate a bomb someplace remotely or carry out a suicide bombing on his own like we saw in belgium and in france in the last two years. >> is europe more vulnerable than the united states, or can you tell? >> europe is more vulnerable because there are ten times more numbers of jihadi volunteers, up to 5,000 who have gone over to iraq and syria. in the united states, only about 200 to 300 have. but that number is growing, unfortunately. >> gentlemen, thank you both for your perspectives on this very chilling topic. well, call it the new social media trend. passenger shaming where people post photos of rude passengers

on flights. plus, this airline may be last in service, but it is first in profits. phil lebeau taking flight. hi, phil. >> hey, tyler. it is not one of the major airlines, but it is turning heads with its business plan. it's all about a la carte pricing. so we want to know, would you play for a la carte pricing if your airline was to switch that mode? you know, 25 bucks to check a bag, $5 maybe to go to the bathroom or do an overhead compartment, maybe $3 for a cup of water, go to cnbc.com/vote. let us know what you think. more "pow eer lunch" in just a second.

welcome back to "power lunch." remember the company from yesterday, rewalk robotics? the ceo was on "power lunch." the stock was soring, but today investors are taking profits. the stock is down 16% now on the day. that does mean this company is worth $320 million. so on the smaller cap side of those companies in the public market, sue. >> yeah, that's really good to point out, dom. thank you. let's check out shares of spirit airlines. this year, up more than 50%. the low-cost carrier often getting criticized for nickel-and-diming customers to death. but it looks like it's paying off for the company's bottom line. join the conversation.

do you prefer a la carte pricing when you fly? go to cnbc.com/vote. i'm going to be very interested to see how this plays out with the viewers. over to you. >> sue, i think the vote is going to overwhelmingly be people saying no, i don't like it. i hate it. it's terrible. but you know what? i was at a conference earlier this week in washington, d.c. and not one person could tell me of a true definitive report that shows that this type of pricing model keeps people from flying a particular airline. yes, there are anecdotal reports. there are people who say i don't like it. i hate feeling like i'm being nickelled and dimed. well, the numbers don't lie when it comes to spirit. people are flying that airline and that business model, it works for spirit. so i'll be curious -- look, i'm not surprised. 94% say no. who are you going to find who is going to say yeah, i'm kind of in the mood to pay a baggage fee. people may not like it but they're still flying that airline. >> yeah, that's absolutely true. i just can't even imagine with three kids if you had to pay to go to the bathroom every time.

i'd just standing there with my credit card. >> it's true. >> it's kind of becoming a new social media trend. passenger shaming. some of these pictures are just disgusting. tell me about it. they're disgusting. >> this is my favorite website. i love this website. sue, have you gone and looked at all of it? >> not all of it, phil, because i was really turned off by the half-naked guy sitting in a seat. >> or there are a lot of people who don't have their shoes and socks on. one person clipping their toenails on top of the tray where you put your meal and your drink. >> oh, stop that. >> it's true. the bottom line is this. this is all about people who are tired of being stuck in a tube flying at 35,000 or 40,000 feet. and the person next to them is a slob. but there's not a whole lot you can do. so why not take a picture and put it on the internet and say, fine. you want to be gross, we're going to let all the world see how gross you are. for the most part, i should point out, sue, most of these pictures, you see the feet. you see maybe the full person,

but you really can't see their face. so it's not true shaming in that regard. but some of these are certainly worth watching. and take a look at it right before lunch. >> oh, thanks, phil, i'll do that. all right. let's lock in the viewer vote. do you prefer a la carte pricing? i think we knew how this one was going to turn out. but it did get a little narrower. 69% say no. 31% say yes. ty, up to you. herb greenberg and i are trying to calm our stomachs after toenail clippings on the tray tables. all right, a new etf to tell you about. the ticker is cleverly tofr, or tofr. how thin can they slice this baloney? >> they haven't even gotten there. this is the uscf stock split index etf. just came out a few days ago. it's actually trading up. >> and it's stocks -- made up of stocks that have split two for

one. only two for one? >> only two for one. we all know when a stock splits two for one, nothing really changes. if you look at this, there's a newsletter out there called the two for one stock split newsletter. it boasts this remarkable return since 1996. but you have to ask, are these stocks risen anyway because we're in a bull market, and as we're in the bull market, they'll show great returns? or are these stocks that the public was sort of like snookerred saying this is financial engineering. let's remember one thing. why did stocks occurred originally? they occurred to make a stock seem cheap to an individual investor so they could buy -- >> more of it or buy it in the first place. >> with a lower commission in round lots. anyway, that's says that. >> have etfs gone too far in your view? that's the overall bottom line question. >> they always try to come up with something new. so we can always ask, what will the next big etf be that will capitalize on some trend? >> send herb your ideas, folks. >> i'd like to hear that. @herbgreenberg on twitter.

i'll listen. >> herb, thank you very much, as always. and we should point out that herb is the editor of herb greenberg's reality check research report. sue. ty, thank you very much. well, alibaba, it's going to trade right behind me here, and it is gearing up to be the biggest u.s. ipo ever. how does an ipo get this done? when it's that big? and should you buy the stock on the first day of trading? and this is an incredible story. is your work colleague high? new jaw-dropping stats on how many americans turn up to work as high as a kite. you have to see it and hear it to believe it. there's a difference when you trade with fidelity. one you won't find anywhere else. one-second trade execution. guaranteed. did you see it? in one second, he made a trade, we looked for the best price, and the trade went through. do the other guys guarantee that? didn't think so. open an account

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let's take a look at the metals markets which are closing on the trading day. and copper is off almost 1.5%. palladium is off 1%. and we have silver off 1%. so it's a down day across the board. irnlts n now to the bond market and rick santelli tracking the action at the cme. >> reporter: a lot like the last meeting in july, this fed meeting also pushed rates higher. and exactly how much higher is still under review. let's pick the part of the curve everybody seems to be paying the most attention to, five-year note. you see the high? 187. open the chart up to last year, september, the high yield close was 185. so basically we've drifted back below. we're comping at 13. the next chart shows our next stock really is going all the way back to 2011.

and this is very important because this is the part of the curve that should it start to get higher yields, it may really start to get some traction. the last chart is the dollar-yen. i know everybody's watching the vote, but the dollar-yen continues to just run ahead at wild speed. best levels on the greenback in six years against that currency. tyler, back to you. >> rick, thank you. the fed and alibaba just sort of two of the stories at the top of the charts on cnbc.com. you can check it all out on cnbc's new app, our managing editor allen wastler is here with today's hot list and a costume to match. to that later. >> here's our app. we have it up for you. i can show you the hot list, this one right here, stoners on the job, nearly 10% of people go to work high. that's a wonderful story. >> one out of ten. there are ten of us who work on "power lunch." one of us is -- >> one of you. >> i'm not saying. >> wonderful story right there. it's neck and neck with diana olick taking an analytical look at this morning's housing

numbers. she's looking at the housing starts going down. how can that be possible when vacancy rates are lifting up a little bit there? she sort of looks at the ins and outs of the housing market. number three, your top retirement expense happens to be your home. 40% to 45% of your expenses when you're retired related to your house. >> and coverage of the polls opening in scotland. you are dressed for the event. farcerson. >> very good. we're showing this on our brand-new ios. were you to go in and look at the polls in scotland, you know, i don't have time to watch this, when you go in, there's a button saying save this. you save it, it goes to a custom-made playlist. later when you kick it up, all the videos you wanted to see but didn't have time for right there for you. you can check it out. or you and herb were just talking about the ins and outs of what stocks might be in play. you could go and look up those stocks, hit another button, it goes right to your watch list. wonderful feature. >> thank you very much. >> take care.

>> appreciate it. sue, down to you. ty, did you know that alibaba is set to be the biggest u.s. ipo ever? of course you did. yahoo! is a mashlg stakeholder and it's going to make a lot of cash from this ipo. what will yahoo! do with all of that money, and should you buy the stock tomorrow? what investors need to know coming up. plus -- >> today's "power house" is the birthplace of retired pro baseball player dwight gooden. restaurant operator bloomin' brands is headquartered here, and it has hosted the super bowl four times. can you name that city? wait, wait, wait, it's wait, wait, wait...whoa, does she have special powers when she has the shroud? no. guys? it's the woven one the woven one. oh, oh that gives her invincibility. guys? no, no, no... the scarlet king is lord victor's son!! no don't. i told you! you guys are gonna be so surprised when you watch the finale!!! you're so lucky your car has wi-fi. yeah...i am.

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welcome back to "power lunch." i'm morgan brennan. airline stocks on the rise. this as oil prices move lower. united, american, delta, southwest and jetblue all flying high. sue? all right. thank you so much, morgan. it's set to be the biggest u.s. ipo ever. alibaba debuts right here on the floor of the new york stock exchange right behind post 9. it's been a long road to get to this point. bob pisani is here with a guide from how the company decides to go public all the way to trading

day. bob, over to you. >> there are lots of moving parts to this alibaba ipo, sue. yahoo! is a major stakeholder. josh lipton has a look at what yahoo! will do with its windfall and whether investors should buy alibaba on the first day. first, though, a look at how we got here. >> the road to an initial public offering, ipo, unfolds over months and includes banks, lawyers, accountants, the s.e.c. and finally investors. first step, the company finds a bank that will underwrite the deal and only sell the shares to the public. about six months before the actual ipo, those bankers start writing up legal documents that begin to outline the deal. three months or more before the ipo, lawyers and accountants are decided upon. and bankers will begin drafting an s1. it's the legal document required by the securities and exchange commission that will tell the world about the company.

things like what it plans to do with the proceeds, the business model, the competition, corporate governance, risks, and compensation. for the largest ipos, the s-1 is made public immediately. but for most ipos, it's made public once it is approved by the s.e.c. two to three weeks before the ipo. the company launches a road show. basically a tour to meet investors where it announces the number of shares being sold and at what price range. the goal, create demand for the stock by showing off a strong plan for growth that will make investors money. one day before the ipo, the bankers announce a final price and deal size. on the next day, the stock finally goes public. now the price is determined by investors on the open market. >> if you want more on how an

ipo gets done, go to my blog, tradertalk.cnbc.com. i'm going to walk you through the whole process in more detail. take a look at the owners of alibaba, yahoo! 23% stake in the e-commerce committee. the big question for customers, how will yahoo! deploy the cash from the windfall? josh lipton with that part of the story. josh? >> reporter: well, bob, traders and investors have been moving hard into yahoo! as a play on alibaba. you can just look at the stock. big move, up about 40% in just the past 12 months. it's up about 12% in just the past four weeks. the excitement is about yahoo!'s stake in alibaba and what that's going to mean for investors. how much money are we talking about here? well, here's the math. if yahoo! does sell 27% of its stake and the ipo does price at 68, then yahoo! could haul in about $6 billion after taxes. that's according to b. ryder. the question then becomes what is ceo marissa maier going to do

with that money? take a listen. >> i can point to what we've done historically, and i can also point to the fact that we know that this is of critical importance to our investors, how that -- how any proceeds are handled. and the fact that it will continue to be good stewards of capital. >> reporter: now, maier being somewhat vague there, but yahoo! has promised to return half the money to shareholders. we're still waiting to find out how. another possibility, of course, is an acquisition. different analysts i talked to cover yahoo! one potential target could be aol. they say that would add to yahoo!'s revenue and earnings. and just given aol's presence in video, they think it could be a good fit looking ahead for yahoo!. bob, back to you. >> is buying alibaba stock a good or bad idea? go to cnbc.com/vote.

noin with us from chicago, our cnbc contributors jim eorio and jeff kilburg. i know you're not buying it. why not? >> there's a list. first of all, it doesn't really pay to buy hype. if you look back to facebook and groupon, and i understand, groupon had a bad business model, but facebook did not. the market has not had a chance to really go through the proper process of price discovery. i want to see there to be a chart before i jump in. there's a few too many insiders also lining up to sell the stock including a bunch of private equity groups. i don't like the structure of it really either. in this country when you buy a stock, you have some voting rights along with a claim on a revenue stream. in this situation, you're really not going to have any voting rights. you're still controlled by a few people. i also don't like the fact that there's a trust issue with china that i don't really have. i stay away. >> jeff, you like it. forget about groupon or facebook. what's the fundamental reason that you like the stock? you want to buy?

>> fundamentally i disagree with jimmy in why i want to buy. it's a big buzz even here on the floor in chicago. >> too big a buzz. >> look at the valuation. take amazon and ebay and push them together. it's still less. more importantly, it's a strong company that produces a lot of cash. for every dollar in revenue, bob, it takes in 43 cents of gross profit. amazon takes in $1 to keep one penny. i think that's a big difference. i like being a buyer. for a lot of reasons that jimmy doesn't want to own it, i want to. look at jack ma, he's matured a lot. kind of like jimmy when he hits 70, he's matured. i think there's a lot of upside to this trade. >> i don't disagree with anything he said. >> where else can you go to get the kind of growth numbers that this stock has put up? 8% market share. 80%, 46% revenue growth. >> it's fantastic. that's why i said it is miles away from groupon. groupon peddled coupons. this has an excellent business model and it's doing quite well. i just think it pushes the price

up. >> it's valued much higher. this is at 29 times forward earnings. the median e-commerce in china is like 40 times. it has a lot of value. >> we've just got to earn did what it is. >> okay, we settled that one, guys. thanks very much. we'll get back to you after it opens. sue, back to you. >> let's lock in the vote and see who the viewers agree with. is buying alibaba stock a good idea or a bad idea? 76% of you say a bad idea. only 24% say it's a good idea. ty? >> all right, sue. scotland's independence isn't the only historic vote taking place today. the royal and ancient golf club, it's really the cradle of golf, voting today to admit women members. the all-male royal and ancient golf club, one of the oldest clubs, regular british open venue, has for years resisted attempts to get female members admitted. it looks like the 2500 members now are coming around to the

idea. a doubly historic day for scotland. >> it certainly is. wow! all right. stoners on the job, one in ten people go to work high on marijuana. do you suspect your coworkers come to work high? go to cnbc.com/vote and weigh in. plus -- >> today's "power house" is home to two fortune 500 companies. yankees' captain derek jeter owns a house here. and there is no individual income tax. can you name that city? ♪ [ bell ringing, applause ] five tech stocks with more than a 10%... change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays... that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade.

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house." here's a hint. four-time super bowl host city. i know the city. jeter and i know it's tampa, florida. joining us is realtor with centry 21. here's a snapshot of the tampa market right now. median price, $203,500. average days on the market, 35. tampa, our first listing is, let's see, a town house, 3010 west stovall, unit d. not unit c, unit d, $425,000, taxes about $7,000. 2 beds, 2 1/2 baths, 2100 square feet of living space. that's pretty good-sized. >> yeah, it's a nice size. 12-year-old home. and it's a block from bayshore boulevard which is a very desirable area here in south tampa. >> and what else -- it's beautifully furnished. new construction or how? >> it's 12 years old. concrete block. construction, stainless steel

appliances and like i said, a great location. and very desirable area. >> let's move on to 28 aegean avenue, $86,000. tell me about this. >> this is a brand-new house about a mile from derek jeter's house. it's on beautiful davis islands. marty rein construction, a local builder. it's all concrete block, stainless appliances, lots of wood floors. this house will be sold in the next couple of weeks. it's very desirable. all new houses in south tampa sell within the first 30 days. >> and our power house of the week, listed at 1.295. taxes last year, just $11,630. 5 beds, 4 1/2 baths and more than 5,000 square feet of living space. why are the taxes so low on this one compared with the one we just saw? >> this is an estimate.

the owners have had this house for quite a while. it's a 30-year-old house. it's on a half-acre lot which is not often you can get that big a lot in south tampa. and it's 5 bedroom, beautiful home in a desirable beach park which is close to west shore business district. >> with a very nice pool. john, thank you very much. >> thank you very much. >> you bet. talk about a "power house" -- excuse me, sue, take it away. >> you were right. take a look at this, this hawaiian beach retreat originally commission eed by kareem abdul-jabbar is on the market. it's on the island of kauai. the main house, carriage house, pool, sits on 3.4 acres. there's also a tennis court, an orchard and a five-car garage. i actually think that's pretty cheap for hawaii, but what do i know? all right. a new report says that one in ten americans are showing up to work high on marijuana. do you suspect your coworkers come to work high?

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irchls welcome back to "power lunch." check out the dow, near session highs and at a record high,

boosted by janet yellen's assertion that interest rates will not go up any time soon. that's up half a percentage or 88 points. among the leaders, dupont followed by goldman sachs, american express, jpmorgan and travelers. sue? morgan, thank you. some headlines for you, rite-aid plunging. the drugstore chain beat estimates but cut guidance. citi upgrading kohl's citing an improved mix and the company's loyalty program. target hiring 70,000 workers for this holiday season, about the same number that they hired last year. the stock is up almost 1.5%, ty. >> all right, sue. a new report says that one in ten americans are showing up to work high on marijuana. kate rogers has been diligently researching this story, and we want to know, do you suspect that your coworkers come to work high? go to cnbc.com/vote and weigh in. kate, what did you find? >> well, tyler, remember yesterday peter teel calling out

twitter on "squawk box" claiming there must be a lot of pot smoking going on there? it looks like he might be on to something. a new survey from mashable find one in ten americans smoke pot before headed into the office. a separate survey reported that 10% of small companies had employees show up high, stoned or drunk to work. now, marijuana sales are taking off nationwide as colorado and washington have legalized the drug for recreational use and of course 23 other states allow purchase for medicinal use. so employers are still trying to figure out what they can do with workers stoned on the job. so if you're a private company, you can spot test for drug and alcohol use, but companies in colorado said it's really tough to detect if people are actually high at work. and that urinalysis testing will show if it's used within the last 30 days. it's not current so they don't want to rely on it too much. employers will update their

policies. >> very interesting, one in ten workers high on the job. thank you very much. let's lock in the vote. do you suspect that your coworkers come to work high? look at that, kate, two-thirds of people say yes. >> that's a lot of people. >> hey. i just don't know. let's see what's coming up on "street signs" where they are straight and narrow. >> where are those people working? could we actually, ty, see perp walks? u.s. attorney general eric holder has very strong words six years after the financial collapse and individuals are in his sights. also, a little bit of fun. when i say whiskey, you probably think scotland, maybe ireland, maybe kentucky, but what about japanese whiskey? they're winning a war, and they'll be joining us for a tasting. we've also got wolfgang puck along for the "street signs" ride as well. make sure you join us, top of the hour. "power lunch" returns after the break.

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welcome back to "power lunch." and check out trans-canada. that's spiking as we speak. reuters reporting that u.s. activist funds are looking at the company as a possible takeover target. that stock currently trading up about 1.5%. sue? >> thank you so much, morgan. we are just under 6 points away from the high of the trading session.

the dow jones industrial average up 93 points. s&p up 7 2/3 and the nasdaq is up 25 points. ten-year note yield 2.62%. and that's not putting pressure on stocks, ty, which is kind of a surprise given that. >> very interesting. thanks for watching today, everybody. that will do it for today's "power lunch." >> here comes "street signs." see you tomorrow. no company, no executive, no employee is above reproach no matter who they are, where they work or how much they make. and my colleagues and i will never rest in our effort to catch these criminals and to see that they are prosecuted to the fullest extent of the law. >> strong words from u.s. attorney general eric holder six years after the financial collapse. could a few big bankers finally be headed to jail? let's get to kate kelly with the latest on that. what has been the