trouble. $75 we are okay. >> let's do some final trades. virtual doc final trades. >> kors. >> the clothes, not the beer. >> i like the yield and the balance sheet option ality. >> foot locker. >> long san juan royalty trust. "halftime" is over. "power lunch" and the second half of the trading day start right now. we are going to pick up where you guys left off with oil. oil hitting four-year low as saudi arabia cuts the prices to the u.s. how low do prices to have go before they start earning big fracers. what does the price plunge mean for energy funds like xle. one year down a modest 3.4%. nickel and diming the record levels. you have been flying on an airline recently you know the airlines are flying high on

revenue generated from baggage fees, from food and other annoying. give you leg room, place to put your legs. small stuff, you got to pay. how much more can the airlines squeeze out of passengers and into added fees impact which airline you choose to fly? and fear and loathing in silicon valley. they are the companies consumers are scared of and hate the most when it comes to privacy. we will tell you which ones they are. let's check in on this busy day with sue. >> and we start with stocks struggling for some gains. they are holding steady right now. the nasdaq the biggest loser this hour. a number of sectors hitting new highs like the consumer staples and utilities. the big news, as you said, is in the oil market. oil hitting a four-year low after saudi arabia cuts prices that it sells to the u.s. west texas intermediate crude down almost 2.5%.

how low might prices go in. >> the million dollar question. we are pairing some of our losses. oil down less than $2 at the moment. allen harry is a trader on the floor here. what is happening right now? is this the saudi price cut? is this the price we are seeing in the dollar or something else impacting oil? >> it is the saudi cut. it is also our surplus of oil that we have in this country. all of that is putting pressure on the market. we broke the level. now we are getting into a territory of how far it can go. i'm saying in my opinion 60 to 65. the reason i'm saying that is the big fracking companies their average of where they are in in production. >> at the moment i think for the

next day or two we see back up to 78.5. they will take a week or two to break the level. >> thank you so much. crude prices obviously have an impact on greater equity. >> thank you very much. a number of winners and loseers as oil pops. dominic chu with that part of the story. >> stocks are getting hit hard on today's chad ever since oil prices hit highs in mid june. how it happens june 20 oil prices are down about 30%. now, one of the biggest etf trackers is the xle. it's down only around 17%. the three largest holdings in the fund are exxon mobil, 15% of the fund. chevron is 13%. exxon shares are down 9 peace

corps. chevron is down 13%. let's focus on the story. it is an oil field services company but an etf that tracks that group. it is the market effecters oil services fund. it lost a quarter of its value since oil's june highs. much worse than the energy sector overall. its three biggest holdings are schlumberger, halliburton and national oil well. we talked about schlumberger but halliburton is down 28%. it is worth keeping in mind that individual holdings in these etfs have a huge waiting. some of them could have outsized impacts on the way these etfs trade. the plunge in oil putting a spot light on the fracers.

how low does oil have to go. author of the book "the fracers." welcome to you both. let me begin by asking you, at what point in the price curve does the american energy miracle somehow begin to get imperilled and is it different for different regions of oil production? >> it very much is. if you look up in north dakota and montana you are talking a higher price point. they get nervous around $70 or higher. they are starting to get quite concerned. when you look at the permian basin and eagle fern in texas they can produce at a cheaper level, maybe 65 or so. when you talk to people in the industry 70 seems to be a point of pain for people. >> so when you say they can produce at those levels that means they can produce at a profit. it is obviously not as good a profit as at 100.

>> a lot of other complications here. a lot of smaller companies rely on debt. the debt markets have been wide and open for them for years. it's not clear it is going to be going forward so they will have to slow down. you are seeing signs people talking about capital expenditures. some of them have hedged. it is not so abrupt. some people are waiting to turn off the lights here. it is not going to be like that. slowly you will see a reduction in smaller guys in terms of capital expenditures. >> what are the fund managers and traders you are talking to telling you about how they are trying to make money off of the slide in oil prices? i assume a lot of them have been shorting the etfs we are talking about. >> this is not always the case. at least the professional commodity traders i have talked to were right on this one. they have universalally short wti and some folks i know have a 60 dollar bottom they were calling as recently as a week or

two ago. even lower prior to the slide yesterday. recently people saying they could see the $50 range. brent, global crude oil. in the domestic market people are almost universally bearish. at what point does it become uneconomic? $75? $70. we had the chief commodities analyst on our air friday and their research suggests at goldman that $75 is the key point. we touched that range intraday today. it is worth noting exxon cut cap x on friday morning when they talked about quarterly earnings. >> i want to squeeze one quick question in for greg. could some of the smaller highly leveraged exploration and drilling companies be imperilled at these prices?

imperilled perhaps, challenged for sure. they bet on oil as opposed to natural gas. they shifted to oil figuring it is a global market and no way prices are going to crash. >> thanks very much. kate, appreciate it, as well. dominic chu doing double duty, has a "market flash." >> the four year low is a boom for airline stocks. united, american, delta, southwest moving higher on the day so far. beneficiary of the energy sector going down perhaps is the airline stocks. >> thank you very much. appreciate it. energy stocks are the biggest drag on the markets today. is the dramatic drop something to be concerned about or simply a buying opportunity? hue johnson joins us and also with us andy murray, co-manager of the morning star rated becker value equity fund. you think this is a buying opportunity. andy, you are neutral on energy. if it is a buying opportunity

what would you be stepping into right now. let's take a look. >> right now i would be stepping into the integrated oil and gas numbers or companies and also looking very hard at some of the refining companies. aside from that the important point i think as you know this -- there can be big swings in the price of oil. emotional swings just as we did up at $145 for west texas intermediate. i think we are getting to an emotional extreme right now down near $75. that is when you have a buying opportunity. it is hard to time it, but at the same time i say that this looks like we are setting up a very interesting buying opportunity. i think the price of oil is going to go back up into the mid 90s. it is going to take time. >> andy, you are more neutral on energy. first of all, why? do you think it could go lower from here? >> earlier this year we moved to

a more neutral position on energy as we were concerned about abundant supply growth and weakening demand internationally. with share price reaction companies given share price reaction is looking a lot more interesting to us. we favor the high quality names within the space, global service companies such as schlumberger. those names are the ones we are looking towards as prices have come down. >> okay. hugh, given what we are seeing in oil a lot of people down here are starting to use the d word, deflation. is that a possibility with oil performing the way it is performing right now or not in your book? >> it's something you have to -- it enters the dialogue. clearly what you have to do is if the price of oil persists

around current levels you have to increase your forecast for global economic activity by about a half of 1% and reduce forecasts for inflation by almost the same number, 0.3 to 0.5. i think deflation is a little too strong. certainly lower levels of inflation, higher economic output, all of which will go into place to sort of correct or put upward pressure on the price of oil. >> gentlemen, thank you very much. >> thank you. alibaba shares jumping. the chinese e-commerce giant up with earnings that came in line with profits and estimates topping the revenue topping forecast. our david favor spoke with alibaba's executive vice president chairman about the numbers. >> he had a number of things to say. what is the first public quarter they have reported -- now it is

catchy, as a public company. alibaba the shares are up today as well as tyler said. they met on theeps line better than specked revenue growth. people watch gross merchandise value, how much stuff was sold off of the platform, 49% more than last year. that was a big number. they are also watching mobile. as we know whether it is facebook or google or any of these kinds of companies you watch how much mobile is penetrating the overall business mptd right now 35.8% is sold on mobile and the take rate, the monetization rate of those who go to mobile to look is 1.87%. i asked is it going to keep trending that way. >> there is really not a huge difference from a user standpoint when it comes to the desktop computer or mobile screen because when they come they have very strong intent to buy something.

we are generating $95 billion of gnv over the last 12 months on the mobile device. that bodes very, very well for the future. >> shareholders are wondering about when it comes to futures how much money will the company continue to spend? think facebook and google so it will depress what are incredible margins. they did go to 50.5% for this quarter, perhaps concerning some shareholders, not enough to sell the stock today given it is up. i asked what can we expect when it comes to those margins? >> we operate on a market place model where the revenue we generate coming from commissions and online marketing services have very high margins. so in our core business we don't see really any reason why the margin needs to decline over time.

so in terms of the margin that you are seeing in the latest quarter is really reflected in the fact that we are making investments for growth. >> most companies would kill for a margin like that. they are a week away from theiretheir biggest day of the year, 11/11. they will sell more stuff in one day than in the planet. 5.7 billion last year and it will go higher this year. they want to make it global. >> that is astounding. talking about big money. how much do the $20 and $50 fees you pay up to the airlines add up to? try $50 billion. making a killing on things like baggage fees and food. phil lebeau has the numbers and the story. >> you're not going to believe the numbers. we have two reasons why the revenues from the fees are at an all-time record high. we want the people out there to join the conversation. here is the question.

do the fees that are charged by a particular airline impact which airline you are going to fly? log on to cnbc.com/vote. let us know. power is back in two minutes. sheila! you see this ball control? you see this right? it's 80% confidence and 64% knee brace. that's more... shh... i know that's more than 100%. but that's what winners give. now bicycle kick your old 401(k) into an ira. i know, i know. listen, just get td ameritrade's rollover consultants on the horn. they'll guide you through the whole process. it's simple. even she could do it. whatever, janet. for all the confidence you need. td ameritrade. you got this. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier.

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welcome back to "power lunch." we are watching shares of the casino companies moving lower as october gaming dropped a record

23% from the same time last year. the fifth consecutive month of declines. reuters reporting japanese lawmakers plan to indefinitely postpone a vote for legalizing casinos there ending hope for gaming for tokyo's 2020 olympics. >> thank you very much. if you are feeling tired of being nickelled and dimed by the airlines charging fees for pretty much everything i have bad news, they are getting better at it. phil lebeau is taking flight for us in chicago. that is bad news. enough is enough. let me do the question. we want to know, do fees determine which airline you choose to fly? weigh in at cnbc.com/vote. you can vote while phil reports. take it away. >> somebody just tweeted me, i don't care about the fees but

what kind of cookies they serve. swear. to each his own. let me show you something because a lot of people will be stunned when they see this number. here is how much airlines world wide will be taking in this year. $49.9 billion. that is an increase of more than 17% compared to last year. for the average passenger around the world when you add everybody up who is flying comes up to $15.02. not all fees are the same for the airlines and certain areas are more lucrative than others. it comes to frequent flyer mile programs. baggage 25%. 25% from baggage fees. wifi in flight, maybe changing and upgrading to different section of the airplane. that brings in 15% and then travel services, things like insurance, hotel, car rental.

that is where 5% of that comes from. look how much airline fee revenues have grown. when you look at this figure of $49.9 billion keep in mind it was half of that, half of that just five years ago. so it is a dramatic change compared to where the airlines were not long ago and they are becoming much better retailer. that is why you are starting to see more growth in this area for the airlines. >> we are going to bring in seth kaplan. welcome. phil says there is more growth here. where are they going to get more growth? what are the next fees they are going to come up with? i get you for the $25 chocolate chip cookie, but what is next? >> certainly, the lowest hanging fruit are probably picked. there is nothing like bag fees when it comes to ancillary revenue. phil mentioned the frequent

flyer mile sales add up to more than anything else. that is when you swipe the credit card and get miles. the credit card company buying miles to give to you. one big area, seat assignment fees. right now you pay for a preferred seat. a lot of places around the world and on the ultralow cost carriers you pay for any seat and that is probably an opportunity for some of the airlines to any assign seat unless you want them to randomly. >> 34 d goes at one price at the middle and the back of the plane and 8 a on the window up front goes at a higher price. >> correct. >> and playing off of what seth was talking about. the next leg of development, people bidding on flights for moving into a particular seat. they may say we have an open seat in business class. who would like to come up here? open bid starts at $100.

you have to bid within five minutes online with your phone. >> that sounds fun, man. you know? is it worth it for you? >> it is coming. >> i kind of like that. one final question, i think i know the answer like a prosecutor should always. will falling oil prices cause the airlines to cut their fares? >> not per se. what falling oil prices could do in the longer term is cause airlines to add some capacity cht just the break even fare goes down. airlines like to grow when they can because you grow down your unit cost if there is lots more capacity than fly and demand economics. they are not running charities and are not going to lower prices just because oil came down. >> the other thing you see other airlines or small startups try to come into this space. >> exactly. >> they can make a profit at a lower break even. >> thanks very much. 79% of you say added fees do

impact which airline you fly. 21% of you say no. you know as well as i do that tech companies have a lot of our personal data. a new survey reveals which company people trust the least on that front. who takes the top spot and why? that is straight ahead. >> the cnbc trend tracker live data board is brought to you by the cme group. when change is in the air you see things in a whole new way. it's in this spirit that ing u.s. is becoming a new kind of company. ing u.s. is now voya. changing the way you think of retirement. and cialis for daily use helps you be ready anytime the moment is right. cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently. tell your doctor about all your

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welcome back to "power lunch." check out shares of price line.com. the stock is getting hit after the online travel operator said it sees sales growth of 24%, less than analysts were forecasting for. they cited weakness in europe as one of the main reasons. the stock is down by about 9% near session lows, down by about 16% over the past three months. >> very tough session. an earnings beat for aig earlier today topping estimates by 12 cents. revenues beating estimates, as well. the stock is down almost a full percent. not such an upbeat day for sprint. the carrier will be cutting 2,000 jobs after reporting a bigger than expected loss for the latest quarter as well as subscriber losses.

apple is moving ahead with plans to issue bonds in euros. the sale is expected to be completed today raising about 1.2 billion u.s. dollars. thank you. new survey out today reveals the most feared company in technology and it is not google. it is not apple. it is facebook. when asked which company concerns you the most in regards to personal data nearly half said facebook followed by google at 21% and then apple at 6%. what are people so afraid of? we are joined from san francisco and l.a. and john fortt here with us today. we have a lot of coverage here of this story. we have a row of people here. were you surprised by this? >> a little bit surprised at how many more people are afraid of facebook than google, that it was twice the number. if you said what are the two

companies that consumers are most afraid of in terms of personal data most people following tech say facebook and google. probably at a more measured response. apparently all of those photos and check ins and shares that we are doing on facebook all of that data to advertise rbs. >> they have more about you and your life than the other guys do and that makes people nervous, pictures, everything. >> i think this is a case of who are you most afraid of testifying against you in court and of course it is your spouse. people realize facebook has the most stuff on them. if you look at engagement people are spending it on facebook. they are not scared enough to stop using it but scared that eventually facebook could do something malicious with it if they wanted to. apparently we don't think they are going to because we are still using facebook. >> we have heard of sort of data breaches and data lapses at a

variety of providers that have caused concern over privacy, but do you think this concern about facebook springs from anything they have done? >> no. i think this is about people not being in control of their privacy settings. every year there is another state of concern and articles written. people get upset and concerned. it really isn't stopping people from spending a ton of time on facebook when facebook separated the messenger app from the regular app people said it collects a lot of information about you. facebook understands that people are not going to use the service unless they feel comfortable that their data is not going to be exploited. i think that is one reason why facebook rolls out new tools. they launched your privacy check up trying to make sure people know with whom they are sharing. >> let me pick up john's point.

we talk a lot and we hand wring a lot about privacy and central and important it is to us. we keep using these services. is it all bs or are we really as scared of uses of our data as we seem to say we are? >> in some senses facebook is an easy punching bag because of how many people are using it. if you are going to complain about a single service you complain about the one everyone is using. the question about will we continue to use it? we are. facebook is a $2 billion company. it has to continue to increase its revenue at such a rate that investors are going to continue to support the stock. in order to do that that advertising growth has to stay high. it has been in the 50% range and has to stay in that arena given that market cap. will consumers continue to put

up with more and more or will facebook get so smart that it continues to show us roughly the same amount. >> got to leave it there. appreciate it very much. you know, a lot of pressure in the gold market and the other metals market. gold getting ready to close. >> downward pressure across the board in metals today. gold a lot of buzz about the price action. settling under 1,168. a 5% slide in the last week alone. traders saying they think gold held up well at the level but looking to support. they say they are watching the dollar index and think we could see a $90 handle in the next couple of months. traders are keeping focus on that. before you mentioned deflation fears when talking about oil, that is a conversation in gold pits, as well.

if you have deflation you don't have inflation which is a reason traders do buy gold. to the bond market now. interest rates and currencies and everything else that he covers, rick santelli is back to track the action at the cme. >> pretty excited here. you will see why in a second. if you look at today's one and two day chart of tens you see a couple of things. on the one day chart coming into our time zone rates slipped a bit. the 9:00, 10:00 eastern data on what was a bit weaker than expected. you see we saw yields moving down a bit. here we are in the middle of the range 2.30, 2.35. let's switch gears to dollar index. this chart shows you we haven't been at these levels since 2010. this goes back to the fourth quarter of 2007. this is the dollar-yen versus

the nikkei. the strength in the dollar is the weakness in the yen. they keep weakening their currency. it is want unusual to see equity markets respond to the upside. same timeline. crude dropping to a four year low. as oil continues to slide a number of oil-related stocks are taking a beating. morgan brennan has been keeping an eye on it for us. >> we have been talking about the effect of falling crude oil prices on drillers and oilfield services. there is another industry that stands to be impacted by this. we are going to break that down and tell you what those companies are right after the break. tdd# 1-800-345-2550 [ male announcer ] your love for trading never stops, tdd# 1-800-345-2550 even on the go. tdd# 1-800-345-2550 open a schwab account, and you could earn tdd# 1-800-345-2550 300 commission-free online trades. tdd# 1-800-345-2550 so if you get a trade idea, schwab can help you take it on. tdd# 1-800-345-2550 we're getting a lot of questions tdd# 1-800-345-2550 about organic food stocks. tdd# 1-800-345-2550 [ male announcer ] sharpen your instincts tdd# 1-800-345-2550 with in-depth analysis by schwab experts.

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welcome back to "power lunch." a tale of two ceos both stepping down. let's start with foot locker which moved lower after the shoe maker announced tim hix will retire. shares down by about 5%. a different story at mack cali. its stock is moving higher to the tune of 6.5% on news its ceo

is moving in may of 2015. >> thank you very much. let's get you up to date on the markets. still a bit of a down side in the dow jones industrial average by about 10%. the nasdaq is leading the way down by about 28 points on the trading session. the s&p is down about nine to ten points almost a half a percent loss on the s&p. nasdaq down 2/3%. you are keeping an eye on oil. the momentum stocks i think are really fascinating story. >> priceline and kors. what is moving the overall markets, s&p 500, first is oil. second is the battle going on in the european central bank that knocked germany and u.s. markets down earlier this morning. oil sitting around close to the $75 level. remember, there was talk of a potential iranian nuclear deal.

now you have saudis lowering prices to the u.s. that is a major problem for the saudis and some other people out there worried about a glut of oil in the world. the big u.s. integrated oil names, chevron, marathon, exxons to the down side. airlines love the battle. we have new highs across the board. delta, united, spirit, all of those guys are up. i want to show you reuters. i want to show you germany because reuters had a story out indicating the head may be facing battles at the ecb. some people don't like his management style. that dropped germany when it came out around 10:15 our time. if there is a problem with getting the programs through the market has a big issue and that kind of was reflected in trading action in europe and the u.s. today. while everybody is concerned

about price line and kors, their growth is slowing down a bit. that is why they are down today. broadcasting cable companies are weak because discovery came out with weaker than expected ad growth impacting all of the cable and broadcasting companies today. you see the big move down 7% in discovery. guys, back to you. crude continuing to slide, a number of oil related stocks taking a beating. bob outlined some there. morgan brennan with a little more detail. >> we talked a lot about the slide for oil drillers. other companied benefitted from the boom like the companies -- as price of oil slammed so did price of companies like emerging. other companies like eagle materials also up so far this year. as crude prices have come off in recent months these stocks had

begun to tumble. all are down about 5% or more today with hi crush getting crushed, one of the worst performing after a 2 cents earnings miss. despite recent losses and the companies do supply other businesses and expects demand to remain strong since so much capacity is spoken for in long term contracts. one reason why it maintains a buy waiting. do keep an eye on the stocks because they are moving with crude right now. >> sue, down to you. >> no matter which party ends up in control after tonight's mid term results the new congress is going to be a major force in the markets and the future. dominic chu with a special look at the sectors and stocks you need to watch in this mid term election. >> so there is a reason why you got to care about election 2014. if you are an investor because a lot of companies could be

impacted by a possible republican win to take control of the senate. which industries will be affected the most? we will have those answers coming up right after the break. thank you for being my hero and my dad. military families are uniquely thankful for many things, the legacy of usaa auto insurance could be one of them. if you're a current or former military member or their family, get an auto insurance quote and see why 92% of our members plan to stay for life. i have $40,ney do you have in your pocket right now? $21. could something that small make an impact on something as big as your retirement? i don't think so. well if you start putting that towards your retirement every week and let it grow over time, for twenty to thirty years, that retirement challenge might not seem so big after all.

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yeah... i do... try a new way to bank, where no branches equals great rates. in our head lines penn national gaming upgraded increasing price target to $15 from $10. vitamin shoppe downgraded. and anna darko. the firm increasing price target on the stock to 115 from 106. no matter which party ends up in control after tonight's mid term results the new congress is going to be a major force in the markets and the future outlook. here is dominic chu looking at the sectors and stocks you need to watch in light of this election today. >> a lot of speculation about

what is going to happen given what the election outcome could be. dan clifton took a look at ripple effects and what they could be. among the winners no shock here the defense and aero space companies a complete republican control of congress along side more global geopolitical uncertainty means defense spending could all increase if all else is held equal. they highlight names like lockheed martin, all of these big names here. all four of these stocks are at record highs. another sector to focus on is energy. clifton says since energy has become the main economic policy of republicans, a republican congress could improve things like the keystone pipeline or opening more land for things like drilling. among stocks they highlight, cabot oil and gas, trans canada and baker hues.

rail companies. a republican victory could remove rail pricing regulation from the current policy agenda and rail companies could benefit if environmental rules are eased. what that could mean is increased use of coal around the country and that means shipping it with rail companies. the team highlights norfolk southern as a possible beneficiary of those trends. if democrats retain control of the senate those stocks could fall. there are risks in the market because of things like this big mid term election. >> the president still has a pen that he can veto legislation with and he has to sign legislation into law. >> absolutely right. >> if the republicans succeed in taking control of the senate it is very unlikely they would have a 60-vote majority. >> interesting to watch tonight. we will have the highlights on

cnbc for you throughout the evening. we will focus on key sectors to keep your eye on, energy, health care and housing. how do you trade the election? joining us from the cme group, jim, you are keeping your eye on southwest, why? >> one thing that dominic mentioned and this is a minor component of the oil story. if republicans have a resounding win today i think the supply issue, the domestic supply issue just increases. the president may veto anything. don't let the facts get in the way of the good story. the story is supply of oil, saudis knock the prices down. i know i'm not the first person with this idea. i have been long southwest. if it has a decent close today i might add that. >> it is up 1.5%. that is a nice trade for you. you are looking at health care. >> we are. we see republicans are going to

gain control. health care up 21% year to date. there is going to be challenges for them as we see potential repeal of obamacare. buying puts should prove profitable. gravity will pull lower. >> remember the overall stock market might be relatively buoyant just by the fact that people believe this is a more business friendly government than we had a day ago. >> the uncertainty with the election and the uncertainty of the runoffs that could play out we have a month or two. >> if all of a sudden this good feeling the health care stocks even though the story maybe should be negative because of destabilization might get drafted out. >> you just brought up a very good point. if some of the key states, you have either run offs or too close to call or there are some issues, what does that uncertainty do to the market? how do you buy protection for that uncertainty?

>> sue, i think it could paralyze the market. look at louisiana or georgia. if they don't have 50% of the votes it is a december runoff. i think owning vix futures allows you to buy that protection. that will roil markets. >> i think it could. i look at the past six months but things are higher on the list of what can roil markets than this. if it was a presidential election and we have seen that before i think it could be huge. >> it is always the curveball that catches people by surprise. >> i'm not putting too much into that. >> good conversation, as always. thanks. you think malibu, california is all sunshine and smiles. two millionaires are battling it out over retail space there. jane wells has the story. hi, jane. >> reporter: got my selfie in paradise. folks, you think your election is tense today, sit back and pop

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welcome back to "power lunch." check out shares of estee

lauder. shares falling after lowering guidance citing effects of a small dollar and softness in asian markets. earnings fell 24% but beat wall street forecasts. down by 4% near session lows. thank you very much. you know, there is a big battle brewing between two millionaires in malibu. neither of them live there. jane wells is there and has the details on it. >> reporter: it could not be a more perfect day. and here in malibu you think everybody is so laid back. this is malibu. >> i am sick of that. >> just because you speak loud doesn't mean you speak the truth. >> now, that is an ang rary deb between riner. if passed it would force all new retail developments over 20,000 square feet to need voter

approval and chain stores could not make up more than 30% of a new shopping center. the whole foods that hopes to build in malibu could be in jeopardy. supporters say that won't happen. this thing has gotten personal. >> just because someone is funny or a big shot or rich doesn't mean they should go around the entire process to make law. >> see that? punch me right there in the nose. >> reiner is kidding sort of. >> it's the entire citizenship of malibu is basically saying not in my backyard. it's not just a rich person saying don't put an oil derrick outside my window. this is from the entire city of malibu saying we don't want to destroy our beautiful rural

community. >> to say that someone who works hard to build a business and comes to 11 stores becomes the devil is absurd. >> reporter: bill miller runs malibu kitchen and a developer says reputable chain stores warrants rent necessary. >> i think taxable revenue, the employment that comes from the nationals hiring people, the locals can't afford to run a business like the nationals can. >> i know whole foods been directing to come in here for years. if they do it would probably wipe me out. >> reporter: now the celebrities are weighing in. cher tweeted vote yes. the irony, neither can vote on the issue even though they have property here they are technically not malibu residents. >> they own property there.

i wonder what engaged them in the process in the first place. maybe mr. reiner feels it will impact his investment. >> reporter: one of the issues, of course, is do you want to keep malibu malibu and is that possible? how much do residents here want nicer retail to go to? otherwise they have a crowd to go to santa monica. >> is the beef from where you sit mostly about the size of the properties developed or the idea that this would be large national chain franchises and that that would soil the atmosphere of the town? >> it's a little bit of both. mostly the second one. they don't want malibu being like every other place. they want it to be special. they want mom and pop stores. the developers are saying people have certain expectations of the quality of the shopping they are going to have and requires national chains to do that. what is wrong with national chains? somebody owns a subway here.

just because they own a subway they are a malibu resident and employing people. does that make them a bad person because it is a subway? >> interesting to see how that one turns out. we have a really special show coming up. we will take a look at what is going on with crude oil, the who, what, why and how it all faek effects you. we have the former ceo of gulf oil to give his take. lots of really expert voices on what exactly is going on. make sure you join us at the top of the hour. "power lunch" returns after this quick break. just take a closer look. it works how you want to work. with a fidelity investment professional... or managing your investments on your own. helping you find new ways to plan for retirement. and save on taxes where you can. so you can invest in the life that you want today. tap into the full power of your fidelity greenline.

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we have had a pop to the upside in the market. the dow jones industrial average has turned positive by a decisive measure up about 30 points on the dow jones industrial average. the s&p is down four. the nasdaq is down 17 although that is much better than before. the russell 2000 is down five points on the trading session. record highs for the dow transports is linked to the drop that we have seen in oil. the transports are up 36 points on the trading session. so in the oil market we did see

prices come off of their worse levels of the trading day but down better than 2% on west texas intermediate. it will be an interesting close. >> and lots of questions about what the true impact of falling oil prices will be. that will do it for this edition of "power lunch." . >> "street signs" starts now. see you tomorrow. and welcome to a very special "street signs" where we are all over this historic energy slide. right now crude oil is sitting near a four-year low and pump prices are holding below $3 a gallon and 30 minutes away from the close of oil trading. we will be picking apart every aspect of the crude collapse to find out what it means to you and your money. first of all, brian sullivan is on assignment so i am happy to have john fortt and steve