quickly, pete. >> love these chemicals and we had dow paper today, how about the cross between the volatility, 50 and 200-day moving average around 15. look for a spike. >> that does it for us. have a great rest of the day. steve liesman back at hq has breaking news. a lot of fed speakers. coming up, dennis lockhardt speaking down in florida talking about heightened uncertainty about the track of the economy. this is interesting because he's a centrist and the end of march he was talking about rate hikes in the june to september period. now he's saying a murky economic picture is not ideal for a major policy decision so that sounds like a little bit of a change towards the dovish for lockhart in my opinion. anyway he supports quote, waiting a while longer before making a liftoff decision. he did not mention this june or september liftoff time frame like he did to me and to other reporters after that.

he says the q1 data was, quote, notably weak. the march picture -- march jobs numbers brought the jobs picture, quote, down to earth. now, he does talk about this issue, was it partially explained by trance tore factors, we don't know yet but lower gas prices haven't as expected boosted consumer spending. he says net exports are down as a result of the strong dollar and manufacturing has softened considerably. he does see growth picking up in later quarters but he says the evidence of that is not yet in the numbers. i guess i'll throw back to tyler or mandy right now but this is a bit of a change in my opinion from a guy who was talking pretty confidently about june to september now saying you know what we need to wait and see a little bit. >> steve, thank you very much. mandy and i are both here by the way, welcome everybody to "power lunch." let's go down to dom and see if there's market reaction from

these remarks. >> you're not seeing a whole bunch of reaction but the dow industrials still here off by about 7 points. we've seen it move kind of higher towards the unchanged mark right now. the new york composite also down 5 points. we're relative flat on the day so far. we'll see what happens this afternoon, but again those comments interestingly enough could have the effect that some were looking for more of a dovish stance from a fed president that maybe has not been as dovish in the past. we'll see if those indices turn a little higher as the afternoon progresses. a lot of the attention here has not just been on the macro factors but also the microstories here. the ipo story is big. party city went off this morning and again it was at one point up about 20%. it's up 19% right now so the company is now worth about $2.4 billion. so that's a pretty decent size. i also want to point out what's happening with the nasdaq. etsy more than doubled in

trading. at one point priced at $16 a share. it got up over $32, $33. that makes the company worth around $3.5 billion so that's another big story for etsy. one that's of interest to the traders down here a high frequency trading shop called virtue financial. they have a presence down here, they're a market maker as well. they priced at the high end of their range, $19 is where they sold shares. the stock up 17%. that makes this company a bigger valuation as well. so three ipos to keep an eye on here, guys. back to you. >> thank you very much for that. stocks are a little changed but check out the mid-caps because they're sitting at new all-time highs and far outperforming the s&p 500 year to date. so where are the bargain buys in the market? let's get over to brian of chase mid-cap growth fund. we'll get to the mid-caps in a second but first of all maybe i can get your reaction to those

very dovish comments from lockhart talking about the murky economic picture and maybe the virtue of waiting a little longer before the liftoff on rates. mark, does this change anything in terms of the investment thesis for the market? >> not for us. before we even heard those comments, we were maybe 60-40, as in 60% probability that interest rates would get hiked this year 40% they could postpone until next year. the fed really has a lot of room to maneuver. economic data has been pretty much weak since january 1st and i think, you know, the fed can actually wait quite a bit, especially with the strengthening dollar. >> even if you think they can wait, mark do you still believe that we have what you call a perfect storm for a ten10% or more correction this year? >> we have to have one at some point. we haven't had one in three and a half years so yeah i do think so. we're looking at really stretched valuations right now with a forward pe ratio of about 17 on the s&p 500.

we've got deteriorating earnings and we've got fading economic momentum. so when you put all that stuff together, you throw in a strong dollar and then add looming interest rate hikes, whether it's in six months or a year yeah i do think that a pullback is very much in the cards. >> okay. let's talk about some of the divergences in the market that we're seeing brian. certain low the small and the mid-caps have been managing to full forward a little more than some of the other areas in the market. is there still room to room do you think specifically for the mid-caps? >> i think for the mid-caps there is a bit of room mandy. those divergences, recently you've seen the transports acting a little weaker while the small and mid-cap spaces have been doing a little better. that's a little bit of a flip of what we saw last fall. so that is not necessarily bad for the market. i would agree with mark that we've been a long way from that 10% correction and that's certainly not out of the range of possibilities, although we're

pretty constructive on the market going forward. and particularly on some specific stocks. >> let's talk very quickly about those specific talks. you like alliance data systems, sky work solutions and aetna. sky work and aetna have had big moves. do you still like them after those big moves? >> we do like them. sky works has been one of our better performers for quite some time it's doing well again this year but it's doing well because the fundamental growth behind the company is so strong. they're going to grow earnings about 50% this year, about double over where they were two years ago. as that growth continues, that leaves the stock room to run. still trading at a relatively modest valuation. >> mark we haven't got time to go into details but i know you like the banks, wells, jpm and key corp need to play a little

catchup. to hear more about where mark tepper has to say go to powerlunch.cnbc.com right now. we begin with the force that is star wars. when disney bought lucas films for $4 billion two of any years ago it acquired an army of devoted fans. today those diehards are gathering for a massive star wars pa loselooza. julia is there with them. >> reporter: that's right, i'm here with these life-size star wars characters the sand crawler, r2d2. they're all created by star wars fans. all the fans they have not around me right now because they're inside the panel with director j.j. abrams and katherine kennedy, president of lucas films and are waiting to unveil some new foot annual from star wars, the force awakens scheduled to hit theaters december 18th.

many of the 40,000 fans expected here over the next four days lined up some of them even waiting overnight to be first in line to get into that panel happening right now. in addition to that they're here for autographs exclusive merchandise, even a jedi training session. the real main attraction here though, is a sneak peek at the future of the franchise which disney has been working on since acquiring lucas films for $4 billion in 2012. >> i've been here for eight hours and i'm here for a celebration. >> i'm dressed up as a custom mercenary and i picked it because i like it the outfits are awesome and the ideals are awesome. >> represent the star wars celebration for the largest jawa ever made. >> starting with its november release of a 90-second teaser for the upcoming movie, disney has been working hard to reassure diehard fans that the franchise is in good hands under

its new ownership. disney shares are up about 36% over the past 12 months and this year it's one of the best performing stocks of the dow, up about 14% near an all-time high. now, with all those films, merchandise, plus the potential to have a big presence the multimedia conglomerate is expected to earn back more than its investment in lucas film and star wars. we'll be back with the headlines from the panel, plus a look at some of that new footage we're expected to get from j.j. abrams and katherine kennedy. plus we'll have an interview with disney ceo bob iger. tale of two drug stocks. check out merck up 2% and pfizer up about 13%. what's ahead for these two pharma giants? meg is about to speak exclusively with the ceo of the two companies here on "power lunch." hi, meg. >> reporter: yes, we're here in washington for the annual pharma

board meeting where later we'll talk with pfizer ceo ian reed. the company stock in the last year is up 17% so we'll talk with him of course about the year behind for the industry and for pfizer and what's coming up in terms of where the industry and pfizer will find growth. then we'll talk to merck's ceo ken frazier. that stock up about 3% over the last year. the company has doubled down on research and is at the forefront of this area of cancer immune owe oncology so we'll talk with them both about what's exciting for the year ahead, what's challenging and whether we should see a consolidation in health care to continue. that's been driving a lot of the valuation. a lot to talk about. tune in later this hour. >> so many big ceo interviews during these two hours of "power lunch." it is the million dollar housing market that just keeps on getting hotter and hotter. josh lipton is in, yeah you

knew it san francisco with the very latest on the staggering stats, josh. >> well mandy, just when you thought bay area home prices couldn't get any more nuts we have some brand new data that is going to blow your mind. that coming up right after, on "power lunch." i love my mileageplus® explorer card. we're saving our united miles... ...for a trip to hawaii. we love free checked bags. i've saved $75 in checked bag fees.

no foreign transaction fees means real savings. we can go to any country and spend money the way we would in the u.s. one of the best things about priority boarding is you can just get on the plane and relax. i put everything on the explorer card. i really want my united miles.

i'm kate rogers welcome back to "power lunch."

we're watching housing for you. all down over 2% in the wake of disappointing housing numbers. housing starts rose in march but by far less than economists were expecting. permits, which are an indicator of future building activity recorded their largest drop since may. back over to you. >> thank you very much kate rogers. tobacco producer philip morris beating the street. the company raising its 2015 earnings guidance above consensus estimates but diageo reporting an unexpected drop in global sales due to lower demand. go figure. coach is higher barclays upgrading the retailer to overweight from equal weight point to confidence about the success of turn-around efforts. and citi posting the highest quarterly profit in eight years with a 16% jump. that is thanks to falling legal and restructuring costs. >> all right. need another example of just how crazy the san francisco real estate market has become?

half the home sales now, over a million dollars. josh lipton has that story for us from our new bureau at one market plaza. josh. >> reporter: well, tyler, if you want to buy a home here you better move fast and have cash in hand. this is the first time the median sales price in the san francisco metropolitan area which also includes san mateo and marin counties has topped $1 million. and that is a nearly 20% jump year over year. that's according to a new report from redfin the real estate brokerage. >> for someone that's in the business all day every day, i'm not terribly shocked. but just to say a million dollars median home price in the san francisco metro area is a little bit shocking to say. >> reporter: the seller of this $1 million house we visited yesterday actually bought another home before putting this

one up for sale. how come? because the market is now so competitive that she was afraid she wouldn't be able to find a new place to live. in march, 47% of homes sold in four days or less. with about three-quarters selling above the listing price. that's in part due to the lack of inventory with the number of new listings down 12% year over year. and real estate agents attribute the sky-high prices to demand from a thriving tech industry. unless there's an increase in inventory, real estate experts don't see this trend changing. if anything it's spreading with san jose california nearing the million dollar mark as well. tyler, back to you. >> all right josh thank you very much. well etsy ipo priced at $16 a share, opens at $31 giving it a nearly $4 billion valuation overnight. to some it feels like a dotcom flashback, but not to venture

capitalist tim draper. he says hang on baby there's plenty of room to run. welcome back to "power lunch," tim. back in october you told cnbc we're nowhere near a bubble in technology. has your thinking changed at all since then? >> no. i actually think etsy was clearly priced wrong. i think people really need to focus very much on fin tech, new financial technologyies that make it so that kind of irrational pricing doesn't happen anymore. the bankers are pricing these things way too low and i think it's clear the market is very interested in new technology companies. this is a great time. >> why are they pricing them so low? these are not stupid guys. >> they don't have to make any phone calls to just sell the deal. >> aha, all right. >> you mentioned fin tech. that's really no coincidence, is

it. you're talking your own book here because i understand you try to get financial startups to move largely from this side of the world over near wall street over to your side of the world in silicon valley with a new incubator. tell us a little bit more about that and why do you think it's going to be successful? >> yeah. at draper university we've started to attract entrepreneurs from all walks of life. and fin tech seems to be a very hot area for these startups and it's natural, because all of these other industries have been attacked by the internet whether it's music or entertainment or technology or your industry the journalism industry. the internet has really gone after all those. now, there have been some laggard industries and finance is one of them. i think banking is ripe for the picking. those margins are very high. investment banking, they're very high. venture capital, they're very high margins and there's a great

opportunity for technology to dis disintermediate all of us. i think this is a great time for financial technologies to make a big difference and that's everything from bitcoin to the block train to electronic shares with eshares and cap share. all of these interesting technologies are starting to happen and they're coming dg together in a great way. it's going to be great for the shareholder and great for the company. >> i was going to ask you how would finance be disrupted by technology but you just enumerated a couple of ways so let me turn to the question that was in the news a few weeks ago and that is diversity in valley, the ellen powell case at another company. where do you think the valley and private equity and venture capital stands on this? what are you guys doing to improve diversity to the extent you think you need to do it? just sort of get your thoughts on where things are. >> oh i mean i think you're

talking specifically probably about women. and women -- we've had women in our partnerships from the word go and they have been fantastic. what's great is that different people from different points of view make up a great partnership. and i encourage all venture capitalists to do the same. and also it's interesting that it's very few women that are starting businesses but the ones who do are quite extraordinary. elizabeth holmes for instance we backed theranos. it has turned medicine completely on its ear and become a major breakthrough company. she's actually i guess, the first under 30 self-made woman in the forbes billionaire list. i gave her, her first million dollars. so i'm very proud of that. >> i'm glad you brought up bitcoin a moment ago because i

think you won $19 million of bitcoin in a government auction last year. if you take a look at what's happened to bitcoin, back in late 2013 it was above 1,000 so a lot of people feel the bitcoin may have a murky future. what do you think now? are you still a believer? >> oh, absolutely. bitcoin is here to stay. it's -- the pricing has stabilized. i didn't know where the bottom was going to be. now it seems like we've been on the bottom for a while and it is starting to stabilize. there are some extraordinary technologies that are making bitcoin -- it enables all sorts of new vehicles that are going to make it so much easier for us to do remittances or do sending like micropayments. micropayments are going to be so much easier with bitcoin. that's going to be good for

journalists too. you guys are going to be much better off. >> we do receive micropayments. [ laughing ] >> but not in bitcoin. >> tim we've got to leave it there. >> every time somebody reads something you can easily get a piece of a bitcoin. and i expect that bitcoin is poised for a big breakthrough. this is like all technologies that are controversial. >> right. >> end up making big impacts on the world and on society and i think bitcoin is one of those. >> tim draper thanks as always. always a pleasure to have you with us. we appreciate it. >> he grew up in silicon valley when it was just apricot groves. we'll be back after the break. more and more, data is visual. in fact, the number of mris has increased by ten percent a year. and a radiologist might view a thousand images to find one tiny abnormality in shape, contrast or movement.

because it's so challenging a research project is teaching ibm watson to see. in the future, it could help clinicians spot key patterns quickly and precisely. ibm watson is working to make healthcare smarter every day. ideas come into this world ugly and messy. they are the natural born enemy of the way things are. yes, ideas are scary and messy

and fragile. but under the proper care, they become something beautiful. new york state is reinventing how we do business by leading the way on tax cuts. we cut the rates on personal income taxes. we enacted the lowest corporate tax rate since 1968. we eliminated the income tax on manufacturers altogether. with startup-ny, qualified businesses that start,

expand or relocate to new york state pay no taxes for 10 years. all to grow our economy and create jobs. see how new york can give your business the opportunity to grow at ny.gov/business welcome back to "power lunch." rick santelli live here. listen sara eisen had a great interview with the vice chair and indeed that moved the markets but maybe not in ways that are easy to understand or so obvious. you look at a two day of tens certainly tens moved a bit but it's hard to argue it isn't a compressed market. but if you look at any of the yield curves boy, they steepened a bit and stayed steep. i picked one of the favorites on the floor five versus 30s. look at the chart, 1.26 so we're

holding on to steepening in t. that means the 30-year is moving higher faster than the five-year. open the chart up to december 1st and something interesting. this has been a process occurring after multi-year flats but it is the steepest since december. maybe the most important thing if you're trading equities is this chart of the euro versus the dollar. not a huge update for the euro but still above 1.05 by a couple of handles and that's what traders are watching. >> very interesting on that yield curve comparison. stocks bonds, tech lots of talk about bubbles lately but this may be the biggest bubble of them all. plus -- today's powerhouse is home to our nation's first library. this city is the fifth largest in the country and has over 9,000 acres of municipal parks. can you name that city?

[ female announcer ] who are we? we are the thinkers. the job jugglers. the up all-nighters. and the ones who turn ideas into action. we've made our passions our life's work. we strive for the moments where we can say, "i did it!" ♪ ♪ we are entrepreneurs who started it all... with a signature. legalzoom has helped start over 1 million businesses, turning dreamers into business owners. and we're here to help start yours. who do you work for? your boss?

yourself? your family? our financial advisors are free to realize a plan to fit your family's unique needs. we'll listen. we'll talk. we'll plan. baird.

hello, everyone i'm sue herera and here's your cnbc news update for this hour.

federal charges have been filed against a 23-year-old from columbus, ohio. he is accused of going to syria to get terrorist training and then returning to the u.s. he told one person that he wanted to go to a texas military base and kill three or four americans execution-style. members of the bandland and the -- lady antebellum were in a bus that caught fire. a blown tire caused the fire. the band was en route to dallas for the american country music awards. fortunately no one was injured. members of a cleaning crew have discovered a priceless mummy outside a peruvian archaeological preserve. it was found just by chance and seconds before being crushed by a trash compactor. students in china got an unexpected visit from an unwanted guest. a buffalo burst into the primary school scaring the kids of course, who scrambled to get out of its way.

reports say honking cars on the street sent the animal into a frightened rampage. police eventually shot the animal after asking its owner for permission. that is your cnbc news update at this hour. back to you, mandy. let's get out to kate rogers for a market flash. >> we're watching netflix for you. shares are soaring today. trading at all-time high levels back to its ipo in may of 2002. the asking its board to approve a stock split. it's up 16% nearing its highs for the day. chinese stocks have been on an absolute tear this year. take a look at this. shares of two etfs that track chinese stocks both the ashr and the afxi are up 25% year to date. some speculate asia may be a bubble that's a bubble ready to pop. ron, i'm going to play devil's advocate because the shanghai

market is nowhere near the 2007 highs, right, and it did absolutely nothing for years and years and years and years. isn't it playing just a little catchup here? >> it is. i'm not sure qe cures the ills of the chinese economy the way it would have here because they have spent $6 trillion on infrastructure over the last six years that is either uneconomic unused or unusable in many cases. so they have a shadow banking system, a real estate problem and then mandy, to switch from shanghai, you've seen stocks go up 55% year to date and there's talk it's driven largely by mom-and-pop investors. >> and that's the concern, mom and pops. >> not to condescend to retail when they start driving up small speculative stocks that's when you start to worry. some of that is spilling over to hong kong has china revolutionized rules. >> and you're certainly hearing

a lot of reports about the mom and pop opening multiple brokerage accounts. >> in terms of investor behavior. if china were to rebound from its relatively slow pace of growth, if the qe program comes through and can deal with shadow banking issues without toppling the economy, some of this might be healthy and catch up with the rest of the world. >> so what do you think is going to happen with the market here? >> when i see things go parabolic i start to get nervous. i would be careful with respect to to that. shanghai may be playing catchup. i'm not a huge fan of chinese shares. >> does that go for hong kong shares as well? >> i think so. there's a little too much volcano volatility. there might be other markets that are safer than china. >> great to talk to you, ron. >> thanks, maenldndy. >> tyler, over to you. jawbone tries to get into

mobile payments. this as it closes a $300 million investment with some saying the company is valued at $3 billion. that's a lot for a jawbone. despite millions in revenue, we'll interrupt the intro and be right back. steve liesman with breaking news. >> thanks very much. our trifecta of fed speakers in this hour now completed. the fed president saying that the fed's employment and inflation criteria for raising rates have not been met. he's saying inflation is stubborny below the fed's 2% target. it's difficult to separate what's temporary with lasting concerns about the economy. incoming data has to improve before the f fed raises rates. i'm going to throw it back to you unless you want to talk about the other fed speak we got in this hour. >> we'll pick up with that maybe a little bit later. >> sure. >> meanwhile i'm going back to the segment we were going to do on jawbone, it's big investment its valuation and its new deal

with american express. here to talk to us about it is shelly banjo, a finance reporter for quartz which is a business news website owned by the atlantic you were saying. >> yes. >> so what is jawbone, what is their product? why does am ex want to do business with them? >> i'm actually wearing a competitor fitbit. >> i had one of those until the battery quit on me. >> what's one of the big problems they have. am ex wants you to wave this and be able to pay and go on your way. >> the way you can do it with an apple watch, the way you can do it with an iphone and apple pay. >> exactly. >> the way i can do it with google wallet right? >> exactly. >> so this would just be a wearable way to do that. >> right. >> why do they think this is a good way to go? how long do the batteries last? can you wear it in the shower? what? >> they're still working on waterproofing, i think that is what is taking them so long to

continue to roll out new ones. this new one with the apple pay won't even be available until this summer yet but the idea is you can just swipe it at the terminal, go pay faster. >> so some very smart capitalists have put some very smart capital behind this company. who and what are they saying? >> people are really betting on the wearables market jawbone, fitbit apple watch. i think apple watch will raise the tide for all boats because the more people use apple watch, it has the sexy factor to it. more people will pay with it and it will bring the other ones along. these are cheaper, they last a little longer than the apple watch, longer battery life. >> you have to charge the apple watch every day? >> something like that. >> that would be a disincentive but obviously it has more functionality than the jawbone per se does. the jawbone is a fitness tracker that will have mobile payments. >> that's the key.

it's still going to be a fitness tracker first. >> shelly thank you very much. appreciate you being with us. mandy. >> thank you. it is all about star wars today and julia sits down exclusively with disney ceo bob iger. that interview still ahead. plus -- >> the city in today's powerhouse is home to the wharton school of business host of the first thanksgiving day parade and the liberty bell lives here. can you name that city? ♪ if you're looking for a car that drives you... ...and takes the wheel right from your very hands... ...this isn't that car. the first and only car with direct

adaptive steering. ♪ the 328 horsepower q50 from infiniti. i love my mileageplus® explorer card. we're saving our united miles... ...for a trip to hawaii. we love free checked bags. i've saved $75 in checked bag fees. no foreign transaction fees means real savings. we can go to any country and spend money the way we would in the u.s. one of the best things about priority boarding is you can just get on the plane and relax. i put everything on the explorer card. i really want my united miles.

a plethora of fed speakers today. steve, pull it altogether for us. >> what is the right number? we had a trifecta for sure there were three of them. the one i want to focus on most is dennis lockhart. i interviewed him at the end of march. he talked about being pretty sure june would be the time to begin the discussion and a rate hike between june and september. he's not so sure anymore. he made some comments that you

know murky -- a murky economic picture is not the perfect or the best time to be making a major policy decision. and then he ended his speech with a kind of curious idea. remember, he's a voter, so not only a voter but a centrist. he said the data for the public sake ought to look like what the fed is looking for before we raise rates. then you have loretta mester. she comes from the philly fed which was run bile charles plauser who was a hawk now she's heading the cleveland fed. she seems more inclined to raise rates and sees the first quarter as weakness. and then there's rosengren who's a dove. overall of the three, a dove is tenor to the remarks. >> why are these guys all talking today and there's more to come? >> we have stan fisher talking about inflation. he is speaking at the world bank imf meetings. that makes sense. the other guys i think it's

just a random occurrence in the desert here. >> it's kind of interesting, i've been watching the markets. the s&p, if we can bring this up, if we can bring up the s&p for two seconds here because we've been a little bit, you know negative all day and now we've moved into positive territory. >> you know, it's interesting. there is a dovish tenor here and i'm interested what happened to yields as well. that would be a really good place to see how the market is reacting, mandy, but i think this may be more of the fed catching up with where the market already is. >> okay. >> i think the market has been more dovish on what the fed is going to do than the fed has been. and if you remember the last fed meeting in march, the fed took a major step towards the market. they cut their long run outlook for their own fed funds rate by 50 basis points. the market what did they do? they didn't increase theirs to meet them halfway. these are not compromising people. what they did, they lowered it some more. so here's a great number. >> follow me. >> i don't know guys if

schultzy is in the back we're ad libbing this if people haven't realized it. the last was 37 or 35 basis points. that is where the market is pricing the fed funds for december, 2015. how many quarter points are in 37? like one and a little bit. so maybe there's one this year and maybe there's -- there we go. 34 basis points and it looks like it's come down a little bit. i think i checked and it was 37. >> thank you, steve. thank you, control room for rolling with the punches as well. >> well done. time for the powerhouse. we're talking about the city of brotherly love philadelphia. mike mccann joins us. let's take a check on some of the philadelphia market stats, these according to zillow. the median price $202,600.

25,000 listed on the market for an average of 122 days. this is no san francisco, folks. our first listing is 778 front street, unit 1. $525,000. take us inside. taxes, $6,000. two beds two baths, 1700 square feet of in the city living space. talk us through it. >> it's a fantastic courtyard home. it's set back from the street. you enter an archway and this has two bedrooms two baths. rooftop deck right in the waterfront district queen village. you have garage parking but you can park your car right in front of the garage and an additional car. it's very quiet and just off of south street and all the entertainment areas that philadelphia has to offer. great for first-time buyers. >> you didn't grow up in philadelphia, did you? i don't hear any philadelphia in your voice at all. >> that's my philly accent. >> that is flyers sixers

eagles. second listing 614 south 21st street listed for $775 grand. taxes about $5,000 annually. three bedrooms three and a half baths, 2400 square feet of living space. that looks like a nice one, mike. >> yes, that's three exposures. just off of -- not far from britain house square off of south street also. it has parking. it has a deck. luxurious kitchen and bath. this could be a move-up buyer or double income with no kids yet. exciting area. they're doing all kinds of boik lanes in philadelphia. it's becoming a very bicycle town walkable town. right in the heart of everything. >> that rittenhouse square area. all right, to the powerhouse of the week 303 spruce listed for nearly $$1.5 million. taxes $15,000. four beds four and a half baths. almost 3600 square feet of

living space. that is bigger than my house, mike. talk to us about it. >> another corner property another sparking space. if you have a caretaker or an adult child, luxurious condition. that is in the most historic quarter mile in the country just off of independence hall carpenter square. bike lane right alongside of the house. bus stop right there, but you can walk to the waterfront you can walk to washington square park. prime, prime downtown location. >> all right, mike thank you so much for being with us we appreciate it. >> okay. come to philadelphia soon. it's the best. the energy is unbelievable. okay, thank you, tyler. have a great one. >> raving about the food scene as well. so much more than just philly cheesesteak. well, the ceos of the world's biggest drug companies are meeting in washington today, so we're going to be speaking exclusively to two of them ahead on "power lunch." we're back in two minutes.

♪ grind virtually any kind of food waste into an unending source of electrical power for a city? when emerson takes up the challenge it's never been done before simply becomes consider it solved. emerson.

atlanta fed president dennis lockhart said the murky economic picture is not ideal and he supports waiting a while longer

before liftoff on interest rates. meanwhile boston fed president eric rosengren says criteria for raising rates has not been met. and disney's star wars convention kicks off in california. they are waiting for the latest footage of the new film the first since disney acquired lucas film. if you missed any of the big stories, visit powerlunch.cnbc.com. there are two magnitude 3 or greater earthquakes in oklahoma every single day. the reason? our morgan brennan is live on the ground with the details. she's not the reason, by the way. morgan, take it away. >> reporter: i'm not the reason but we have seen a record number of earthquakes in oklahoma. we've seen this as oil production has doubled in the state in recent years. connection? we're going to tell you more when "power lunch" returns.

new york state is reinventing how we do business by leading the way on tax cuts. we cut the rates on personal income taxes. we enacted the lowest corporate tax rate since 1968. we eliminated the income tax on manufacturers altogether. with startup-ny, qualified businesses that start, expand or relocate to new york state pay no taxes for 10 years. all to grow our economy and create jobs. see how new york can give your business the opportunity to grow at ny.gov/business

welcome back to "power lunch," everybody. let's take a look at the three major indices because all three of them have now turned positive, which is kind of interesting. we've had a trifecta of fed speakers so far this day and the

overriding theme has been dovish. you can see the dow is up by about 51 points. the s&p is up by 4 and the nasdaq has also poked its head into the sunshine as well. well the ceos of the world's biggest drug companies meeting in washington today. meg terrell is there live with the pfizer chairman and ceo, ian read. over to you, meg. >> reporter: mandy thank you so much. ian, thank you for joining us here in washington. >> pleasure. >> the last time we spoke was a year ago when you were coming in as the incoming chair of pharma. a year has gone by. what challenges did you see in the year behind? >> i just came from a meeting with patient groups very interesting and from their perspective is you've seen an initiative on 21st century cures. it's extremely important as the science is moving faster. we need to move our regulatory process faster. this bill if passed if accelerate new products getting to patients. from the point of view of

pharma we defended successfully medicare part d, which is extremely important for a lot of patients in this country and continue to defend our intellectual property. from the science point of view there's been huge breakthroughs. you have seen vaccines, seen products in cardiovascular. >> let's talk about getting medicines to market faster. the fda is using breakthrough therapy designation. you just got early approval of a breast cancer drug earlier this year. what would 21st century cures do to speed that up even further? >> i think it's trying to get regulatory science up to speed, allow the fda new pathways so you can have innovative clinical trial designs and accelerate the regulatory authority's ability to say this product is safe and efficacious for patients. that's exciting because it takes 12 years to bring a product to

market, 15 sometimes. if we can take four years off that it's four years' benefit to patients. >> is that something that you've seen accelerate? do you think that is getting better? is that driving some of the interest in this space? we've seen tremendous interest from investors isn't biotech and pharma. >> i think the fda has responded to the fast-moving science and gives them more confidence. in some areas you've seen acceleration, especially oncology. in other areas, cardiovascular diabetes, it's slower because you need longer trials and that does delay getting new medicines to patients. let's talk about another issue that i wish we had talked about a year ago and that's tax reform. just about a year ago your bid for astra zeneca came out. where does the tax policy need to be? >> we see great benefit of being in the united states access universities, rule of law,

intellectual property. but foreign companies have that benefit as well so there's no differential between us and foreign companies. the difference that foreign companies have is they've a huge tax advantage against us which makes us uncompetitive. i'll give you an example. if a foreign company earns a dollar in the united kingdom, they probably pay maximum 20 cents, probably 10 cents effective and have 90 cents left. they can bring that 90 cents back and put it in the u.s. and invest it in the u.s. pfizer under a similar circumstance can only get 65 cents back to invest in the u.s. this makes us extremely uncompetitive. we need to change the laws around corporate tax to allow american companies to survive and be successful. >> and as so many companies have so much cash overseas this idea of trying to bring it back to the united states to invest it do you think we need a tax holiday so you can just bring it back one time not having to pay such high taxes on it, or does

something else need to change long term? >> i prefer comprehensive tax reform. tax reform has to achieve two things allow american companies to become competitive and secondly, it has to create jobs in the united states good middle class jobs. one way of doing that is creating an innovation box where if you manufacture in the united states and have properties in the united states then you get a tax rate that is competitive with your international competitors and that would go a long way to solving both jobs in the united states and making us competitive. >> and there is an r & d tax credit here in the u.s. right? as you mentioned that innovation box or patent box u.k. has is a 12% tax rate. does the u.s. need something like that? >> the u.k. i think is 10%. the u.s. needs something like that. i don't think the u.s. has to be bottom fishing, but it has to have a competitive tax rate in the patent box or innovation box. i think the benefit is it gives us a chance to create middle class jobs in the united states.

>> and still you haven't stopped doing m & a. although you didn't buy astrazeneca, you did buy hospira. tell us where you still kneeled to beef up if you think you do. >> i think pfizer has two basic businesses. one on the innovative side and the other is established products, products that we sell in emerging markets. so the acquisition was important because it gave us sterile injectables, hard-to-make products. products that sustain themselves without necessarily ip so that fits into our established products business appendicitis makes it more self-sustaining. meanwhile we continue to progress. a new trial just came out which will help. second loin is really important. tremenda was just improved so the science is exciting and i

think the innovation side is working well too. >> should we look for you to potentially make an acquisition on the cancer or more innovative side to beef up that business? >> well we did partner with merck germany. we're deep into immuno oncology. we have backup products or what i call combination products aux 40, all of these secondary products so i think we'll look segment by megoy seg memtment and do acquisitions where it will help us. >> thank you very much for that meg. let's get out to brian sullivan for the second hour of "power lunch." >> thank you very much. we'll see meg in just a moment. it is almost 2:00 on wall street and right now shares of pfizer the company you just heard from are indeed higher. not by much four cents, but the whole market has turned around. pfizer already up 17% over the past year. what about merck, mrk.

merck shares are down about 55 cents. the reason we mention merck, it's not haphazard. we are just minutes away from interviewing the ceo of merck as well. he will come up with meg in about ten minutes time. but the big story developing right now is stocks starting to take off. we've seen a turn. we're not soaring, the dow is up 50 points but we're more than 100 points above our low from earlier in the session. in the meantime let us talk oil, specifically fracking. but not about oil per se. let's take a look at this map. it is a bunch of dots. and the dots represent seismic activity in and around oklahoma. kill the music. within the last 30 days or so some blaming fracking for this activity and this is fast becoming a huge topic in the oil world. but is fracking really causing man made earthquakes? there are your dots. morgan brennan is live in oklahoma with more. morgan, what have you learned?

>> reporter: hey brian, that's right. here in this town a magnitude 5.7 earthquake struck in 2011. it was the biggest in oklahoma's history. since then we have seen hundreds more rattle the state. the u.s. geological survey says much of the increase in seismic activity can be linked to oil and gas production specifically the briny toxic wastewater that's pulled up in the extraction process and then pumped deep into the ground through injection wells. >> in the oil fields where there's a lot of production this water is reinjected. it's been done for years and years. but than changes the fluid balance at depth in the gee logic formation and that's what has the potential for triggering earthquakes. >> reporter: so how many earthquakes are we talking about? well, until 2008 the state averaged one to two magnitude 3 or greater earthquakes per year.

since 2013 it's averaged two of that size or greater per day. we've seen an upsurge in texas, kansas, ohio arkansas colorado. but oklahoma has really been hilt the hardest. that's likely because of a combination of the geological formations here and the fact that we've seen billions of barrels of wastewater pumped down more than 4,000 wells over the past several years. so we've got state regulators that are scrambling to address this evolving issue. in the meantime we have some residents, including several here in prague filing pending lawsuits against energy companies for personal damages. that's really one of the big questions now, what all of this is going to mean for oil and gas production, which is still the biggest industry and the biggest provider of jobs both directly and indirectly in the state. guys back over to you. >> morgan just a couple of quick things here. because it was settled by czech immigrants, i was goings to

prague but i was told it was prague. so how do you pronounce the town? how do you say it? >> reporter: it's prague. it was founded by czech immigrants, czech pioneers. they call it prague. they're getting ready for their big festival at the beginning of may. there's going to be czech-inspired food and wine so residents have been giving us a little preview of that while we report on what's going on here and throughout the rest of the state. people are very nice in prague. >> i didn't check myself so i almost wrecked myself on the pronunciation. morgan brennan, thank you very much from prague, oklahoma. let's stay on oil now because opec releasing its latest report. and the cartel joininging the chorus predicting a big drop in production. they cite a declining rig count. long term how might this impact the exploration and production

sector from an investment point of view. leo mariani joins us now. leo, you are in the camp i believe, that thinks that oil prices will be meaning fully higher than even where they are today, which by the way is the highest since christmas eve of last year. why do you think that? >> that's absolutely the camp that we're in here. i think from my perspective the biggest change we'll see in the oil markets is a relatively rapid reaction in the nonopec world really led by the u.s. to see lower production growth as we work our way through 2015 into 2016. at this point the u.s. oil rig count has come down about 50%. we believe that the rampant u.s. production growth we saw in 2014 is going to level off here in the second and third quarter and actually go slightly negative for a period of roughly six months. now, we do believe that we'll see higher prices later this year and the u.s. can get back into production growth mode reasonably quickly, but we still think there's going to be a solid price recovery throughout the rest of the year into 2016.

>> we've often asked leo what the price is on average for many of the producers where they break even. i want to ask you a slightly separate question. what is the price point that oil needs to get to and likely stay at for a bit of time where the companies that you cover will say not only are we profitable but you know what, it looks good enough, let's start growing again. >> yeah so our expectation is the industry can start growing as we hit roughly $65 a barrel for wti. now, you're not going to see the same rate of hypergrowth at that price that you saw in 2014. the u.s. grew oil production 15% year over year in 2014. i think at 65 you'll have something less than half that rate but i certainly expect prices to continue to recover in 2016. we're estimating about 6% production growth there. >> all right. i want to get to the companies that you like very much. i know you like newfield pioneer and apache. leo, it was a pleasure to have you on the program, buddy.

thank you very much. >> thanks for your time. now, outside of oil, greece remaining a hot topic. check out the greek etf. it is up fractionally but down 6% over the past week. the imf turned down greece's request to delay a payment due next month. so what now? let's get to michelle caruso-cabrera caruso-cabrera. what's going to happen? >> they're looking on delays for lots of payments. if they don't pay, we'll discuss that in a second but let me show you what's at stake here. we've built a calendar of imf payments. we didn't bother to put on april because we assume they'll get through the month of april. may, they have $744 million due to the imf. in june you've got more than a billion so that could be tough on the cash flow. july, less than half a billion and then off until september, we're not going to worry about that. the problem is the greek economy

has turned bad once again so every single day that government spends more money than it brings in in tax revenues. at some point they'll run out of reserves and make a choice. could we pay salaries of the government workers or do we pay the imf. if they don't pay the imf and decide to default on that, it's not like defaulting on a bond in the international bond markets. there's no acceleration of debt et cetera it's just really really embarrassing. what they're far more likely to do, not pay salaries. what's really at issue here? july and august. that's when they have to pay the ecb more than $6 billion. you can see $6.5 euros. we rounded the number down. so that's where really push comes to shove. there could be some kind of accident between now and then where you have a bank loan that might force a sooner decision about what to do with greece when it comes to the ecb or if they're going to stay in the euro, but right now the tough time for when they're really

going to have to make a decision looks like the summer. >> i'm going to go deep down and pull a wild guess out of my olive tree. you've been to greece if been to greece. my guess is michelle if the greek government decides to pay the imf and/or the ecb over the salaries of greek government workers, that will go over unwell. >> very poorly. what happens, and we've seen this throughout history, whenever countries get to this situation, this end up printing ious, giving out script instead saying when we get more tax revenue we'll pay you eventually. you could end up on capital controls at some point. it would become a very tough situation. >> or. or you could go back to the drachma, devalue the heck out of your debt and export your way out of this. >> well the thing is the greek population, the most recent polls say 85% want to stay in the euro. if the government pushes them to that point it's not in their

mandate, it would go against all the democratic principles they care about. >> 85% also will probably say they don't want to pay back the germans. >> oh, yeah i think that would be 100%. >> so they want to stay in the euro but don't want to pay back the debt but losing more money every month where they're bringing in. this is why we're understanding why the groek economyeek economy is a wreck and there's no easy solution here. >> you've put your finger right on it brian. >> thank you very much. a big show getting bigger as we roll on. in fact 340 billion worth of interviews coming up and light sabres. first up our exclusive interview with the ceo of merck. we'll get his take on the company's stock performance, the market and overall state of big pharma. then disney giving you a peek at the new star wars movie. bob iger will also join us ahead. melissa lee will join us as well. we've got the full cast of characters. yoda i guess i'm chubaka.

who knows. "power lunch" is back right after this. but who's got your back when you need legal help? we do. we're legalzoom, and over the last 10 years, we've helped millions of people protect their families and run their businesses. we have the right people on-hand to answer your questions backed by a trusted network of attorneys. so visit us today for legal help you can count on. legalzoom. legal help is here.

take a look at shares of merck under pressure right now. let's get to meg terrell who is live with the ceo of merck in washington. meg. >> melissa, thank you so much. i'm joined now by ken frazier, the ceo of merck and the incoming chair of pharma. thank you for joining us. >> it's great being here. >> as you're coming into the helm of this pharma group, what is mission one for the year ahead? >> mission number one is what it's always been patients. there are many patients out

there that have been waiting for the next important breakthroughs and all of these companies are working very hard to provide the med sips those patients need. >> what are the biggest challenges to get medicines to patients either more quickly or so they can afford them? >> there's a number of challenges in the health care delivery system. i would say the biggest challenge right now as a society is how do we ensure that people have access to affordable coverage so they can have the health care they need whether it's medicines or other medical interventions. >> you guys are really big in the area of cancer therapies and immuno oncologies. tell us about, there's a cancer research meeting actually coming up starting this weekend. some of the data you're presenting there and how are the launch of the medicines going? >> we're excited to be making our appearance here at the aacr this weekend to talk about our data with treating melanoma as well as lung cancer. but i think it's a really

exciting time in that field generally. so we are seeing with these pdr 1 drugs, i think we're just scratching the surface. there are a number of other breakthroughs behind this and i think this field of immuneo therapy is very young for cancer but we'll see great drugs going forward. >> one of the big trends in immuno therapy is combining these drugs to get even better outcomes but with that comes the idea that you're paying for multiple drugs from different companies and they're all pretty expensive, potentially $100,000 for each one. are we going to see new models for pain of cancer drugs as these evolve? >> it's important to understand how the drugs work as mono therapy. before we jump to the combinations, which will be important, we have to character size these drugs and their value as mono therapy. as we combine them with other drugs, which may very well be helpful in this case then we'll have to deal with the issues you have with respect to the overall cost. but let's not forget that for many of these patients these

are breakthroughs that actually allow them to live much longer have much greater survival. these are valuable drugs. >> and is the insurance system in the united states set up today and has the affordable care act helped in terms of letting everybody access these drugs or do we still have problems with access? >> well i think there are some problems. i think the insurance industry is responding for example, to the lightest guidance from the federal government that when we set up these plans, we can't have them set up in such a way that patients can't afford their medicines or that the co-insurance or co-pays is too large. i think that's been an issue under the exchanges. but i think we have to remember we're very early in the experience. as an industry association, what we stand for is the idea that patients should have real access to breakthrough medicines and that access has to be affordable. if it's not affordable they really don't have meaningful access. >> we're making progress in cancer, but let's talk about another area that's just going to get bigger and bigger over the years and that's alzheimer's disease. >> yes. >> is pharma addressing that

with enough resources to make a dent, as so many people enter old age? >> well there's about 80 medicines in development right now across the industry for alzheimer's. as you know, it's a huge issue for society, and we -- again, we're excited by the development of the science in neurodegenerative conditions, including alzheimer's. so at merck, we are late-stage testing for our base inhibitor, our small molecule that's aimed at the so-called amiloyd hypothesis. you saw news from biogen where they saw an impact on cog in addition as a result of another drug that targets this area. >> me a, you have a question? >> i do. ken, you were just talking about expensive drugs so i want to move into hep-c. you've got dual combo data that you presented ahead of a european liver conference and the takeaway from that according to a lot of analysts

is that your treatment is inferior to what is on the market. how do you view the treatment on the hep-c where others are deemed superior to yours and there's an exclusivity with express scripts for its vicura pack. >> let me start by saying we're going to present that data in europe, as you said the liver meeting in europe. i don't necessarily subscribe to every analyst's report about which drug is better. let's just present it in the context of a scientific meeting. let's look at all the data from the two products. i think what you'll see is that our double combination here is a very very competitive regimen with respect to the market leader, which is also a great drug. >> you guys have been doing a lot of business development but really in a way that's been targeted. should we expect more deals from you guys and in which areas do you feel you need to beef up. >> from our perspective, we want

to do deals for one of two reasons. either because we want to get the next wave of science or we want to build on areas where we have a leadership role right now, like diabetes, like vaccines like infectious diseases. so like cancer. so you will see us do acquisitions aimed as those spaces where we're either leading or aspire to lead going forward. we're not interested in the very large consolidation type deals. >> ken frazier, ceo of merck, thank you for joining us. >> it's a pleasure being here meg. again, if i can leave you with one thing, this is an exciting time in science. the biochemistry of disease, the genetics behind disease are going to lead to a whole new raft of breakthroughs over the next few years. >> we hope to see more of that. thank you very much. just minutes aco, walt disney company releasing the new star wars trailer. the stock is moving up as the video is going out. here is the trailer, about 90

seconds worth in its entirety. this is the first time that most of us are seeing this as well. check it out. >> the force is strong in my family. my father has it. i have it. my sister has it. you have that power too.

>> chuy, we're home. >> that is going to generate a lot of buzz. let's go now live to julia who's gut a guy that apparently responsible for this movie. disney ceo bob iger. >> reporter: that's right. that trailer generated screams

of excitement here at the convention center. bob iger ceo of disney thank you for joining us. >> my pleasure. >> we're not here to talk earnings or numbers. i know you're in a quiet period before your earnings in a couple of weeks. we're here to talk star wars. what's your reaction to how the fans reacted to the new footage. >> having just come from the hall where we showed the fans that trailer, it wasn't exactly quiet. we knew that these most ardent passionate fans were going to go crazy when they saw that teaser trailer, but i had no idea what it was going to be like watching it with them. it was incredible everybody rising from their seats and cheering at this moment and that moment and that moment. of course when hans solo comes back with chuy at the end and said chuy we're home. it was great. >> so what are your expectations for this movie? how big is it going to be? >> no predictions on how big this will be. we know that star wars films did incredibly well but there hasn't been a film out since 2005

actually. and star wars 6, episode 6, actually came out in 1983. so this is episode 7 picking up from that 1983 film. that's a long time. but the movie going audience in the world is much larger than it ever was. there are markets today that were nonexistent before in terms of movie going, china being a great example of that. so we're fairly confident that this film is going to do quite well. but way too soon to make predictions and probably we will not make any in public. >> there clearly is a huge demand for more star wars content. do you think there's an opportunity to say, build a star wars theme park or build a bigger presence in the parks? >> yes. clearly there is. there's work being done now by our imagineering team to develop those properties. i say properties plural because it will be at more than one theme park location but we're not ready to give details on that yet. but expect that they are coming.

>> here in california you have california adventure and disneyland, two separate parks. could there ever we a separate totally stand-alone star wars park? >> i'd prefer not to get into any details. >> there are other ways you could expand the star wars franchise. could we see more star wars themed properties on netflix, the way you have marvel daredevil on netflix? >> well we're walking before we run here although we're doing a fair amount of running. the focus will really be on six films, 7 8 and 9 and three stand-alone films. i imagine there will be some other television development down the road but nothing absolutely determined yet. again, the focus right now from a creative perspective at lucas is on those films. >> and when will you see the first film? have you seen the whole thing yet? >> i've seen just about everything shot. i probably will see a cut of the film i'm guessing sometime in

the next three or four weeks. but without a lot of special effects, which are being done at ilm, which is the special effects house that we bought when we bought lucas films. a lot of the post production work finishing work will be done there. >> what about merchandise? clearly here there's a ton of new merchandise. how big is star wars merchandise going to be for disney in your consumer products division? >> well, star wars as a franchise and the consumer products field is one of the most successful franchises ever. it's still quite popular out there. just look at what lego has in the market as a for instance around the world. and so this is likely to be one of our most valuable property once the movie comes out and this huge amount of work being done across multiple segments. hasbro has done a lot of work lego, and then there's the games front too with ea and other games going into the market. >> you spent $4 billion to buy lucas film. at what point will that investment have paid off?

>> i can't tell you exactly when, but we already are fairly confident that it was a good deal for us and it's been a good deal for george lucas as well. he took cash and disney stock and the disney stock has appreciated significantly since less than three years ago when the acquisition was made. i think in the end the shareholders of the walt disney company, including george lucas, will be quite happy about the investment that was made. >> you have the avengers coming up in a couple of weeks. which is going to be bigger star wars or the avengers. >> one step at a time. i'm great about the avengers too. it comes out may 1st in the united states. actually in some international territories before that then. i think that will do just fine. the first film was the third highest grossing movie in the history of movie business. i'm not making predictions, but i think it's just as good if not better than the first film so high hopes. >> excellent. thank you for joining us.

we'll let you get back to the fans here and congratulations on that reaction to the trailer. certain lowly a lot of sleekshrieks. >> look at the new trailer. if you've seen the movies the storm troopers will be focused on preliminarily. let's hope there are better shots. have you ever seen worse shots than the 1970s storm troopers? couldn't hit the side of a death star. >> i have a confession to make on national tv and that is i've never seen star wars. >> not even like -- so if i said c3po. >> i know he's a little robot guy. >> no, that's the big robot guy. the gold one, the snarky cynical british accented translating robot. >> i got them confused. i'm glad bob iger cannot hear us right now. that's all i have to say. >> but i -- really? not even like just passing flipping channels? on your comcast xfinity service

come across luke skywalker crawling into a polar bear's stomach in "empire strikes back". >> flip past that. i'll try and watch it for you, brian. >> we're going. we're going to have some marathon. we have to do this. unbelievable breaking news. we'll be right back. maybe. the cnbc realtime exchange market snapshot is sponsored by interactive brokers.

excellent looking below the surface, researching a hunch... and making a decision you are type e*.

time for a change of menu. research and invest from any website. with e*trade's browser trading. e*trade. opportunity is everywhere. ♪ help an oil company overcome minus 47 degree temps, 5 foot ice, and 16 foot waves, to safely keep crude oil flowing 365 days a year. when emerson takes up the challenge it's never been done before simply becomes consider it solved. emerson.

hello, everyone i'm sue herera and here's your cnbc news update at this hour. president obama and vice president biden welcomed the wounded warrior project's soldier ride to the white house. the president called the event one of his favorites and gave a shoutout to each branch. military. soldier ride brings injured service members together from all across the country. a medicare reform bill is on its way to the president's desk

after the house and senate gave final approval in a broad bipartisan vote. it includes a permanent solution to the so-called doc fix which repeals the current formula for how doctors who treat medicare patients get paid. a box truck hanging over an overpass in massachusetts causing major traffic delays for commuters. the truck driver crashed into the wall of the overpass and that caused the truck to hang over train and subway tracks. and a new government report shows smoking by teens hit a new low last year. that's the good news perhaps. but the use of electronic cigarettes tripled, intensifying the debate over whether e-cigarettes or a boone or a bane to public health.

when a rewards card is designed to sync with your life it gets talked about... ♪ ♪ ♪ so you can live the way you live, and enjoy all the rewards. chase sapphire preferred. so you can. automotive innovation starts... right here. with a control pad that can read your handwriting, a wide-screen multimedia center, and a head-up display for enhanced driver focus. all inside a redesigned cabin of unrivaled style and comfort. the 2015 c-class. at the very touchpoint of performance and innovation. see your authorized mercedes-benz dealer for exceptional offers through

mercedes-benz financial services.

welcome back to "power lunch." i'm reporting from the nimex. oil closing just a few minutes ago. it looks like it closed in the range of $56.70 about a 30-cent pop on the day after being negative most of the session. one of the headlines concerning traders about an al qaeda group taking over a port and a key oil

terminal in yemen so geopolitical issues definitely helping the bid here but also traders are looking out to the december 15 december 16 spread. that spread is tightening. they are starting to believe that production cuts are taking hold and we will see that supply and demand rebalance happen soon, brian. back to you. >> the oil price highest since christmas eve of 2014. here's the most important question of the day. have you seen any of the "star wars" movies? >> i actually have not. i have not, brian, but i did see the trailer moments ago. it looks great. >> that's not from "star wars." thank you. it's time for our new segment trading nation because traders trade better together on whatever planet they might be. today we are looking at general electric ahead of earnings. we have rich ross who specializes in technical analysis boris. rich first to you. all these changes with ge in the last week or so. how have the charts changed?

how do the charts look? >> brian, there's a yard sale going on at ge. i'm a buyer. i think the stock sets up great ahead of earnings. i'm a buyer right here. let's bring up that six-month chart and show you why. admittedly the stock has been a disappointment, brian. you see as we consolidate within that well-defined coil or triangle. but we gap up higher on that news. what i really like about that brian, that's unlock the buy signal. we hold that key support on the pullback around $27. i think the stock has an upside target of $30. when we zoom out real quick and look at that weekly the story becomes even more compelling. you see a decisive breakout from a 16-month trend channel. we love how theewe hold that trend. this is a stock with a lot going for it. i'm a buyer of the market and buyer of ge as well. >> boris, how much will the strong dollar weigh on ge's earnings? >> it may. i think the key thing will be what they're going to tell

everybody about q2. the dollar has had such a strong appreciation both against the euro and emerging market nations. ge gets a lot of revenue from abroad that will have an impact. they have a great treasury department but the velocity of the move on the dollar was so fast i don't think they adjusted their hedges on time so they're definitely going to take a hit on that. >> boris and rich we're going to leave it there. we're watching the charts. $30 upside target. a lot of investors in ge will be happy to hear it. thank you very much. for more trading nation head to our website, tradingnation.cnbc.com. ever have your cell phone ring in a meeting? of course you have. wait until you hear what ring tone one senator had on his phone when it interrupted a hearing. plus what netflix's big day meant for the ceo. hint, a lot, lot, lot of money. and now your trading nation stats of the day and a word from our sponsor. market adages are something you should be skeptical of but

believe it or not there is one market adage that's been quite reliable and it's called the january effect. it says as goes january, so goes the year. over the last 65 years, whenever the month of january finished out with a gain the year also finished out with a gain about 90% of the time. 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 when a market move affects one of your positions, tdd# 1-800-345-2550 schwab can help you decide what to do. tdd# 1-800-345-2550 with tools like free live-streaming cnbc tv tdd# 1-800-345-2550 that give you the latest financial news and trends. tdd# 1-800-345-2550 and bubble charts and price charts that let you see exactly tdd# 1-800-345-2550 how market activity is affecting your positions. tdd# 1-800-345-2550 so when the time comes to decide whether to scale in tdd# 1-800-345-2550 or scale out you can make your move, tdd# 1-800-345-2550 wherever you are. tdd# 1-800-345-2550 and start working on your next big idea. 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

tdd# 1-800-345-2550 call 1-877-729-2379. tdd# 1-800-345-2550 or visit schwab.com/trading. tdd# 1-800-345-2550 schwab trading services. tdd# 1-800-345-2550 your go-to for trading know-how. tdd# 1-800-345-2550 ♪ ♪

[ female announcer ] who are we? we are the thinkers. the job jugglers. the up all-nighters. and the ones who turn ideas into action. we've made our passions our life's work. we strive for the moments where we can say, "i did it!" ♪ ♪ we are entrepreneurs who started it all... with a signature. legalzoom has helped start over 1 million businesses, turning dreamers into business owners. and we're here to help start yours.

on this issue as well as the geographic issue -- [ let it go ] >> that was the cell phone of senator pat roberts interrupting a hearing with tom vilsack, bad enough for his phone to go off but maybe, melissa, for a senator to have "frozen" "let it go" as his ring tone. thoughts? >> i think it's adorable. i would guess that probably one of his grandchildren put it on his phone. being a doting grandfather he is you let them -- you let it go. >> but now he's going to have to let that go. >> i know. what's your ringtone brian? >> my ringtone is silent. that's it. i like the buzz on the desk. but you know my rule from our

old days the old business. if i'm in a meeting, i don't want any cell phones in there. >> yeah. >> no chairs no phones. let's meet let's go fast. >> get this done. >> don't sit down let's go. >> all business. speaking of business. huge day for ipos, brian. three big ones. etsy up about 86%. that's off its high though. it had been up 100% earlier in the day. this is a website that lets people sell their homemade goods. party city, that's a chain of party supply stores. it's got nearly 900 stores. right now it is higher by almost 20% from its $17 offer price. the last one is virtu financial. it's an electronic market maker. had planned an ipo last year but delayed it in aftermath of michael lewis's book. that stock is higher by 19%. the stock is up $83 a share

right now, $83 a share to $558.30. netflix added nearly five million subscribers in the first quarter. the analyst at fbr set a price target of $900 a share on netflix. some things, though to note. operating income slightly lower than last year. growing loss international business, contact costs are up negative free cash flow. i know you'll talk about it on "fast money." do you think anybody will care about those red flags that i just pointed out? >> you can't slap a traditional valuation model on a company like netflix. they are spending right now for growth and what this latest quarter shows is they are getting the growth. they went to the up side as far as subscriber growth domestically. the ability for customers to stay on because they like the content so much. when i hear those words retention, i think another price hike, which means more money for

netflix. >> and netflix stock reminds me of another company that starred out in seattle selling books. >> amazon.com. >> because it was -- >> indeed. >> you could point to the balance sheet and income statement and say it doesn't look good. >> and you just missed the whole run in the stock if you did. >> for ten years exactly, because it was growth growth, growth, growth growth. am i correct in saying you might talk about netflix in the 5:00 p.m. show tonight? >> we'll probably touch on it. meantime the port of los angeles rebounding in march. it was the second busiest month in the port's history. a lot of backlog, though. it was up 17% compared to march of last year. the number of ships waiting at anchor has reduced significantly according to the port's executive director. all right, coming up five analyst calls on the five stocks that you need to know about, including a small cap biotech that one analyst says might have a 70% gain ahead. plus disney showing off more of the new "star wars" movie to adoring fans in california. we'll take you back there live. a lot more to do. "power lunch" and the force

returning right after this. ♪ ♪ when you're living with diabetes steady is exciting. only glucerna has carbsteady clinically proven to help minimize blood sugar spikes. so you stay steady ahead. anyone have occasional constipation diarrhea, gas, bloating? yes! one phillips' colon health probiotic cap each day helps defend against these occasional digestive issues... with 3 types of good bacteria. live the regular life. phillips'

we talk a lot about potential bubbles. in asiael. elel especially but one of the biggest bubbles of all time were dutch tulips which are

starting to bloom. this is from a park in the netherlands, the world's largest flower garden. more than seven million bulbs are planted each year. how beautiful, brian. >> and we beautifully roll into this next segment we call street talk. stocks you need to know about. stock number one, coach. barclays upgrading it. their target on coh goes to $50. just about 20% upside from here. they are growing more confident in the turn-around efforts and the prospects that same-store sales will ramp up again in america. >> year to date the stock has done pretty good but you have to believe in this turn-around story because there's a lot more to go especially when there's a lot of competition from kors kate spade. sandisk, they warned that the stock did fall 20%. guidance for the second quarter for the current quarter was absolutely terrible, which is why the stock is feeling pressure. cutting the stock to neutral

from outperform. the price target goes down to 65. 65 is a level the stock opened at this morning so dead money is the call here. >> i will see your $65 call and raise you this. btig, i think yesterday, melissa, came out with a price target of $47. >> ouch. >> $20 below the current price, concerned about lower revenue and lower margin estimates. all right, stock number three, ptc therapeutics. big call here up to an outperform. their target spikes to $120 a share from $70. that's another 70% upside from here. >> yeah, this is a pretty bold call because not only are they saying 70% upside but specifically the analyst is saying to buy ahead of data that would be released in the fourth quarter on its muscular dystrophy drug. stock number four hiking estimates on the price target to $82. the analyst is turning incrementally more bullish after seeing more customer adoption.

sees a billion dollars in revenue by 2017 on expanding cloud analytics and security use cases. >> couple of things. the company is run by jeff sullivan, no relation but he's clearly a capable a genius. sales from $120 million from january 2012 to $450 million. that pace of growth $1 billion, isn't hard to get to. . our last stock is always the under the radar name of the game. today it is bj restaurants. huntington beach california burger and brew chain. melissa, calls bj's its best idea in the group. $60. 20% up side. >> there are a lot of analysts -- bullish animal lis on this stock. back about a month ago the belt tightening efforts were tad to provide said to contribute a lot of upside. >> belt tightening pat a burger restaurant. >> i didn't even think of that

but you are the clever one, brian. >> meat is murder. it's not a political statement. it is a great smith song. >> it is. the dow making a turn today up about 36 right now. the nasdaq as well is in positive territory. just barely up 3 1/2 points. the s&p 500, we are seeing a gain of .1%. it is half a percent off of its intraday low. russell measures small caps here in the u.s. it is turned to the negative. coming up, a truck full of wine overturns. the results are pretty upsetting. julia boorstin is live at a big "star wars" event where scenes from the latest movie are shown. is that a light saber? >> not a real one, i hope. >> yes this is a light saber. you could buy it here for $70. you could also buy a remote control r2-d2. there are 40,000 fans here. they were very excited about the teaser for the upcoming "star wars" movie. we'll have more after the break. >> in the background, fight the

guy in the background.

less appetite, chills, or rash. even if you've already been vaccinated with another pneumonia vaccine, prevnar 13® may help provide additional protection. get this one done. ask your healthcare professional about prevnar 13® today. when the moment's spontaneous, why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain as it may cause an unsafe

drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision or any symptoms of an allergic reaction stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial. they say don't cry over spilled milk but they never said anything about spilled wine so go ahead, america, let it out. a truck overturned when it collided with a van on a rural highway in northern california 48,000 pounds of wine wasted.

wasted being the key word. it took several hours to clean up the mess. all right. so earlier i referenced luke skywalker and a polar bear. i knew it wasn't a polar bear from "empire strikes back." but i forgot what it was. people helpfully reminding me that beast of burden is called a tawntawn. see what you're missing? shares of disney are rising today getting back to near an all-time high. more excitement about the next "star wars" movie and new footage from it unveiled today at a "star wars" celebration event we showed to you earlier. julia boorstin is there. you are our only hope. >> reporter: well, may the force be with you, brian. the folks here are very excited about the new teaser trailer that j.j. abrams just unveiled. thousands of people just streamed in the anaheim

convention center to get their hands on new merchandise, get autographs signed and photographs taken with some of life-size replicas of stuff from the films. the reaction was huge to the trailer that was just aired moments ago. building excite for the movie that is scheduled to debut december 18th. and disney's ceo bob iger says that based on the reaction of folks here the $4 billion purchase of lucas film was a good investment. >> i can't tell you exact will i when but we already are fairly confident that it was a good deal for us and it's been a good deal for george lucas as well. because he took cash in disney stock and the disney stock has appreciated significantly since less than three years ago when the acquisition was made. i think in the end the shareholders of walt disney company, including george lucas, will be quite happy about the investment that was made. >> reporter: now in addition to the teaser trailer, people have been talking about some of the

new robots that were featured on stage in addition to r2-d2. there is a new rolling robot, that looks kind of like a rolling basketball that's incorporated into a robot. very cute little guy moving around there on stage at j.j. abrams and kathleen kennedy who is the president of lucas film. of course the potential for "star wars" is bigger than just the six movies that have been announced. it is really about expanding "star wars" to the theme parks. bob iger telling us they are working on various ways to bring "star wars" into the parks. though he wouldn't say whether or not there is a plan to create a whole stand-alone of "star wars" parks. there's been some speculation about it. of course consumer products as we've seen here with people buying all sorts of things. the potential for consumer products is huge. then also to bring the "star wars" characters to different tv programming. we could even down line see a "star wars" program on netflix the way disney has brought its marvel character dare to netflix with a new show that just hit

netflix about a week ago. guys? >> it's amazing disney right now is the fourth-best of the dow but it did move looks like about $1 on the release of that trailer. tell your buddies to remake the movie "doomed." frank herbert's book series. bring back "doom." >> you don't think he's just focused on all this stuff right now? he said his top priority and is really keep to making the lucas home acquisition paying off is making sure the movies are good. especially with a franchise like this one. the expectations are really high from the fans. they don't want to be disappointed. they feel like the most recent three "star wars" films did not live up to the first three. so if they could make sure that fans really love the next couple of "star wars" films, then the lucas film acquisition will be much more valuable. they first have to get the movies right, then after that they can really cash in on the frarnlg and legacy and then they can get to the remakes that you want, brian. >> thank you, julia.

brian, i didn't realize there were six "star wars" movies i'm going to have to catch up on. >> long day. tonight on "fast money" at 5:00 dennis gartman is going to make a very shocking prediction as to what will happen with greece and the yooeurozone. that could happen as soon as next weekend. 5:00 tonight on "fast." >> i will listen to it on sirius xm tonight. thanks for watching. before we go serious night. a quick but important remembrance. today is the eight-year anniversary of the virginia tech shootings. 32 victims. hokie community is stronger than ever. we are virginia tech. as an alum a shout out to all the hokies and their families today wherever you might be. it is a tough day in the hokie nation but it is also a reminder that everybody together creates something wonderful as well. so i'm off tomorrow. the dow's on the move. disney's on the move. "closing bell" starts right now. go hokies.

good afternoon. welcome to the "closing bell," everybody. i'm kelly evans down here at the new york stock exchange. >> i'm scott walk wapner in today for bill grif fet.fethgriffeth. take a look at netflix. check out these two ipos on their very first day of trading. party city and etsy. big gains across the board for those three. etsy just going nuts today. doubling from its $16 price. we'll have much more on all three of these stocks coming up and track how they close in this final hour of trade. talk about firing on all cylinders, guns. they're controversial. they've also been a big winner for investors. did you know smith & wesson went up nearly 60% alone? we'll talk about if