look at delta. that's all you need to know. >> good earnings right? we focused a little bit on the weakness in energy and the weakness in financials but the airlines keep coming. >> absolutely. >> yosh josh. >> duct tape for microphones. >> ryder system. >> gfi, bought it today along with gold stocks. >> i think you stay short the euro until the ecb tells you otherwise. >> have a great rest of the day. "power lunch" starts right now. "halftime is over and power lunch and the second half of the trading day start now. >> i'm todd and, of course tonight the president will release the details of his plans to hike taxes. you make a lot of money, you are in the bull's-eye. if you work on wall street or make money from capital gains, you are too. specifics, 30 seconds away.

>> we're down 102 at the moment. everything got we've climbed back a little bit. dow down 103. s&p, you wafkly are down for the year now. about 2.5%. >> we've dropped at the open. there were a number of sectors that were notably weak today. a lot of comments. i want to show you retail stocks right now.

deckers also on the weak side. a lot of these stocks have been hit badly, and they are not showing any signs of recovering at this point. home builders we did have the national association of homebuilder, home market index weaker than expected. these are big dwee clinz here. unusual for the builders to move this much. no big catalysts, but all of them just down. some a little more volume than others. then energy stocks. you get that whenever you get that all the big energy names are to the down side. one group on the up side, simon. delta did beat on the earnings and they talk about $2 billion in fuel savings in 2015. faebl a company talking about the head winds that you are going to be having. the take winds, sdus me that you'll be having from lower energy costs in 2015.

>> bob, thank you very much for that. let's get you analysis. darren richards, chief investment officer at wealth advisors. he also joins us. he is president and ceo of first allied asset management. gentlemen, welcome to you both. welcome to the program. craig, let me kick off with you and introduce something that we haven't mentioned so far on this show, and that is the break-out success so far this year of the real estate investment trust. the reets up. i guess 7% or 8% so far this year. obviously, they track what treasuries are doing. are you still a buyer here of reets? >> certainly a holder. i think where it gets hard to value assets but your top line is falling too, the yield producing assets those are the kinds of things that you want to look at. dividend payers like health care and the reets. those do well in a deflationary environment. >> darren i see you're looking further afield. asia is where you think a lot of people should be looking. just elaborate us on that.

>> yeah. we like growth. the imf downgraded global growth. when that happens, growth is even more attractive. if you look at china, india, for instance, you got somewhere around 7% growth. very very attractive. valuations are not stretched. there are opportunities there. i certainly think when you look at europe no growth makes emerging markets in particular asia look very attractive. >> what do you make of the assertion that you should invest in the stocks that behave like bonds, like reets, for example, as treasuries, whether we like it or not, continue to make gains in the yields continue to plunge? >> i think that's a natural reaction. when interest rates drop where are you going to get your yield? >> 1.7 or 1.8 on the -- you're seeing money flow into reets. the same thing with utilities that are high dividend payers. the opposite happens when rates move hire. people are not buying reets because they're interested in real estate. they're interested in yield. when something moves higher for instance, the ten-year starts to go back towards two, utilities

and reets will be in the crosshairs. >> let me pick up what -- where you are on asia. it's the msmlx, the maptx, and, of course, the fxi, which charts the top ten plays in china itself. craig, you heard what darren had to say of your investment ideas. what do you think of his? what do you thif asia? >> i think we have to get past europe on thursday though because it's such an important trade. the consensus narrative is that it's going to be a shock and awe package. it caused the swiss national bank to panic when it got an advanced preview. i say this about all assets. the bar has been raise sod high for thursday, that i think we run the risk of disappointing because remember this isn't going to be open-ended qe because of the german political constraints. for all assets in the world right now, i want to get through thursday, and i want to get through the creek elections. >> well said. craig columbus thank you for your time.

>> thank you. >> all right. simon, thanks very much. let's talk taxes, if we might here. in president obama's state of the union speech tonight, tax hikts on the wealthy will be on the agenda on the table. taxing the top, $320 billion raised from two principle sources. one, the capital gains tax. that's $210 billion. by raising the top capital gains rate from 23.8% to 28% which was the rate it was when ronald reagan left office. secondly, they would tack the appreciated value of inherited

assets, so that capital gains don't get washed out when you move from the person who leaves the asset to the inheritor. secondly, $110 billion over ten years. in terms of a fee on large financial institutions that's the 100 largest firms that have $50 billion in assets. a fee of seven basis points on their liabilities. that money would be used for these purposes. $175 billion to expand tax credits for young families in particular. families with children. two earner couples. you have $60 billion for the president's proposal to make two years of community college free. expand taxes to relax. this is not going fast to congress any time soon. however, we are squarely getting the u.s. economic debate focused on the incomes of middle class

families that have been stagnant. all but through the 2016. >> it sure feels that way. john harwood, stick around. larry is not terribly happy about this, and he is with me here, of course. very good to see you. simon hobbs at the new york stock exchange. i want to bare down on one thing that is part of this. apart from raising the -- >> it helps the middle class homeowners, and it helps the middle class -- >> if you are taxed on the asset that passes to you, you might have to sell that let's head outside. >> that is corrects. >> to pay the tax. >> you might even have to sell your small business to pay the

tax. i think it's a lousy idea. generically, raising taxes on investments will damage the middle class. in pi opinion, okay? here's how it works. i'll be real simple here. investment is required to start a business. businesses create jobs. jobs create income. income creates family spending. if you attack investment at the margin, you are attacking the very heart of our business capital free market process. that's why this doesn't work. i can lead the rhetoric you know, class warfare, redistribution, whatever. i'm just telling you, analytically this does not work. >> john, let me turn to you. >> i believe it's adjusted growth income of $500,000, and

it has an exemption for primary residences, but, you know this is something that larry's point is a point that we're going to hear from republicans, but what's different about this moemgt is republicans are engaging with their ideas, and not necessarily just the supply side ideas that larry has been identified with over the years. some republicans who were saying, look we can't -- cutting the top tax rate isn't really an option right now. 39.6%. there's not enough bang worth the political pain of trying to enact that, so they're looking at their own ways of providing tax credits or middle income families and that's going to be where a lot of this debate lies over the next two years. >> jump on in. >> what about the debate about the rich amendment? when obama comes through and speaks to the nation tonight, john is he really genuinely starting a national debate along the lines that he thinks the democrats will win 2016, or is it about the whistle for the

democrat party itself so they for example, would support the trade deals that need to get done with the gop? is it about cementing his own base and making sure they're giving money for 2016 rather than what will win the middle ground in the election? >> i don't think it's -- he is going to be aing saying it out loud to the entire country. the trade deals are going to be one area where president obama is going to be on larry's side and against the side of his own party. we know that. >> the president believes that it has to be addressed in part due to tax code. has other ways of addressing it. human capital spending education, and job training. also infrastructure spending. it's a huge growth debate. republicans are joining. mitt romney is -- >> the problem is the rich are getting richer, and the middle

class bare the weight. >> the so-called rich 1% pay 34% of the taxes. the middle class pay 13% of the taxes. so come, on we have a very progressive tax code. now, let me say this. i don't believe the obama initiative is going anywhere at all, okay? nowhere at all. however, what the gop should focus on and what this congress should focus on is a large corporate tax cut and reform of the tax rate of corporations. they are a little further away on repat reation and territorial profs overseas. let me make this point. look at any study. left of center think tanks, right of center think tanks. a lower corporate tax cut would

benefit the middle income wage earner the most whether you are at brookings or aei or wherever. >> bring the money that's overseas back home and stop kicking people out of the company by raising taxes. that will help the middle class. >> the last word mr. kudlow. we appreciate it gentlemen. a former house majority leader eric cantor tells cnbc that he is worried that president obama's speech tonight will inflame the gop-led congress which could lead to even bigger messier fights across the aisle over his remaining two years or so in office. log on to power lunch.cnbc.com for a complete read of cantor's exclusive op ed. meantime, a developing story right now in yemen. yemen's powerful shia rebels are shutting the presidential pal whereas. the u.s. allied president was home at the time. his status is now unclear. this is footage of fighting

wrerl in the day. reports from the ground say the rebels have now raided the palace. one yemeni commander was quoted as saying a coup is underway. kelly is live in london. kelly, we should point out here that this is a crucial ally for the united states. a very dial file for yemen with al qaeda amongst its ranks. >> shelling occurred about a half an hour today. the information minister tweeting that the shelling started at 3:00 local time.

>> his group has no intention of attacking his residents. to make it that much more confusing, the rebels' own tv network claims the rebels stopped an attempt by another group to loot weapons from the presidential palace. a very confusing situation on the ground. interest rates are very low. check out the ten-year. 1.783%. right now rates are really just of course, one factor in the housing market. see what the builders are seeing and saying next on "power lunch." welcome back to showdown! i'm jerry rice here discussing the big race between the tortoise and the hare. my guest is stephanie branton. jerry, i'm going bunny. shocker. not really. you see, the hare's

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zimplt welcome back to "power lunch." the dow losing ground after opening higher earlier in the session here. leading the way lower are johnson & johnson shares. intel on an analyst downgrade as well to the down side. ibm also lower. it reports earnings after today's closing bell. home depot rounds out the bottom four. those are some of the bigger layingers in today's trade. back to you. >> let's get some headlines at the new york stock exchange. going is closing in on a $1 billion investment in elan musk.

it will provide internet access using satellite. shares of google are down 12% since the summer. schlumberger is -- shares are now trading slightly lower in the session that is down anyway. meanwhile, amazon is building a wind farm in indiana that will power its wind service data centers starting next year. the company partnering. shares of amazon have dropped 27% in about a year. patent energy down more than 3% today. over to you. >> simon, new numbers on the state of the u.s. housing market, and diana has them live in washington. hi. >> hi, t wr. homebuilder sentiment stalled in january. several analysts are downgrading the big public builder on concern over weakening demand hitting the markins. the affect of oil prices in texas, and the potential at least for higher interest rates. homebuilder confidence fell just one point in january, but

december is reading will provide points. really it didn't move at all for the whole month. the nhp monthly sent meant index now stands at 57. anything above 50 is considered positive, and it has been in positive territory now for seven straight months. last january it was 56 bushgt then dropped into the 40s for the first half of 2014. amid higher interest rates and weaker sales. the index was three components. current sale conditions remained unchanged at 52. expectations for future sales dropped four points to 60. that's the lowest since june and that may be where the analysts are focused now. traffic of perspective buyers fell two points to 44. buyer traffic is the only components that seems to be unable to break into positive territory. po xwnt auto just for population

growth. there you see where you are. look at realty.cnbc.com. >> diana, thank you very much. >> dominik, another quick market blast. tyler, let's keep that theme going. the home building stocks are taking a hit over concerns like diana said regarding the housing market here. profit margin concern from lenna and kb home. added to some of the concerns. this time around those two along with pulte, dr horton, you can see some of the biggest losers. back over to you. >> thank you, john. in the meantime, morgan stanley, the last of the big banks reporting results, and it's been a mixed bag, to say the least. power lunch is back in two.

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>> shares of morgan stanley down 34 cents on this down day. mary thompson has broken down the numbers. >> it's a messy fourth quarter for morgan stanley marked by a number of charges that have increased its legal reserve. it took a hit from underwriting revenue, and a weak trading environment in fixed income and commodities. the ceo james corman on the call. >> it's a difficult market and trading environment. especially in october and the last few weeks of december. as trading business is in particular fixed income and commodity sales in trading would clearly not be immune to the

unfavorable market environment. in other news pressuring the box. also saying on the call the firm does remain committed to selling its physical commodities business. part of its plan to reduce risk weighted assets after the unit sales. gorman also updating plans to get the firm's return on measurability from 8% this year to 10% while declining to specify a date for achieve this goal, gorman promising this is not a five-year target. cutting the investment bank's ratio from 39% to 40%, and targeting lower pay ratios in wealth and investment management. second, also returning more capital to shareholders via dividends and buybacks. pending, of course approval. looking ahead, morgan has continued strong u.s. growth benefitting wealth mrgt systems which accounts for just about a little under half of its revenue, and also sees other key

foreign markets benefitting from actions from the central bank they are expected to take. >> mary thompson reporting. zimplgt let's take a look at the other financial goldman saks beating the streets. shardz for the quarter down about 1 3erz. wells fargo in line with analyst expectations. its shares up 5% for the quarter. shares of both have fallen about 5%. shares of jp morgan dropping 1%. simon. >> okay. thank you. gold prices are closing about now, and we put on a seventh day of consecutive gains. up about 7% in that period. it's the strongest seven-day run for about eight years. >> the intraday high we have not

seen since august the 28th. let's get to don from market flash for the dow. now down 80 points. gold corp. all moving higher in the session. just trying to get our arms around some of the other moving stories, but for the gold side of things that is what we're watching right now. back over to you. >> the eye of the storm for many continues to be the bond market. ecb thursday. >> once again, a flattening day as maybe we're pricing outside means. maybe it's just the kind of sluggish global gdp. even with some better numbers today. looking to hit five. three intra dah ten. down five. the long end prices are rallying more. pushing yields down more

aggressively. if you want aggressive in front of that meeting just referenced by simon, look at italy. italy is 20-year chart. you won't find a lower yield. hovering just a bit below 170 these days. you'll look at spain. around 152. i don't have denmark up there, but they surprised everybody where heed with a rate cut. their ten-year around 54 55 basis points. of course what's all of these low yields doing to the currency? what's the currency doing to yields? we made fresh lows going back to november, early november of 2003, and that's euro versus the greenback. you see it on that chart. back to you. >> boy you are right about that. it is the story of the week and we'll be all over it as thursday approaches. meanwhile, cnbc exclusive sit down with charles schwab and the pga commissioner tim, just minutes away. you don't want to miss their big

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welcome back to power lunch. the stock is at session lows right now. down by 5% on continued concerns regarding the soft outlook from the cal gaining that contributes to major portions to win revenue stocks. down by 5%. also simon, in your wheelhouse as well the chinese government's crackdown on corruption plays into that story as well. simon, back to you. >> there's a lot going on. in the meantime, there's a big decliner today's, sar wra. >> fxcm plunging. this is a currency broker that almost collapsed last week when the swiss franc, the currency shot up shockingly. well, friday afternoon it did get an emergency rescue by lupedia, a big financial firm that owns investment bank jeffries. that was a loan that prevented fxcm from breaching its capital requirements and having to shut down. why is it getting absolutely

brutalized in today's session? well, investors are digesting the terms of that deal and they're voting that it is not too friendly to shareholders. just a few highlights here. lukadia can force a sale of the company under the terms of the agreement. it would be able to keep at least 50% of proceeds from a sale. the interest rate for the two-year loan, 10%. that's high. it has the potential to get even higher as high as 17%. basically shareholders get nearly wiped out on this deal. that's what's behind the reaction. shares down almost 90% as we speak. analysts say next likely step from here is either a sale of a firm or potentially more destruction client withdrawals, earnings come out march 59. we'll have to watch. the bigger picture, obviously, is the damage and destruction that the swiss central bank lacks. >> other provision with its retail clients. sarah, thank you. down 65 points.

bob has more. we climb back. not a lot of energy or volume. we need a little bit more bond picking. take a look at the s&p 500. we basically went right down at the open. there you see it move to the down side. also the lows and trying to get into positive territory. builders and retailers have had a big problem. today in in the last several days the builder are down 5% 6%, 7%. it's not an issue of today. there's not a lot of news out here, but it's a familiar scene. number one, we've sold it last week. here's what's going on with the builders. margins are falling on cost. higher cost that is we've seen. as well as incentive that is are continuing. it's been an ongoing theme for the last couple of wrooex weeks. retailers are weak and there isn't a lot of big news out there, but it's a little bit noticeable.

abercrombie and aero pos tale. deckers makes uggs. not a lot of news but, again, just continuing concerns about slow economic environment. >> well thank you. let's check in with don chu with something back from hq. >> we're watching shares of staples. session lows. office depot as well. the financial times citing sources saying the company is expected to reject starboard value's call to acquire office depot. staples down by nearly 5%. as for office depot, can you see down by 5%. 4.5% simon, as well today. back to you. >> all right. thank you very much for that. let's bring in cnbc market analyst kenny. it's not a great start to the year. >> not a great start at all. today is just -- bob makes a couple of points. not a lot of news out there today that causes anyone to be really bullish. you continue to get that caution. especially in front of ecb on thursday and greek next week. i think it's giving investors just a reason to say there's no reason to go gang busters here.

technically, we're toying with 2007, which is the 100 day on the s&p futures. kind of toying with that for the last week. just plus or minus of it as it fights to try to -- >> last week earnings not great from the big banks. today a big regional banks. region financial has a miss in their guidance. >> people are just edging down the numbers. you see it almost powerly because of what the foreign exchange has done to foreign earnings. >> right. >> i think that that -- as we're going to see in earnings season that's going to play a bigger role. it's best. especially the long-term investments. reason just to remain patient and let it come to them. >> remain patient.

>> back to you, tyler. >> gentlemen, thank you. >> historic marketing announcement for the pga tour today. the tour and charles schwab announcing exclusively to cnbc a new 20-year, almost unprecedented in its length deal that assures the continuation of the charles schwab cup through 2023. that is the longest marketing agreement the tour has ever entered into. joining us now is tim finchham, pga tour commissioner and chuck schwab, chairman of charles schwab. mr. finchham i hope you'll indulge me a couple of questions right off the top for mr. schwab about the markets, and i promise you we'll get plenty of time to discuss this exciting new marketing deal. chuck, let me begin by asking what do you think of the market in its current state, and as you look ahead to 2015 after two very good years for equity investors? >> well i think it's a time to pause. we had three and a half four years of nothing but straight-up markets, so it seems appropriate to me that we have valuations

sort of getting settled in and before we have the opportunity for another significant rise. hopefully that will come with an improving economy, as it seems to be improving today. >> schwab incorporated had very good results last week. partly because trading revenues were up a little bit. i have heard an awful lot of fund managers and investment advisors, chuck, say in recent days that 2015 is a year or likely to be a year for active managers as opposed to indexes. indexes have whipped the pants off the active managers in recent years. do you agree with that or disagree? >> oh they have, and they've had over really over a long period of time and there are reasons why. there are lower costs, of course. broader diversification, and also the savings you have from less turnover. >> is 2015 leeblg to be a better year for indexers or for active

managers than indexers or do you have a point of view on that? >> my own view is that you should have acore part of your portfolio that should be an index fund no matter what and have a portion in active managed. mostly my position really is in the low priced stocks for active management. >> i see mr. finchham is listening very carefully to what you are saying there, chuck. let me return to you, if i might. tell us about this new deal and why you would choose to partner, a, with schwab. it's pretty obvious. a great brand. why is that so appealing to both of you? >> it is an unprecedented length of any marketing agreement for the pga tour and the history of our organization. chuck's firm and the pga's relationship go back to 1997. all those years he has been the official marketing partner of the official investment firm of the pga tour.

a great job. then really this idea of a point system to identify the best player in golf started on the champions tour with the schwab cup, so we have a really good history here. the reason for 20 years is it really sets the stage for that tour. it gives the tournament on that tour confidence. it allows the sponsorships to work more closely with the players to build a tour and i think the product here is really a result of three things. first, the foresight and activision of huck and his team. secondly and very importantly, the players on that tour who worked so hard to deliver value to sponsors, starting with schwab with their customers. and then third, to our tournaments out there that have done such a great job. it's a meaningful thing for that tour but also i think this commitment and the length of it and the uniqueness of it is

great for golf. i think it's great for the pga tour. the lpga and various tours. it speaks to the strength of college in the marketplace when you have a firm. just talking to chuck, that's as savvy and with such great history to make this kind of commitment just speaks volumes to the strength of our sport. >> you know chuck, i know you love to play golf. good player in your own right. why is this the right deal for schwab and its shareholders? >> well we love the content of golf. the audience and the relationships that we have and we of course have 26 tournaments each year and we're -- it's an opportunity for us to take our clients out to the tournaments, to actually play in a pro-am with some of the fantastic famous names of years past and the current time also. like bernard langer who just won the tournament. it's a great place for us to obviously advertise, but not only that develop our

relationships with our clients. >> yeah. i love watching the senior -- go ahead, please. i'm sorry. >> i was going to say the reason why we signed up for another 20 years, we have essentially been involved with the pga tour senior tour for now almost 20 years, so it seems rather obvious to us. we want to secure that position. we think this sport is very important, and it's the audience of 26 million golfers out there and it's a great way for us to communicate the relationship between investing actually in golf. there's a lot of similarities frankly. it's a long-term deal. >> it's a wonderful pairing of products there. what we used to call a senior tour, now the champions tour with guys like langer as you point out, mr. schwab or fred couples or before them hale irwin. magnificent players to watch and great to go visit. congratulation on your

partnership and continued good luck to both of you. let's get back meantime -- >> thanks. >> thanks again. let's get back to the market. bertha coombs is following the nasdaq. >> the composite fractionally positive a few minutes ago. the big caps are really moving high. it's really a story about apple. apple near the highs of the session. investors now starting to look towards next week when it reports sales and the expectation is we could get a blockbuster number on iphone 6 and iphone 6 plus sales. biotechs continue to power forward. the big caps especially. a movement on one of them being mentioned this morning by -- they say if the president tonight announces a program, one of the flu shot sequencing programs that, could be very positive for the sequencing maker. you are having some folks starting to question the bubble lisciousness of some biotechs. some of the more speculative names. take a look at kite. they are getting hammered today

on some of that negative. we are also seeing morgan stanley turning negative when it comes to the cable names. cutting its outlook on several of them. cutting its rating in fact on viacom to underweight from equal weight, and we are seeing those lower today. scream streaming media continues to power forward. amazon is down, but google and netflix reports after the close continuing to be higher. these are the big players to watch these days. not to ty. over to nyse. >> bubble liscious. haven't heard that for a while. cnbc talks to one of the most successful hedge fund managers of the past year. what is his secret weapon? power lunch reveals the unconventional indicator in two minutes.

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seeing recent positive trends in the consumer gun market and that it would likely translate into higher sales and profits in the fiscal year 2015 as a result of those shares up by 17% so far. rival ruger up by 5% on today's trade. back over to you. sfwroo okay. we have some breaking news on orbits. it would appear that the small on-line travel company on-line travel agency has been suspended. it's reported that orbits is drawing interest from private equity according to some analysts. it's said to be working with an advisor in order to seek. we did talk to the ceo of orbitz very recently, and there was no indication at that stage. orbitz moving this tuesday lunchtime. meantime, there's a hedge fund manager in london who calls oil correctly. how did he do it? what is he betting on now? kate kelly is live in london with more on that story. kate. >> hello simon.

merchant xhoddy generated 59% up side in 2014 partly by using an unusual economic indicator. rubber. yes, rubber. rubber demand for his sister company in singapore that essentially creates -- or sells the raw tirl that sfwz into tire for industrial commerce for industrial equipment. saw weakening demand for its product in the middle of last year. they regarded it as a tell on slowing gdp in certain parts of the world, and eventually slowing crude demand. that gave them an edge going boo intoou that bearish period for the market. take a listen. >> rather similarly, it's linked to gdp because it's an industrial commodity. it goes into industrial -- it's historically been a good prof esy of how global growth is going, the demand was poor. now, you can argue with that market share, that could be the case. you have to look at those things, but it was so widespread around the world that it just sort of triggered us.

>> now this may sound a little bit off beat in terms of an indicator, but actually using one footprint in a physical commodity business as a tell for what may happen with future prices is playing that out in the futures market and it's actually quite common amongst some of the world's expert commodity traders. i'm talking about glen corps, cargill. these are all companies that buy and sell crude and agriculture tour on a daily basis, and as a result they're extra informed when it comes to trading futures. now, what does he say about his current outlook? he thinks the price of rubber indicates further pain to come. year-over-year just in the last year alone, prices are down markedly. yet, he hasn't seen enough swing in demand to take advantage of cheap rubber. therefore, he thidz crude is going lower. he told me yesterday he thinks it may appear to the $40 level, simon, but even possibly the $30 level. sounds like there could be a lot more pain to come. >> yikes. kate kelly in london. thank you. let's send it over to don chu for a quick market flash. >> to follow-up about orbitz. the stock is surging.

it's reopened for trading after being halted for a circuit breaker of volatility trading pause. it reopened up 12% to 13%. those shares up by 11%. bloomberg is reporting that the travel site has drawn interest from both private equity and possible other strategic buyers. again, that's why those orbitz shares are up in today's session. >> thank you very much. former president of shell oil making headlines today with some startling predictions on the direction of oil. is the party at the pump over for consumers? mandy drury has the details. you know we're talking in the next hour on hotline. shell ceo and also founder and ceo of citizens for -- he says he sees oil going back up to $80, $90, even $100 a barrel late this year or early next year. hoffmeister adds he is predicting $5 a gallon gasoline within a decade. however, let's take a step backwards. he has made this kind of prediction before. back in 2010, he predicted $5 a

gallon gas by 20 12shgs and although he did see prices rise to nearly $4 a gallon on average at times, it never really got to that $5 mark. what is he seeing? is oil heading for a steep rise? are consumers heading back to hard times at the pump? we're going to get some answers to those questions later on and also, you know what peeking of gasoline, can you name the state with the cheapest average pump price? don't answer. that's the tease. the answer will surprise everybody, i think, on the show and it's all coming up on "street signs" in about five minutes time. >> it's not california. i know that. it's not california. >> it's not california. it's not hawaii. >> mandy. >> beyond that it's up to you. >> we'll wait to see. i have my guess, but i'm not going to die vulg it. >> tyler, a big up and down market day. the dow right now is down 75 points. we're back in two minutes with more on the market. i sure hope so. with healthcare costs, who knows. umm... everyone has retirement

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welcome back to power lunch. more news on the docket here. check out what's happening with salix pharmaceutical. it was halted for a trading curb. this on a reuters report that the company is working with center view partner to explore its options, including a potential sale of the company. those shares spiking up by 7%.

simon, it looks like it's a takeover tuesday in lieu of the merger monday, if you will because of the martin luther king jr. holiday. >> thank you very much. in this hour of power stocks coming off their lows with the nasdaq flirting with positive and negative territory. home builders taking a big hit today. staples and office depot sliding. sources say the company is expected to reject star board's call to acquire office depot. tyler. >> simon if you missed any of the big stories over the past hour, you can go visit our website at power lunch.cnbc.com. well should they stay or should they go? new york city asking that question about air bnb, and kate rogers is live. hi, kate. >> hey, that's right. well does renting out your apartment make you a hotel? if you are rent it out, should you be subject to regulations here in new york city? above all, what does it mean for the new me? we'll have those answers coming up next on "power lunch."

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i have the flu with a runny nose. [coughs] better take something. theraflu severe cold won't treat your runny nose. really? alka-seltzer severe cold and flu relieves your worst flu symptoms plus runny nose. [breath of relief] oh, what a relief it is. mommy! hey! welcome back to "power lunch." i'm kate rogers. the disruptive start-up behind that movement have butted heads with the regulatory establishment all over the world. today the fight is over air bnb and its place in new york city, and that fight has hit the steps

of city hall right here behind me. now, new yorkers who support air bnb say it's important for the local economy, and, in fact has generated millions of dollars in economic activity in 2014 alone. last year we did see big cities like portland and san francisco allow air bnb to collect and remit hotel taxes. official here's in new york city say it's a long way from becoming a reality in manhattan. >> if you follow law in subletting or having a roommate which is essentially what a bnb person could be then you can, in fact, collect taxes, but only if you follow the law. >> well air bnb supporters say they do want to follow the law, but more than that they want to see that the table, talking about future regulations. now, for many the issue is not fwlak and white here but at the least if you want to be sharing your home legally in new york, it has to be your primary residence. you have to be there when it's rented out, and you can't do short-term rentals. anything less than 30 days is not allowed. the hearing is still going on inside, and the fate of bnb is still up in the air, but we can

tell you that there were many supporters here on both sides of the issue. back over to you. >> okay. kate rogers there in central manhattan. that basically does it for this show. this edition of "power lunch." >> great as always to be with you, and "street signs" begins right now. stocks down. gold up as the country awaits tonight's big state of the union speech. hello, everybody. more of these manic markets in a moment. plus why one oil executive sees gasoline going back to, wait for it, $5 a gallon and soon. the great wealth debate income versus wealth and small cap stocks that analysts manage to see 30% up. >> hello. well, things turn south very quickly today. we are off the lows and the nasdaq is really very hard to stay in the greenl. if the dow ends up losing triple digits like it was it will be the ninth triple digit move