major markets. buy it here. >> guy? >> for reasons that should be self-evident, kimberly clark. >> joy global. underneath 55 you got to love it. >> watch more "fast" tonight at 5:00. way to go, guy. "power lunch" begins now. "half-time's" over. the second half of your trading day begins now. >> they're running over here, ladies and gentlemen. cameras are coming. i'm tyler mathisen. welcome to "power lunch" for a tuesday. top story is this question. should the united states basically bail out europe? we're not joking. we are serious here. we all need to think about it, face it. there are consequences if we do and potentially if we do not. let's turn to the markets right now. right now the dow industrial is a little wobbly, a little nervous here, but up. gold is higher by $6.

texas crude, the bubbling crude, down a penny. >> ty, as you know, we have a host of names, faces and great opinions today on our top stories. on the roster, steve liesman, trader dan fitzpatrick, ubs chief equities strategist in the u.s. jonathan galob and bruce kazman. at 8:30 a.m. this morning on "squawk box" our senior economics reporter steve liesman was making his case about why the u.s. must be focused on europe's financial crisis and why we must be ready with u.s. dollars to make sure the old continent remains solvent. >> you guys create x, we will give you y and solve this problem. >> you should give them money? >> yes. >> you should give them money? the european union has enough money. >> are you happy now? is this working for you? it ain't working for me. it ain't working for markets. and it's not working for

anybody. this is not the way civilized people should be living. >> you want us to go lighten europe, who's going to lighten us? >> let me finish. let me finish one second. you know what? all of them still want to be re-elected. what they have to learn from latin america in the '80s is none of them are surviving. >> all right, bruce. you heard it first right here. what do you think? is the u.s. responsible for europe? does steve have a valid point? >> i feel steve's pain. we're in a situation where there's a lot of stress. and the stress seems to be getting worse. but i think the simple point here is europe doesn't have a problem that it's lacking funds. the issue in europe is an issue of growth. it's an issue of how to allocate burdens and the disagreements among them. i think it's an issue here ultimately of what the region is going to look like politically. and injecting u.s. money into that is not going to solve any of those problems and in some cases could actually make it worse. >> steve, it could make it worse. what do you think? >> am i visibly bleeding from the arrows that have been shot

my way, sue, suince i brought u this idea? >> you should be. you look good so far. you should be. they were flinging a lot of arrows. >> i am pointing out the incremental approach of praising the small increments of european progress and kind of being quiet about it. we should step up. ramp up the rhetoric. create a pot of money that is about a third of what the europeans put up as incentive to bring them together. as i think about the politics, i do not believe europe is going to come together on its own. i agree with bruce the idea of growth is important. but i think, bruce, in the first order i put stabilization. they need to have the tools that we have. roger aldman said it this morning. i wasn't even talking to him. when i was thinking of these ideas in the last several days. you need to have the deposit insurance, bank bailout money, those tools that stabilized the u.s. they do not exist in europe now. >> the market carnage that is being created by the lack of

action, basically, is what's -- what steve's point is. the damage that's being done right now. they have the funds, as you said. they just don't have the political will to put it all together. as a result of that the rest of the globe is suffering. >> there's no doubt about that. there's also no doubt that it could get a lot worse here. but issues around deposit insurance, issues around bailout funds for a country like spain, possibly support for a country like italy, that money exists. it's a question of how that money will be used. the money won't be there to solve problems. it'll be to create a window for other adjustments. but the money's there. there is 500 billion euros of funds available. there's an ecb balance sheet which can be tapped on in potentially an unlimited fashion. this is not about an insolvent reej p. this is about a region that needs to make decisions. we need to put as much pressure on them as possible to stabilize things, to make the global environment better. >> maybe up the rhetoric, as steve suggested? >> i promise you that rhetoric is going on behind closed doors. this is not a situation where

the u.s. is looking at this and saying this is not something that affects us. >> all right. jonathan galob, tyler, i think is with you on this. >> he absolutely is, sue. let's bring him in. chief equity strategist for the u.s. at ubs. jonathan, the markets are wondering what is going to happen in europe. how do you see what they were just talking about there? the u.s. getting involved, perhaps through the imf in some way, to try and stabilize what's going on in europe? >> first of all, we have -- last year we ran a $1.3 trillion deficit here at home. clearly we have our own issues. that's where we're having all these fiscal cliff discussions at the end of the year. but i agree. i think, the consensus view is this is a european issue. the president and elected officials are going to have a very tough time bailing out europe when we have an 8% unemployment rate here at home. >> steve liesman? >> i just would ask jonathan, can you ever see us solving our fiscal problems, without growth

in the united states? can you ever see growth in the united states while the hammer of europe still hangs over the u.s. recovery? that would be in the first instance. in the second instance i am not talking here about a large amount of money. in the first instance i'm talking about u.s. leadership. getting the u.s. to bring together some of the emerging market countries and other countries to create what's already been discussed, which is a large fund available for europe. it's just been done sort of -- europe's been very reluctant to put itself behind it. the u.s. is the only country in the world that can still lead the world. and the world is suffering from its lack of leadership. >> steve, i agree with you. but i think that mechanism is in place with the imf. ultimately, we are providing funds for this through that participation. >> right. >> so, you know, i think that the bottom line here is there's a lot of pain to be felt, not -- even more than we've already felt already. and that's going to have to be shared. and the question is, who's going to bear the burden of some of that pain as we work through these issues, not only here but abroad? >> bruce, you could make the case that the individual

investor is bearing the pain in the volatility that we're seeing in the market. i also wonder whether there's any political will here in the united states to have the imf step up with more u.s. money and help solve europe's problems. i mean, we have a few of our own. you commented on that friday on the jobs report. >> well, let me step back here a second. i want to -- i want to say that i think what steve is dealing with is the problem we had last year in europe where it wasn't clear that governments in europe were going to pull resources together enough to have a firewall. that firewall is in place right now. we're not debating whether europe has enough funds available. we're debating how those funds are going to be used and what the conditionalty, who's going to suffer the burden. spain can get a package now. it doesn't want to because it doesn't want to suffer imf type conditionality which would come with a program. the problem in europe now is different than what we had last year. it's not about whether there's sufficient funds. it's about whether or not there's agreement on how to generate growth, how to use funds in terms of sharing burdens, and it's a much more

existential problem and a much more difficult one. there's no doubt, by the way, this is affecting everybody. it's affecting credit channels globally. it's affecting sentiment. i don't think the payroll report we saw last friday is being driven directly by what happened in europe. the fact that the u.s. isn't as robust and showing as much momentum makes things certainly more worrisome in an environment where we have that european stress. >> that payroll report certainly is evidence that businesses' ceos are cautious about adding to payrolls. you put out a note, bruce, in the wake of that weak jobs report last week. it had wall street buzzing over the weekend. it talked about quantitative easing. the note says, and i quote, the weakness in the u.s. labor markets and rising concern about the global backdrop now look likely to prompt further easing at the next meeting. jonathan, do you see it that way? >> no. i disagree here, actually. i think that if you have an economy that maybe is growing at 2% instead of 2.25% rate in the

u.s., i don't think that's sufficient for the fed to jump in and bail us out every time that there's a little bit of a softer patch here. frankly, if things go badly, either with respect to spain or greece, the market's going to need a flood of liquidity. perhaps kind of like what steve was talking about. and i think that the fed is better off keeping the powder dry in case you actually have a -- >> really, really needy. >> that could be weeks or months away. i think that's more important to hold off, yep. >> bruce, if qe-3 is, indeed, back on the table in your opinion, what form would it take? we already have a record low set in the 10-year yield last week. i know they could go lower, certainly. there are those who argue that qe-2 may have kept us back from the abyss. what would qe-3 look like? >> i think the most likely piece will be an operation twist program which, perhaps, shifts towards purchasing mortgage securities. i think if we want to ask the question what the benefits of

that are, it's not going to be in getting rates lower. it might be in preventing rates to be moving up here a little bit or risk appetite to be going down a little further. in a world i think markets are already building into the structure of rates the idea that the fed will come in. i do think the fed will give us some insurance here because the economy is disappointed. because the global backdrop is worse. i don't think the fed has any illusions they have a bazooka here. >> let me quick jump in. >> i think we just had qe-3. the qe-3 is the fact you've had a substantial fall in u.s. interest rate at the 10-year level. effectively doing the job for the fed. and then you've also had wti go from 110 to 83. i mean, that's a huge amount of stimulus. the fed, i think, ultimately can take advantage of that without doing something. >> steve, when are you hearing? or thinking? >> i worry about what i said yesterday. which is what i call ge. gratuitous easing. the fed would ease because the market expects it to without real hope of actually having any

effect. as i think jonathan just said, the idea interest rates are already very low. why would the fed come in? what would be the effect of that? i think the fed has to at least present the illusion of doing something and having a plan to get it done. u don't thunk we've reached the threshold yet for the fed to come in. but i am deeply concerned about bruce thinking that because that has to weigh heavily in my thinking. >> thank you very much. steve. our guests, mr. kassman, mr. golub. we'll call you personal injury injuries. kasman and golub. the law firm for financial injuries. sue? >> they're going to stay with us throughout the hour to talk about these very pressing issues. the question is, what would you do if you had a portfolio hanging in the balance? dan fitzpatrick is with us this week on "power lunch." the president and technical analysis for stockmark stockmarketmentor.com. you've been listening to the conversation. with the uncertainty what are plays investors might look to do. >> there's two ways we can trade this. one would be on sentiment. the other on pure price action. let's fwo to sentiment first. i've got the vxx.

it's a volatility index tracking fund. this is related to the sentiment of the market. how much are investors willing to pay for portfolio protection, buy downside puts and things like that. that's not really important for the trade. what we're really looking at is this. as fear goes up, so goes the vxx. and what we're looking at is if we've got bad news out of europe to where it drives the market lower, you're going to see a nice hedging strategy by just buying the vxx. up about 21 now. the high was 56. it has a lot more to go. also another way we can trade it is just trade the sh. that's the inverse etf for the s s&p 500. there's been a lot of pain particularly with the retail investor. the way to trade this is you buy this, it's going higher lows and higher highs. back to tyler. >> dan, thank you very much. key recall vote in the great

state of wisconsin expected to tell us a lot about what may be ahead in november. john harwood is there live in madison, next. plus, a new report on your house's value. before the break, the big names on wall street one more time. that great clip from "squawk box" as you look at those numbers. >> solve this problem. >> you should give them money? >> right. >> you should give them money? they have the money. the european union has enough money. >> are you happy the way we're living, michelle? are you happy now? is this working for you? it ain't working for me. it ain't working for markets. it's not working for anybody. this is not the way civilized people should be living. >> you want us to go lighten europe. who's going to lighten us? >> let me finish! let me finish, one second. you know what? all of them still want to be re-elected. what they have to learn from latin america in the '80s is none of them are surviving.

the political world is focused on wisconsin today where a recall vote is being seen as a barometer of the political mood of the country right now. a lot of money has been pumped into that state. john harwood is in madison. john, this all started as a fight over jobs and labor and benefits. and it has really taken on national significance now. >> reporter: that's why there's more than $60 million been spent

on this governor recall election. there's also some state senators on the ballot for republicans on the recall ballot. but, tyler, you're exactly right. you know, scott walker came into office, elected in 2010. he beat tom barrett, the guy he's on the ballot against today. he very aggressively went after public employee unions who many governors have targeted. but not quite so aggressively. he's gone to strip their collective bargaining rights. that prompted an incredible backlash. that's why the recall is happening. it's morphed as this thing has become bigger and bigger into a larger discussion about the state of the economy and how well walker has done. >> what is the national consequence here for the presidential race? >> reporter: well, i think a couple. first of all, if scott walk erwins, republicans will be emboldened elsewhere to take some of the same steps. it will be a sign that the resistance of public employee unions to moves of that kind to save money, balance budgets, is less than some people had

thought. it will encourage republicans to think that they've had a rebound in the midwest. one of the things republicans have could wanted on as they look at democrats seeing demographic change helping them in the southwest, particularly with the growth of the hispanic population, is they think they have a counterveiling trend in the industrial midwest where economic difficulties have made it more competitive for republicans. wisconsin is a state, tyler, that democrats have carried six times in a row. president obama buy 12 percentage points in 2008. george w. bush came close here. there is every reason to think if scott walker has a big victory in a high turnout election today that mitt romney might be able to make a run for it in november. >> this could be a key state, as you try and tally up that 270 in the electoral college. john harwood, thank you. to housing now, ty. the desperate search for signs of recovery. we may be seeing it in higher home prices in some areas of the country. diana olick is live in washington for us. hi, diana. >> hey, sue. two months isn't exactly a trend yet.

but it's a start. especially for tad's housing market. home prices in the positive. take a look. including distressed sales. that's foreclosures and short sales. home prices rose 1.1% in april from a year ago according to core logic. take out the distress and prices were up an even stronger 2.6%. those are national number. you know how much i love those. important to see where we're getting the gains locally. it's in the disstressed markets like arizona. prices up 8.8%. florida, 5.5%. michigan, up 5.1%. don't forget, though, these states are where prices fell the hardest. also note that these numbers are looking back at spring. so what's ahead? well, the asking price report portends the future about two months. after rising for three months, asking prices flattened in may. that may be the seasonal slowdown or it may have to do with that not so stellar jobs report that we just got. one more thing to note. numbers. rents are still rising.

and accelerating in their gains. that, too, from trulia.com. rents up 6% in may from a year ago. rents in several major markets now up well over 10%. if you want more numbers, we've got them for you on the blog. real realtycheck.cnbc.com. let's bring back in bruce kasman and jonathan golub. bruce, diana laid out the fact we are seeing pockets of strength. overall how do you feel? >> i think housing is beginning to recover. but it's still pretty gradual. it's still vulnerable particularly to weakness in the labor market. i think what we've had happen is signs that there is some healthy labor market news. the economy has generated some growth. we're getting household formation. prices are also stabilizing because we're seeing a shift in the inventory of homes from the purchase market to the rental market. that's helping out. this is good news. if it was allowed to continue with low rates, we will see some meaningful improvement down the road. but the real fundamental that needs to stay in place is growth

and job formation. that becomes, i think, the key risk. you give me 150,000 jobs per month. a year from now housing will look a lot better. >> do you agree with that, jonathan? is the key really jobs growth which provides stability on so many different levels of the economy? >> i do. i think ultimately the strength you're going to see in household formation which bruce was talking about or rents and the like, a lot of that is based on how much disposable income people have in their pockets. jobs are obviously really important. i think it's just important to note from an economic perspective there's a huge difference between what you're seeing in construction activity, which is what goes into gdp, and what creating jobs, and simply home values being up. if you look at construction activity, that's been picking up now for quite a while off of a really low base. though it has less of an impact on the overall economy, because it's such a small number today. it's so depressed from where it's been in the past. >> gentlemen, thank you. we'll see you again in just a

little bit because you're both with us for the whole hour. all right. over to you, ty. you've heard about the london whale and managing all that risk on wall street. coming up, how you should identify and manage the risk in your own portfolio. also ahead, what the analysts are saying today. three big movers after the break in our segment calmed "analyze this." before the break, five big losers led to the downside by fastenal, off nearly 9% or above 9%. [ male announcer ] this is corporate caterers, miami, florida. in here, great food demands a great presentation. so at&t showed corporate caterers how to better collaborate by using a mobile solution, in a whole new way. using real-time photo sharing abilities, they can create and maintain high standards, from kitchen to table.

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it is time for "analyze this" on a tuesday afternoon. analysts quite today. we found three good calls to comment on. dan fitzpatrick is here to tell us whether he agrees or not. ready to go here? bmo capital reiterating its buy on dollar general. we reiterate our outperform rating based on sustainable, above average and square footage comp sales growth and material improvement in the last year. up 47%. you buy this call here? >> yeah. i like the call for kauple different reasons. first, i agree with their fundamental take. also the stock, they just issued a secondary stock. pulmoed back to a nice long-term trendline. i think that's where you want to go. >> number two here, it is baird. they have upped piedmont natural gas from neutral to outperform. price target now 33 bucks a share. look at the stock. we'll show it. that's what they say. 33 bucks a share. it's down 6% in three months.

there you see it higher a little bit today. what do you think? >> i like the call, but only for the patient. this is utilities. you're not going to get rich on this stuff. you're not going to get real poor either. over the long term over the last couple years it's had a nice series of higher lows and higher highs. it's a nice trade to the upside. 10% on the stock. 4% dividend. that's twice the s&p. again, for the patient, go. >> you have no quarrel with the call here? >> no quarrel with that. >> wait for a year and it's going to be all right. >> literally 52 weeks. >> finally let's turn to cbs. zacks says they like it. it's their bull of the day. is it bull? >> no. i think it's bull. i think there's a lot of snorting, but not too many horns there. here's the thing on cbs. you can see it pretty clearly. nice long-term trendline. nice long-term trendline. but it's broken the trend. it's got a broken trend. you want to sell this into the

strength. particularly if it goes up to 32, 33 bucks, you want to sell the stock. >> down with two of them. separate yourself there on cbs. >> love them. >> thanks very much. lots more ahead today. that will include, of course, the close of the metals market. that comes in just seconds. plus, managing your own risk. you've heard about the problems the big guys have had with risk. and we have advice for you, next. ttd#: 1-800-345-2550 ttd#: 1-800-345-2550 let's talk about market volatility. ttd#: 1-800-345-2550 in times like these, it can be tough to know which ttd#: 1-800-345-2550 way the wind is blowing. ttd#: 1-800-345-2550 at charles schwab, we're ready with objective insights about ttd#: 1-800-345-2550 the present market and economic conditions. ttd#: 1-800-345-2550 and can help turn those insights into ttd#: 1-800-345-2550 a plan of action that's right for you. ttd#: 1-800-345-2550 so don't let the current situation take you off course. ttd#: 1-800-345-2550 talk to chuck. ttd#: 1-800-345-2550 sfx: sounds of marching band and crowd cheering sfx: sounds of marching band and crowd cheering so, i'm walking down the street,

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the gold market has been extremely volatile this week and gold prices are closing right now. jackie deangeles is at the my max. >> a pretty lackluster session for gold today. a lot of traders are waiting on the sidelines for two ones. the ecb meeting tomorrow and bernanke's comments on thursday. 1612 spot five. that was the low of the day. we tried to run for 12625. we did fall short. gold is still holding on to some of the gains we saw last week. that $60 rally we saw on friday, the biggest one day gain in nearly a year. as one trader put it, he said it's all about bernanke and his birds. if we see the hawks, we can get to 1700. if we get doved, we could go as

low as 1500. just quick on the other precious metals, seeing a little bit of pop in silver. palladium as well as platinum. but it was copper, of course, that was a little bit lower today. the issue there, we're seeing some paring of those growth sensitive assets. back over to you. >> thanks. let's get the trading action down here. courtney reagan joins me on the floor of the new york stock exchange. we're kind of treading water right now, courtney. there are so many events hanging in the balance out there. it's hard when i talked to traders this morning to get anybody to go aggressively long or short this market. >> i'm hearing the same thing, too. it's really a holding pattern. i've got a lot of guys saying i might take off for the day. not much going on today. there could be tomorrow. we're really hoping for more news out of that g-7 emergency conference call than what we actually heard. now again looking to the ecb and ben bernanke both tomorrow and the next day. take a look at the financials this recently roughed up group helping to lift the groder market. dow components bank of america and jpmorgan both up. going against what tanlists are

saying. really it doesn't seem like the market is paying too much mind to that. morgan stanley also up. still down pretty substantially for the week. still hurting from what happened there with facebook. if you move on to utilities, we saw some interesting movement here right around the time big europe closed. the s&p utilities gained strength at that pivot point and since then have been outperforming the broader s&p. the dow utilities have been outperforming since about 10:30 this morning. home builders getting a big lift after core logic's home price intex was up both for the month and for the year. sort of inspiring some stabilization hope for the broader housing market, lifting those stocks. and the ishares home builder index is having its best day in a month, up as much as 3.4% at one point intraday. still down more than 4% from a high hit on may 2nd. sue, back to you. >> thank you very much, courtney. yields on the benchmark 10-year bond bouncing back after we hit

a record low late last week. rick santelli is tracking the action for us at the cme. hi, ricky. >> hi, sue. you know, so far a sub 1.50 yield close is relegated to friday of last week. we are now tuesday, second day of the week. look at a 2-day chart. we are hunkering down, so to speak. we talked a moment ago about how equities are somewhat flat lined. same with treasuries in the mid 1.50s. foreign exchange. the good. actually i think it's the bad. this is the dollar/yen. this is in terms of the dollar year to date. this is one currency the dollar is not doing well against. i'm not sure the japanese are enamored with that activity. euro versus dollar, we know how that's moved. look at the australian versus the dollar year to date. this might be the proxy for an

economy known for commodities that may be nervous about what's going on in china. add another dimension. they have a darn good central bank. they continue to benefit or not benefit from inflows from europe. they yeeased a quarter of a poi to 3.50 today. lowest rate since 2009. tyler, back to you. we're talking about risk and reward today. how to identify it. how to manage risk. how to capitalize on it. tom forester, a long short equity fund with a four-star rating from morningstar. i should point out this fund, tom, was the only u.s. equity fund not to lose money in 2008. that is a pretty good compliment for you and your stewardship of that fund. >> thanks, tyler. we also made money in 2002. as far as big dips, i guess we're two for two. >> that sounds pretty good. we've got another year where there look like there are plenty of dips out there. tlets let's talk about how you

position your portfolio right now for today's market and what you see. how much is long? how much is short? >> sure. you know, we look at systemic risk. so, you know, if we don't see many systemic risks, it's like a blue sky, we're all in. if we see some systemic risk, maybe white clouds, 20% or 30% hedged. today we're seeing black clouds out there. we're about 65% hedged right now. the black clouds that we're seeing is over in europe. right now you're seeing bank runs in spain. you know, we're concerned that this could lead to systemic risks over there. >> let me ask you what that means in terms of what i should expect in the stock market. if the stock market is going to go up 10%, but you're 60% hedged, what kind of return should i expect ? on the other hand, if the stock market is going to go down 10%, what kind of gains or losses might i expect given your hedge position? >> sure. it's a tdynamic process.

it's not always going to stay. we're at 65% now. we'll change that. so if the market goes down 10%, you know, if we stayed at 65% hedged, you know, you'd expect maybe 3.5% downside move. although we would probably scale down and end up with just about a 1% or 2% downside move. if it goes up 10%, you know, hopefully we would scale down on the puts and get 4% or 5% of the upside. >> that's how you do it. >> exactly. >> i want to identify a couple of the value stocks. that's what you do. you zero in on what you think are value plays. and there we're looking at them. the four horsemen of your portfolio. take me through a couple of them. >> sure. >> why the energy sector right here with oil prices going down as they have? >> well, i mean, they're downright now. we still think that there's limited supply out there. we think over time oil is a good place to be. chevron and exxon both. great positioning. chevron's more on the oil side. it's struggling right now with something in brazil, but we

think that'll get resolved. but they're cheap stocks. we like where they're positioned. we still think oil is a great play. it's not going away. the price is down now, but we think we'll do fine. >> you think exxon's not going away, do you? you are all in on that one, baby. i love that. let me bring in jonathan golub and get your reactions there. tom says he sees dark clouds. not just white puffy ones. so he's 60% hedged in his generally domestic equity portfolio. does that sound like a prudent call to you? >> i'll tell you, when i'm talking to other long/short managers which i spend a lot of my day doing, they're kind of in the same place where they've taken a lot of risk off the table. not because they think things are going to go badly in europe but because they really have very little, you know, ability to look out and see through the current situation. what's interesting, though, is if things go badly in europe, you know, some of those energy stocks end upta taking a hit. how you hedge those is really an

interesting thing. it's not only how much long or short you are but the kind of inventory you hold. banks is another example of an area that's dangerous to play right now. >> interesting. sue? >> bruce kasman is still with us as well, ty. bruce, you know, we heard the storm cloud scenario. but the other thing that i really keyed in from our guest was the words systemic risk. given what you've studied in europe, given what we're facing here in the united states is systemic risk still on the table or do you think we're somewhat more immune to it as investors try and balance the risk in their portfolio? >> i think europe is the issue here. i don't see anything in the u.s. from a domestic point of view here. even if growth disappoints here that can create that kind of financial shock wave. i think we have an open door here if something really does go wrong in europe. there's no doubt that markets have priced in bad news in europe. but they haven't priced in the potential for what could really happen here if the system begins to fall apart. >> are you surprised they haven't done that, though, given how long this has all dragged

out? and now we have spain in the mix in a very meaningful way? the market's supposed to anticipate. but apparently it's not. >> i think what the market is doing is it's putting a weight on an event which would be terrible but still is relatively low probability. i don't think we should underestimate the capacity for europeans to do too little but also to do enough to prevent the system from breaking apart. that's kind of what we'd be looking for. the markets are pricing in some scenario that has a modest weight on very bad outcomes. but it also, i think, is still looking for the most likely thing to be that europe muddles through here. muddles through in a way that continues to damage the global environment, but not break it apart. >> not break it. i'm glad to hear you don't think they're going to break apart the global environment. >> thanks to bruce, tom and jonathan for your participation. it's been very interesting. thank you, gentlemen. headline time here. excel energy trading at levels not seen since january of 2002.

different story for kellogg. the cereal maker trading at lows that it hasn't seen since august of 2010. disny is planning to limit advertising for junk food on its tv and radio programs, which, of course, are aimed towards children. coming up next as we continue on "power lunch," nat gas rebounding from record lows. is the commodity worth investing in? find out what exxon mobil's ceo says that's going to surprise you. "power lunch" is back in two minutes' time.

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coming up on "street signs" at the top of the hour, should starbucks just stick with flinging lattes? fresh juice, booze and now a bakery. why bread could mean a lot of dough for the coffee king. plus, nintendo's u.s. president gives us a look at the new wii as gamers struggle in the ipad and iphone world. disney tuning junk food ads on kids tv. the debate. also, the first comment since the facebook ipo. one of the early investors in facebook. you've got to tune into "street signs" to find out what he has

to say. back to you. >> i'll take it, mandy. thank you. see you at 2:00. president bill clinton sitting down for a big interview with our maria bartiromo speaking about a host of big market moving issues like europe, the economy and, of course, the race to the white house. but high on the agenda, the defense of wealth creation. and the space between president clinton's position and that of president obama. >> it seems that these attacks against private equity, against wealth, have turned people off. >> well, the american people are remarkably -- one of our great characteristics is we don't resent other people doing well. we want people to do well. we like it when people make money. but we want them to do it in a way that benefits the overall economy. the point i was trying to make the other day is that you have examples of private equity doing good and bad things over the last decade. you can look -- if you go in and there's a company that's not doing well, it's failing, and you buy it and you have to

impose some economies there and cutbacks because you're trying to turn it around so it can thrive in the economy, whether you succeed or fail, that's a good thing to do. >> you can see maria's entire interview with president bill clinton today, 4:00 p.m. on "the closing bell." back to the markets where nat gas prices have been rebounding from record lows hit earlier this year. they're still down, though, more than 15% in 2012. the international energy agency says a surge in supplies will see the u.s. overtake russia as the world's biggest nat gas producer by 2017. that's despite the low prices, which, of course, have slowed the pace of drilling. the iea says gas could displace coal as the leading fuel source for the u.s. power industry in as little as five year. global demand will rise. china is expected to lead that demand. the ceo of the world's biggest energy company says nat gas isn't worth investing in. exxon mobil's rex tillerson on

cnbc earlier this morning making his case. >> if you look at the cost of developing incremental supplies of natural gas in the u.s., it's pretty difficult to justify investments with prices this low. in terms of being sufficient to support long-term investment in new and ongoing supplies, that'll be difficult at this price. >> well, let's check how the big nat gas players are doing this year. apache and chesapeake down the most by more than 20%. that's followed closely by bp, exxon and devon energy. should you put your money in that? ty? >> dan fitzpatrick, is it worth investing in nat gas stocks right now, dan? >> you know what, tyler, they're all still pretty much in a down trend. if you do believe in the natural gas story, i doubt we have the chart, but if you look at the ung, an etf of natural gas, it's starting to look like we're making some higher lows. if i was to make that trade it would be in chesapeake. here's the deal. since the high of 2011,

chesapeake fell about 60%. it's still down 50%. the main issue with this company is just the headline risk of its ceo's troubles. that doesn't really impact the fortunes of the country. not as much as natural gas. i would watch the ung. i would look for chesapeake to maybe have about another 30% of upside in it if natural gas starts to move higher. that would be my trade. >> all right, dan. thanks a million. coming up next, facebook shares as you know, under pressure. some are questioning whether this company is gone within the next ten years. plus, the queen's jubilee celebrations. of course, they're lifting spirits and celebrating a great lady. they're also expected to cost the uk economy billions. was this really a smart move for a country racked with debt? we'll talk about that when we come back.

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power rundown time. joining us today, cnbc's darren rovell who has a few thousand thoughts about everything. most of them are tweeted, by the way. >> i save the good ones for on

air. >> jon carney from cnbc.com. let's talk first about facebook and the fallout contained in a new poll today. finding that facebook ads do not sway most users. and as an activist investor eric jackson sees it nothing's going to help as facebook, he says, is toast anyway. listen in. >> in five to eight years, they're going to disappear in the way that yahoo! has disappeared. yahoo! is still making money. it's still profitable. still has 13,000 employees working for it. but it's 10% of the value it was at the height in 2000. >> facebook, yahoo! 2.0, darren? >> i got to say, there's a lot of smart people. there's a lot of intellectual capital there. like google they've fostered an environment of coming up with new things. i have a hard time believing that if the ad market for facebook isn't robust enough, that they're going to go bust. that doesn't make sense to me. >> i don't buy it either. i actually think facebook is still run by the innovators who created it.

unlike yahoo! it also has a lot of ways -- new ways just earlier last week, they came up with new ways of making money by selling your ability to keep likes on people's pages for longer. they're still innovating ways to make money. it's not necessarily going to be the banner ads that we're used to. >> do you worry that maybe zuckerberg doesn't know how to run this company? he knows how to mine a good idea. >> there's a difference between being a ceo and a founder. we know that. >> that's right. perhaps he's not the guy to take it to the next generation. >> i actually think he is. i think what's happened with a lot of tech companies is you get the manager types who move in. they don't innovate. the company goes stale. that's what i think we saw with yahoo!. i don't think we're going to see it with facebook. >> let's move on to a brand that has been a lasting brand. that would be the british monarchy. and queen elizabeth, who herself celebrates 60 years on the throne right now. look at that. isn't that something? she's 86, man. she's flying down a river.

her popularity is so high that if she were a stock, qe-2 would be a screaming buy. is it right that they've spent a lot of money on this jubilee in a time of austerity? >> i'm sure it costs a lot of money to do this. i don't think austerity is a big issue for this. look at the crowds. the people are having a very good time. all over the world -- >> bang for the buck. >> exactly. this is a major event for the british people. the big joke was that queen elizabeth came out, saw her shadow, that means there's going to be another 1,000 years of british monarchy. i think this is money well spent. >> for me it's like as long as we're going to do this monarchy thing, this ceremonial monarchy, you might as well go big with things like this. i mean, what type of video are you going to get if you don't go big? >> look at that. >> this is tremendous. this is what england is. >> they do this stuff well. you can't go away from who you really are. >> that's what i'm saying. >> austerity be damned here.

obviously you have sympathy for people out of work and so on and so forth. a celebration sometimes can be exactly the tonic a struggling economy needs, seems to me. she's pretty good looking, i would say, that one there. that would be kate. >> who is that? >> i don't know. let's swing to t"the new york pos post". a report there says the yankees and stubhub, the ticket resemiing mechanism, are in a big fight over ticket prices that could lead to a big split at the end of the season if the two cannot patch up their differences. i guess the contract with stubhub, between stubhub and the yankees -- >> and major league baseball. >> runs out at the end of the year. yankees argue they're ticked off that they're not getting that sale money. >> right. >> somebody else is sfwl there's a couple things going on here. they're not getting that additional sale. stubhub is now selling a ticket essentially twice. also, i think they're worried that stubhub is trying to get the fees, so what they're then doing is they're artificially lowering it. the critics will say, what are you talking about?

people sell a ticket for what the market value is. >> stubhub is the true marketplace. >> is the yankees' argument that what they should do is have the empty seats because people can't resell their tickets and they're stuck with them? >> there's no economic reasoning, you would think. we're trying to get randy levine, yankees president on. there's no economic reason to say it's too cheap so no one's showing up. >> the spur of the moment fan who says it's tuesday at 4:00, i'd like to go to the game tonight. >> goes to stubhub before they go to yankees.com. absolutely. >> they buy it from john whose $2,400 seat he can't use tonight. >> it used to be the seats remained empty. some of them quite fwogood seat available to the average fan because they're much cheaper. it's a winner for the fans. if the yankees are fighting it, it will end up being a loser for them. >> i went to a nets game, $150 seat. i got it for, like, $27. they're going to brooklyn now.

thanks, guys. quick programming note, to not miss cnbc's sports biz. darren rovell's friday program. >> it's now thursday. starts this week. at 7:00. >> thursday at 7:00. thank you for the correction there. you sell tickets to that on stubhub? coming up, china's race for resources. renowned economist and author dombisa moyo pulls back the curtain on how this could affect the lives of everyone on the planet. tdd#: 1-800-345-2550 let's talk about that 401(k) you picked up back in the '80s. tdd#: 1-800-345-2550 like a lot of things, the market has changed, tdd#: 1-800-345-2550 and your plans probably have too. tdd#: 1-800-345-2550 so those old investments might not sound so hot today. tdd#: 1-800-345-2550 at charles schwab, we'll give you personalized recommendations tdd#: 1-800-345-2550 on how to reinvest that old 401(k) tdd#: 1-800-345-2550 and help you handle all of the rollover details. tdd#: 1-800-345-2550 so talk to chuck tdd#: 1-800-345-2550 and bring your old 401(k) into the 21st century. tdd#: 1-800-345-2550 over a million people have discovered how easy it is

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before we leave you as we look at the markets right now, two things bruce kasman said he's going to be watching that he told me as he left the studio or the floor today. he's going to be watching janet yellin's speech tomorrow. she's the fed vice chair. listen for any hints of further monetary easing from her. then mr. bernanke's comments on thursday. he has to be much more guarded on that. he usually doesn't use it as a policy tool. they're watching ms. yellin's comments, ty, very closely tomorrow. >> very interest ing. dan, 20 seconds. your chart of the day is apple. >> apple, that's right. >> what's the story? >> here's the thing. mid-july apple announces earnings. you want to be in apple before that time. it's down