analysts suggest the baker hughes challenges are its own and not industry-wide. the warning from the number three oilfield driller comes as energy prices continue climbing. crude oil settled up more than $1 per barrel, raising above $107 per barrel. the u.s. energy department said crude oil supplies fell in the past week while the market was expecting supplies to increase. also in energy, we learned after the closing bell, three giants are talking about teaming up to ship liquified natural gas from the u.s. to asia. according to the "financial times," exxon, b.p. and conoco are negotiating a $40 billion project focused on sending liquified natural gas from alaska to asia. other media reports indicate a multibillion-dollar international drug deal could be coming. generic drug maker watson pharmaceuticals reportedly is close to making a play for actavis out of switzerland. the price tag could be close to $6 billion, creating a global generic drug maker. shares of watson shot up on speculation of a deal, rallying almost 9% on very heavy volume. this is its highest p

ben bernanke -- >> can you put baker hughes in that category. baker hughes has a problem with shifting towards -- away from natural gas. they are sort of left flat-footed so it's not just necessarily rising costs. >> baker hughes saw a 400 to 500 basis point draw down in the margins so margin compression is a big issue. when we look at big cyclicals which are short something like freeport, people say i buy it because it's cheap. you don't buy a cyclical when it's cheap and margins are coming down like this. before you know it the stocks are getting down when it get more expensive. >> where are we for the week? stocks are on track for the worst week of the year. equities are still intact and you can find the proof by checking the charts. let's bring in michael harris, director of trading at campel & company. michael in, terms of what you see for the s&p 500, where do you look first for clues? >> our systematic trend following models have three distinct time horizons. as i look at chart, the first thing i see is the one-year lookback which is firm

meanwhile, baker hughs weighed down the s&p with a profit warning. green mountain perked up 10% on word starbucks will make coffee packs for a single-cup brewing system. >>> the "hunter games" will be a big box office hit. safely, food lion and supervalue have agreed to stop selling ground beef made with so called pink slime. this morning, $300 million to guarantee it will continue making car ins that country for another decade. ahead of a previous, kraft's new name. the company will be called monda lees, meaning delicious world. >>> finally, time is running out if you want to get your hands on a few pieces of history. a white chiffon gown worn by princess di and elvis' presley's blue suede shoes are both up for sale. the knicks seem perfect under their new coach. plus, kobe bryant and the lakers get fancy. your early morning sports headlines are straight ahead. >> warm weather continues to be the big story across the country. you're watching "early today." >>> a very good morning to you. if you're just waking up, this is "early today." in sports, th

baker hughes that sold off over 5% isot a broken company. there is a new dynamic in place, but this company is trading at ten times earnings. this is a buy on weakness despite the fact that there is a paradigm shift and the hydro fractioning doesn't mean that the drilling doesn't become a major part of the next decade. >> for he's right, you have to go back to the stocks where they will build out this natural gas infrastructure and it's at a 52-week high. hard to say i will pull the trigger, but if that's a correct call and oil will be higher, but it's hard to ignore west port. >> how about the people who make the engines? >> it's the commons. >> and the companies that make the components for that stuff. >> if you really want to play everything and go with a little slower money, look at exxon-mob exxon-mobil. they'll benefit and if you get gas prices higher, they have a gas-sensitive area as well. i would look to that. it's not going to make you rich overnight, but not a bad place to be. >> an interesting story that crossed saying that bpx a

meanwhile, baker hughes weighed down the s&p with a profit warning. >>> green mountain perked up. they will make coffee packs for starbucks brewing system. hunger games will be a big box office hit. >>> safeway and super value agreed to stop selling ground beef made with pink slime due to complaints of the controversial filler. >>> gm will continue making cars for another decade. kraft's new name for snack brands is getting mixed reviews. two employees meeting delicious world. >>> finally, time is running out. if you want to get your hands on a few pieces of history. a white chiffon gown worn by princess di and elvis' blue suede shoes are for sale online. >>> gas prices keep rising as the cost of oil goes up. last night on ""the ed show"" the cause is not supply and demand. if speculation were prohibited the price of oil would drob drastically. >> there's more supply available than three years ago when the price was $1.90 a gallon. there's less demand than 1997. we are not looking at a supply and demand problem. what we also know is that over 80%, repeat, over 80% of the oil futur

baker hughes and halliburton drill for natural gas. hardly a day goes by without some natural gas producer cutting its drilling budget for the dry stuff. and then there is the oils themselves. price of crude rallied more than a buck today. hey, they're all supposed to go up, right? apache went up. chevron went up. nothing at exxon. occidental, which is the most levered of all the majors to oil went down. that's right. the one that should have gone up, the one that is really i think the best one if you want to play oil, lost money. gold. all right. precious metal bounced back nicely today. it's good. a good bounceback. so you buy the miners, right? numont and gold corp were down. barrett gold barely budged. we're seeing these divergences all over underneath the averages. apparel. this group traded lockstep last year. lululemon up $2.60. deckers, the fabulous company behind uggs, fell more than 7 bucks. 9.8%. drug stocks, normally lockstep. how about today? allergan vaults, which you know we like so much, allergan vaults more than two bu

we have to start off with baker hughs.e shift away from nat gas drilling is really hurting baker hughs. >> they did this gigantic buildup on the natural gas side. we've got a week's chart here but what's going on is that -- wow, that's the wrong chart. what's going on is when you make your bed with natural gas, you can't very quickly switch to oil, which is why i think that's the wrong play to sell. 8% of their business is american natural gas. halliburton, however, definitely not going higher today. >> the problem here is that the shift is happening. we've seen it in the case of chesapeake energy, for instance, shifting away from natural gas. they can't convert the rigs so rig utilization is down, labor costs are going up. it is having an impact. baker hughs really the one to watch, down 4% so far. >> western gas on last night. there are some guys you should not sell off this but people will shoot first and ask questions later. start asking questions now and get some buys. >> got to hand it over to brian who is in the mix

edwards is greeting problems by hiring lawyers to represented his coolness and the possibility met baker hughese for a reason. he is facing several federal charges over campaign finance violations including using $1 million to hide her pregnancy while he thought the white house in 2008. he has pleaded not guilty. >>darya: we are back with more in a couple of minutes. here is a live look in san jose. the camera is doing pretty well. san jose has feared pretty well for the storms. we will talk about the rain totals and see what we can expect in your neighborhood. of >>george: a fatal accident on highway 13. so far there is only a minor back up. >>darya: were here is a look at storm tracker 4. right now we are getting a little bit of a break. this life is unfair in san jose, nearly any lanes here if

schlumberger, ensco, these two companies aren't levered to the same set of circumstances befuddling baker hughes. they are better. now, weatherford has real management issues, but at $15.93, i think you will buy decent money there if you don't use the start loss orders that i told you about. another group that could play out against the shoot first, no questions asked crowd. tomorrow morning, family dollar reports. while the dollar stores are all smoking hot. family dollar, a real laggard. not executing as well as the other guys. is it not the kind of executioner i like. so today i have an idea for home gamers. today, dollar general announced a 25 million share secondary. at that moment, pick up your phone, call your broker, or whatever you do with the online stuff and get dollar general on that secondary. they already got knocked back a buck and a half and could get hit again off the collateral damage of family dollar -- not like the hedge fund, jim. you don't do that stuff anymore, remember your anger management class. anyway, you might get the perfect entry point for this premier dollar store

one drag on the market was baker hughes. it drove a selloff in energy shares. as gas prices continue to climb past the $4 benchmark in parts of the country, the m.o. capital markets joining them saying $5 gasoline is a real possibility. and right now, the biggest refinery closures on the east coast is raising speculation of gas shortages. looking at data from the energy department, bloomberg says the east coast will have lost nearly half of its refining capacity in six months by july. ok, let's talk about your hometown team, the orioles. forbes rated the 30 major league baseball teams and says the orioles are valued at $460 million, so that ranks them number 19, up 12% from last year. if you're wondering who's number one, no shocker, the yankees. actually they're worth about $1.8 billion. live from the new york stock exchange, i'm jane king, bloomberg news, reporting for wbal-tv 11 news. >> with a b? >> right. >> i think i could have even guessed that. >> yeah, yeah, with a b. no-brainer. >> there you go. starbucks has a new way to perk you up in the morning, a

. >> baker hughes. >> on the heels of yesterday negatively coming out.oo much north america pressure pumping business. oil service, i like the group but i think you go to shlumburger. >> 40% on the comps from china so any time you get a whiff that china is going to slow more than people expected they have to get hard hit here. i can't figure out the demand to slow but if you're in it, wait for another pop. >> john rutledge is coming up later and can say he's a buyer. why it's a good buy right now. las vegas sands, popping 1%. >> only 1% but means a lot in this space. las vegas, singapore, junket approval today. a catalyst. outperforming the market and the group. still upside here. i would be a buyer still. >> earth. space tourism company announced that ashton kutcher is a 500th person to buy a ticket on the ship meaning he may be launched off the planet. faa said that the commercial space industry could be worth a billion dollars in ten years. no word on whether charlie sheen plans to make the trip. >> who's shooting him up there, demi moore? >> that was

drillers, in terms of some of the big exploration and production companies like northern oil and gas, bakers hughes in the big oil service group and drillers out there like transocean, all of them are to the week side. this group, this whole energy group, mandy, is now diverging from the rest of the s&p. it's about 12% of the s&p 500. this has been going on for days now. it's starting to affect the orr all retu overall returns. >> thank you very much, bob. >>> it's been pretty smooth sailing so far this year. but are we headed for resistance? john kozar joining us for the technical side of things. he made a really spot on prediction last year calling for a bottom back in early august. let's hope you're correct this time, john. great to have you on the show. >> thank you. >> please tell me we haven't seen the best levels so far this year. >> this year i think we probably are going to see better levels. but i think it may be more of a later part of the year, perhaps q4 story. >> why is that? what are the charts telling you that makes you say that, john? >> the charts look almost the opposite to us as

baker hughes had specific comments that effected them this week. believe me, all the other stocks have been down in this particular sector. exploration and production companies that are weak right across the board. this is a one-week chart. they're down rather noticeably. one week you see pressure on it that began in the middle of the week. elsewhere you can see some of the shipping companies. companies that ship iron ore or that oversee shipping, these are oil tankers, essentially. they ship dry goods and other kinds of minerals around. all these have been under pressure the last two days. they're down 2 and 3% as well today. finally, keep your head straight here. this has been an incredible quarter. we're up 10.7%. this is the s&p 500 quarter-to-date. 10.7%. that's one of the best quarters we've had in years. now, last quarter we were up about 11%. so this is not quite the amazing quarter that we had yesterday. but we still have a few days to go. and bottom line, tyler, is it's still been an excellent quarter overall. >> bob, thank you very much.

here, you think you'd be able to make money with oil at $105, but oil service stocks are down, baker hughes talking slightly lower profits. natural gas, sharon, is a real problem. and demand is still muted in the oil industry. sharon. >> you're absolutely right. we did get some of those demand figures from the energy department today. you know where cushin, oklahoma, we are looking at the futures, wti contract got bit of a bid today. we learned supplies for overall fell last week and we saw a decline for the first time in four weeks. that might be what caused the slide but traders looking at the spread between brent and wti. something to keep your eye on this trading session. sue, back to you. >> sharon, thank you very much. let's switch on the "power lunch" power surge and drill down on the stories driving the day. two of the main men getting grilled on capitol hill today. speaking about the banking system's exposure to europe. our steve liesman monitored today's hearings. steve, it seems the remark about energy may have actually been the market mover here. >> yeah. for a little while ther

the baker hughes, the drilling -- the whole rig complex is going down. >> we noches peek stocks as well>> everybody. but this is an incredible thing that we're looking at here. you have talked numerous times about how if we can figure out a way to use this fuel other than for what it's being used for even though, by the way, coal-fired plants are starting to go away and being replaced by natural gas, it's an incredible opportunity and one would expect that's still the case. $2.16 is unreal on natural gas. >> i went to one of my best guys in the energy complex and said what would happen if we drilled a big refinery to make natural gas to go ahead, greenfield refinery. you talk about tens of billions of dollars, it literally is a very expensive proposition, so we've got this great fuel but to switch it quickly -- >> you mean a refinery to liquefy natural gas? >> yes. >> if you could get 25% of the oil that's imported which then switched to diesel for trucks, obviously that will work and that's what westport innovations will work. but it takes time. taking time. >> in the meantime we could

baker hughes does stand out. delayed call, the rest of the sector is doing decently in terms of oil services and oil. >>> the prime brokers, the story in the ft is that they will have to. some of the big banks saying, hey, to do some of the trades, when it comes to more complex derivative straight trades, that will just get passed long from the hedge fund to the clients. >> i think people at home are kind of mystified about what the dichotomy between their costs are going down a trade. these guys costs are going up. it's a total function of the fact that this whole industry, the wall street industry is really going toward the fax model, it has nothing to do with it. believe me, that's involving big institutions, not then. and the little guy's been driven out. no one wants the little guys as a client. and the little guy is really mystified how a stock could go public and not open. >> the conversation we have had so many times and we had with bob so many times are just gone. the only question is are they going to c

yesterday there's concern about bhi, baker hughes and snack gas. >> i think the oils have been the silenty and as long as china's cooking people feel oil can go higher and also terrorism and also iran. this upgrade from sell to hold is i think a line in the sand saying this is where you have to go. they have good dividend boost coming and these are stable. it's the group to watch at home if you're worried about global slowdown. >> there is an interesting story about exxon, bp in conoco talking about building a pipeline for natural gas. >> if they play that and don't get government support it will be a natural disaster. natural gas is abundant in the lower 48. this is the kind of thing i throw my hands up and say please! it's the united states lower al. too expensive. >> lion's gate 52-week high yesterday, pulling back a little bit. this ramp is incredible. >> this is too much. i've been waiting for 120 million this weekend with "hunger games." take off half now. upgrade. there's a downgrade and upgrades. this is too great a sttrajector for one movie. time to roll. >> hogs are greeted, pig