that's where usgs comes in. monitoring the quality of our surface and ground waters is very important. and of really fundamental importance is getting a snapshot of the baseline quality of these resources before drilling comes in. you can see in pennsylvania and some of these areas, the horse is already out of the barn. it's tough to find the collect line basin conditions now. and also research. research needs to be done in a lot of issues where we really just don't know what's going on. one example is when we do see chemicals -- contaminants in the environment, we need to find ways to fingerprint the con tamnants so we know what the resources are, are they naturally occurring, are they coming from a leak in a gas well. thanks very much. >> thank you very much, dennis. our third speaker tonight is bill leaf. associate coordinator for the usgs earthquake hazard here. bill is a seismologist who oversees the global earthquake monitoring and capabilities of the usgs. bill serves as a usgs acting associate director f

and that dilemma, that research -- that's the research question which usgs is trying to address now working with the epa on some case studies and we're also working on the theoretical side of the question. so, finally if you need more information on the subject i'm pointing you to our website. we have a frequently asked question set for earthquakes that are induced by fluid injection and may answer some of the questions you may have. thank you. >> thank you. [ applause ] . >> a round of applause for all of our speakers here. [ applause ] >> thank you. >> so we're ready to take some questions now if you want to line up by the microphone over there and while you do so i might mention that our next public lecture is scheduled for wednesday, may 2nd and is titled "nature altered seasons." we certainly encourage you to attend that, if you wish. if we can start with the questions and then our speakers will do their best to address them. sir, the first question. >> can you tell us how much a developer puts in a pad and how much money does he make pulling gas out of it? i want to invest. >> no. i c

and that dilemma, that research -- that's the research question which usgs is trying to address now, working with epa on some case studies. and we're also working on the theoretical side of the problem. which of these two end members is going to be defining of whether or not, once an earthquake occurs of a significant size, at a disposal site, one can alter the practice to minimize the risk. so finally, i want -- if you need more information on this subject, i'm pointing you to our website. we have a frequently asked questions set for earthquakes that are induced by fluid injection and may answer some of the questions that you may have. thank you. >> thank you. >>> a round of applause for all of our speakers. thank you. >>> so we certainly encourage you to attend that if you wish. so if we can start with the questions and then our speakers will do our best to address them. first question. >> how much money does a developer put into a pad, and then how much money does he make pulling gas out of it? >> i wanted -- [ inaudible ] >> no. i -- i don't think i can even answer that. >> anoth

we want to join bruce pressgrate from the usgs. bruce, are you there? >> yes, i am. >> it was a magnitude 8.6 quake just before 2:00 a.m. our time. what else can you tell us about it? >> fortunately, that earthquake has a mechanism -- a strike-slip mechanism or horizontal motion. that type of earthquake is much less likely to cause a destructive tsunami than a thrust fault or vertical mechanism. we can't rule out that possibility, but generally strike-slip earthquakes are much less likely to cause destructive tsunamis. >> and so the tsunami watch is still in effect for the coastline there. the video that we're looking at here, people in utter chaos running out of these office buildings. also officials saying online that hospital patients even running out with their iv bags. no injuries so far that you've heard of? >> we have not heard one way or the other on any injuries or deaths. again, good news is that these earthquakes are located a long way off the coast of indonesia. it's about 4 kilometers from ba banda aceh so the great distance tends to relead

of course, they serve as great reminders to be prepared because scientists here at the usgs say they are expecting a large earthquake on the hayward fault anytime. >> a good reminder. thank you, jean. >>> happening right now. police are on the hunt for a group of men involved in a deadly bar -- excuse me, involved in a deadly brawl at a bar near travis air force base. the two men were shot in the head. one was killed. the other rushed to the hospital. the shooting happened before 9:00 outside a fair field bar called perk's place. things escalated and somebody opened fire. police say they're looking for more than one suspect. they don't think anyone from the air force base was involved. >>> a stiletto to the skull. san francisco police are on the hunt for a woman who beat a man with her high-heeled shoe. the alleged attack happened last weekend outside a bar in the greenwich district. the man says the woman bashed him over the head when he tried to break up a fight between one of her trend ins. >>> next, a revelation from the top. what we didn't know -- what we didn't know until now a

that is where usgs comes in. monitoring the quality of our surface and groundwaters is very important and of really fundamental importance is getting a snapshot of the baseline quality of these resources before drilling comes in. you can see in pennsylvania and some of these areas, well the horse is already out of the barn. it is tough to find, collect baseline conditions now. also research. research needs to be done in a lot of issues where we really don't know what is going on. one example is, when we do seek chemicals, contaminants in the environment we need to find way to fingerprint those contaminants so we can identify what the sources are. are they narrowly occurring? are they coming from a leak in a gas well? thanks very much. >> thank you very much. dennis. our third speaker tonight is bill lee. bill the associate coordinator for the usgs earthquake hazards program here. bill is seismologist who oversees the earthquake monitoring and reporting capabilities of the usgs. bill serves as usgs acting director

so the research we're now going to do in the department of energy and usgs, is say, all right. first, what's really happening. second, how do you keep on advancing best practices. we improve on virtually everything we do going forward. as i said, how could our research help in developing improving the practices that are more focused on making sure that the water tables aren't contaminated, things of that nature? >> is the administration looking for a way -- a reason to shut down fracturing? >> no. >> okay. thank you. >> thank you, mr. alexander. mr. womack, thanks for your patience down there. >> thank you. happy birthday. happy anniversary. my compliments to the secretary for his comments this morning at the rpe energy summit. i thought your comments, i found them to be enlightening. a well attended event by the way. my compliments to the host of the event. i want to stay on the natural gas subject for just a moment. i'm troubled by the fact when you look at the budget numbers, a little over $2 billion in renewable energy request, if i'm reading the numbers correctly, we're lo

sherri >> in a lecture to a fellow scientists, a usgs seismologist the democratic house such a system would have given the san francisco residents as much as 20 seconds warning before the shaking started. >> such a system is already in place in japan. modern communications are faster than seismic waves, information from sensors near the earthquake's epicenter can be used to broadcast warnings to people in harm's way. >> how much early warning you get depends on how close you are relative to the earthquake. the further away you are, the more morning you get. >> the implications are enormous. and bart trains could be slowed or stopped, warnings could be slashed to address. those listening to his lecture would have had time to duck and cover. >> people usually ask, what can i do? >> here is another hypothetical, palm springs would get a 15 second warning, orange county, 25 seconds and people in l.a., 40 seconds. the hard part is how to send out the warnings. it turns out that the mills and text messages are too slow for mastaba vacation so the warnings would likely be broadcast on radio,

. >> doug, would you dabble in a usg as mr. buffett said obviously he's the number one shareholder of usg and loves the housing market. would that be a way to play it or does this run too far, too fast? >> no. when i look at the home builders or building material companies versus the banks, all you do is have to apply the two-year chart between home depot and bank of america. you'll see how bank of america dramatically underperformed for obvious reasons. companies like bank of america, berkshire, wells, fargo are cheaper way to gain exposure to the housing theme. >> has anybody can convinced to make a move? >> i'm already in that trade in usg. dougie is right on this. you may have this mortgage -- there's going to be more foreclosures coming through. we all know about that. i think he's spot on on this. >> let me tell you, the shadow inventory is clearing. you look at phoenix, arizona, which had 17 months of supply 12 months ago. it's now under three months. in the west coast, not inland but north and south southern california,

in fact, i think what the usgs report also says is that while the earthquakes may be caused by manmade efforts, we're not sure that it's even oil and gas extraction or extraction methodology. so i think we got to be very calm. we've got to be careful. i think the president has been correct in stressing the environmental components of fracking. he assembled a task force of scientists of policy people that basically said we've got to be careful but we should continue this practice. and keep the politics out of it, brian. because that's what's destroyed our ability to come up with a comprehensive energy policy that reduces gas prices, that makes us more reliable on renewable fuels and renewable sources. >> but, bill richardson, before i get to the final question, bill elsworth, again, if we talk about waste water runoff that might be related to the increase of natural gas extraction and production, whether it's fracking, whether it's -- whatever the actual cause is, if you can link the causation between the quakes and drilling, isn't that enough to shut it down in some places? >> well, ye

usgs cut their losses in sheet rock and closed down. it is gone. the houses are there but the people are gone. it is the real wild west, the way it was. it takes a lot of the romance out of it. so we have done several things. black rock solor, which came out of burning man in gerlach. the school is closing down because they do not have any kids. the economy has been based on mining. there are some tourists that come through. hunters. some of our people come through and leave money in their wake. a little town like that does not know how to make money. but they have learned in certain ways. we have made significant charitable contributions. i do not want to great -- take much credit for this, but we are helping to keep them alive. the thing about our event, we do not do commercial things at the event. it spreads out the economic development to our neighbors. the piutes down the road are now doing in the in taco stands now and we know them. there was the day when we were considered scary, coming from san francisco, you know. it is much easier to brea

the usgs website felt the quake in redwood city.mage of reports or injury. >>> cal trans is carrying out its annual litter pickup day. once a year, the state transportation agency focuses all of its available resources on getting the trash off the side of the roadway. workers were on the job this morning in hercules. cal tran spends 40 million- dollar on programs to stop people from littering and picking up the trash when they do. >>> san francisco has taken second place on a new list of cities with the healthiest eating habits. the san francisco-based startup massive health collected data. san franciscons eat four times more brussel sprouts than the national average and four teams more cashews and salad is the city's most popular food. the data amounts to a 67.6 rating second only to new york city. >>> why some california lawmakers are talking about cell phones and b.a.r.t. and dozens of people lined up overnight as a brand new business was about to open but many say that the business is not the reason they came. honey...? [ mom ]

now, the usgs does not think one triggered the other.entists here say we should all take this sieismic activity seriously as a reminder, because they are expecting a strong earthquake to strike on the hayward fault here in the bay area at any time. >>> it is 6:55 right now. the "today" show is coming up next. ann curry has a look at what they're working on this morning. >>> good morning. coming up here on a thursday morning on "today," complete coverage of the arrest of george zimmerman. a month and a half after the shooting death of trayvon martin. what is zimmerman saying about the murder charge against him? we'll be asking his new attorney in a lye interview. we'll also get reaction from trayvon martin's parents when they also join us live. >>> also ahead the seventh graders who raced into action when their school bus driver suffered a heart attack. they'll be here to tell us how they remained so cool under pressure. >>> then the five for bidden foods you should be eating to stay fit and healthy. >>> and is there a new woman in prince

this morning we spoke to a usgs geologist who says this type of quake may not bring about the massive destruction we've seen in that area in the past. >> the earthquake has a mechanism -- a strike-slip mechanism or horizontal motion. that type of earthquake is much less likely to cause a destructive tsunami than a thrust fault or vertical mechanism. >> and right now a tsunami warning is in effect for the islands of the indian ocean as well as pakistan, all the way to australia. even kenya in south africa. u.s. geological survey says the warning means there is a potential for a tsunami, but the warning does not mean that a tsunami is imminent. indonesia actually straddles a series of fault lines that makes the country very prone to quakes. you may recall back in december of 2004 a giant magnitude 9.1 quake triggered a tsunami in the indian ocean that eventually killed 230,000 people. we'll continue to watch the aftereffects of what is going on there and bring you updates this morning. >>> it is 5:03 right now. much closer to home, three men are behind bars in connection with san jose's

once again, usgs is reporting this as an 8.7 magnitude which would make this the eighth strongest earthquake planet has reported. the richter scale people in indonesia say it was 8.9. as far as earthquakes go, this is one of the biggest ones we've seen. if there's a devastating tsunami, it's now beginning to effect land areas. they're saying in australia, you do not have a concern. the west coast of the united states, they are saying we do not have a concern, but all of the indian ocean peninsula and nation theres there are the one effected. >> very scary, we will be following that breaking news. >>> back to highlights from baseball, the undefeated mets hosting the washington nationals at city field. first batter of the game is ian desmond, takes it out of the yard. nats with the early lead. desmond is showing off the arm. he backhands the ball and nails down the runner at first. the hero of monday's game becomes the goat. he can't handle this grounder at second. the error scores a run. the mets lose this one 6-2. >>> the yankees sent freddy garcia to the hill against the orioles and he had

the usgs does not think one triggered the other. scientists say we should all take this seismic activity seriously and as a reminder because they are expecting a strong earthquake to strike on the hayward fault here in the bay area at any time. jean elle, nbc today in the bay. >>> and some local leaders say the earthquakes and tsunami warnings are a reminder of what can happen here if there's severe flooding. experts say a lot of work is needed in the south bay where land sits below sea level and large corporate campuses are only protected by small, aging levees. facebook, google and lockheed martin are among the businesses that could be vulnerable to flooding. senator dianne feinstein will call today for a billion dollars in public works projects to rebuild lef anothers and wetlands. >>> two men were shot in the head last night at a fairfield bar near travis air force base called perk's place. one man died at the scene, the other is in serious condition. an argument between two groups got out of control and someone opened fire. inv

>>pam: the usgs said they fully optional earthquake early warning system is still about five years away it would cost as much as $100 million. >>stanley: coming out, there is something wrong with this video. candy see what it is? i will show you in the next edition of people beating badly. >>stanley: this does has a slight problem. let's go back a few seconds. here it is picking up passengers on the gary. this is the kirby and this is the bus. the problem is the bus should be at this qr to picket these passengers but it is not. this is one of the biggest complaints we get from the viewers, bus drivers nobbling all the way over. but: all the way over it helps to keep traffic flowing. it is impossible. or when there is a vehicle parked or stopped at a bus stop, other than that all buses should pull to the curb. the all have to do our part time even if the strikers. hah hah >>pam: around one of the nfl draft is in the books. vern glenn is live in santa clara with reactions. sweetheart. we need to talk. i've seen your stunts online. i can explain... jumping a ramp in a shopping cart. so 200

that is where usgs comes in. monitoring is very important. really a fundamental importance is getting a snapshot of the baseline quality of resources before drilling comes in. you can see in pennsylvania and some of these areas the horse is already out of the barn, it is tough to collect baseline condition. research needs to be done on a lot of issues where they do not know what is going on. one example is, when we d.c. chemicals and contaminants in the environment, -- when we do see chemicals and contaminants in the environment, we can identify what the sources are. are they coming from a leak in the gas pump? thank you very much. >> thank you very much. our third speaker tonight isbill leith. he is a seismologist who oversees the global earthquake monitoring and reporting capabilities of the usgs. he served as the active director for national -- natural hazards from 2010 until 2011. he has been called upon many times for his expertise on the subject of trigger earthquakes including those associated with hydraulic fracturing. in just the pas

there were 4 small earthquakes in the morgan hill area according to the usgs. the magnitudes range from 2.8 to 1.8. no word of any damage. in the meantime, there's been two tiny quites near berkeley this morning. >>> republican presidential candidate ron paul is in the bay area this morning. he will speak at a fundraiser at the marriott hotel near union square in san francisco. tonight ron paul holds a town hall. >>> a federal judge in texas is demanding a letter from the obama administration recognizing the court's authority to strike down laws passed by congress. that was after president said he hoped that they would not overturn his health care reform law. the response from the obama administration. >>> in san jose, a 19-year-old is called a hero for a quick response to the crash of a suspected drunk driver. ktvu news first told you this yesterday morning. police say a woman smashed her car into this house on elrose avenue causing a gas leak and a brief evacuation. now officials say that austin riley saw that woman slump unconscious moments before the crash.

there were four small quakes just north of morgan hill according to the usgs. the first one just after 1:00 a.m., magnitudes range from 2.8 to 1.3. we've not heard of damage yet. meantime, there were two tiny earthquakes near berkeley after 2:40 this morning. they measured 1.8 and 1.7. if you felt any of those quakes we want to hear about it. log on to our ktvu morning news facebook page. tell us about it. >>> 6:08. let's check with sal to get the commute. >> right now it's doing pretty well. hopefully we'll have a pretty good day today around the bay area. let's take a look at the pictures, i-880 still looking pretty good with no major problems. the commute is looking nice as you drive up to downtown oakland, 580 also looks good. the morning drive is getting a little more crowded at the toll plaza, five-minute wait. the lights should come on soon but not yet. san jose, santa clara, the traffic is good in the valley, just a little traffic showing up on northbound 101 approaching 880. >>> 6:08. steve? >> a double take on the calendar, it doesn't feel like early

the usgs is clearly the number one source. sources whether it be australia, india, the capital of the maldives is not something they could look at. some areas have evacuated because they're not sure how big the wave is. they felt from the information they had that they didn't need to evacuate us here. this is based off talking to source these have and all this information that they pull together rather than a scientific knowledge. >> everybody is watching this. erin burnett stopping her vacation in order to fill us in on what's happening in the maldives where she is. thank you for the update. we appreciate it. still ahead this morning on "starting point," the special prosecutor in the trayvon martin has a big announcement within 72 hours she's going to tell us what she will be doing. we talk to george zimmerman's attorneys this morning and what they said and s.o.b. as in soledad o'brien award. a woman fakes cancer so she can get the dress of her dreams. really? got to hear this story. that's straight ahead. short break. back i

usg, which i'm long. i look at it, particularly with the market being down here, a lot of people are going to say, i would rather put my money into my house than the u.s. stock market. so i want to play those u.s. dips. >> it's been a tough going, as you know, in coal stocks, and jp morgan is calling for another tough time ahead for those trades. alpha natural, peabody, and the market vehicle torz down here 1 and a quarter percent. >> i think it's hard to say that at this point with global demand slowing. maybe we double dip here. no one knows. i think it's still negative and that's notwithstanding the epa and environment perfectionists. >> yahoo has been struggling to increase revenue in more than a decade. today's ceo scott thompson revealed a new strategy to hopefully turn its ten-year losing streak around. let's bring in john fort with the details. hey, john. >> your yahoo headquarters are hands on with the employees. it just started minutes ago at 9:30 local, 12:30 out where you are. he's not going t

the usgs said it had a magnitude of 3.7 and was centered 50 mi. northeast of so that, 70 mi. southeast of san jose. the so that police department says so far they have not received any reports of damage or injuries but a few people are shaken up this morning. >> 3.7 is a pretty good one. that will get a heart racing. we have some cold temperatures outside around the bay area. a frost advisory in the north bay. we are in for a better day as we are going to see more sunshine and centers are going to warm up nicely. let's wind as well. a cold start to the morning but by afternoon we have sunshine and mild temperatures. cool along the coascoastline. high pressure building to the bay area. which are to mourn the temperatures up to date, probably tomorrow. as we get into sunday, the system dropped into the bay area bringing with it a chance of a few showers. as we head through the day to day you'll see plenty of sunshine and less when so will feel much warmer around the bay area. saturdays and passing clouds, but sunday the storm system lagging to the north a little bit as we head

>> well, my single favorite still is usg.uction sector -- easy for him to say, via itb is the etf. >> you can also talk morgan stanley if you want to. >> i would rather talk b of a. i did cut my position. it was a lot tougher position when the stock was a 10 than where it's trading now. i think the worst is behind. >> you bought it at what? >> i bought it between here and 9.50. >> okay. >> so i'm making money on this part. i lost money in the other part. >> all right. time to take your positions. steel makers, steel dynamics lower. steel dynamics reporting after the bell. weiss, you still short? >> let's make a public service announcement. joe, myself and b.k. so we can save the viewers money and not go to grasso -- >> really? i said buy ak steel and you're up 20% in a week last december. tell me what was wrong with that? you keep shorting the space, my friend. hold one of your trades up to the light. maybe it will make money. >> we're going to have to go back and sell my short on u.s. steel. >> do not bring a knife to a gunf

the usgs as the earth quake hit in the waters between the block peninsula and the the northern statera. thick because have evacuations and authorities say there was no major damage or injuries. >>mark: and others stories we're following, behind bars this morning is george zimmerman. here is video of him arriving last night as he turns himself in. he is now set to appear before a judge on second- degree murder charges. for his new attorney says he plans to plead not guilty in the shooting and killing of treyvon martin. >> he voluntarily surrendered himself to law enforcement when he realized charges were going to come. >> this is just the beginning. we have a long way to go in and we have faith. >> legal experts say prosecutors will have a challenge trying to make a murder case against zimmerman because they have to counter his claim that martin was shot and self- defense. they also have to prove it he intended to kill a teenager. >>justine: the coast guard is now checking our courts of a 10 mi. hotels with the gulf of mexico near wells that are operated her shell oil. the location of

usg has earnings next week. >> at&t is higher after an upgrade from jpmorgan.another good looking chart today. dow component at&t higher by more than 1%. >> 6% dividend in this one. stock pulled back recently. we push back up against levels we haven't seen since 2008. i think you sort of have to bide your time on this one. wait for earnings later in april. this is name you won't get blown up in. >> let's do fast fire now. traders are fast but not always right. listen to what b.k. said about morgan stanley a few weeks ago. >> they have a wealth management division that will do well if you see that retail money come out of bank accounts which are at record highs right now. i think morgan stanley is your play. >> shares of morgan stanley are down around 11% since that call. b.k., what's the deal? >> i tell you, i still think the thesis works but my timing was off on this. timing is everything in this business. i believe if you want to play capital markets increase, morgan stanley is the way to go. i wouldn't change my position on this at all. >> let's do more on t

if soft >>mark: the usgs says it fully operational earth with a warning system is still about five years away and could cost as much as 100 million. google has lost a new feature for global maps, 3d tours of famous landmarks. these are really cool. some of them are so realistic you could not these destinations of of your but it was just by watching the tour. google uses advanced vision techniques they use photos to render the 3d shapes of each site. google maps selects a path to the best images annette's 3d transitions to guide you from photo to photo as if you're flying around the landmark and union from different perspectives. >> at the san francisco forty-niners select a j jenkins. >>vern: greetings from the oasis of the stadium construction at the 49ers headquarters for the nfl draft date went off without a hitch. the 49ers have the 30th overall pick. they went with wide receiver j.j. jenkins. a surprise pick. he was not on anyone's draft board. this was their reaction as the commissioner made the announcement. >> he is a smart guy. there are a lot of qualities that he has. he is com

>> and book end renovation nation with usg. buy some. >> all right. i'm melissa lee. thanks of "squawk box" tomorrow starting at 7:00. see you monday for "squawk on the street." >>> i'm jim cramer, and welcome to my world. >> you need to get in the game. >> going out of business and he's nuts! they're nuts! they know nothing! i always like to say there's a bull market somewhere. "mad money," you can't afford to miss it. hey, i'm cramer. welcome to "mad money," welcome to cramerica. other people want to make friends, i'm trying to save you some money. my job is not just to entertain but educate and do teaching, call me 1-800-743-cnbc. at the end of the ugly week, the worst week of the year it felt like europe was in the driver's seat, averages getting kicked down to the curb again, the dow off 15 points, s&p up .6%, nasdaq bounced .4%. i need you to take a deep breath and remember, when it comes to the global economy, the united states is still driving the car. sure, there'll be days when we trade off europe, but this isn't 2011 anymore, people. and with earnings seaso

the usgs also reports a strong 7.0 earthquake struck off mexico's pacific coast.shaking buildings and sending people running out of offices and into the streets of mexico's capital city. no reports of anybody hurt. it's the icing on the cake. that's what one congressman is say guilty about latest accusations against those government workers who spent more than $800,000 of your tax money partying in vegas. apparently the agency spent a lot more than that you'll remember these guys, right? ♪ i have a show like mele every time he sees me rolling on in my. spend my fund on 61. can't cut. buy everything. rappers can't afford. get a top hat award. >> shepard: top hat award. congressman say dozens of workers got bonuses for organizing the trip. he also says one official billed taxpayers for an extra night in vegas after the conference had ended. all of that at the agency in charge of cracking down on government waste. but just when you thought you have heard it all. we turn to mike emanuel for the rest of the story. they went to hawaii, right? how exciting. >> yeah, shep

the usgs says the quake is measuring 2.3. centered about eight miles north of morgan hill.on developing news this morning where oakland police are searching for the gun used in monday's execution-style killings at a small christian college. bob redell is live in oakland with the latest developments for us. >> reporter: good morning. low tide here at the oakland estuary shoreline. gives you an idea why it would be difficult to find the gun. lot of rocks and debris. police divers were out here late last night. searching the shoreline for a .45 caliber handgun. they believe goh tossed it in the water before he surrendered. goh has been cooperative in interviews except for when it comes to pinpointing the exact location of where he allegedly ditched this weapon. other investigative leads point this to this area off the martin luther king jr. regional shoreline center. law enforcement employed a remote control sonar robot. if law enforce many does not find the gun they don't think it will be major break in their case against goh. >> it is not critical but it is an important piec

usg is basically flat to down all throughout the day. the other big names in that space also basically flat on the day. still not good numbers, but not enough really to get everybody excited. however, if you look at the d.i.y. space, look at the classic one in home depot, 22% up so far this year. this is the third best performer in the dow. e ch look the same for everybody else of course including lowe's. here's where we are on the major sectors here. just slightly to the downside on all of the big names. sue, back to you. >> thank you very much, bob. let's switch on the "power lunch" power surge drill down on the stories driving the day. and the economy is front and center for the markets. home sales dropping raising new fears about the health of the housing recovery. arizona. home sales dropped a month-to-month. but the real report is the existing home inventories the supply of homes for sale usually historically rises in the spring because that's the busy season. not so much this time. inventories down 1.3% overall to a 6.3 month supp

the usgs puts it somewhere between 7.7 and 8.3.e events, there is a somber tone for the tragedy but also joy of how the city came back. the bloody mary breakfast goes on until 10:00 this morning and the public is welcome to come down. reporting live in san francisco, christie smith, "today in the bay." >>> oscar winner is now linked to a film paid about oscar grant's shooting. you a cording to hollywood reporter octavia spencer who won this year's academy award for best is porting actress slated to play the part of grant's mother. jordan is best known for his role in "friday night lights" and "wire" and "parenthood." in talks to play oscar grant himself. former police officer messerle shot and killed grant on new year's day 2009. >>> 6:56. festival featuring big names. some of those don't have to travel very far from home. the festival is in mid august at golden gate park. last year's festival drew up to 60,000 people a day. this year they are expecting to shatter that mark. the bay area's metalica and neil young will headline alon

usgs told us this morning these types of quake make a tsunami unlikely, but a watch still remains in place. we are monitoring that video coming in from throughout the region this morning. mass evacuations took place. the good news is tha no reports of injuries or deaths have been reported from the quake. it did not out power, however, in parts of indonesia. it's a reminder of quakes in the same region as the devastating 2004 tsunami that took the lives of 230,000 people. >>> much closer to home now, 6:01. funeral services will be held today for an east bay father and daughter killed while out on a saturday morning bike ride. stephanie joins us live from concord where charges are expected against that teenage driver. good morning. >> reporter: good morning. you know, the family members of the two victims say the support they have been getting from the community has been huge for them. you can see just how much support they have been getting in this growing memorial along treat boulevard here where the memorial site is growing. they're not focused on the release of the teen driver accu

. >>> in overnight news, the usgs reports several large earthquakes around the world.ut 90 minutes ago a magnitude 7.2 aftershock rattled indonesia. you're looking at new video from that region where power is still out in many areas. some people are now living in tents, mosques and other temporary shelters. a child was critically injured when a tree fell. about three dozen earthquakes measuring 5.5 or higher have hit that region in the past day. >>> and around 3:30 this morning a 4.9 tremor shook the gulf of california. that's the same area where a 6.9 and 6.2 hit yesterday. people working in offices in mexico city ran out of buildings and on to city streets. the epicenter was in a row mote area -- in a remote area of mexico. also, a tremor in the gulf of oregon did not cause any damage. >>> the video showed campus police unleashing that canister of pepper spray on sitting protesters. this report points the finger of blame squarely on administrators and police for communication break downs during that demonstration. it also rejects claims by a police commander who says

both the indonesian authorities and the usgs putting magnitude at 8.9.ms to have erupted 3.9 miles west. >> 8.9. pretty big, thii think. >> it's quite huge. >> that strikes me as rather large. we'll keep our eyes on that and see what happens. >>> charlie, in the last discussion, what is the ideal sort of portfolio construction, bearing in mind you come out with a statement everything kind of looks expensive and value is hard to come by? >> with the asset class level, everything is expensive. that's the point i'm making. that's what we try and find. i think, you know, when you look at the consumer staple stocks, they're a good deal, the best in ters of quantity and certainty. you know, if something happens, these are the least effective most predictable outcomes you have. you're paying fair value. they're not expensive. i think elsewhere when you go to look for value, they're in line with the world. and we also earn gold and have traded the nasdaq and we'll get back to the nasdaq next time. >> alcoa, very positive about it. that's the other thing that cam

the usgs says it just struck west of los angeles shortly after 8:00 a.m. pacific time. this is a look at downtown los angeles right now. want to let you know, there wasn't any particular swaying in downtown. i actually called my parents who live not too far. they did not feel it. we have some reports of some slight damage in the san bernardino area. that's san bernardino county, which would encompass the rancho kukamanga area. >>> u.s. counterterror officials say that al zar -- mike viqueira is with us. >> reporter: core al qaeda no longer exists in its previous state, this after all the drone attacks and after all the operations not the least of which was the raid one year ago next wednesday on that compound outside the pakistani capital that ended up with the killing of osama bin laden. the code words came over, leon panetta, defense secretary, was describing being in the situation room that night when these navy s.e.a.l.s radioed back, killed in action. basically over the course of the week, we've heard from a number of officials of the government both on the record

not usg computers, everybody uses computers but when th think about actually becoming somebody who would create things with computers who would actually study computer science both boys and girls think that's something boys do. >> why does it matter that we have more girls interested in the science? >> that's such a great question. for me there are three reasons. the first one is these are amazing careers. particularly right now in computer science, job opportunities are incredible. it's not just about going to work for a place like google or microsoft or facebook. it's about doing computer science in medicine, or computer science and arts. or doing computer science and languages or educational software. so the first thing is careers are out there that play very well. they're very flexible, great opportunities to provide a career with family. so i hate that young women don't get that opportunity. the second one is what gets created in technology depends on who's doing the creation. i'll talk about computer games for a moment. so for a very long time, virtually all the computer games were

. >> hence the action in usg. that explains those moves. >> paint, carpeting, flooring, roofing.ll of those material that is go into single family homes. >> what about the overall idea about a bid for distressed properties they will turn into rentals and that helping the housing market? it doesn't sound like you're on board with that being enough to get things going. >> we think the distressed part of the market is stabilizing. in fact, our view is that distressed prices already hit bottom. it's really being stabilized by the investor activity. while we are still having a more negative outlook at the macro level the distressed part of the market is becoming healthier. >> your negative outlook is, what, back to standards and underwriting standards you mentioned, how hard it is to get a snomortgage? >> the big difference is investors are buying for all cash. they don't need the credit and credit is coming for those investors. when you look at the owner occupied market which is a larger share, it is almost entirely mortgage dependent. if you can't get credit even if houses are cheap

. >> i think when you made a gigantic housing bet and you see usg going up, an investment and mass goingp on bad quarters and the housing stocks being some of the best during the first quarter, what you come back and say, listen, might have the wind at its back, it is difficult to come up with price to earnings analysis on berkshire hathaway as opposed to apple where goldman sachs comes out with numbers butting a $53 number on 2013 and you see i am buying a company selling at certainly vulnerable versus buying a company where i really like the fact that berkshire hathaway made a lot of money over the years. they're different styles of investing. some i am more comfortable with than others. you have to look at the prestige if not wild mosaic and decide the insurance business hasn't been so hot, maybe it is going to get better. the housing business hasn't been so great, benjamin moore paints, look at the sherwin williams number. thinking, you know what, everything could be turning here and next thing you know you have a tim cook situation perhaps where the earnings turned out to be in a ra

this is coming from the usgs. in our recoverable reserves which are some of the large nest the world. according to information gleaned from the usgs report, the -- america has 26% of the world's recoverable conventional oil reserves and that doesn't begin to include our enormous oil shale, tight oil and heavy oil deposits. i mean, that's just a fraction of it. but that's 26% of the world's recoverable oil. our problem is our politicians won't allow us, and particularly the obama administration, to drill on -- on public lands. and be able to capture that. we also hold almost 30% of the world's technically recoverable conventional natural gas. in other words, to put it in a way i think is more understanding, you -- we have, just from our own resources at our own consumption level, we could run this country for 90 years on natural gas at our current level of consumption and for 60 years on oil. and that's -- that's what we have. that's the answer to the problem. it's called supply and demand. it's not a -- there's no