thank you very much. jimmy. >> apple. eating everybody's lunch, why not own them. >> joe. >> real quick, small, small position in cf industries. a 154 stop. >> that does it for us. call your attention to oil as well. we've been following that story. the lows of the day 89.45. more fast at 5:00. follow me on twitter. power now. halftime is over. the second half of the trading day gets underway right now. and "power lunch" is all over it. indeed we are. that european threat we have been talking about. you may think incessantly, well, it is rearing its ugly head once again. we are off the lows of the day, but here's where we stand. the dow industrials off 167 points, 1.3%. the s&p below 1,300 down 17 points. the nasdaq down 35, 1.25%. gold, look at that. down nearly $40 earlier. now $32 an ounce lower at 1534.

and oil. it may be welcome to you at the pump, but what it says about the dollar in the global economy is not so comforting. 89.52. down 2.5%. leaders arriving right now for a key meeting in europe. and it is lawsuit time. facebook, morgan stanley and nasdaq omx all have targets on their back for class action suits. facebook stock though right now a little bit higher. look at that. up 86 cents at 31.87. a nearly 3% gain. in 20 minutes hear why some are now saying facebook's valuation could be $9 a share. $9.50. that's right. $9.50 a share. good afternoon, sue herera, at the new york stock exchange. >> good afternoon, tyler mathisen. a lot of tension down here on wall street. we've had a selloff. we're off of our worst levels of the day. so if you're a bull, it started out as a pretty bad day. at the worst point the dow off almost 200 points on the trading session. the s&p better than 20.

but bob pisani's been here. and, you know, since the beginning of the trading session certainly. >> beginning of time it feels like. makes you nostalgic for facebook, doesn't it? >> not quite. but we have more on facebook coming up. there's more tension in the market today. it all stems from europe. >> yeah. i think the important thing is they're just starting that dinner over there as tyler referenced. i think a press conference around 3:00. but expectations are very low. they don't think much will come out of it. go long these meetings and short them going into them, it seems to work very well. we have the euro at a -- it just collapsed about two hours ago. >> it's still out there eventually that as they drag this on and on greece will exit the euro. that's the talk anyway. >> there were vague rumor ths morning of the eu telling banks to prepare for a possible exit for greece. greece said there's no contingencies. the belgium minister came out and said of course there is. it's a comedy of error at this

point. >> the risk-off trade is definitely in effect. >> energy, materials, industrial stocks down 2% or 3%. notable down day. >> all right. see you in a bit. the commodity markets also selling off. sharon epperson at the nymex. gold market is selling off and the oil market is selling off as well, sharon. >> he described comedy of errors in europe we are looking at the crb index, the index of 19 different commodities at its lowest levels since september of 2010. keep in mind as well with the oil prices right now near their lows of the session below $90 a barrel, this is the lowest price we've seen since november of 2011. we are anticipating that maybe we'd see some traction in this meeting happening in baghdad between iran, u.n. security council and germany. but there it looks like tensions are easing. so that is putting further pressure on prices. add to that the fact supplies here in the u.s. of crude are at

their highest level since 1990. none of this is good news for those who are bulls in the oil market. in terms of the metals trade, yes, gold prices fell more than $40. we are seeing massive liquidations across the sector. back to you, tyler. >> all right. sharon, thank you very much. we are four minutes into the hour and you've probably heard the word europe maybe a dozen times already. simon hobbs, a key meeting set to get underway over in brussels within the hour. we're watching the arrivals. what are you looking out for? >> well, i think it's very important to understand what the game is here going into this summit. 27 heads of state arriving. the deal is to scare the greek people to death so that when they come to their election in three and a half weeks time, they will return a pro-austerity government. that's what these guys are engaged in. to scare the greeks. to make them think there's no wiggle room. in the process they're going to scare people watching cnbc. they're going to scare the markets now. what are you actually going to get out of this? you'll get some promgs of infrastructure spending. some boostful european investment bank.

you'll get some big discussion about how to reform europe in future and timetable and give up on europe probably after they've all left office. there will be no bonds in europe. not going to happen because the germans oppose it. the most interesting thing, where you may get a development is whether or not the european central bank, the ecb, will increasingly have a direct main line into the other banks around europe. or they will take money from the safety funds and inject it directly into the banks. ie, not through the sovereigns, not through the spanish government, straight into the banks. and that could be game changer finale. >> the stakes couldn't be higher. and the hits keep oncoming. the world bank cutting its economic growth forecast for china to 8.2%. we'd envy that in any part of this country, but no, not in china. the world bank is urging china to rely on a looser fiscal policy designed to boost consumption rather than getting

in-state investment. china's market down 17% in the past year. sue. >> and you know, ty, given everything that we've laid out with the breaking news right now from the bond market, you would expect demand for the $35 billion in 5-year notes to be pretty strong. rick santelli has the results. how did they fare this time around on the auction? >> well, $35 billion 5-year notes, the wi trading 74.5 bid offered at 74. the yield came in at .748. not bad. the bid-to-cover 2.99 was a little better than a 2. 2.93 ten-auction average. indirects close to the 44% 10-auction average. we're going to give this a b minus, sue. if you consider that, the yields moved lower, followed the rest of the marketplaces, people are buying up treasuries, bunds, yields, it might have given us

less on a demand rating. solid auction, just not as solid as yesterday's auction. >> in other words if i'm reading you correctly, some of the demand preceded the auction. they were moving into the market before the auction occurred, correct? >> that's what we saw in terms of the flows. that's correct. >> all right. thanks, ricky, as always. new home sales numbers for the month of april, they were up 3.3%. the midwest and the west leading the way. here's the sector check for you. kind of a mixed bag. keep in mind there's a lot of pressure in the market today. it's not surprising that on a day like this pulte, d.r. horton down, toll brothers up about .25%. ty. >> sue, let's get to the macro. facebook shares moving up a little bit at this hour. that's a bit of a reversal for them on this very down day in the market. up 84 cents at 31.84. this as the lawsuits start coming. that i suppose was inevitable, kayla tausche. >> well, tyler, the lawsuits are

snowballing against morgan stanley and facebook. investors want answers for why the banks were reducing estimates while upping the deal size. the law firm representing investors does have a good track record, some $7 billion in claims for investors in enron were won. but the big issue here is what analysts knew and who they told when estimates were revised. source tells cnbc that it wasn't just lead underwriter morgan stanley that notched facebook's guidance down. all 21 of the 33 underwriting banks have internet analysts revised those numbers downward and expected that that was disclosed in some form of fashion. as far as the lawsuits, facebook has attacked them vigorously saying we believe the lawsuit is without merit and we will defend ourselves vigorously. even so investors want answers both from facebook executives, the banks as well as the nasdaq. another suit hitting the nasdaq yesterday over those trading glitches, tyler. >> kayla, thank you very much. should you be ready to hit the thumbs up buy button on

facebook? jeff kilburg is here, michael murphy. jeff, the day before, i don't want to remind you of this -- >> it's okay. >> you said you were fine with facebook at these levels. buy it. >> mike, you took the other point of view and said stay away. mike, where are you today on that stock? >> i'm still staying away, ty. i look at facebook here and i still think it's hard to value the company at these levels. even though it's come down from the price at $38 and high print to $45, i would still stay away. too much headline risk and you don't know how to value it. i wouldn't be a buyer right here. >> jeff, how about you? >> i'm wearing this one. >> man-up, kilburg. >> it's like a football game, student body left. until the options come in which trade next tuesday, i don't think the pros can come in and stabilize this. honestly, i don't think anything's changing. once we separate this environment we're in and realize why we use facebook and the 901 million users, once we get our arms around that again, may take

a couple months, i'm in for the trade. >> all right. thanks very much. sue. >> hp in the news. hewlett packard getting ready to report after the bell. expected to announce in addition 30,000 job cuts. hp shares have been trading at 7-year lows. take a look where hp's traded right now. it's down almost 5% at $20.70. jon fortt picks up the thread now for us in palo alto. jon. >> yeah, sue. there are some storm clouds on the horizon at hp. i don't just mean the lay offs. look at the stock over longer term and as you said it's at some lows. some reasons why include some earnings we've seen recently. get to that in a moment. let's talk about the layoffs. layoff numbers sound like a lot, possibly 30,000. let's put those into context. those would put hp back where they were in october 2010, not so long ago, roughly. they gained 25,000 employees just between october 2010 and 2011. we've been seeing some troubling trends as i said from tech firms

reporting earnings over the past few weeks. cisco warned of softness in europe. india and indy enterprise and dell just last night warned of overall asia. dell said china business was up 9%. but important to note, hp not so strong in china. they're not going to get that benefit. so overall soft pcs, europe, asia, printer troubles, the enterprise, all red flags for hp on this quarter's numbers. and of course guidance giving a straight up revenue guidance more giving earnings per share guidance, these cuts could benefit that. overall whitman has been forecasting this turnaround could take a while. might take longer if these numbers don't come in where wall street expects. back to you, sue. >> yeah. especially in this economic environment, jon. thank you very much. we mentioned the decline in the shares. let's look at dell compared to hp and how has it performed against its rival dell over the last three years. hp down more than 35% whereas

dell is up almost 40% in that period of time. ty, back to you. >> all right. thanks very much. you know, we're seated now. i feel much more on your level here. >> i know. >> how do i play dell in this environment? >> well, peter like to say the term taken out to the wood shed. certainly they have been taken to the wood shed today. >> worst day in years. >> i think a lot of folks aren't realizing here the austerity. the lack of government spending. that's affecting their sales. down 33% in profits. and on top of that i think they lack evolution in dell. they're not seeing the tablet pick up for them. the ipad and kindle fire dominating. so maybe the windows 8 picks up. but right now look at the chart. >> down 17%, almost 18% today. >> brutal. >> you say stay away. >> stay away. think about nibbling but not for quite some time. that's a scary chart. >> jeff, thanks very much. let's go to brian shactman now for a market flash. >> tyler, this is fascinating. big lots at the highs of the day as we speak more than 5%. they reported earnings that were misses on the top and bottom

line. and basically it's pretty ugly. even jpmorgan reduced the price target. conference call seemed to reinforce a lot of positives including margin expansion and sales continuing to increase throughout 2012. but a fascinating chart, down by a lot in the pre-market. and it's steadily gaining steam. of course maybe a bit of a countercyclical and tradedown if we get a slowdown. and negative tape across the marketplace. sue, back to you. >> thank you very much, brian. more on facebook. very interesting take. meet one street insider, she says the method she's using values facebook at $9.50 a share. we'll find out how she comes up with that metric. plus, if you're about to fly with kids, trust me, the stock market is far from your biggest problem. wait until you hear about united airlines' plans. before the break, a few etfs that are short the market and up big today. it's a reminder up or down there are always ways to make money and we're here to help you do that. back in a minute. ♪ ♪

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president for the first time. sue. >> ty, listen up. this story involves me and you. if you're flying with kids anywhere in the near future, life might be getting a little bit more difficult. united airlines is ending its policy of letting families with children board early. phil lebeau is live in chicago. and, phil, i'm sorry, but on some of these routes, they can kiss that on-time performance good-bye. it takes forever to get kids on the plane. >> those of us with kids and have flown, we know this will be potentially problem for those flying. it's a policy implemented over the last couple weeks quietly. united has essentially said it will end the policy of a blanket early boarding for family with kids. they've stopped that so they can reduce the number of boarding groups. we talked with united today and a spokesperson for the company said having families board early ended up being more confusing, not less if families board with their group, it is simpler. we should point out it's not just united ending this era.

a number of airlines are looking at or have already restricted boarding times as they charge for certain restricted. some have access to overhead bins. as you take a look at shares of united, it's getting a lot of attention for this. bottom line, tyler, this is all about space and time. who has access to those overhead bins earlier because you don't want to check bags, that's why airlines are moving in this route. expect this to be the new frontier when it comes to what fees we pay to fly. >> all right. fill, thank you very much. we'll talk more about this topic a little later this hour. meantime, let's go to brian shactman for another market flash. >> thanks. it's also fascinating if you have status, you can bring your family with you when you board early having an elite status. pcx, patriot coal, stock halted several times. took it on the chin. they revealed in a filing that they have hired blackstone to explore some options.

rebounding today, not enough to make up for yesterday's losses. but a 13% gain on this tape. look at that including yesterday's losses still down 34%. 12%, 13% today, tyler, with the market overall being down like it is isn't too bad. back to you. >> brian, thank you very much. it's been a rough day for the markets, as brian just mentioned. let's take a look now just for what it's worth at some of the biggest losers of the day. dell, its worst day in something like 11 years. down almost 18% at 12.39 a share. red hat, down and corning and intel lower. counting down to the metals close. we're watching that meeting in brussels. waiting to see if any of the european leaders will have anything to say that will effect the markets. before the break let's take a look at the currency check. there you see the euro moving lower by a percent today versus the dollar. ar. still have doubts about taking aspirin for tough pain?

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loss, pfizer is presenting a drug to a panel that advises the fda. it treats a rare genetic disease that impacts a small patient pool of 8,000 people worldwide. yes, limited customer base, but pfizer could essentially own a piece of what could be a lucrative market. a trend we witnessed in the pharma space, getting that first-mover advantage allows the drug giants to dictate pricing. while the advisory panel will make their decision tomorrow, the fda has already expressed a lot of concern around this drug. but pfizer telling cnbc that its data provides substantial evidence that support an approval. ahead of that meeting the stock trading in negative territory. sue, over to you. >> thank you very much, seema. so let's bring in jeff. you know, the markets -- i'm just looking up at the board, we're off of our worst levels, but we're still down 139 points today. so how do you play it? how do you make some money in this market? and how do you protect what you've already made? >> well, you're right, sue.

it's not pretty out there. we talked on "power lunch" before about how to play this euro currency. and i used the etf eul, it's the ultrashort. allows you two-times the kicker here when you see the euro currency drop. we've seen the 125 handle on the euro currency. i think we'll see further drop as they have to devalue the currency to soften the recession possibly to repression. the treasury in the 10-year yield, it's a 10-year target and they want to go to it. when you see that, you can play that via tlt, that's the etf that allows you to get long as the yields drop. honestly, sue, what i see today to protect the assets as we see gold, we've seen this ebb and flow in and out of gold, what do people do when they get scared? we need the dry powder so we're seeing a sensational drop in the gold market. as long as 1523 holds in the gold market, i think you can come in here because we're going to talk about qe-3 here again shortly. no doubt about that.

so as we see that conversation light up again, we'll see the grab for gold. i like playing it in the minors. the junior miners. they're down about 3% today. i think that's an opportunity to get in, sue. >> all right. thank you very much, jeff. ty's going to take it from here. ty. >> thank you, guys. the metals market, we've just been talking about it about to close. we're going to go to nymex on a tough day for virtually all the commodities markets. gold, silver, copper, all moving lower. in 4 minutes 4 minutes you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms. how bout ya, joe? let's go ahead and bring it online. attention on site, attention on site. now starting unit nine. some of the world's cleanest gas turbines are now powering some of america's biggest cities. siemens. answers.

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all right. with the dow down 142 points, here's a look at some of the most actively traded etfs. we have a number of the spiders that track the dow jones industrial average and the s&p 500 on the list down better than 1%, almost 1.25% respectively. the power share down better than 1.1%. the russell 2000 is down almost a full percent on the trading session. and the spider gold trust, because we have a big selloff in the gold market, down better than 1% on the trading session as well. as jeff kilburg just said, they're selling everything today. gold is certainly not immune to that. and prices right now are closing. and sharon epperson is tracking the close for us from the nymex.

sharon. >> sue, traders are looking for safety. they just are not finding of course in the euro. they're not finding it in gold. they're going to the dollar. and the dollar strength, the euro's weakness definitely having an impact on the gold market. we have seen a little short covering going into the close for gold was down more than $40 early in the session. now it looks like we're going to close right around $1550 an ounce, right below that mark, down less than $30. keep in mind though what we are now getting back into bear market territory for gold. but the fact gold did not approach last week's low, $1526, here traders on the floor saying we may see gold prices continue to bounce from here technically. keep in mind though we are seeing selling across the board in the commodities market in the metals market. platinum, palladium down significantly. copper, silver as well. and of course we've been talking about this oil market with oil prices below $90 a barrel. >> sharon, one of the characteristics as you know

better than i do is the whipsaw nature of the gold market. given the fact that that eu dinner is getting started, the summit is getting started, how are traders going to hedge against whipsaw in the gold market? we're going to get a lot of headlines about all of these grand plans from the euro summit even though we may not see those come to fruition? >> i think we've seen how they're going to hedge it. they're not going to be in the market. we've seen a lot of liquidation today. and a lot of sellers, many more than buyers, even though a little short covering in the last few minutes, i think a lot of traders are on the sidelines. until we see the outcome of this meeting. and you make a very good point. we are going to see a lot of headlines and a lot of gyrations. and because there may not be as many players in the market, look for a great deal of volatility. >> thanks, sharon. appreciate it. >> sure. >> back here on the floor bob pisani rejoins me. they're selling everything today. throwing a baby out with the bath water. >> weird market. everybody saying it's going to be a disaster. other people saying greece will stay in, find a way to

recapitalize the european banks. that's going to be the hot issue tonight. get a statement on how they're going to do that. and if they can get some positive statement, we're going to have a big rally here. the market is by fer kated. a larger group of people think they're not going to find the formula. >> a lot of the market is hoping we will see a euro bond issue of some sort. simon is under the opinion that will never happen because the germans are against it. >> not only are they against it, but there's a problem with the constitution. >> right. they have to change it. >> they can create to the euro, but they'll have to make some constitutional changes. they're voting on a new treaty. that will take some time. the best thing that could happen with that is they create a group to get in and look at the details of what it will take to get in that direction. but they're not going to make an announcement they're going to have euro bonds. >> i don't think anybody expects that, but that's certainly one of the hopes longer term for the markets. >> recapitalizing banks. that's the story. >> thank you, bob. brian shactman, back to you. >> sue, interesting as the dow

comes back a little bit, kraft foods, kft, hitting the lows of the day. and the news of the day is interesting. they announced the official names approved by shareholders of the split. one more step in the process, mdlz will be the global snacks business and krft will be kraft the domestic grocery business. interestingly enough 90% of shareholders approved the new names. seems like some went out and sold the stock, tyler. >> let's find out what's moving at nasdaq. jackie deangelis is there. >> hey, tyler. all about dell today. you can see the stock down nearly 18%. this is after it reported yesterday. profit and revenue missing expectations. also that second quarter guidance a little bit weak. and we're seeing some pin action here as a result of it as well. hp, direct competitor, down about 5%. they're going to report after the close today. also seeing intel and microsoft down about 3% each. also cisco down about 1%. and you can remember that when cisco reported some of the commentary was the same as well about consumers delaying some of

their tech purchases. so that's what we're seeing in this stock. but on some of the down days here at the nasdaq there are still some bargains to be found. and some things doing well, starbucks is one of those names today. up about 1.6%. the stock upgraded by bank of america merrilll. they're saying shares have been corrected not because of a problem with the stock but because expectations are too high. >> jackie, thanks. stocks selling off today broadly. but guess what, as we mentioned, facebook is higher. tell you about some of the latest headlines. senate banking committee now investigating that facebook ipo. and the house financial services committee "gathering information" about the facebook ipo. this comes as facebook and lead underwriter, morgan stanley, get slapped with a shareholder lawsuit, probably several of them accusing them of hiding analysts lowered growth forecast for facebook while the ipo was being marketed. today is the first day investors can begin shorting the stock.

all this as needham initiates a buy rating on facebook stock with a $40 price target. the analyst who made the call is going to be on "street signs" today. sue. >> thank you very much, ty. director of research for thompson reuters and she has some advice on the other way for facebook. she says according to starmine research, the stock should be valued at $9.50. she joins us now to talk about that. it's based on intrinsic value, but how do you determine briefly and in english how you get to intrinsic value. >> well, sue, there's a lot of investors out there who believe facebook is going to turn out to be exceptional. what sbrensic valuation model does is lets how much the company worth today if it turn out to be good. having said tharks the company in order to justify its value today would have to grow at a rate of 23.1% every year for the next ten years. and its net income would have to grow eight-fold over the next

ten years. that $8 billion in profit would mean the company would have to be as profitable as google within ten years. >> within ten years. all right. so you have a revised growth rate that you think is more applicable to the company. >> yes. >> and it is significantly below 23%. >> right. it's 11.2%. which puts facebook's share price at $9.86. >> so what is your take then on why there are so many people on the street who can justify a price-to-earnings ratio that is in triple digits in a lot of cases and a growth rate which is well above certainly what starmine and what you've computed. >> well, the discrepancy definitely comes with the market. investors believe the company should be worth and analysts do. it's important to know we have studied the growth rate of fast-growing companies of tens of thousands for years. and what we've come up according to analyst the p/e ratio of facebook is 53.9 times earnings.

compared to the s&p 500, which is 12.1, which means the company would have to grow a lot to grow into that multiple. >> so if i understand this correctly, you're basically saying that the business model they are putting forward and the growth rates that are being projected do not hold true at all? the business model itself does not support that revenue growth? >> according to analyst expectations. they expect to grow from 47 cents, what the company reported last year to 80 cents in the next five years. so as you can see what analysts believe the company is going to grow is not the same as the business model put together by facebook. >> okay. thank you so much for joining us. appreciate it. tyler, it's going to be interesting to see which way the stock goes based on the difference between those very two biggest mates. >> very, very interesting and very, very different estimates. facebook's chief operating officer, sheryl sandberg, making her first public appearance since the company's ipo last friday. she is the keynote speaker at a

pre-graduating event at harvard business school. julia boorstin is there live. julia. >> that's right, tyler. with all this talk about facebook stock, harvard business school's graduating class is very excited to hear from sheryl sandberg coming up in just a bit, over an hour. the students we've talked to today have a range of opinions about what's been happening with facebook stock and the value of the social network. >> $100 billion is far more than it's worth. probably on the order of two to three x what it's worth. the market sets the prices. >> this company went public to provide value to shareholders long-term. and i think it will be rather harsh to judge returns perform the past four days. >> the markets are unpredictable. doesn't change my perception of her at all. i think it's the technology sector. things are volatile. i don't think anyone really knows how to predict the future revenue streams. >> we'll have to see whether

sandberg addresses facebook's stock movement or the ipo in the speech, which should start soon after the event begins at 2:30 p.m. eastern. in the audience are the 900 graduating students plus their families. everyone we talked to today did note that it's still early days for facebook as a public company. a couple people point out, hey, it's only been four days since the company started trading. it is unclear whether she'll address the trading issues at all. one thing is for sure is there is a lot of interest in hearing her talk about the topics that she did speak about at the barn ard commencement speech. the role of women in business and also the importance of innovation and technology. guys, tyler, back over to you. >> thank you very much, julia. now to the other top story of the day. the summit in europe set to begin right in this hour. our chief international correspondent, michelle caruso-cabrera, is here. michelle, some are saying there's an important power shift going on in europe right now. what do they mean? >> so on some trading desks

we're hearing a new phrase about the new phase, the street has taken control. >> not wall street. >> no. we mean the people on the street. the populations have started to control. this is a phrase coined during the latin american debt crisis. we're not talking about the johnny come latelies who told you to double down in brazil in the last five years. these are people who saw whap in latin america in the early '80s when 16 countries couldn't pay their debts. it refers to the idea that policymakers despite having the title are losing control of policy, that the people are choosing to make this on their own. they can do it through the ballot box. we've already seen that in france and greece. social unrest. we've seen that now for years. and then finally, the financial system. the most dangerous way that it happens. when people grow so fearful they start taking their deposits out of banks. we've had worries about that in greece. we saw the situation in spain. mission critical right now is

for european leaders to convince the european population their savings are safe. >> your thinking is that prolonged austerity is coming to these countries either way. one way or another either because policymakers choose it and stick with it or because the market is going to impose it. but let me ask you this question, do the policymakers get the idea that they've lost control of the situation to the populous? to the streets? >> european policymakers have been two steps behind every single step of the way. you heard simon say earlier, their mission is to scare the greeks into voting for the pro-austerity -- he's right. it's the mission. it's the wrong mission. more about what bob pisani is talking about. they need to work on convincing the populations of europe that the banking system is safe, that the euros are not going to be converted to something else. if they don't do that, and you see bank runs, god for bid, ayla, it's a wonderful life, the choice is made for them. the ecb has to decide are they

going to back them or not. long before any election happens by the way. >> michelle, thanks very much. watching the greek elections among other things over the next couple of weeks. sue. >> ty, let's recap some of the other big headlines driving today's session. keep an eye on walmart. shares of the world's biggest retailer hitting a new 12-year high today. metlife taking a hit though. the biggest u.s. life insurer getting two subpoenas over mortgage and foreclosure practices. toll brothers hitting a new 52-week high. that home builder swinging to a bigger than expected profit. and there was good housing data, as we told you a bit earlier today. up next on "power lunch," despite a selloff today, gm and ford shares have been moving higher. you won't believe who they're targeting to rev up their sales. back in a minute. in every way, shape, and form. it's my dream vehicle. on a day to day basis, i am not using gas.

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you know so much to talk about. the weakest name in the s&p 500 would be dell, but what about the number two name? they're also linked. red hat seeing a lot of weakness. you might ask why. earlier this month dell and red hat signed an agreement to basically produce hardware and software i.t. solutions together. so if dell is going to be weak and weak moving forward, it's going to be a negative for red hat. let's go over to mandy drury. >> okay. thanks very much, brian. coming up on "street signs" at the top of the hour, we are also going to be all over facebook. the stock is actually up on a generally down day. so the question here is has it bottomed? should you buy? we're going to ask a leading analyst making a very bold call. and with the market down, we debate hopium versus eurosis. should a recovering u.s. economy be driving your money? and we're talking dell with friend of the show abigail doolittle. it was her pick in the cnbc stock drive. find out if she is standing by her call. now it's back to sue and tyler

on "power lunch." >> thanks, mandy, very much. i'll take it. i'm looking up at the board at the up volume and down volume. the down volume is slomping the up volume. albeit we're still down 132 points. that is significantly off the lows of the trading session. on the s&p and the nasdaq we're at interesting technical levels. the nasdaq is down 22.64 on the trading session. that's better than it was earlier on. it's down about .75%. watch the 1300-mark on the s&p 500. we're only four points above that. and technicians on the floor are watching that very carefully. they don't want to see a break of the 1300-mark on the s&p. as for alcoa, it's one of the biggest losers today. it's down almost 5% on the session. it's a three-year low of $8.31 in today's session. lowest level since april 2009. some of the other big losers on the dow board in today's trading session, we told you about hp. it's down 4.75%.

american express is down too, but all of the financial stocks are under some heavy pressure today. chevron is down 1.35%. united technologies fairing the best and boeing on the downside. dell is down 17% on the trading session. auto desk, intel, net app also down with significant trading losses on the session. there are some winners. compuware is up 10%. expedia up almost 6%. lowe's bouncing back after getting hit hard earlier this week is up almost 2%. the euro, everybody is watching the euro ahead of the summit. it's down considerably. it's down almost a full percent against the u.s. dollar. it's a 20-month low against the greenback. oil breaking below $ 90 for the first time since november 1st. it's down 2%. ty, you're up to date on a dismal market day so far. >> you can say that again. the automakers are revving up sales. but what kind of consumers are

buying? our phil lebeau is in chicago with exclusive data. phil. >> tyler, this comes from experion. this is the first quarter data. in the question of who's buying right now? more people with subprime credit ratings. some encouraging news, repossessions down 37% in the first quarter. delinquencies also down. there you see the average credit score. its lowest since q-1 of 2008. now, the average new car auto loan also grew. people are expanding the length of the loan. it's up to 64 months now. and 6 plus-year loans are up 15.4%. average monthly loan payment $461. that's roughly on par with where it was a year ago. but look at who are taking out the auto loans. look at the three left hand side. they make up about 24% of the auto loans that are out there. and that's the group. when you take a look at the auto

dealer stocks, a lot of these auto dealers are benefitting because they have expanded the loan pool. in other words, they're writing loans for people now with lower credit scores. doesn't mean they are riskier loans, tyler and sue, it does mean we're seeing a healthier automaker. and we're going to see this continue probably for the rest of the year. more people with the lower credit scores buying new cars and trucks. >> makes an awful lot of sense. thank you very much, phil. meantime, ford getting the iconic blue oval back thanks to an upgrade. moody allowing ford to get back assets like trademarks, factory and its corporate headquarters. in case you didn't know, the ford logo was used as collateral in 2006 in order to get a $23 billion loan to restructure its debt and avoid bankruptcy. ford executive chairman bill ford first on cnbc spoke about it on the road ahead. >> we still have more to execute. as you know, we're growing very quickly in asia. we're opening eight new plants

in asia pacific in the next few years and have over 50 new products and power trains coming there. and we continue our march on in north america where we're doing very well. and we're facing our issues in europe head-on. >> ford shares up more than 30% since 2006. and today they're trading up almost 1.5% at $10.33. ty. >> next up, sue, facebook shares rebounding today following the big selloff since the ipo last friday. lawsuits being filed. so how does mark zuckerberg and facebook -- how do they move on?

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time for today's power rundown. joining me now cnbc.com net-net senior editor, john carney and jeff kilburg. i'll be shaggy. first up, the facebook ipo fiasco really seems fair to call it right now, shares finally trading higher. maybe short covering despite a lawsuit filed today. morgan stanley cio was on

"squawk on the street" today. let's listen to this. >> ipos can be challenging at times. facebook is very strong franchise. and i think for a long-term investor, it's probably going to make sense on a long-term basis. >> did morgan stanley mishandle it? >> i think the market had a lot of challenges around that issue. >> the market had a lot of challenges. did they mishandle it, jeff? do you think? do we know? >> i don't know. but the more important factor is where's mark zuckerberg? did the hoody go up and jaw get stuck? he needs to come out in front of people to reassure. carney, you were saying earlier, just put $18 billion out to the public. we want to see you, mark. >> apart from jamie dimon who really took the mea culpa. it's not uncommon for ceos to go underground. >> i don't think he can do that. facebook is about connecting people. they can't disconnect and say we're not going to show up. >> can facebook get its mojo back? >> i think it can. i think the short covering -- we

haven't seen a real short covering. i don't think we talked about that earlier in the show until tuesday when the options really started trading. you'll see potential go back above $40. i would like to see it above $40, ty. >> the brand is big, john. but can something like this tarnish the brand? not just the equity. >> i don't think it is tarnishing the brand. >> okay. >> people -- remember, facebook has a young user base. a lot of them aren't even investors. people right now still like the product that they get from facebook. and i think ultimately that's what's going to carry the company through. >> let's talk about something we may be talking about long after the ipo is in the rearview mirror and that is the eurozone crisis. a lot of focus on greece elections coming up. which is more troubling here, spain or greece, jeff? >> well, i think greece. even though it's small, we've talked about this. it comes from the german angle. in the event this bad behavior persists, how does europe create a euro bond? because like my kids at home, we have a good chart on the fridge

for rewards, good behavior. there's no good behavior. there's no stickers being put on the chart there for greece. i think that's an example on a template to use for spain, italy and the rest of them. >> john. >> i think that greece is the more immediate danger. of course it would be a catastrophe if spain went the way of greece. if we were talking about spain going off the euro, that would be a global catastrophe. i think the world can handle greece. the grexit -- >> let's move onto something phil lebeau talked to about earlier. that is the idea united airlines is dropping early boarding for families with children. is this a bad move for that recently merged airline? it's going to make people angry? >> bad idea. they're shooting themselves in the foot. i don't think they realize that they're going to have flight delays, they're going to have excess gasoline being burned at the gate. and i think the sentiment once you're on a plane when people come down, i have two young kids, ty, this is a situation you're loaded up.

you have a car seat, diaper bag. and you come down and you hit someone, that produces a pretty unsavory sentiment on the plane. >> but aren't they likely, john, after an interim here to charge more for early boarding? >> sure. it's not going to work. this is a disaster. do you want to be the airline that hates your children? no. this is not going to work out for them. they're going to take this back. every other airline is going to tout the fact that we still love your children, fly us instead. this is the child unfriendly airline. and they're going to have to take back this policy. >> you can see the southwest commercial right now, right? >> absolutely. all right. facebook haters, bow to your new leader. outspoken critic here with a doomsday scenario. that comes up next on "street signs." always peppery, always provocative, michael wolff.

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all right. recapping the markets for you. we're still on the downside by triple digits, but the dow has pared its losses. we are down 11.3 points and the nasdaq composite off 20. >> i know, jeff, you've been watching oil and its decline and how to play it. >> well, the xle, that's the etf at