steph, give me a ticker. >> wy. >> grasso. >> gdx. >> murphy. >> letter x, buy it. >> all right. that's all for us. power begins now. breaking news. the stock market in rally mode. i'm tyler mathisen at cnbc's global headquarters. >> and i'm sue herera right down here in the middle of a big market pop here at the nyse. stocks indeed are up all the way across the board. at or near session highs for the dow, s&p, nasdaq and the russell 2000 index. and europe also up all the way across the board from the uk all the way through italy with a 3.5% gain in italy, the best on the board, as a matter of fact, ty. >> and it's not just equities that are higher. light sweet, crude and brent up today. for brent more than $2 a barrel. gold right now, let's look at that metal and see what it's doing. there's gold up $20 an ounce at

$1637. as for the gold stocks, goldcorp, bar rack, newmont, all higher at this hour. >> why are the markets up so dramatically? volatility certainly is one reason. but capital markets editor gary kaminsky gave us three reasons, number one, no major bad news from europe. number two, the vote in wisconsin. traders believe the november election will be about budget cuts after governor scott walker survives the recall. and also liked president clinton saying a deal on the bush tax cuts was possible. number three, poll shows conservatives in greece may be making a come back. put it together, we have a triple digit rally. let's open to our reporters at the nasdaq, nymex, chicago merck and nyse. kayla tausche starts us with breaking news. kayla. >> sue, we've been expecting a memo from nasdaq about its accommodation program for losses of brokerages over those botched facebook trades. we're getting news right now crossing that nasdaq will set

aside a $40 million fund for accommodations for those brokerages. that's $13.7 million in cash. the remainder of that will be discounts in trading that will be applied to these member firms. now, these accommodations apply to sales priced at $42 or less that did not execute. sales priced at $42 or less that were executed at an inferior price or buys priced at $42 executed in the cross but not immediately confirmed. we're also seeing a news flash that nasdaq has hired ibm to review its i.t. trading systems in the wake of all the glitches that occurred here. we'll have more for you as we sift through this release and get you more of the headlines, sue. >> look forward to that very much, kayla. down here on the nyse, brian shactman -- as a matter of fact, let's talk about robert greifeld on "closing bell" today. the nasdaq omx group chairman

and ceo. brian shactman, i keep trying to go to you but the news keeps getting in the way. we're up 221 points. >> get to me. reasons you can throw is short covers ahead of facebook and bernanke, there's a lot of different reasons, but one we haven't talked about that much and seems really inside, baseball, you know australia's gdp and it's one of those big growth economies was almost triple expectations. the aussie dollar having its best day of the year. firmness in the euro. and basically the growth fears that we had globally eased. so you had commodities up, equities up and that's where we stand. a great example is energy. it's the worst sector of the year in the s&p. you can say it's ripping today even though nothing has that kind of volume. pioneer natural, slumberger, materials back in the green for

2012. freeport-mcmo ran, names pretty beat up the last three by more than 20% for the year. i want to finally point out financials. you know, bank of america just having an incredibly strong day. the number two name in the s&p. morgan stanley, kate kelly talking about the commodities, when you talk about risk-on and people poo-poo that phrase but what sector it's decidedly in that favor. the volume energy doesn't feel like a 220-point rally. >> no, it doesn't. i think that bears watching as we go into the afternoon and we get to perhaps some evening up ahead of mr. bernanke's statement tomorrow. brian, thank you. see you a little later. now to seema mody at the nasdaq where we have a number of broad based advances in a number of key stocks. >> that's right, sue. a risk-on rally which is perhaps what we have here is bringing investors back into riskier assets, which does include tech

stocks. all of our major tech heavyweights moving higher at the moment. hewlett packard after hitting a 10-month low is now posting gains. we're also seeing money flow into these high beta momentum names. it's no secret that we do have a dose of short covering here. first solar a good example of that. known to be one of the more heavily shorted names is the best performing stock on the nasdaq 100 today. bottom line, good news from europe and some short covering is the reason for the rally today. back to you. >> seema, thank you very much. rick santelli's in chicago watching the rates as he does every day so beautifully. what's happening today, rick? >> it's an exciting day in treasuries no doubt. if you look at a 24-hour chart of tens, up about 20 basis points. a chart reveals you can see the pop to the right, should we close here around 1.66, would be the highest close since last month. a 2-month chart of the bund would reveal a similar pattern and the highest yield closed around 1.33 up 13 on the day since the 29th of last month. but here's where it gets

interesting. look at the spanish 10-year. even though it's had quite a range, it's still very close to 6.30. very close to unchanged. but the king chart of the day and the 70% reason people down here think stocks are up is the dollar index. why is the dollar index down? big almost two-thirds of a cent because the expectation of extending twist. so 70% on that with terms of stocks and other 30% people down here thank wisconsin for setting the november agenda. back to you. >> we're going to explore that later this hour. let's get meanwhile to sharon epperson at the new york merck talking oil, gold and all of those metals and liquids and things. >> oh, those commodities, tyler, are higher actually today pretty much across the board. when you look at the crb index, that's 19 different commodities. whether we're talking energy, metals, grains, we're pretty much looking at higher prices. and a lot of it has to do with what you've been hearing. it has to do with the currency impact, the fact that we're

seeing the strength back in the euro a bit and the dollar is weaker. and the fact there are stimulus hopes out there. whether it's going to be europe or from the u.s., some type of stimulus, something must be done. that's what traders are talking about. we're looking at oil prices right now near the highs of the session, particularly brent crude above 101, but the wti contract has also made some gains. and the metals are also making gains. more of that at 1:30. but copper closing right now, best day in copper in about two month's time. >> thank you, sharon. stocks have been soaring today. dow back in the positive column after dipping negative on friday. so how do you play this rally? or do you dare, dan fitzpatrick, president of stock market mentor.com. be my mentor, dan. is this too hot to handle? >> today it is. here's the thing, we've gone up almost 2.5% since friday's low. the last rally we got, just a couple weeks ago, which everybody got all excited about, went 2.8%. so we're pretty much done. we've got lower highs, lower

lows. you need to make that trend your friend. so i think you just want to stay away, sell into the strength and then wait. >> is the biggest risk right now headline risk? >> absolutely. that's something i've been talking about for a while now. the headline risk this week is positive, which is what we have. you're not really going to see too much negative today unless ben bernanke says something people aren't expecting. but we've got about six trading days until the greece elections. and you can't tell me that the market is not going to be looking at that. >> looking ahead to that. all right. thank you very much. tomorrow the markets will be listening to fed chief ben bernanke as he just mentioned very closely. he's going to address the joint economic committee on capitol hill. senator path tume, a pennsylvania republican, will be there. but first the senator's with us. also our senior economics reporter, steve liesman. welcome to you both. senator, let me start with you. what do you intend to ask mr. bernanke tomorrow? and second question is, do you think that the economy, given the jobs number we had last

week, is in need of some kind of monetary stimulus? >> well, as to the former question, i haven't finalized what i'm going to ask fed chairman bernanke. but i will tell you my concern continues to be that we're using the wrong tool to solve the problem that we have. the problems that are afflicting our economy are driven by excessive and very inprudent and unwise regulation, a threat of massive tax increase and complete unwillingness to deal with a completely unsustainable fiscal policy. the monetary solution is not the right solution to that. i'm worried that inflation could get out of control, could get away from the fed. we see that the current cpi level is already above their target. they've got unprecedented easing. and i'm worried, frankly, that they're willing to throw more at this. i do think the economy is weak. i think the jobs numbers from last week are very, very worrisome. i just think that's the wrong tool to apply to this problem. >> senator, steve, seems worried

a little about inflation. there's no sign of inflation in this economy right now, is there? >> he is correct, obviously, that the current rate is running above the inflation rate. it's also probably correct to say that inflation has surprised some of the doves on the fed board to the upside. but what we're talking about here are tenths, not whole numbers. so we're not running 4% to 9% inflation. we're running a little bit over 2% right now. we have been as high as 3% or 4%. i want to ask the senator, tyler, you came close, senator, but i didn't hear you exactly say do you think fed policy is part of the problem, sir? >> i wouldn't say that fed policy is a big part of the problem, although i do think it creates worries. i hear it every day across pennsylvania that the massive excess reserves that we have $1.5 trillion, once that starts moving through the system, it could be very inflationary. so there is a worry. and i think that does have a chilling effect. but i think the bigger problems are, as i said earlier, it's the massive regulations, whether

it's the health care overhaul, dodd frank, epa on steroids, it's that combined with unsustainable fiscal policy and the threat of a massive tax increase. i think that's the combination that's having a very chilling effect on our economy. >> senator, you couldn't have turned the conversation more adro adroitly. i want to turn to fiscal policy now. president clinton was on with maria bartiromo yesterday and stirred things up by talking about an extension -- a democrat talking about an extension of the bush era tax cuts. >> i think what it means is they will have to extend -- they will probably put everything off until early next year. that's probably the best thing to do right now. >> shortly after that statement, president clinton's office put out this statement saying "he supported extending all of the cuts in 2010 as part of the budget agreement but does not believe the tax cuts for the wealthiest americans should be extended again." i'm not quite sure what he said then, senator, by the way.

but does president clinton's statement yesterday open the door potentially for some kind of agreement either prior to or in a lame duck session on an extension of the tax cuts in light of the fact that the economy's as weak as it is? >> well, avoiding this massive tax increase is just the right thing to do for the economy in any condition. certainly in the very weak condition that it's in. i think that president clinton, you know, committed what -- a gaffe, for a politician, is when you accidentally tell the truth. he said, yeah, we should extend the rates. the obama campaign team immediately went ap po plektic and drilled him to walk that back a little bit. i think it's very clear. we've got a spending problem. we have allowed spending to double in just ten years. spending as a percentage of gdp is up dramatically. so the concentration of resources in government leads to

slower economic growth. it's spending that's the problem. and in fact the current tax rates as recently as 2007 gave us a deficit of only 1.2% of gdp. we have to get spending under control. >> i want to get a quick thought from you on the results of the election last night in wisconsin. let me put it this way, how, if at all, does that change the spin on the ball heading into november in the presidential race? >> it's certainly very, very encouraging. this was expected to be closer than it was. this is the first time a governor in a re-call has won that race. the issues that he ran on were well adjudicated and he won big. even by a bigger margin than his first election. this is very encouraging in a state that is generally pretty much a blue state. so i think wisconsin is totally on the map. if wisconsin is on the map, i assure you so is pennsylvania and a lot of other states that are traditionally considered states on the bubble. you know, i think everyone has to look at this and realize

governor romney has a great chance of being elected president. >> yes. well, thank you, senator toomey. the president still leads in popularity in that state even though the election did not favor the democratic side in that particular. senator toomey, thank you again. sue. >> ty, given today's market, how is a $7.5 billion market cap company impacted by every tick in the stock market feel like today? we're going to ask about that next. before we go to a quick break, a few of the leveraged etfs up big today better than 4% or 5% across the board. we hope that you plop down some money in some of these. and you're up big today. back in a minute.

welcome back to "power lunch." i'm jackie deangelis. shares of kenneth cole after the board approved cole's offer to buy back the rest of the shares company that he doesn't own, remember he offered $15 back in february. that was rejected. the stock up just shy of 4% today. sue, back over to you. >> thank you, jackie, very much. it's a day with the markets up more than 200 points. 215 to be exact. we're keeping an eye on hartford financial in the middle of that. it is trading on the upside today in a very strong market. however, it's been a tough year for this stock. as a matter of fact, for the year it's down 32%. today it is up a strong 3.6%.

liam mcgee joins me here part of the yale ceo summit going on. nice to have you here. >> great to be with you. >> let's start first of all with the market. you run a huge corporation across financial services. >> yes. >> how do you navigate the volatility that's inherent in this market where one day we're down almost 200 points, and today we're up 218? >> well, you know, i think it goes back, sue, a great bit of advice when i became a ceo, pay attention to stock price, but pay much more attention to running your company. so i think the most important thing -- my most important response to that is i spend my time really laser focused on executing our strategy. we're clearly sensitive to the things that drive our stock price. and to your point, we're not satisfied with our share price today. and that's why we have brought focus to our company. as you know in march announcing -- >> you just reorganized the company in essence.

tell us what you did and why you did it? >> we're really excited about it. the management and the board began a process middle of last year really because we were not satisfied with our share price. and we looked at our portfolio businesses, the hartford is the last of a multi company as well. we looked at our portfolio and strategies and put it through a rigorous subject against two primary principles. how are we going to increase returns for shareholders sf and how are we going to sustain for more superior performance. >> do the moves you put in place reduce the volatility in the financial services part of the portfolio? and how much of the moves that you have made have come under pressure from the likes of john paulson and others dissatisfied with the share price performance? >> all shareholders have a right to state their opinion. but the board and i and management team really looked at through three levers. one you noted. first, what are the businesses

we felt had competitive positions upon which we could invest for profitable growth? second was, we wanted to be in businesses that generated capital. and third, to your point, which lowered our market sensitivity. so we have proclaimed, as you know, we're going to go forward with our commercial property casualty business, our consumer property casualty business, our group benefits business and our mutual fund business, which is a very exciting property in conjunction with wellington management. >> what kind of exposure do you have, if say the worst case scenario unfolds in europe and the volatility in these markets increases rather than decreases, even though we may be the prettiest girl at the dance. >> right. >> the rest of the dance floor doesn't look so good. and there is a lot of worry in the market right now. >> yeah. we have very limited exposure to europe. we do very little business directly there. >> but the ripple effects? >> our investment portfolio has a very small exposure there. mostly it's commercial and multi-national companies.

we have as any financial services company run our company against a variety of scenarios. we've been very transparent with our investors. we have a very strong capital position even in a downside market scenarios. >> i know that you have another date at the yale ceo summit. we'll leave it there. thank you for being here. >> it was a pleasure. >> ty, back to you. >> thank you very much. it's a big day for the markets, as we've been telling you. the bulls running for several reasons. one reason, no really bad news out of europe today. here's the u.s. market board at this hour. let's take a look. industrials are higher by 219 points. the s&p by 22. 1.7%. and nasdaq up 56, better than 2%. now, the biggest winners on this wednesday. the sixth of june. we're back in two. tdd# 1-800-345-2550 checking the charts. tdd# 1-800-345-2550 looking for support, tdd# 1-800-345-2550 resistance, breakouts, tdd# 1-800-345-2550 a few other tricks that i'll keep to myself. tdd# 1-800-345-2550 that's how i trade.

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welcome back to "power lunch." a very strong day in the markets with the dow jones industrial average last trade up about 216 points on the trading session. matt cheslock joins us right now to talk about exactly what's going on in this market. matt, first of all, do you trust this rally? i've talked to a number of hedge fund guys who said they're basically covering their short positions going into bernanke tomorrow. >> well, that seems to be the case. do i trust it? you know, yes, short-term i do trust it. if we're in a lull for what we expect out of europe as far as news goes, we have some re-balancing going on.

there are some good positive vibes out there. do i trust it in the short-term? absolutely. >> all right. a number of traders walking by a few minutes ago, we heard the bell go off. and there's nobody up on the podium. so what the heck happened? and a number of them were like i'm done, we're up 216. i'm out of here. >> yeah. we'll take what we can. yesterday as the bell approached, there was a lot of volatility. today there was follow through. i expected the market to be up more yesterday. if we could ring the bell right now, i'll go home please. >> you think the shorts throwing in the towel? >> somewhat. if you haven't hedged your position based on europe by now, you're probably going to miss the boat. the trade is in front of you. if you believe what's going on in europe, then you can put the trade on and take some risk, if not, you should have had plenty of time to invest. >> all right. jackie deangelis with a market flash. >> hey, sue. shares of halliburton halted before the company provided an operational update. some of the headlines coming out of that update, the company

saying it now believes it's north america margins will be impacted 300 basis points in q-2. that's more than expected. also saying it believes these increased costs are transitory once the new supplies come in in early 2013. finally halliburton seeking to mitigate some of those costs in the second half of the year seeking relief through customers. we'll keep an eye on that stock and see how it goes when it resumes trading. tyler. >> jackie, thank you very much. the metals market about to close for the day. we'll hit the nymex next. before the break, let's look at dow leaders. bank of america having its best day since last october. jpmorgan, caterpillar, united technologies among the other winners this day. [ male announcer ] how do you trade? with scottrader streaming quotes, any way you want. fully customize it for your trading process -- from thought to trade, on every screen. and all in real time.

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it's not just stocks that have been moving sharply to the upside today. various parts of the metals markets as well. and gold prices are closing right now. so sharon epperson is tracking the action for us at the nymex on that front. hi, sharon. >> hi, sue. we have a little bit of a rally going on here in the gold market going into the close. but we're off of the highs of the session by about $10 or so. right now trading at $1634.

what traders are talking about really is bernanke. everybody's waiting to hear what he will say in this congressional testimony tomorrow. but they're also looking at the situation that we're seeing in europe and here in the u.s. and particularly after that nonfarm payroll down and rally ensued something has to be done. that's what the anticipation is, whether or not that plays out. that's why we're seeing a rally not only in gold today, but in silver. silver actually posting the biggest one-day gain we've seen in percentage terms in about five months time. big gains there. copper having its best day in two months as well. a lot of anticipation for bernanke. we'll see what happens. >> we'll see whether or not they're disappointed or not. he tends to play it close to the vest sometimes. thanks, sharon. big rally on our hands. we are now up 223 points. best run we've seen since at least march 13th, she tried to say. brian shactman joins me on the nyse floor. you and i were just talking, there's confirmation out there too. transports are up 130 points

right now, which confirms the idea that the economy may be actually lifting. >> yeah. but it's a funny thing. we talked about in the last segment it was a perfect conversation, do you trust this rally. >> right. >> that's exactly what i want to discuss with you. volume, it's one thing we talk about. it's above average but not furious. >> yeah. it's not stellar. >> ask you, ask anybody, what's materially different now than friday when we were 275 to the downside? >> i don't think there is. but i think perhaps the hedge funds are covering their short positions ahead of bernanke. and i just wonder whether there isn't too high an expectation on the fact that mr. bernanke might actually say something definitive on qe-3. which he traditionally have not used these testimonies to do. >> so what if he isn't so dovish, if you will? we could reverse it all tomorrow. >> exactly. >> so that's why a lot of people are saying this is a trader's market right now. not an investors market. of the five traders i asked what's going on, they give me five different answers, then

maybe people should pull back a little bit. but to your point about the growth thing, look at the sectors. there are five sectors are so up 2% or better. look at energy, financials, technology, consumer discretionary, that's optimism with growth. >> 2% plus gains all the way across. >> yeah. and look at bank of america. it's getting toward $8 again. you can't ignore what's happening, but it's hard to trust. >> indeed it is. well-said. i'll see you later. >> okay, sue. >> tyler, back to you. >> sue, thank you very much. let's go to nasdaq now and check in with seema mody following the big movers over there. hi, seema. >> hi, tyler. we have ourselves a broad based rally here at the nasdaq. it's not just the tech heavyweights outperforming. travel stocks like expedia, hitting new high. dollar general a higher amount than previously indicated is helping the stock. whenever we see a rally in tech, chip stocks, the semiconductor players like broadcom generally

outperform. switch to social media, which have had a volatile ride to say the least since facebook. groupon getting a hold at stifel nicola nicolaus. >> nasdaq tries to make friends with facebook investors. kayla tausche has more here at headquarters. >> nasdaq is tripling the amount it was planning to pay brokerages who lost money due to facebook glitches. it's still far from covering all of those losses. the exchange saying earlier this hour it would pay $40 million to market makers to cover damages estimated to be as high as $200 million. that's not even including iin i. nasdaq wants to protect its balance sheet. so much so that only $13.7 million of the total will be paid in cash. the remainder will be doled out as trading discounts for the member firms.

eric knoll explained how they arrived at that number in a video feed saying the company looks at the $3 million ceiling for accommodations set in place by the s.e.c., it looked at the roughly $7 million in facebook profit nasdaq would see for each of the next five years and the $10.7 million error account from may 18th. but what the funds will not cover is any opportunity costs from the glitch saying they're just unkwaunty fiebl. and large order traffic occurred at 1:50 p.m. on opening day also there unquantifiable. ibm is currently reviewing the company's i.t. and trading systems. we'll hear more from that and from this system in place from ceo bob greifeld speaking exclusively to maria bartiromo. we'll all be tuning in. >> absolutely we will. let's talk about the bond market and how it's shaping up ahead of

mr. bernanke's testimony tomorrow on the economy. rick santelli's tracking the action at the cme. i just wonder whether the stock market anyway doesn't have it hopes up for too much from bernanke. what is the bond market telegraphing you about -- to you about what they expect from mr. bernanke tomorrow? >> well, as you look at these two-day charts of 5s, 10s and 30s and the address is 487 up 4 on 5s, up 8 on 10s, up 7 on 30s. traders down here are suspect. they're really thinking more of an illusion on the fed in terms of what the more twist will really accomplish. here's what they also think. we don't have a meeting until the 19th, 20th. they agree with shac they might not extend the twist. he could in essence talk this up and essentially build in a stock cushion. whether he does anything is the question. the dollar chart, it's getting hurt. looking at silver, gold, crb,

goldman sachs commodity index, it's hard to separate the impact of the discussion we're having about the fed and what it's doing to the dollar, potentially stocks and of course dollar denominated commodities. back to you, tyler. >> rick, thank you very much. let's get to jackie deangelis now with more on halliburton. >> hey, ty. shares of halliburton have resumed trading in fact. right now they are tratd e trading slightly higher. we saw they were at 2% about higher before the news came out. the news was an operational update revealing hal will see margin impression in the second quarter due to higher commodity costs. we also saw the rest of the oil services taking a dip on this, but we're seeing them rebound as well. slumberger and nabors, getting hit at the moment that the news came out a little worried about spillover there potentially for these companies as well. ty. >> jackie, thank you. low bond rates leading to record low mortgage rates and that has mortgage applications up more than 1% in the most recent week. refinancing activity also

picking up. so who's cashing in and who's not? diana olick knows. diana. >> that's right, tyler. it's in the refi space no question. borrowers and smaller lenders are getting a boost from these low, low rates. 78% of all applications last week, that's the highest level since february. record low rates the revamped refi program with under water borrowers with fannie mae and freddie mac loans. secretary of housing and urban development told me this week it's exceeding his expectations. smaller lenders are getting much of this new business. why? because on the flip side the big banks not so thrilled. a lot of the new refis are loans put on their books just a year ago. serial refiers. that's not so good because they paid the premium to get those loans and were expecting long-term servicing revenue. they have a big volume and a big staffing issue. refis of the big banks are taking far longer. home purchase applications

dropped again even on the low rates. that does not bode well for housing. many home sales now are on the very low end, that is all cash investors buying. we need to see purchase applications rise, which would be indicative of regular move up buyers in the housing markets. tyler. >> diana, thank you very much. let's turn now to morgan stanley. its shares moving higher by more than 5% in today's rally. the investment bank thinking about selling part of its commodities business. kate kelly breaking that story earlier. and she joins us now with more. kate. >> tyler, thanks so much. you know, i've been talking to folks in the commodities trading business today who are saying this makes a world of sense to them and they wonder if goldman sachs and jpmorgan, who have the other two biggest commodities franchises at least on wall street are going to do the same. so far the answer seems to be know. right now they're very happy with their business and they have no plans to sell it. and i've heard nothing on that score from jpmorgan. so interesting timing here.

now, i should point out morgan stanley would probably be looking at taking on a minority investor. they're not looking to sell the whole business, although i suppose when you start these conversations they could move in various directions. and of course this would probably raise some capital. and that comes at a convenient time given the capital constraints that morgan and others are under, the fact moody's downgrading, we'll know more at the end of the month. but i'm told their chief concern is volcker rule. will it enable them trading hedging on their own behalf? possibly doing things that could cross into proprietary trading in some people's books as well as, tyler, holding large physical assets like the tanker pool operator or transmontane. >> kate, thank you very much. let's go to dan fitzpatrick now and talk a little about the financials and how to play them. a good day for morgan stanley for some of the reasons kate just outlined there.

a great day. best of the year for bank of america. what should i do? >> you know what, i'd sell morgan stanley, tyler. here's why. it's really simple. that news is already factored into the stock. it's up 10.5% in two days. as a trader, you've just got to take those profits. you have to do it. the trend is still down lower lows, lower highs. you need to be taking those profits. now, if you're looking for a name to play in this space, if you're looking for a financial, i would look at bank of america. you can see on this chart here bank of america is actually just printed a higher low. now it's got a higher high versus the xlf, which is a financial sector which continues to drift down. if you're looking for a financial sector, go with bank of america. back to you, sue. >> thank you very much, dan. let's recap some of the other big headlines making news this hour. california ballot measure that would have added a dollar tax to a pack of cigarettes narrowly defeated in that state's primary election. scanner trading at all-time high

levels back to restructuring in 1984 was bouncing energy trading back to levels set back in april of 1987. not everybody's a winner in a very strong market day. shares of tempur-pedic plunging 50%. the mattress maker cutting outlook on the full year. i just talked to art cashin incidentally and he says the run rate on volume is going to be between 740 million to 800 million shares. much better than we've seen lately, but he'd like to see better to confirm the rally. an extra market note for you. up next, call it a mexican showdown. yum brands, taco bell going to war with chipotle. both stocks near new highs. taco bell ceo joins us to unveil his big plan and give us his take on the u.s. economy. let's look at how the top commodity etfs are fairing today. many are on the plus side. but we have the nat gas fund on the downside today by about .1%.

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it's a good day for your money. coming up on "street signs" right at the top of the hour, it is the beige book. it is out. we're going to break ilt all down and handicap what it might mean for the possibility of more quantitative easing. herb has certainly warned us, tempur-pedic, that stock cut nearly in half today. more sleepily nights ahead for tpx. and groupon, yeah, it is more than half off its ipo price, but we have an analyst who thinks the stock may finally be a daily deal in the making. that's coming up on the very finest 2:00 p.m. eastern time show on this network. now back to sue and tyler on "power lunch." >> the very best. all right. thank you, brian. see you then. we're keeping an eye on yum

brands. shares trading higher today perhaps on news that taco bell, which accounts for 60% of that company's u.s. sales, has gone gourmet with a new upscale product line out today called cantina bell. move away from the core food on the go approach. to talk more about that strategy and more generally about the economy as he sees it, first on cnbc taco bell's ceo, greg creed. welcome back. we had you here when you were talking about the doritos taco loco some months ago. now another food innovation. but before we get to that, i want to get your eye on where you see the american economy today as measured through traffic and expenditures in your restaurants. >> well, the good news, tyler, is on the back of the success of the doritos tacos locos we've hired about 15,000 employees in the last month. two to three people per restaurant. we've hired this across the country. i think in a business that's growing, a business that's

hiring people, the success of doritos, we've had to order more equipment so we have more lines being produced for us. so i think when you can introduce innovative products that really do address what your customer's looking for, it puts you in a period of growth. growth means suppliers, equipment, employees, i think that's all very positive. certainly for taco bell and certainly for yum. >> so you say good products attract good and repeat customers. this new cantina offering here seems to me to be a shot across the bow at let's call it chipotle. i'm not wrong about that, am i? >> this came from an insider that would like taco bell to be more relevant. so to create the line of items includes new products, whole black bean, white rice, new corn and pepper salsa. and we're very excited to partner and we're very excited with the cantina bell. it's been in test now for about four months.

the test markets have done very well. so we're seeing transaction growth, more customers coming in, we're seeing sales growth in the test markets. and what we're seeing is when we come into taco bell, stronger lunch and dinner. >> speaking of women, let's bring in sue. >> i was just wondering, sir, we hope the initiative goes well but it's coming at a time when commodity costs are really volatile. and we're not sure yet whether or not the u.s. economy is really on strong footing. do you have pricing power with a line like this given those two factors? >> sue, that's a very good question. i think for us we're selling this for less than $5. so i think what we've put together is an amazing foods -- selection of food, choice of food, ingredient quality taste. still for less than $5. i think if you can continue to offer amazing value and amazing taste with all these new i ingredien ingredients, i think we're up for a lot of success. we've been in test market since

february. the economy has been chugging along since then. so i'm confident when we go national on july 5 9 that we'll be able to replicate the results we've seen in test market. >> mr. creed, thank you and good luck with the new initiative cantina bell. did i get the name right? >> that was perfect. thank you. >> mr. creed, thank you. let's head to dan with some thoughts here. so, do you like chipotle or yum? >> you know, i like both of them. but if i had to choose, i'd choose chipotle. first of all, you can get a beer there. but that's for another day. also, if you look at the chart, we've got a chart comparing both of them. yum, the yellow line, this is reverting to the mean which is another word for saying the rubber band is snapping back and starting to move higher. chipotle on the other hand has just kind of been pulling back a little bit. it's the leader in the space. it's about twice as expensive, but you pay up for growth. so when you're going to be picking between the two, go with the leader. and that's chipotle. okay. back to you, sue. >> cheers on that note, i guess,

dan. have a cerveca. up next on "power lunch," we have a strong rally of 220 points. a lot of confirmation out there. before you jump in, why you need to be ware of these types of rip-your-face-off rallies coming up next. as we head out, brian shactman mentioned it, the energy sector leading the way. chesapeake, phillips 66, pioneer gnat and denbury up between 5% and 6% on the trading session. back in a minute. but when i was diagnosed with prostate cancer... i needed a coach. our doctor was great, but with so many tough decisions i felt lost. unitedhealthcare offered us a specially trained rn who helped us weigh and understand all our options. for me cancer was as scary as a fastball is to some of these kids. but my coach had hit that pitch before. turning data into useful answers. we're 78,000 people looking out for 70 million americans.

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another check of the rally. dow's up 213 points. nasdaq's up 55 points. s&p is up 22 points. let's bring in our markets panel. start with cnbc.com's john carney, john, yesterday you were on "power lunch" recently saying be ware of these types of rip-your-face-off rallies. i've had two traders come by me right here at our post and say buy the dips, baby, buy the dips. make you nervous? >> it does make me nervous. what happens here is that we've never had -- or rather in the last month we haven't had two up days in a row. so the trade was if you have an up day, you go in short to the

next day. and then you get something like this where the market starts moving up, people start saying, oh, no, maybe the pattern is broken. so they start covering the shorts. this puts even more buying pressure on the market. it goes up even higher. this is typical of a bear market scenario where you get the explosive rallies that can really, really damage people who aren't on top of it right away. >> dan fitzpatrick, based on what you said earlier about lower highs and lower lows, i can't see you disagreeing with what john just said. >> i don't disagree at all. what's a little frightening is everybody seems to have the same take. you still have to go with the trend, you sell into these rallies. wait for a better opportunity. you're going to get it. but complacent si is a little high. >> i've had a lot of conversations just in the last half hour about the short covering component. people closing shorts making money on those because nobody wants to be short going into bernanke tomorrow. so if there's a company that was low enough for you to think long on it, maybe that's one thing. but in general, again, i'll say

it again, these are trades that are happening here. not a lot of investing going on. >> what's the old adage in the commodities market, brian? only pigs get slaughtered, right? >> right. >> if you've had gains, why wouldn't you take it off before bernanke? >> people feel good about it. it's actually because people don't know what to expect. >> right. there's a lot of uncertainty. >> there's a headline risk dan was talking about earlier. we've got bernanke talking tomorrow. will he say something that gives the markets pause or pleasure? draghi speaking today saying very little maybe indicating that the european governments and monetary policy will jump in. and then we have the greek elections next week. there's a tremendous, dan, amount of headline risk here. add to that the fact that individual investors, i believe they feel suckered every time they have come into the market and bought the idea that it's a safe place to be. >> that's a good point. >> there's a lot of tentativeness out there. that's a good point. the market hates uncertainty.

and if that's true, the market hates what's going on right now. i think investors, traders, money managers are hanging back waiting for a little more certainty before they commit either to the long side or short side. >> all right. sue and her band of merry men there. look at that. >> i am one lucky girl. i just wish you were with me down here, ty. >> likewise. coming up next, google fires the first shot in their mobile map war with apple. we're going to look at who's likely to win this bitter fight to give you directions. before the break though, some of the most popular etfs on the market. tdd# 1-800-345-2550 let's talk about fees.

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no good! no good? no good! so you chose geico over the other. whatever this insurance is, it's no good. ok so you... all righty. welcome back to "power lunch." the dow jones industrial average up 211 points. the nasdaq's up 53. kenny with me. you don't trust this rally. >> i don't. i don't trust it. we were in a well oversold position. they look for any good news they could, they jumped right on it. you saw a lot of shorts going into this turn right around and cover today. what's ben bernanke going to say tomorrow other than we already don't know? he's going to indicate there's going tor more stimulus or

potential for more stimulus, which is what the market really wants to hear. but the fact is macro reports have been rolling over. they've been negative. you should sell into this. >> sell into it. all right. you heard it from kenny. ty, back to you. >> all right. let's see what dan's watching for the rest of the day. >> i'm looking at skyworks solutions. here's the thing, the stock, if you compare it to the sox index, it's outperforming. the reason is it stands to benefit from the iphone 5 design, that's coming on pretty soon. so what i want to do is buy that on this breakout. >> i wish i bought it six months ago. dan, thank you very much. that will do it for "power lunch," sue. >> "street signs" is up in just a second with the beige book results. we'll see you tomorrow on power. and welcome to "street signs" where we have got a real rip-your-facebook-off rally on the street. the best day of the year for the dow, but the facebobeige book o