in the international western asset and fixed income, and jp morgan and asset allocation. these are very patient long-term investors. they are all members of teams. there aren't any superstar managers here. teams is what counts. that will do it for this edition of "power lunch." >> "street signs" starts right now. >> do we have your attention? hi, everybody. a crazy look at the interview. we'll get to the markets and a return interview with the man who says, yeah, he did call these interest rates perfectly. plus, the scary oil stat that may shake up your investments and the measles hit disneyland. >> wow. i've got my attention. down up. down again. look at the dow. making up its mind today, and it's been moving at a range of at least 200 points today. that is the 14th straight session.

it has done that. as for gold, it did crack above 1,300 for the first time since august earlier on today. a little below that right now. it does look like it's going to snap at a seven-day winning streak. let's get to our market reporters and find out more. bob, the floor of the stock exchange. rick santelli in the bond pit in chicago. bob, as always, kick it off for us. >> that's unusual. last year the dow typically moved at about 125 point range on a daily basis. now it's 200. that's 50% more volatility. we need stability in particularly a few areas. europe and oil. today germany moved up throughout the morning as we got word that there might be a qe program for the ecb of 600 billion your wroes a year. some are wonder if anything that

is -- germany hitting an historic high. that's the dax there. stabilization in oil is also helping the markets. we stabilize around 45 to 48. west texas intermediate, that's two weeks now. that's enough for a trend. there are oil stocks trading up for the month. names like chesapeake, chk, or halliburton, pioneer natural, noble. these stocks are all up for the month, considering what a disastrous start it has been. brian and mandy, for oil stocks. that is quite a turnaround. back to you. bob mentioned ecb tomorrow. reports there from dow jones about maybe 50 billion euros a month. what are you talking about. is there a general expectation of anything.

most people were calibrating to $500 billion, $ 00 billion a we're. what are traders doing to prepare for it. they're not being proactive, brooirn. they're being reactive. the last five sessions are 115.50 to 116.50. you can see many of the rates including bones. consolidate. >> the yield currently staying below 2%. more than five months ago one of our favorite guests made a rather bold call. especially for the time about the ten-year note right here on this program, which is why we're legally allowed use it. take a listen to what he said. >> i'm going to tell you for the first time that the ten-year

treasury is going below 2%. in what time frame? >> did you say below 2%? >> below 2% on the ten-year wreeld. down another 44 basis points from this level. >> he nailed it. we were completely wrong. which is why he invests money for a living, and we talk to people who invest money for a living. taking a victory lap. you're way too humble to take a real victory lap. >> you are very nice to say that for the compliment. i was talking with both of you, and it's true. i said that on your program. i'm looking for the 30 year to move to -- again, it's approximately under the 44 basis points. >> you are absolutely right. straight after the ecb headlines.

2.35. something like that? >> okay. we're getting closer and closer. you've got to have a new time for the ten-year as well. now we've reached under 2%. what's the next target? >> my next target is 150 because if you have the 30-year at 2% and looking for the ten-year at 150, and the risk to my forecast is a further decline rather than staying there because all the negatives in the world that i see haven't yet registered themselves. >> so it certainly sounds like you're not looking for any rate hike this year. you've got those kind of targets. >> i'm not looking for any fed rate hike. if you look at the next six months, you are looking at the dollar being much stronger than it is today. the global economy being very weak. and that the inflation doesn't pick up, and i don't see the fed having pressure to raise interest rates, and this is a fed which is very afraid. they are afraid of their own shadow. they're not going to do this and hurt the economy at this stage. >> when the shadow banking shadow casts that large of a shadow, i would be afraid of it as well.

>> i would be too. if that happens, then it could be forced on the federal reserve what to do. that would be frightening. >> let's -- you have been right. we gave you credit. let's just say the fed does raise rates this year. we really don't know. we're guessing. what happens to the bond market if they shock the world? >> it's not going to be anything significant in terms of the overall impact. the problem the fed is going to have is in convincing the market that they are going to make two rate increases and not thereafter. if the markets don't believe them, i'm looking for a significant correction in the equity market because this is a patient who has been in an oxygen tent for the last six years. the u.s. economy hasn't grieved

on its own wret. >> that's true. since we're in the game now and stick ouring next out, and your neck is getting longer and longer, and the chopper is getting bigger and bigger. >> i want to keep my nose. not a long nose in the process. >> how how high is the chants of not just the fed does not raise rates in 2015, but they actually stopped qe again. >> i think it is more likely that they would start qe again in the second half of the year than that they would raise interest rates by union. in other words, i am looking for a very strong dollar and a debasement of the dollar has to resume. >> wow. bold call. brings down qe? >> i think -- i still believe the fed will raise rates, and i think the ten-year end the year above 3%. you are also far more intelligent and successful than i am, so if i really had to bet, i would go with your view. >> no, i wouldn't -- >> he know that -- i than the price of oil has come down, but there is the jobs target has been met by the federal reserve,

right? the unemployment target. we've got some price stability. i don't know. i wonder if we focus too much on inflation, deflation, disinflation. >> lel take you up on your emuestion. yes, you have unemployment, total unemployment rate gone down, but the unemployment rate is still well over 11%. the wages increased only 1.7% over the past year. real wages have been essentially stagnant, and that's where i would question the fact that the labor market has improved. >> we can't move away from the conversation until we have addressed ecb. okay? everyone expecting a bazooka. why do you think that whatever they do it's going to be ineffective? >> i think the problem, mandy, is on the asset side of the balance sheet. that is to say that the quality of the assets. the european central bank cannot make up its mind as to where those commercial banks are going to be lending because the borrowers quality is not known. so if you print all the practice

cash between 600 billion euros and 1.6 trillion euros over the next one or two years, mandy, most of the cash is going to sit in the bank's balance sheet just as we have got $2 billion of extra reserves in the united states. that does not help the economy, and that is where the problem is. finally, to round it off, i would say the euro zone has a structuring problem with an inflexible labor market. it doesn't have a monetary problem. >> sounds like mario has a lot of barrels to jump over. >> thank you for having me again. >> especially when you have been so correct. >> good to be back with poet of you. >> love. >> big event for microsoft today, by the way. the new operating system. josh lipman is monitoring and joins us with the latest. hey, josh. >> mandy, you are right. this is a big event here today. microsoft executives talked about windows 10, the new version of its operating system. this is going to be this single

operating system running across the pc, tablet, smartphones, and microsoft today is talking about the skumpl experience, the consumer features of windows 10. windows for pc are -- that's the personal digital assistant sort of microsoft answer to apple's siri. windows 10 on phones and tablets, it's going to have office. word, excel, power point will be included on phones and small tablets. microsoft also, though, taking the time to introduce a new hardware today, including virtual reality headsets that are going to be available, they say, in the windows 10 time frame. of course, in technology there's no hotter trend than virtual reality. facebook, sony, samsung. everybody hopping into this space. this is a critical test for the ceo. windows 10 needs to be a hit. remember, this is still the flagship product. it accounts for 25% of microsoft's revenue. even more profits. he did just start speaking, so i'll listen to the event where you have more headlines as they cross. back to you. >> all right, swrosh.

josh lipman out in california. thank you very, josh. appreciate it. well, your next guest says you have to hold off on the housing hoop la. at least for now. he is concerned that housing may have been taken too much of a back seat off the regulatory radar. >> mickey mouse getting the measles. details on the growing number of disneyland workers who have been diagnosed with the illness and the big question, could it happen to your business? street signs will be right back are. bank of america to help pay for her kids' ice time. before earning 1% cash back everywhere, every time. and 2% back at the grocery store. even before she got 3% back on gas, all with no hoops to jump through. katie used her bankamericard cash rewards credit card to stay warm and toasty during the heat of competition. that's the comfort of rewarding connections. apply online or at a bank of america near you. take aand... exhale...in... aflac! and a gentle wavelike motion...

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sfo that's the fastest rate in over six years. our next guest says despite president obama's proposal to lower fh premiums, housing has taken a back seat on the national agenda. dave is chief economist, and that makes sense, doesn't it? haven't we come to a point in the recovery where we're taking oft red light urgency table? >> urgency has come down. we think about things like sales and prices and foreclosure rate. most of those are well on their way back to normal levels. all three of those measures are more than three-quarters of the way back to normal according to our housing barometer. >> okay. where are we sitting do you think this the cycle in the recovery cycle? >> the layinging activities are still single family construction. it's still 40% below its longer term normal level. particularly swrobz for young adults. their jobless picture is less than halfway back to normal

since the recession, and that's important. >> how much of your projection, your models have to change day to day now because mortgage rates are so low? >> well, i like lots of other people expected mortgage rates to rise last year, and we know how correct that was. mortgages, of course, have a big and immediate impact on refinancing activity. we're already starting to see refinancing, and we'll probably see more now that fha is lowering its mortgage insurance premiums. >> has there been any proof? i've speculated on this. it may be completely off base that refinancing will ultimately hurt home sales later as people feel sort of locked in or almost trapped by their too low mortgage? >> generally when rates rise, it's because the economy is improving, which improves purchasing power and can help more people into homeownership,

offsetting some of the effects of higher rates. it's hashed to say overall how important lock-in is going to be. the good news for refinancing now is it's economic stimulus. it lowers people's housing costs right away and gives them more money to spend on other things. >> you were taking a moment ago about the importance of the first-time home buyers. the gals and guys that need to move out of their parents' homes. millenials don't own a credit card. they can't really build a credit history to be able to get the loan in the first place. how much of that is an issue still? homeownership is still a few years away. many are just getting back into jobs. remember, the peak age right now, the biggest segment of millenials are those in their early 20s. that is younger than the typical age of homeownership. so even the demographic trends point to several years of that big group renting before they're

buying homes. it's the kind of places where millenials live today tend to be less affordable. the choice that a lot of young adults will face is to keep renting or move someplace cheaper. >> not to throw water on your stat, but remember, a lot of millenials are also 12. they would not necessarily own a credit card nor be in the housing market. the older ones would. >> upper end. >> the upper end would be, but most people still say ultimately they want to buy a home. despite everyone is, like, we're a renter's society. most people say i want to own my own home because i don't want someone to boot me out and if i want to paint the walls radiant orchid, i can do so. >> that's right. our latest consumer survey, 93% of wrung renters say that they aspire to buy someday. that doesn't mean they all will. that's still the aspiration. it's still for young people part of the american dream. >> the american dream. alive and well. you just said it on our show. thank you so much for joining us. >> thanks, mandy. zirchlg the collateral damage

from oil can simply continue, but even with all the pain, are there some good value opportunities out there right now? analysts will weigh in on just that ahead. plus, we have rare access to the inside world of cuba. our own amman is there live in havana where history is being made, right? >> yeah, that's right. welcome. this is the main drag in downtown havana right along the waterfront. it is a historic day here in havana, and american delegation arriving. guess what made the front page of the local government-owned newspaper? not necessarily the big news of the day. i'll tell you all about that when we come back. more "street signs" in a few minutes. push your enterprise and you can move the world. ♪ but to get from the old way to the new, you'll need the right it infrastructure. from a partner who knows how to make your enterprise more agile, borderless and secure.

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or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial. canadian dollar after the central bank shocked the market and kwut its key interest rate to 0.75%. the bank of kansas says the move is to "provide insurance against falling oil prices." broin knows ae thing or two about that. it's falling approximately 15% against the greenback over the past six months. >> indeed i do. why don't we, mandy, stay with oil? bhp billiton saying it will shut

down 40% of its u.s. shale rigs. many of the smaller firms have been slammed even hard ner the stock market this year. in fact, look at some of these year-to-date returns. magnum resources down 37%. folks, that's this krir. you know, two and a half weeks sandridge energy, comstock down 30% and 20% respectively. certainly tough times. the idea of investing is to buy low and sell high, correct? let us ask eric if he is finding any value at all. eric, are there any names that have been wiped out that are you saying, whoa, this is an overreaction by investors? >> sure. what we did was we actually just completed a comprehensive stress test across the overweight names and our coverage universe and we want to highlight three names. first, we think that investors should adopt a defensive stance until the narrative on oil changes. our top defensive pick is -- we like the hedges. they're well hedged. >> pioneer natural resources. >> correct. we've also calculated that in a

$30 oil price environment the earliest that they would need to raise additional capital is -- they're sitting pretty well even in the event of a lower oil price environment for an extended period. some people have caught on to that thesis. who is vulnerable to these prices? >> we looked -- we think that whiting is actually wll is actually pretty vulnerable among the names that we screened. we would highlight the additional leverage that they realize with the acquisition of kodiak. we also look at the fact that they're largely unhedged. then in terms of operations, they are lessee efficient operator than its peers. white issinging is a name that you screen poorly on the metrics. >> whiting petroleum screens least favorably. what about m&a? >> a number of these stocks prices have come down so far. this environment really lends itself to m&a activity. what are you looking at? >> in terms of my coverage

universe, i think i don't want to speculate, but, two, what we're seeing is we're not seeing corporate m&a, but we're seeing is emp companies divesting noncore assets. we've seen processes being run for midstream assets, and we would expect, you know, that wouldn't be surprise if anything that continued as well. i would point you to more sort of noncore asset sales than speculative, you know, corporate m&a opportunities. >>le highest level talks in decades in the hopes of restoring diplomatic ties. let's get to our own amman javers. hey, amman. >> hi, mandy. hello from havana. it is good news. it's big news here in cuba, but not necessarily big news in the state-run media here.

let me show you, this is grandma. this is a state run newspaper. grandma is named after the boat that fidel castro road on to come back to cuba back in the 1950s. the lead story here, not about the resumption of talks between the united states and cuba. this is about a cuban official going to bolivia for a diplomatic exchange with the bolivians. the u.s. news doesn't make it until page four and five of this local newspaper. we expect the talks. u.s. officials telling us they don't know exactly what to expect from these talks, but they do have a couple of goals. one is to reopen the u.s. embassy that is here. there is a building here now that's the u.s. intersection, but they like to re-establish a formal embates. it also like to arrange for travel for diplomats to come back ask forth between the united states and cuba. officials telling us that if all

goes well in this round of talks, guys, they think they could be a preamble to a visit to cuba by secretary of state john kerry. obviously something like that has not happened in quite a long time. guys, historic day here in havana, no matter what's in the local paper. >> all right. thank you very much. >> well, yesterday we introduced you to the 30% up side club. well, today meet the 30% down side club. street signs will be back along with the earnings squad.

>> nymex at 4708. if you look at the intraday chart, we're moving now,, and it's interesting the way we've been doing this recently. going so the close. a big spike to the up side,

which is what we're seeing now, or a big move to the down side. we're up by 2.8%. we're still around the lowest since 2009. we did get some support of commentary, right? i think opec secretary general and the iea both saying they expect prices to rebound later on this year. for every time for something we do every day. street talk. analyst calls with stocks you need to know about. number one, cvs health. goldman bumping to a buy. >> goldman sachs has unmatched leverage to some key health trends. they call it a noncontroversial long. an ease where i way to make a long target. either way, their target is 113. they see about 12% to 14% of up side to the current price. >> stock number two is actually two stocks in one. a two-fer. credit suisse on applied materials and lamb research. bullish on both. >> they are both higher by about 2.5% and 2% respectively.

credit suissi starts both with outperform. it goes to 30. 25% upside there. 31% upside, though, seen in the target for lamb research, which is $104 a share. >> stock number three, this is a 30% down side name that you were teasing a moment ago. >> 15% from the previous quarter. revenue should drop. cutting the target to $1.50 from $2. stocks actually up 4% today. watch amd. >> its cornerstone on demand with da davidson upping to a buy from neutral. >> da davidson's analyst says risk reward looking for favorable because the stock is down nearly 40% over the past 12 months. jack andrews, the analyst. he has a target of $42.

that is 20% up side to the current price. like i said, it's been whacking a lot of the peer play crowds, but it's getting many defense. >> stock number five, this is if you are a regular viewer, our under the radar name. sort of under the radar. sprouts, farmers market, arizona based specialty market. >> you want a quinoa veggie burger -- >> no thank you. >> that might be the place to go. sprouts was up from a bank of america merrill lynch. target up to 42 from 35. a flood of earnings hitting the street. let's try to wade through the flood and find out what you need to know about.

the three flames that you need to watch. melissa, over to you. >> hey, guys. welcome to another day of the earnings squad. let's kick things off with our score card. 11% of the companies reporting so far this season. 79% recorded above estimates. 5% net estimates. 16% have come in below estimates. let's kick it off here with a big one after the bell, and that is ebay. this is all, of course, we know about the split. thank you for joining us on fast money. we know about the split. is this a throw-away quarter? >> to be one of the best risk-rewards in big cap tech with an emphasis on low risk. i think if you look at the bar between the pay pal spin-out and the multiple and 2014 was a year to forget for ebay. if you think about the triple threat. they have the security breach. and they had fx head winds. it was a stock that really there was so much playing fwens it. a lot of it's in the price. people talk about ebay and some of the parts. pay pal is an exciting thing even though we've got the spin

up. we don't know if there's possibly an acquisition before that point. we know that after the acquisition, after the spenoff, there could be a lot of value there. >> think of google who needs something to drive, and they're not thinking about shareholders. they're thinking about their longer term business. outside of cars that drive themselves, i think this is -- pay pal with 150 million subs and with the best security in the payment systems is -- has been a no brainer. when you think about -- or ali babaa to say it couldn't happen before the spinout is probably missing a potential catalyst. they lowered revenue guidance and lowered their profit margin guidance, and the stock fell 14%

on that warning. weakness really came from demand memory, which is the memory for smart phones. also, there's a concern that perhaps consumers are not buying memory cards because they're buying devices with more storage. why do they need to buy this extra memory? also, what they see in the dram market overall because as we know, micron has been a crazy outperformer, and it also fell on the back of the sandisk warning. >> they got the bar very high, and the gross margins there were one of the things that really took the stock down. i think sandisk, they lowered expectations. they -- all of the numbers seemingly are out there. it's if the guidance, and i think it's going to be decent. >> let's talk union pacific. the railroads, top performers in 2014, and the question is now with the slowdown in the oil patch. can it keep up? >> that's the question we're seeing all the railroad operator stocks get walloped. that said union pacific, crude certainly will be in focus, but

it has so many other types of businesses that are dragging as well. you have intermooedal, industrial, agriculture. those will be in focus. you're looking for $1.51 per share. that's a 90% increase year over year. you're looking at a 6.1 billion dollars. the other numbers are a volume increase. revenue for car load increase. overall the story here is that it's capacity you're seeing. stronger economic growth. more things moved. even if you see a decline in crude, you'll potentially see an increase this these other -- up tick in autos, for instance. >> would you be a buyer of the railroads in 2015. >> i think the weakness is to be bought, and morgan brings up a good point. the correlations with oil prices and nat gas prices have a lot of short-term and the lack of long-term investors in these names for stocks that i think have rerated significantly over the last couple of years. i think that rerating that we saw is something that's a multi-year process again. some of the best pricing out there in the section. >> thanks a lot. that's it for us here at the earnings squad. for more coverage after the bell, watch fast money 5:00 p.m. eastern time.

we'll be covering ought the hot after hours movers as well as trading. the conference calls also at 5:00 p.m. mandy and brian, back over to you. >> all right, guys. thank you both very much. thank you all very much. get your pens ready now because we are about to sit down with one of 2014's top mutual fund managers and find out what stocks he is buying now. >> and then something a little sexier than mutual fund returns. with all due respect. classic cars. a huge auction going on in florida we'll go there live to the floor. you just got a big bump in miles.

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>> every year morning star selects the top fund managers across different categories. in fact, five fund categories in all. it's kind of like the grammys of investing, but with much less torquing. every year other man tyler math son heads to the unveiling of the big winners. >> there will be no twerking in this segment. >> not yet. >> there is a very coveted day for people in the fund management business. morning star awards in five different categories. the manager of the year award

for 2014. sometimes that means ranging a little bit farther afield from some of the conventional strategies, and that's what the winner in alternative investing did last year. >> 2014 fund manager of the year award for alternatives goes to robert jones and ali mutamed who run boston commons long short equity. >> it generated significantly morale fa than the long category. they did that by following their concept stock shorting strategy, which they short over-hyped companies they believe overhyped with deteriorating fundamentals. top some of the shorts were netflix and twitter. alternatives generally performed relatively slop where ily, and i think these guys knocked it out of the park. >> knocked it out of the park. good to have you with us, and congratulations for you and your team at boston partners long short equity. a lot of people think this is

an -- you explained to me it's pretty simple when you think about it. you had long positions. you have short positions. they're not really hedging gents one another. you're just trying to make money on the longs and the shorts. >> that's right. we're generally fully invested on the long side, and we have a variable short strategy where we're trying to short stocks we think we can make money on, and because of that, the size of the portfolio tends to adjust itself, and fortunately, because of that we've been able to be well hedged in the market declines and we have lots of market exposure into the rallies. >> tremendous results here. let me give you a couple of things. over the past ten years, if i put $10,000 into your fund, i would have more than $30,000 right now. a nice triple. over the past five years, 10,000 would have turned into $16,000. are you net long or net short now, and what does that say about your broader view of stock prices in the markets? >> we're 24% net long at this point in time. generally speak, we've been as much as 90% net long and as little as 20% net long. we would say that, well, we

don't think perspective returns are going to be as attract i in the near future as perhaps when we're much more long. >> who is this fund for, and what role does it play in a typical portfolio? >> sure. this fund is for really anybody. we have a lot of our own personal money invested in it as the fund managers, and we -- >> you eat your own cooking. >> we absolutely eat our own cooking xshgs we believe if you believe in active management, this is the perfect fund to express that because we can really go anywhere up and down the caps. we can buy stocks long or we can short them, depending where we can make money. >> your fund is eclectic in the sense that you have some very large capitalization companies. brookshire hathaway was a recent holding. midcaps. fairly large slug of small caps. what do you look for in a classic long position? what are you looking for? >> well, our long positions generally what we're looking for is good companies where they have cheap valuations below

their normal, and things are getting better. >> in a short position -- i'm not going to ask you to name names, but i will ask you to name categories. >> sure. >> what do you look for in a short? >> we generally have three types of shorts. the first one will be dweer kwatating businesses, where their margins are a little too high, and they're fading and perhaps they trade at high multiples. as the earnings space goes down, the mrult reply -- the other side would be what we would consider stocks that are going through a period of unreasonable profitability. it's sort of a pick through the python, and that's going to disappear, and the business is going to revert to normal. and the third is what we call story stocks or concept stocks. these are companies that are have massive valuations, and don't have any financials to really support what that valuation is. it's a story that's been told and well told, and the markets are willing to reward them. >> what category of investments would be in that short category right now? a little bit over talked up, maybe the fundamentals don't justify the process? >> i think biotech absolutely suits that right now. if you look at the category,

we've headline hundreds of ipo's in the space in the past four or five years. their massive consumers of capital. because they're constantly spending rnd money, and in many of these cases they don't have anything to show for it and won't for six or seven years. and meanwhile, we've had massive increases in prices for these drugs, and that's what's driven to the profitability. if you look out five or six years, that's not establishable. >> and very quickly and finally, a stock that i think you might look at at some point would be uber, if it comes public. what you know about uber and the presumed valuation that it might command for your fund, would it be a long or a short? >> it's very hard to tell without seeing the exact financials, but from what i understand, they're doing about $10 billion in 2015 gross revenue, and they're taking 20% of that net. they generate a lot of free cash flow, and they're up 300% a year. that is a very scary stock to short under almost any circumstance. and valuation, we've heard

things talked about from 20 to 40. it's very hard to tell where these price. i would say that is a stock you would want to be careful of. especially because it seems to have presumed free cash flow generating characteristic that is are strong and growing. >> ali, thank you very much. congratulations to you and your team. appreciate it. >> brian, mandy, back to you. >> thank you very much, tyler. >> sweeping the country. the measles outbreak infects at least 50 people in southern california, and we could be seeing this more often if more people elect not to have their children vaccinated. we'll discuss the business impact. >> plus, the new nba team valuations are out. are they officially bounced into the realm of ridiculous. there's nothing free about a free-throw. that's next. ♪ playing basketball in my world, wall isn't a street... return on investment isn't the only return i'm looking forward to. for some, every dollar is earned with sweat, sacrifice, courage. which is why usaa

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iit's a lot of haggling and itan stakes so long.ship. craig's experience is completely different than mine. yeah. yes, mike has used truecar. at truecar, we'll show you how much others paid for the car you want, and how much you should. because i used truecar there was no haggling about the price. they treated me so well, and it was just such a quick, easy experience. get your car, and get back to the life you love. welcome to the future of car-buying. >> one stock in particular had been pop this year, and it is not coke or pepsi. it is little dr. pepper snapple, which is about one-tenth the size of market cap of either pepsi or coca-cola. they're up about 2%, 3% this year. dr. pepper snapple which makes products lake dr. pepper and snapple is up 9.5% we're to date. yea, texas.

a huge debate is brewing over vac sin aings. at least 50 people in california have comdown with the measles, including five children, four of whom were never immunized for the disease. here's the business angle. some of those diagnosed are disneyland workers. so far disney says this has had no impact on business, but what if this continues? and, of course, this is very interesting when you think about it from a policy perspective. some people might say, well, should places like disneyland mandate, for example, their employees have vaccinations? a number of schools mandate children have vaccinations. at what point do you get to the point companies mandate. >> a lot of passions on both sides. >> what did steve ballmer's $2 billion purchase of the l.a. clippers do to help the other nba teams' values? you can say maybe bubble. we'll explain. >> plus, a special segment for all you car lovers. we'll take you live to the

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backed by a trusted network of attorneys. so visit us today for legal help you can count on. legalzoom. legal help is here. the new york knicks have the worst record in the nba at 6-36, but according to forbes, the team is still the second most valuable franchise in the league worth $2.5 billion. the l.a. lakers are the most valuable worth $2.6 billion.

these valuations have gotten completely out of control. here with us on set, mike is an executive editor of "forbes." what say you? crazy or not? >> the 15 times revenue steve ballmer paid for the clippers way was $400 million more than the next highest bidder was a little crazy but in general the money is there to back up these valuations and particularly you're talking about the new national media deal which starts in two deals. almost three times the current media deal. so the money is there backing up a lot of these teams' sales. >> that's $415 million per victory for the knicks. i just need to point that out, okay? and i'm a knicks fan and it's unbelievable. did steve ballmer -- you know, like the wile e. coyote, how he always had a bomb, did he just come in and do that to nba valuations. >> steve ballmer never even looked at the financials. >> he didn't care. he's a basketball fanatic. >> it's purely a trophy for a rich guy.

>> the trophy premium has increased in markets like new york and l.a. the nets are being shopped right now. even in the smaller market revenue are going up. look at the hawks. they went from $12 million a deal in their local cable deal to now a new deal for $30 million. >> and they have twice as many wi wins. >> how does the market decide this? >> the revenues have been increasing so the valuations have been increasing. i give you the clippers, way overpaid but in 20 years it may not matter. the new collective bargaining agreement lowers the revenue going to the players. >> do you think the nets will find a buyer? >> i have heard some people talk about $3 billion.

i think that's a little crazy. we have them at $1.5 billion. they could go for more. >> are these just real estate deals that happen to have a sports team. i don't know the structure of the arena. >> a lot of these teams are looking to develop real estate. look, low interest rates help. you have teams like the bucks last year that sold for $550 million. the new owners came in and sold tiny little pieces. those new owners could leverage their personal fortunes and borrow and become owners. first online at the new steakhouse in time. >> one of those owners is a guest of cnbc. >> we love these stats and figures. the average nba team worth $1.1 billion up 74% from last year. and we can't keep on gaining at that level, can we? >> not at that rate and it will be very interesting to see what happens in two years when the collective bargaining agreement which was signed in 2011 can be

reopened. will the players want a bigger chunk of revenue? and a lot of the new owners are wall street guys. the pistons, the bucks, some others, josh harris of the 76ers. >> let's throw this out right now. when someone is good at the game they call them baller. he's a baller. >> a baller. >> let's call somebody who blows out valuations a ballmer. it could be a verb. he ballmered that used car market. >> he totally ballmered it. >> thank you. for the full list of nba valuations check out mike's article on the "forbes" website. >> and we're going to have some hot car gazing. 3,000 cars worth millions of dollars up for bid at the mecum auction in florida. nbc and nbc sports network will cover it with 25 hours of coverage starting tomorrow stretching to monday. joining us now from kissimmee is

dana mecum, president and founder. you are behind or in front of i should say a couple -- are those the dodges? what do you have behind you and how is the auction market doing so far? >> well, the auction is great. the marketplace is great. we're standing here with the well born museum collection which is primarily dodges and plymouths but there's a boss 429, a chevelle ls-6. there's a few other cars. tim has decided the market time was ready to sell the cars. some of these cars he's had for 15 to 20 years. there's some real treasures here. >> you probably just heard us talk about the valuations of nba teams. some of these muscle cars, dana, i mean, how has the market remained so strong for so long? >> well, you know, the market thins and every time it thins it comes back stronger, and the lesser cars, you call them

commons, they become worth just regular values and the stuff that's premium and investment grade auld golways goes up in p. we have a daytona hemi which they only made 22 of them to begin with. daytona hemi 4-speed. s this is the only one known to exist with the original motor. it's got 6,000 miles. >> very quickly, which car in particular are you drooling over? >> pardon me? >> which car are you drooling over, sir? >> which car am i -- >> yeah, which one do you like? >> last one i sold. the last one i sold. >> i know -- we got to go but i know what mine is. it's the '72 ferrari dino or the honda mini bike you have. thank you for your time. >> we sold the honda mini bike a little earlier. >> do you remember what it went for? >> i think it went for $5,000.

>> for a mini bike. dana mecum, now i'm watching. thank you. >> how mini is mini? >> it's your size. >> my size, that's really mini. $5,000 for something that big. okay, everybody. thanks for watching "street signs." >> "the closing bell," last hour of trading begins right now. and welcome to "the closing bell." i'm kelly evans at the new york stock exchange. >> and i'm bill griffeth. listen to this statistic. this is unbelievable. now, volatility has been with us all of the trading sessions we've had so far this year. today alone the dow was down about 120 points, it's been up about 84 points. so a 200-point range today. listen to this, kelly. we've had a 200-point range on the dow every trading session this year. >> including that first one. >> including the first one that friday. that's unbelievable. >> wow. >> we're going to beki